How Does an Employment Contract Work?
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Introduction
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An employment contract describes the terms and conditions of employment. The contract details the rights and responsibilities of the relationship between an employee and an employer. Employment contracts are not legally required, but they can be a necessary part of the business relationship. While employment contracts do not have to include every aspect of the job in question, it should state the most important issues. When you start a new job, if you are offered a contact, there are things you need to know to protect your rights.
How Does an Employment Contract Work?
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An employement contract has three main parts. The first two being the offer of employment by a company and the acceptance of the job by the employee. The third part, the "consideration," is the exchange of services. After the employee and employer sign the contract, it is legally binding. Both parties are expected to adhere to the terms of the contract. If the employee or the employer fail to honor the responsibilities outlined in the contract, he can be held accountable for breach of contact. Either party can sue the other for breach of contract in a court of law. When starting a lawsuit it is a good idea to find an attorney who specializes in labor law.
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What is in an Employment Contract?
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There are many parts in an employment contract. Once your new employer gives you a contract to sign be sure to read it thoroughly and overview the title and description of the duties to be performed. Review the type of compensation offered--salary and/or commission, the pay period (weekly or biweekly) structure and information about benefits such as health insurance, vacation time, sick leave, maternity leave and personal days. Also important is the duration of the job and how many hours per week are required. If there is a probationary period, its duration must be spelled out.
The document can be one page or several pages depending on how detailed the contract is. Contracts can protect the rights of both employee and employer and can be an important part of a business relationship.
Some employers have a confidentiality clause or separate non-disclosure agreement to prevent an employee from discussing certain aspects of the job with people outside the company.
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