Employment contracts carry with them many benefits and disadvantages. They can both protect the employee and the employer from issues regarding rights of termination and payment disputes in the future. But they can also give way to law suits and be taken advantage of in many ways. There are many pros and cons of employment contracts, and here at Wagner, Jones, Kopfman & Artenian LLP, our attorneys are standing by to help you navigate this complicated system of employment.
What Is An Employment Contract?
An employment contact is a document that dictates the agreed upon terms employment. Many different terms can be included in an employment contract; including terms of employment, vacation days, sick days, a pension plan and much more. The agreement must be adhered to by both parties for the entire period of its depicted time frame and is a legally binding agreement. If you have any further questions regarding the definition or terms of an employment contract, then contact our professional team of legal minds for further assistance.
The Benefits Of Employment Contracts
The benefits of an employment contracts can include things like:
- 1: The contract can specifically depict the terms in which the employee can be terminated.
- 2: The contract can provide a very easy and neutral way to settle employee/employer disputes
- 3: It clearly shows the sick and vacation day policies so that no one can take advantage of the lack of clarity
- 4: They can hold employees and employers responsible for their actions.
- 5: They can provide a clear definition as to what benefits (like health and life insurance) the employee must be presented with by the employer.
- Much, much more
Examples Of Good And Bad Results Of Employee Contracts
Consider the following situation: You are an employer and have spent a large amount of time and other resources on training a new employee and teaching them the company secrets. Now that this person is trained and has knowledge of your company and its competition, you would most likely like to hold onto this new trainee. Now, while an employee contract cannot force an employee to continue to work for you, it can help provide incentives for the employee to stay since there are agreed upon consequences for leaving.
As for a bad result of employee contracts, consider this: Employment contracts are two way streets. What if you, as an employer, hired a new employee only to find out that the project you hired said employee for is going to be finished before the agreed upon period of employment is over. With a contract, you cannot simply let the employee go until you either meet the terms of the contract by waiting it out or by paying the employee the remaining salary or wages that you would have owed them had they stayed working for you.
Are Employment Contracts Worth The Hassle?
Whether or not an employment contract is necessary or recommended for your employer/employee relationship is a complicated decision. There are situations in which it benefits both parties well enough to be a useful investment of time. There are also situations where all an employment contract does is complicate an otherwise simple situation. All in all, employment contract and terms of employment are highly individualistic legal documents that must be carefully tailored to fit the situation and produce the desired outcome. If you need any kind of legal help regarding your employment contract, then give our professional team of lawyers here at Wagner, Jones, Kopfman & Artenian LLC a call at (559)449-1800 today. We are always standing by to provide you with quality legal advice and representation.