An Employment Contract gives a written record of employer expectations as well as other details of employment. A written Employment Contract isn't necessary to start working for someone, nor is it necessary to hire someone. An employee can be hired on as little as a verbal agreement. But a written contract is a good way to protect both parties in the future.
An Employment Contract is a legally-binding document regarding the terms of employment between an employer and an employee, independent contractor, subcontractor, or freelancer.
As an employee, it's highly advisable to request an Employment Contract from your employer. Many employers don't use Employment Contracts as a matter of course, which leaves them the option to change working conditions in the future.
Without a written contract stating otherwise, most employees in the United States are considered to be working at-will. That means they can quit or be fired at any time for any legal reason. A contract can establish different terms under which an employer is allowed to fire an employee and that an employee must abide by when quitting.
Employment contracts can also be oral, implied, or at-will. Oral and implied agreements are not formally documented, but they are still legally binding. However, the terms of written contracts are much easier to prove in court, should that become necessary.
Depending on your state, an Employment Contract may also be known as:
Contract of Employment
Contract of Service
Typically, an employer provides an Employment Contract for a person they're hiring. In effect, human resources managers who are preparing to hire a new employee should use Employment Contracts.
However, an employee is free to suggest the use of an Employment Contract to a prospective employer. You're free to draft an Employment Contract for your own conditions of employment, and many freelancers and contractors have standard contracts they use when entering a work relationship.
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Employment Contracts usually need some specific clauses and provisions if they're expected to provide substantive protection. By answering a few questions about the nature of the employment, 360 Legal Forms' proprietary form generator will create an Employment Contract tailored to your conditions and jurisdiction.
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To create your document, please provide:
Employee: The full name and address of the person being hired.
Employer: Full name and address of the person or entity hiring the employee.
Start Date: Date when the employee is expected to start working for the employer.
Term: The period of time for which the Employment Contract will remain in effect. This can have an option for extension built-in to the Employment Contract.
Position: A full description and title of the employee's position and responsibilities.
Benefits: Details regarding time off, disability protection, health insurance, and any other benefits the employee is entitled to.
Compensation: The amount of money owed to the employee on an hourly, weekly, biweekly, or monthly basis, including any bonuses and commissions.
Non-Compete: A clause in an Employment Contract that forbids the employee from working for competing businesses or starting a competing business after their employment ends.
Probationary Period: A period of time during which the terms of the Employment Contract aren't fully in effect and the employee can be fired if he or she can't perform to the standards of the employer.
Agency Provision: A section of the Employment Contract that forbids employees from entering a contract on behalf of the employer.
Fringe Benefit: Any non-monetary benefit an employee receives from an employer beyond their usual compensation, such as the use of a company car.
Atypical Worker: Any worker who doesn't work a standard workweek. This includes shift workers, part-time workers, agency workers, and others.
To be valid, an Employment Contract must be signed by the employer (or an organization hiring an individual to work on the employer's behalf) and the employee or organization hired.
Unless the contract specifically requires the signatures to be notarized, it is legal and enforceable without notarization. However, having the signatures notarized provides more protection for both parties if either tries to enforce the Employment Contract in the future.
Both the employer and the employee should keep a signed copy of the Employment Contract for their respective personal records. A copy of the contract does not need to be filed with any state or local office for the document to be legally enforceable.
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