An employment agreement is a written agreement between two parties - employer and employee. It establishes rights and responsibilities of both parties.

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What is an employment agreement?

An employment agreement is a written agreement between an employer and an employee that establishes the rights and responsibilities of both sides. These include things like working hours, salary and a description of the work, among others.

Common terms included in employment agreements

The following details are commonly included in employment agreements:

  • Terms of employment - job responsibilities, work hours, dress code, vacation and sick days, and starting salary. Can also include benefits such as health insurance, life insurance, and retirement plans.
  • Dispute resolution - includes details on how eventual disputes between employer and employee are to be settled.
  • Confidentiality - can be included in some employment agreements if the employee will come into contact with sensitive information over the course of their employment.
  • Ownership - some employment agreements will contain clauses stating that the employee has ownership over some over all of the materials produced over the course of their employment.
  • Grounds for termination - this section outlines the possible reasons for termination outside of any agreed upon limitation for the employment agreement.
  • Non-compete - bars the employee from working for a competitor for a specific period of time to protect the former employer’s business secrets.

Not all of these details are relevant to every employment agreement. It depends on the nature of the work, the industry and other factors.

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Disclaimer: This overview is for informational purposes only and cannot be counted as legal advice.