Employment contracts are legally enforceable and binding agreements that establish an employer-employee relationship and set out the terms of that association, including each person’s rights, duties, and obligations. These contracts are guided by express and implied stipulations agreed between the parties, the rules of common law, and legislations and regulations within specific states.
Get Help From an Employment Contract Lawyer
This article breaks down critical aspects of employment contracts, cases where parties would breach such agreements, how they protect the employer and employee, and situations where it’s necessary to hire an employment contract attorney.
What Are the Aspects of an Employment Contract?
Employment contracts cover multiple areas such as compensation, wages and salary, benefits, paid time off (PTO), duration of employment, nature of job, schedule, confidentiality, and dispute resolution procedures. Let’s consider each of these in detail:
- Compensation: Employment contracts may provide general compensation, which typically includes how often you will be paid and the payment method. For example, the agreement may state whether you’ll receive hourly or salaried pay. The contract may also state the conditions for working overtime.
- Wages and salary: The agreement should cover the amount of money the employee receives for work done within the specified payment period. It may state how much the employee will receive hourly or monthly in figures and words, gross or net. Depending on the nature of the employment relationship, the contract may also include the currency in which the employer will pay the wages and salaries.
- Benefits: The agreement may cover statutory and non-statutory benefits. These include health insurance, sick leave, family leave, disability benefits, workers’ compensation, eye coverage, dental benefits, retirement plans, student loan payments, and tuition assistance. It’s critical that your contracts include all statutory-required benefits applicable to your business and that employees have a clear understanding of what is and is not offered to them.
- PTO: Employers in Massachusetts are not required to provide paid or unpaid vacation, but they are not prohibited from doing so. The law generally regards holiday or vacation payments as wages. It helps when the employment contract states the conditions of vacation times and how much the employee will receive during such periods.
- Duration of employment: The employment relationship in Massachusetts may be contractual or at-will, where an employer can dismiss an employee without warning for any reason, as long as that reason is not against the law. Generally, employment relationships in Massachusetts are at-will, although the contract may state otherwise. The agreement may provide a specific duration after which the employment relationship will be terminated and may also state what happens in the event one of the parties terminates the relationship before that time expires.
- Nature of employment: The employment contract may provide for part-time and full-time work, job sharing, and flextime. The agreement may also contain provisions to cover probationary periods.
- Schedule: Employment contracts sometimes inform the employees of the days and hours they are expected to work. For example, while some businesses may require employees to work during the weekends, others restrict working hours to the weekdays. The contract may also state the hours within which the employee must perform their duties.
- Confidentiality: Confidentiality is essential in almost every employment relationship. The agreement may state the conditions for retaining certain information and the situations and procedures for releasing information. Sometimes, a separate non-disclosure agreement (NDA) will cover trade secrets and confidentiality issues.
- Dispute resolution procedures: Most employment agreements provide means of resolving disputes, internally and externally. For example, the contract may state that the parties must resort to an alternative dispute mechanism, such as mediation or arbitration. It may also provide for internal procedures for addressing complaints.
Other essential aspects of employment contracts include:
- Termination and severance
- Intellectual property and proprietary rights
- Nonsolicitation — whether an employee can solicit the business’s customers after leaving the job
- Indemnification — compensation for harm or loss
- Duties and responsibilities
- Title
How Can an Employee Be in Breach of Employment Contract?
Generally, employees breach the employment contract when they fail to comply with any of the terms and conditions. Although not stated in the agreement, some actions may also result in breaches. Examples of breach of contract situations include:
- Breaching confidentiality requirements
- Working with a competitor
- Repeated misconduct
- Taking days off without proper notice or request
- Resigning without proper notice
- Persistent lateness, especially without reasonable excuse
- Non-performance or refusing to perform duties
How Can an Employer Be in Breach of Employment Contract?
Employers breach the employment contract when they:
- Make unauthorized changes to the agreement
- Act without following the procedures under the contract
- Fail to pay monies due to employees
How Can Employment Contracts Protect Employers?
A well-drafted employment contract is essential for employers because it:
- Provides clarity and sets out the responsibilities and duties for new hires.
- Serves as a legal document confirming the relationship between the parties and contains the essential terms of employment.
- Helps safeguard valuable proprietary information, trade secrets, and interests through NDAs and non-compete clauses.
How Can Employment Contracts Protect Employees?
A properly drafted employment contract can protect employees in the following ways:
- Provides legal protection against unlawful treatment, payment, and termination.
- Gives clarity on the job description, title, and position.
- Establishes the employees’ rights and benefits in clear form.
- Provides employees with security even after the employment relationship ends.
- Provides a clear path on how to resolve disputes.
When Should You Hire an Employment Contract Attorney?
Hiring an employment contract lawyer is practical in the following instances:
1. Employment Contract Dispute
There are many circumstances where disputes arise regarding the meaning and effect of provisions in the employment contract. Parties sometimes put contradicting definitions on specific clauses in the agreement. With the help of attorneys, the parties and court can ascertain the true and proper meaning of the confusing text.
2. Employment Contract Breaches
In employment contract breaches, lawyers play a fundamental role in helping the parties resolve their disputes. Before proceeding to court, the parties may resort to negotiations to come to an amicable resolution. Where the contract contains an arbitration clause, the parties must chart that path. In any case, attorneys are trained to assist you in taking the appropriate steps.
3. Drafting Employment Contracts
Employment contracts typically contain technical words and sentences with legal implications, even when written in simple language. Moreover, lawyers may see beyond what is explicitly written and decipher specific implied terms. Attorneys have the expertise to draft the terms in accordance with general and specific standards and legal requirements. The agreement must be properly drafted to protect the employer and employee in a legally binding and enforceable manner.
4. Reviewing Employment Contracts
Attorneys perform employment contract reviews to analyze the contractual agreement between the employer and employee, particularly regarding relevant matters such as the overall legality of the contract, compliance, thoroughness, and fairness. Due to the deep legal insight required, most companies employ the services of lawyers to mitigate risks and take the load off their shoulders. Employees also seek legal representation to ensure they receive and sign reasonable offers.
Contact an Employment Contract Lawyer at Calabrese Law Associates
Employment contracts are comprehensive tools that help protect the interests and rights of employees and employers, regardless of the industry. Although such contracts play an essential role in your business’s success and maintain good relations, poorly drafted ones can pose multiple legal challenges.
Calabrese Law Associates assists employers and workers in the Greater Boston Area in employment-related matters. We provide reliable legal services in a supportive yet efficient manner. Contact us today for employment contract attorney needs.
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This publication and its contents are not to be construed as legal advice nor a recommendation to you as to how to proceed. Please consult with a local licensed attorney directly before taking any action that could have legal consequences. This publication and its content do not create an attorney-client relationship and are being provided for general informational purposes only.