If you signed an employment contract as part of your job, or you have been offered a contract as part of a job offer, it is crucial that you understand the terms in it. Otherwise, you may find that you do not fully understand the rights and obligations that the contract provides. Here are five essential terms you should know in your employment contract:
- Salary and benefits
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- One of the core components of any employment contract is the salary and benefits you are entitled to as an employee. This will lay out how much money you will be paid, as well as whether you are entitled to things like paid time off, maternity/paternity leave, or employer-provided health insurance. It may also lay out if you are entitled to a pension, 401(k), or other retirement benefits.
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- Job requirements
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- On the other side of the coin, your employment contract will also lay out what responsibilities you have in your job. This will specify the things you are expected to be able to do, as well as where you are expected to work and what kind of hours you are expected to put in. It may also add requirements for things like travel, working from home, or needing to pass a probationary period.
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- Confidentiality agreement
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- In many jobs that deal with sensitive information, such as trade secrets or confidential client information, it is common for employees to be asked to sign a confidentiality agreement. This often includes a non-disclosure agreement, which prevents employees from discussing sensitive information with people outside the company. It may also detail penalties for an employee who breaches confidentiality for whatever reason.
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- Termination requirements
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- It is also common for an employment contract to explain how an employee may have their position terminated. Unlike an at-will employee, an employer must have a valid reason to fire a contract employee (as laid out in the contract itself), and may incur penalties for firing them without good cause. The contract may also lay out what an employee is entitled to if they are laid off, such as a severance package or other benefits.
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- Dispute resolution
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- This part of an employment contract lays out what happens if there is any kind of legal dispute between the employer and employee. It may include terms such as an arbitration agreement, which requires the dispute to be settled in private arbitration, or it may lay out details such as the venue and jurisdiction under which the dispute is to be settled. These factors can be more important than most people realize, which is why you should first speak to a lawyer with experience handling employment law matters before you sign a contract.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
