An employment agreement may be used as a formal employment offer to a potential employee or may be negotiated between the employer and employee. This type of agreement establishes the terms and conditions of the job. Employment agreements can vary from being customized for a key employee, or a standard agreement for all employees, and it can vary in specificity. Typically, all employment contracts establish the employee’s start date, salary, and benefits, among other things.

Our Zeller attorneys will advise you, whether you are the employer or employee, as to what kind of employment agreement is suitable for your particular needs in your particular field.

Employment-AgreementThe following provisions are imperative in a well-drafted employment agreement:

  • The rate in which the employee will be paid
  • Severability clause: this clause establishes that the remaining terms of an agreement will be upheld even if a court finds that one or more provisions are unconstitutional, void, or unenforceable
  • Starting date
  • Statement of at-will nature of employment, if applicable: at-will employment means that employer or employee may fire or quit the job at anytime for any reason, as long as that reason is not illegal (example: discriminatory)
  • Title of the position being offered to the employee
  • Confidentiality agreement: this clause establishes that the employee will not disclose any information regarding how the employer runs his or her business, or information regarding the employer’s secret information or data such as processes, plans, formulas or machinery the employer uses. Confidentiality agreements outlive the term of employment.
  • Non-complete agreement: this establishes the promise by an employee that he or she will not work for the employer’s competitors, work for an employer involved in the same type of business, or start his or her own business that will compete with the employer’s business, for a certain time after the employee no longer works for the employer. The validity of this type of clause depends on the limitation it imposes, for example an employee must only be restricted in a specified geographic location.
  • Statement and descriptions of benefits plan, if eligible or applicable