Employment Contracts
A contract is basically a promise or set of promises for the breach of which the law gives a remedy, or the performance of which the law may recognize a duty. Employment contracts usually contain specific terms and conditions of the employment relationship, such as duration, pay and responsibilities. For example, an employment agreement may contain promises or terms with regards to a fixed term of employment, “good cause” or “just cause” for termination, notice of termination, and/or minimum severance pay.
Formal written employment agreements that guarantee employment for a specific period of time are rare, given the employment-at-will rule in most states. They do exist, however, especially in tight labor markets where employers are competing for talent. Executives, top sales and marketing people, as well as experts specializing in certain technical fields often have employment agreements.
Additionally, to retain valued employees, employers are increasingly imposing restrictive covenants, such as non-competition, non-solicitation, and non-disclosure clauses, on employees who have access to confidential, proprietary or insider information.
Oral promises, although difficult to prove, may sometimes be binding. Certain terms of employment may also be implied by an employer’s conduct, policies and practices. In some cases, in the interest of justice, courts may enforce promises if you reasonably act and detrimentally rely on assurances or promises by your employer, and that your employer knows to be false.
Whether promises, assurances, terms and clauses of any form of employment agreement are legally enforceable depends on the facts and circumstances of the particular case. Therefore, do not automatically assume that you have no enforceable agreement with your employer because it is not in writing, especially if others heard the statements.
If your employer breaks a term in a legally enforceable agreement, you may have the right to sue your employer for economic damages you sustained as a result of the breach.
The role of an attorney, in any contractual situation, is substantial. In an employment context, a qualified attorney will almost always be able to provide not only necessary but crucial information and advice. An attorney can make a critical difference in the negotiation and drafting of the terms and language of the agreement. An attorney can review your employment contract and assure you that the language fully, accurately and clearly sets forth the essential terms of your arrangement with the employer.
If you encounter any issues pertaining to an employment contract, or if you need an attorney to review your contract, we would be pleased to meet and discuss your interests and concerns with you. There is no charge for our initial interview, at which time we will determine whether we believe we can help you and you may decide whether you wish to invite us to do so.