What is an Employee Agreement?
An employee agreement is a legal contract establishing a formal relationship between an employer and the new employee. An “at-will employee” is someone hired on without an employee agreement and can be fired “at-will” without cause at any time. Having an employee agreement sets up expectations for the job the employee has been hired for and the expectations on the end of the employer.
Why have a lawyer draft your Employee Agreement?
The agreement sets an understanding about duties on the job, compensation, grounds for termination and general expectations. It’s important not to leave things to chance. Hiring a small business lawyer can ensure that all aspects of the employee agreement are spelled out and exactly what the employer intends it to accomplish. There are many bases to cover when drafting an agreement, and hitting each of those points is crucial. The agreement serves as a point of reference if a conflict arises between the employer and employee. Hiring a small business lawyer helps to ensure the important aspects of employment and expectations are covered. This will head off problems that may come up because they will already be addressed within the parameters of the contract.
What to include in an Employee Agreement
These contracts or agreements can vary between each individual and job title, so it can be tricky to create a universal template. There are a few key points that every agreement should have:
- Job responsibilities: this includes expectations, performance and requirements of their job and job title.
- Pay rate and benefits: any details on commissions, salary, bonuses, health care, etc.
- Time off: qualitative vacation days, if they increase with time and sick days.
Communicating terms and expectations fully and clearly in the agreement is paramount to heading off issues and conflicts in the future. Dan Burke is experienced in small business law and employee agreements that protect you and your employees. Make sure all your bases are covered by contacting Dan Burke for a free consultation today.