Employment Agreements

An employment agreement is a formal arrangement that states the conditions of the relationship between an employee and an employer. They can also be called employment contracts and are typically put in place for a specified period of time.

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What can employement agreements include?

Salary or wages

Employment agreements generally specify salary, wage, or commission structures.

Duration of employment

An employment agreement may note the length of time the employee agrees to work for the employer or company. In some cases, this might be an ongoing period of time. In other cases, it might be an agreement for a specific duration. Other times, a minimum duration is set out, with the possibility or option of extending that period.

Schedule

In many cases, an employment agreement will include the days and hours an employee is expected to work. 

General responsibilities

An employment agreement may list the various duties and tasks an employee will be expected to fulfil.

Confidentiality

Although you may have to sign a separate non-disclosure agreement (also known as an NDA), it is not uncommon for an employment agreement to include a statement about confidentiality. 

Communications

Employment agreements may also have role specific items. For example, if an employee’s job involves handling social media or websites, the agreement may note that the employer retains ownership and control over these communications.

Benefits

This can vary, however, an employment agreement should specify all other promised benefits, including items such as health insurance and holidays.

Future competition

Sometimes an employment agreement will include a non-compete clause. This is an agreement stating that, upon leaving the employer, the employee will not (for an agreed time), enter into a role that will put them in direct competition with the employer.

Other

Other items may include an ownership agreement (stating that the employer owns any work-related materials produced by the employee), or information on solving disputes at work.

Benefits and drawbacks

An employment agreement can be a great way to clearly define responsibilities and benefits and minimise any confusion or issues regarding the role.

As an employee, we encourage you to carefully read all elements of the agreement before signing. As an employer, we encourage you to carefully consider and review all agreement inclusions.

This is essential for both parties as there may be legal consequences if either are unable to uphold every part of the employment agreement.

At LawBase, we understand the importance of being protected both as an employer and employee. If you would like professional and experienced advice on employment agreements, please talk to us today.

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