An employment agreement, also known as an employment contract, lays out all the specifics of the contract between an employer and an employee. Get more information about employment agreements and why you should use one.
Ready to start your business? Plans start at $0 + filing fees.
updated September 1, 2023 · 3min read
When you hire a new employee for your small business, it is important to have the employee sign an employment agreement. An employment agreement is a contract between your company and the employee that discusses both the employee's and your company's responsibilities and rights.
An employment agreement provides the full and complete agreement between your company and your employee, explaining the rights and obligations of each party. Some provisions that an employment agreement or employment contract may include are:
An employment contract can be useful because it clearly states all the requirements of the job and all the obligations the employer is entering into. It clarifies the agreement between the parties. A solid employment agreement can help protect both parties in the future, if confusion or disputes should arise between the employee and the employer.
An employment contract has disadvantages as well. It legally obligates you as the employer to do certain things and to provide the stated salary and benefits. If you want to change these later, then you will have to renegotiate the employment agreement.
While, in the past, employment agreements were used primarily for executives and professional staff, an employment agreement should be used for all of your full- and part-time employees. If you hire interns, you should have an employment agreement for these positions as well. If you are hiring an employee on a temporary basis, you will want to use an employment agreement that specifies the nature of the temporary employment and the length of the position.
To help ensure you don't miss addressing any important issues, it's wise to develop an employment agreement template you can use for all of your employees.
by Brette Sember, J.D.
Brette Sember, J.D., practiced law in New York, including divorce, mediation, family law, adoption, probate and estat...
'Inc.' in a company name means the business is incorporated, but what does that entail, exactly? Here's everything you need to know about incorporating your business.
August 14, 2023 · 10min read
Writing a will is one of the most important things you can do for yourself and for your loved ones, and it can be done in just minutes. Are you ready to get started?
May 11, 2023 · 4min read
Considering an LLC for your business? The application process isn't complicated, but to apply for an LLC, you'll have to do some homework first.
September 6, 2023 · 11min read