Including the right details in an employment agreement

On Behalf of | Jun 30, 2022 | Business Transactions |

The contract between a Louisiana employer and employee is the foundation for a strong working relationship. The terms of this agreement are critical for both reducing the chance of a dispute and ensuring that all parties understand their rights and responsibilities. The more details included in an employment agreement, the better it will be for both the employer and the employee. 

The terms of the contract 

There are various ways that an employer can protect the interests of his or her business in the terms of an employment agreement. The more details included in a contract, the less likely it will be that there will be confusion or a dispute between parties. Important details in the terms of an employment contract include: 

  • Term of employment  
  • Base salary, bonuses and raises 
  • Grounds for termination 
  • Vacation and sick leave 
  • Procedures for dealing with employee grievances 
  • Noncomplete or nondisclosure clause 
  • Health insurance and other benefits 

In order to be enforceable, employment contracts must be reasonable and fair. If there is a dispute, a court will carefully scrutinize any formal agreements between the two parties and determine if the contract is valid. 

Create contracts that matter 

When creating an employment agreement, it will help to discuss the needs and objectives of the specific business with an experienced attorney. This can ensure that any employment contract includes appropriate and important terms, as well as provide protection for both parties. Carefully crafted contracts reduce the chance for costly and stressful litigation.