Understanding Your Employment Agreement
An employment agreement is a legal document that lays out the terms of your job. It defines your rights and responsibilities as an employee, and those of the employer. The agreement should be carefully reviewed to make sure it is fair, accurate, and contains all the necessary clauses. Here are some things to look for in an employment agreement before you sign on the dotted line.
Job Description & Duties
The first section of any employment agreement should clearly define the job duties and responsibilities expected of you as an employee. It should also detail what resources you have access to in order to do your job, including any necessary training or tools required for success. A good agreement will also include a clause that states that your job description may change over time at the discretion of the employer, with appropriate advanced notice given whenever possible.
Compensation & Benefits
The compensation portion of an employment agreement should cover both monetary compensation (salary, bonuses, etc.) as well as benefits such as health insurance, vacation time, retirement savings plans, etc. This section should also include any conditions related to salary increases or bonuses that may be available during your tenure with the company. Be sure to review this part of the agreement carefully; it's important to understand how much you will be paid and what benefits are being provided by your employer before signing anything.
Non-Compete & Non-Disclosure Clauses
These two clauses are often included in employment agreements but can be negotiated depending on the specific situation. A non-compete clause prevents employees from working for a competing company or using trade secrets or confidential information for their own benefit after leaving their current employer; this clause is typically valid for a certain period of time after leaving the company. A non-disclosure clause forbids employees from disclosing confidential information about their current or former employer without written authorization from said employer; this clause is generally enforceable until certain conditions have been met (such as completing a certain number of years with that employer). It's important to make sure these clauses are fair and reasonable before signing anything.
It's also important to review termination provisions when reviewing an employment agreement. These provisions outline how either party can terminate the contract if it becomes necessary—for example due to unsatisfactory performance or a change in circumstances—as well as how much notice must be given prior to termination. In addition, make sure that there are no clauses limiting your ability to seek alternative employment after your contract ends.
An employment agreement is an important document that outlines your rights and responsibilities as an employee, along with those of your employer. Before signing anything, it’s essential that you read through every section carefully and make sure it covers everything discussed during negotiations (including compensation/benefits terms) while protecting both parties involved in case of any dispute down the road. With thoughtful consideration and deliberate negotiation processes, understanding your employment agreement can help ensure a mutually beneficial relationship between employers and employees alike.
For more information and assistance with employment agreements and other employment or labor law matters, contact Curington Law, LLC at 312 803-1755 or online.