Stephenson Fournier
Get Timely, Responsive Advice 713-629-9494 |
Menu Contact

Employment agreements: 3 key provisions

Employment agreements protect both the employer and the employee during, and sometimes after, the employment arrangement. Employers can tailor these contracts to each individual hiring situation.

Although the exact language within the employment agreement will vary depending on the market, position and other relevant factors, there are certain provisions that are common in most employment contracts. Three examples include:

 

  • Specialized compensation agreements. If part of the employment agreement involves compensation that is unique to an employee, it is wise to include language explaining these differences within the employment contract. This could include fringe benefits, bonuses or stock options.
  • Time commitments. For certain positions, it is wise to include an expected length of employment. Examples would include key positions like executives within the business. Although a definite term provision offers protection from another employer taking the coveted employee, it can result in difficulties if the employee’s position is terminated. A recent publication by The National Law Review recommends addressing the use of severance packages in these situations.
  • Restrictive covenants. In some situations, it is wise to include restrictive covenants with in the employment contract. These covenants can include non-compete agreements and confidentiality provisions. State law governs these covenants. Employers should carefully review these laws for any recent changes, as they often evolve.

A failure to carefully abide by applicable state law can result in an employment contract that would not survive a challenge. As such, it is wise for any employer to have an employment contract carefully reviewed by legal counsel. An attorney experienced in business transactions can offer guidance on the best way to achieve your goals. This step can help mitigate the risk of ineffective provisions within an employment contract.

 

No Comments

Leave a comment
Comment Information
  • Primerus | Member, International Society Of Primerus Law firms
  • Legal leaders
  • Lawyers-of-Distinction-2019
Email Us Today

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

3355 West Alabama St.,
Suite 640
Houston, TX 77098

Phone: 713-629-9494
Fax: 713-629-9606
Map & Directions