Employment agreements define the employer-employee relationship. The goal is to avoid disputes, litigation, and damage to an organization’s reputation when an employee-employer relationship sours. An employment agreement does this by defining responsibilities for the employee and employer to each other.
If you are a business owner in Wellington, it is essential to have an employment agreements attorney available to help you create fair and legally sound agreements. Grace de la Gueronniere of Gueronniere, P.A. is a knowledgeable corporate and business law attorney who works with business owners who need an employment agreement. Contact Gueronniere, P.A. today to schedule a free consultation with Attorney Gueronniere.
Employment Agreements
Employment agreements are written contracts that define the employee’s responsibilities to the organization and the organization’s duties to the employee. It is important to memorialize the agreement between the employer and the employee in a written contract both parties sign. Otherwise, there can be confusion about what the parties agreed to, leading to disputes. Employment agreements seek to ensure a healthy employee/employer relationship.
Some essential provisions to include in an employment agreement are:
- The position and job responsibilities
- Compensation and benefits
- Duration
- Termination
- Non-compete
- Confidentiality
- Intellectual property rights
Position and Job Responsibilities
In the employment agreement, you want to include the name of the position and the employee’s job duties. This section should include the title of the position and who the employee reports to in the reporting structure. The goal is to ensure everything is clear between the employer and the employee.
Compensation and Benefits
An employment agreement should spell out the compensation and benefits the employer will be providing to the employee. This provision includes the amount of the salary, eligibility, and structure for bonuses. If the employer offers health insurance and retirement plans, the employment agreement should include that information. Lastly, employers can also have how frequently the employer pays the salary and the methods the employer pays the wages in this section.
Duration
The duration provision specifies whether the employment agreement is for a specific, fixed, or indefinite period. The contract provides a place to state the duration clearly so there are no surprises when the employee/employer relationship ends.
If the employment is for an indefinite term, the contract may explicitly state that the employee is an at-will employee.
Termination
If the employer or employee wants to end the employment relationship, a termination clause will define how to do this. The termination clause will specify the conditions and grounds for the employer to terminate the relationship and any notice requirements for the employee or employer before the relationship ends. When employers fail to define how to terminate an employee, it can lead to litigation regarding the employee’s termination.
Non-Compete and Confidentiality
Non-compete clauses prohibit employees from working for business competitors for some time after the employment relationship ends. Confidentiality clauses prohibit employees from disclosing the company’s confidential information during and after the employment relationship. Both provisions seek to protect the employer’s interests but are not mandatory in a contract.
Intellectual Property Rights
The intellectual property rights provisions specify who owns intellectual property created while the organization employs the employee. Defining this early in the relationship is crucial to avoid disputes and litigation after an employee invents something in the company’s employ and wants to keep the rights to what they create. An explicit intellectual property rights clause will specify who owns the rights and who has the rights to use the creation.
Common Pitfalls that Employment Agreements Can Avoid
Employment agreements help business owners avoid litigation and reputational damage by avoiding a few common pitfalls in employment relationships:
- Unclear job expectations are one pitfall that an unambiguous employment agreement can avoid. Unclear job expectations can occur when employees believe the employer hired them for one job. Then the employer asks the employees to perform the tasks of a different position. This switch in functions can lead to frustration and disappointment for the employee.
- Compliance with local laws and regulations is another pitfall employers can avoid by using employment agreements to ensure they comply with local laws and regulations. For example, non-compete clauses in Florida must be reasonable regarding the clause’s duration and the geographic locations affected.
- Generic employment agreement templates are another pitfall to avoid. Business owners may find employment agreement templates online, but these generic agreements open the business owner to issues. The template is not specific to your organization and the position you are filling. Working with an attorney can assist you with having an agreement that is specific to your organization and fits your particular needs and concerns.
Hire a Wellington Employment Agreement Attorney Today
Grace de la Gueronniere is a highly-regarded business and corporate attorney. Gueronniere, P.A. can help you draft, review, revise, and enforce an employment agreement. Plus, Attorney de la Gueronniere will ensure you avoid pitfalls using your employment agreement.
If hiring an employee, contact Grace de la Gueronniere today to schedule a free consultation and create an employment agreement that matches your needs.