Employee Contracts

Many employers are reluctant to offer employment contracts because they feel it will inhibit their ability to fire an employee. Most states are at-will states where there is a legal presumption that all employers are able to fire employees at any time, and all employees are able to quit at any time. However, a contract does not eliminate an at-will status.

A good contract will define the terms of the employment period, so all areas are predictable to both parties. This helps limit confusion and disagreement. With a contract, disputes are easy to settle as many matters are set before in writing. A contract can include an at-will clause whereby all the rights of an at-will state remain intact. Therefore, it does not limit an employer from firing an employee. A contract is simply another measure of protection a company can take, and it does not limit their abilities in regards to firing.

A contract does not have to be lengthy. It should cover the position offered, the compensation paid, whether the employment is for a designated time or at will, specifics concerning vacation time and sick leave, and responsibilities of parties regarding the work to be done in the environment. The contract should be signed by both the employee and the employer, and both should keep copies in safe places.

Written contracts are beneficial for everyone as they clearly outline and record the expectations in the employer-employee relationship. They assist in creating a good working relationship and help to avoid controversy. It protects both parties in regards to the agreement.

If you would like assistance in designing contracts for your employees, contact the Texas contracts attorney of Slater Kennon & Jameson LLP today by dialing 512-472-2431.