An employment contract sets the terms of the relationship between the employee and the employer. If an employer decides to have an employee sign a contract, it should include the job description, the duration of the job, benefits, grounds for termination, protection against company secrets, ownership to an employee’s work products, and limitations for the employee to compete with the company once he or she leaves.
- Control the employee’s ability to leave the business
- Prevents the employee from competing against the company
- Prevents the employee from revealing company secrets
- Gives the employer more control over the employee
- The employer is bound to the contract as well as the employee
- Changing the terms of the contract involves renegotiation. The employee must agree to the changes as well and there is no guarantee that he or she will
- The contract implies that the employer must act in good faith and be fair at all times