Nowadays, employment agreement between employers and employees is common. This agreement, which materializes as a contract, will lay down the things agreed upon by the two parties.
Employment agreement should not be created in a discriminatory way wherein workers or employers are classified based on their race, gender, disability, color or origin, age, and religion.
Hence, employment agreements should be created in a way that is just and fair for all the employees. If this is followed, employees will do their tasks and responsibilities well and without any negative emotions toward their employers.
Details Found in an Employment Agreement
Some of the things that are agreed upon and found in the employment agreement include:
• the employee’s job description
• the employee’s salary
• stock options
• duration of the employee’s job
• benefits such as health insurance, disability leave, among others, which will be given to the employee
• a certain method of resoling problems or disputes that may arise between the employee and the employer
• protection of the employer’s client lists as well as trade secrets
• the employer’s ownership of the work products produced by the employee
• ground for the employee’s termination
• boundaries of the employee’s capability to compete with the employer’s business when the relationship between the two ends
The following mentioned are the common information that is found in the employment agreement. The employment agreement may be beneficial for both parties because they will know what responsibilities they are getting in to.
On the part of the employees, they are assured that they will be able to get compensation as an exchange for the work they rendered. Employees will also be clearly informed about the things that employers are expecting them to do.
On the part of the employers, they are assured that their employees are well informed of the things that they should do, as well as their obligations for the company. Through employment agreement, employers will not be left immediately by their employees without providing them enough time to seek for someone who will take the latter’s place.
Advantages of an Employment Agreement for Employers
An employment agreement can be beneficial especially for employers, if created in the right way. Here are some of the advantages of employment contracts:
• Employment agreement is useful because it has control over the employee’s capability to leave. An employer will be given more time to find a replacement for the employee.
• If the employee is given confidential information about your business, certain confidentiality clauses can also be included in the agreement. The employer may forbid the employee from using or disclosing the information he/she acquired for personal gain.
• Employers can also use the employment agreement in enticing skilled individuals to work for them. Certain promises like benefits that will be received as well as job security could be included in the contract to convince the person into working for you.
• Employee agreements also give employers control over their employees.
Disadvantages of Employment Agreements for Employers
There are also disadvantages that employment agreements bring to the employers. Two of the disadvantages of employment agreement are:
• Employment agreement puts a limit to employers’ flexibility because it binds both parties. Problem may arise when employers realize later on that they are not in favor of the terms agreed upon.
• Employers are also obliged to treat the employee fairly. They may be held legally responsible if employees are treated in the way that looks unfair for them
Think Before Agreeing
Before entering into an employment agreement, both employers and employees must think it over carefully. Once both parties have agreed to do the details included in their agreement, it is not easy to change or alter it
Source: http://www.ArticlePros.com/author.php?Jan Camille Canivel
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