Key employees and company officers add significant value to your business, and other employers may seek their unique skill sets. One tool you can use to retain these valuable employees is an employment contract. This binding agreement benefits the company because the employee is bound for a set period. The employee is happy because their duties, responsibilities, salary, and benefits are spelled out.
Most employees in North Carolina work at will, which means employers can terminate their employment for any or no reason. Generally, these employees are more easily replaced than those with special skills. To keep skilled employees, you should consider offering written agreements drafted with help from an experienced attorney. A North Carolina employment contracts lawyer can discuss with you the benefits and drawbacks of these crucial agreements.
An employment agreement is a binding contract between the parties entering into them. The employer and the new hire both give up something of value to gain something they want. The employer gives up money to gain the new hire’s skills, and the employee gives up the ability to take another job for the stability of wages and benefits.
A poorly drafted employment agreement can be a nightmare for both parties. A knowledgeable North Carolina attorney knows to include language in an employment contract that protects employers from bad hires, such as grounds for termination and a probationary period during which either party can opt out. A well-drafted agreement places the parties in positions they have negotiated, and outlines wages, benefits, job duties, and whether the contract can be automatically renewed unless either party gives notice.
Although a ‘gentlemen’s agreement’ is generally legal, these oral contracts sealed by a handshake are not a good idea. Disagreements arise when one party does not remember the terms of an agreement in the same way the other party remembers them. A seasoned local attorney can help prevent these problems by drafting a written employment agreement.
All agreements must name the parties bound by them. Addresses, signatures, and some covenants, such as that the person signing has the legal right to sign, are standard. Other employment agreement covenants include:
According to the federal Equal Employment Opportunity Act (EEOC), employers cannot discriminate against employees doing the same job by offering only some of them employment contracts based on employees’ religion, race, gender or gender identity, color, age, disability, or genetic profile. For example, an employer cannot offer contracts to only men younger than forty. A knowledgeable North Carolina lawyer could further explain the laws related to discriminatory hiring when drafting an employment agreement.
Contracts are essential in any successful business, especially those that hire employees. A well-drafted agreement helps ensure that a business gains talented workers and that key employees gain suitable salaries, defined duties, and security that they will be employed for a specific period.