When hiring a new employee, there are two documents that are sometimes confused: letters of offer and employment contracts. What are the differences between the two? What is the purpose of each document? Let`s take a look! You and your employee are bound by the terms of the agreement until the terms are changed (which must be mutually agreed upon by both parties) or the contract ends (usually with the employee receiving notice of termination). If a situation arises in which one of the parties does not know how to proceed in a workplace case, the employment contract, in cooperation with the established policies of the company, can inform the employer and employee of the next steps depending on the language used in the agreement. Depending on the job and the company, you may encounter different types of agreements. An employee or employer may breach the terms of an employment contract, whether the contract is written or oral. Allegations of breach of contract often involve issues of compensation or termination of employment. The performance of an employment contract varies according to the law of the State. For this reason, you should know the terms and conditions of the contract before entering into a written employment contract. In some states, an oral work arrangement is inapplicable if a company promises individual employment for more than one year.
For long-term employment, a signed written agreement must be concluded. Otherwise, it is assumed that the employment relationship is performed at will and can be terminated by both parties. An employment contract also contains the language of termination of the employment relationship. Overall, the termination clause includes the period during which an employee can terminate their employment, including the amount of notice period that can be given (usually two weeks). Most employment contracts also cover the use of a company`s confidential information. In particular, the agreement will contain language that prohibits the employee from sharing a company`s confidential information with outsiders. The agreement may also include a provision prohibiting an employer from changing jobs and working with a direct competitor for a certain period of time (for example. B in the year following his departure from the employer). A good example of what an employee agreement looks like and how it is structured can be found in the Stanford University employee agreement example.
An employment contract is essentially this document and is an agreement between the employer and the employee. It explains the relationship between the employee and the employer, what is the basis of this relationship, the roles, responsibilities and all the conditions associated with it. It begins as soon as a job offer is accepted and an employee has accepted the conditions at the beginning of work, even if he has not yet seen them. Labor law and employment contracts can be quite complicated, and it`s important to make sure that you and your employees are properly covered in an employment contract to avoid conflicts in the broadest sense. If you do not have full contracts, there is a risk of constructive or unjustified action for termination. .