An employment contract is a documented agreement between an employer and an employee. It is legally binding. The main features of an employment contract are the job portfolio of the employee and the manner in which the employer will make monetary compensation. Companies have a standard format of employment contracts, which are given to all their employees. According to US law, any employee who has been working at least a month is entitled to an employment contract, which must be given to them within two months of commencement of the job.
An employment contract may run into several pages. The first page of the contract contains the names and addresses of both the employer and the employee. It also contains the name and address of the firm, company or institution where the employee is supposed to discharge duties. The date when the contract is made is recorded on the first page.
Following this, the contract contains a brief matter on the job which the employer is to render. The designation or post offered is mentioned. In express contracts, the description of the job portfolio could go in great detail, with a clause to clause explanation of various aspects of the job.
The remuneration to the employee is mentioned in clear terms. Either the salary figure is mentioned directly, or the factors on which payment will be based are mentioned. Period stipulations on payment such as hourly, daily, weekly, monthly, etc. are mentioned. The contract also contains other benefits and perks that the employer is entitled to. Along with these, there is mention of holiday entitlements, sickness benefits, maternity leaves, etc. If there are any reductions in the gross salary, such as due to taxes and insurance, they are also mentioned in the contract itself.
Since the contract is a mutually understood agreement, there may also be clauses that indicate under what circumstances they may be voided. Generally these clauses are at the discretion of the employer. These clauses may state termination of the job under cases of misconduct, low standard of work output, etc. Other disciplinary measures are mentioned in the contract itself.
An employment contract is legally binding on both the employer and the employee. However unsigned contracts and contracts with minors or mentally unstable persons are not recognized by US law.
Failure to obey any of the clauses of the contract by any of the parties involved constitutes breach of contract and it can be sued for in a court of law. The language in a contract must be lucid and clearly convey what is intended. Complex language may lead to misunderstanding and legal wrangles.
Related Articles of Interest :
-
Legal Contracts
10 August 2010 8:30 PM |
No Comments
A legal contract can take many different types of forms. Not all legal contracts are written. Some legal contracts can be a simple matter of a verbal promise of something in exchange for something else. Statutes differ, but as a general rule, any contract involving...
-
Business Contracts
10 August 2010 8:30 PM |
No Comments
A business contract is a legal promise made between two or more parties. A contract may be drawn when the associated parties wish to enter into a transaction like buying or selling, performing services, leasing properties, collaborating in joint ventures, advertising, manufacturing, distributing or selling...
-
New Jersey Employment Lawyers
10 August 2010 8:30 PM |
No Comments
An employment lawyer works two ways. He represents the employer, as well as the employee. As an employment lawyer for the employee, the lawyer can review the employment agreement and negotiate and propose additional terms or deletions to protect the employee’s interests. He also works...
-
Contracts
10 August 2010 8:30 PM |
No Comments
A contract is an agreement between two or more parties to undertake a task. A contract may be oral, communicated, written or just plain understood. Contracts may be between any two people. An acceptance of a son to do a chore for the mother in...
-
Colorado Employment Lawyers
10 August 2010 8:30 PM |
No Comments
Employment law governs all aspects of the of an employee-employer relationship. It relates to affirmative action, alien workers and visas, personal leave, safety, racial discrimination, disabled employees, safety, records retention and access, overtime compensation, testing, recruiting and discipline. Employment lawyers are available both for employees...
-
Labor Contracts
10 August 2010 8:30 PM |
No Comments
A labor contract is a contract entered between workers and management covering wages, benefits and working conditions. Labor contract is a legal agreement binding both employer and employee and enforceable by law. Labor contracts facilitate certain benefits to the workers like better healthcare, increased and...
-
Atlanta Employment Lawyers
10 August 2010 8:30 PM |
No Comments
Employees are protected from unfair employment practices by several relevant laws. Employment law, also known as labor law, deals with workplace rights and responsibilities for both employees and employers. The United States Department of Labor administers and enforces nearly 200 federal laws. State laws are...
-
Employment Screening Services
10 August 2010 8:30 PM |
No Comments
Hiring an applicant can prove to be very expensive if a proper pre-employment screening is not done before hand. The employee might have falsified their education background, previous employment details, or criminal history. The best way to check for these things is through a pre-employment...
-
Catering Contracts
10 August 2010 8:30 PM |
No Comments
Catering contracts are legal agreements entered by the consumer and caterer to supply food for a specified period or a particular event. Catering contracts facilitates food services at sporting events, airlines, and university canteens, office canteens and in many social gatherings. Some well-known and innovative...
-
Employment Screening Companies
10 August 2010 8:30 PM |
No Comments
Employers these days prefer to play it safe rather than be sorry after a hiring decision. Many resumes contain falsified information and hiring such a person might put the company in jeopardy later on. Employers are hiring pre-employment screening agencies to do look into applicant’s...