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Top considerations when creating an employment agreement

On Behalf of | Jan 17, 2017 | Contract Disputes

Great employees allow a business to maintain success. Accordingly, it’s vital for Houston business owners to create comprehensive employment agreements to ensure they can retain their best and brightest for the duration. Here at The Jackson Law Firm, our legal team’s background in contract law allows us to counsel business owners on what makes a solid employment agreement.

According to Forbes, certain items must be included within an employment contract to ensure it remains acceptable to all involved parties. For instance, an employee’s job title, description and duties must be explicitly laid out to prevent confusion from occurring down the line. There should also be language included that indicates whether an employee’s duties can be decreased or taken away all together. Failure to do so could lead to legal issues if the employee is demoted.

There should also be information related to the termination of an employee. While many states are considered to be at-will in terms of employment, spelling out reasons for firings can prevent a disgruntled former employee from claiming he or she was wrongfully discharged. Some examples of reasons for termination can include a failure to perform job duties as specified in the contract, issues involving fraud or disclosures of proprietary information.

The employee’s rate of compensation should also be included within an employment agreement. In addition to an employee’s current rate of pay, it also helps to include things like yearly bonuses and annual raises when applicable. Spelling out any benefits afforded to the employee is another important consideration. This can include health and life insurance, as well as 401(k) plans and stock options. Please visit us online with questions regarding your business and employment contracts


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