A contract of employment is a category of contract used in labour law to attribute right and responsibilities between parties to a bargain. The next of kin between an employer and an inaccessible employee or worker is typically a relation between a holder of power and one who is not a carrier of power. The main object of labour law has been, and will always be a countervailing force to counteract the inequality of bargaining power which is inherent and must be inherent in the employment relationship.
Establishing first-class relationship between the employer and the employee, which starts by clearly defining both parties expectations about the role they are about to play, the working conditions and the employment rights.
An accurately written agreement can help in reducing the possibilities and risks of having misunderstandings between the two involved parties.
For an employee the employment agreements serves as an avenue for defense against likely labor abuse that may be inflicted upon such workers during the time of employment, stating the responsibilities and types of services expected from him, the terms and conditions of the employment and the benefits and privileges which he can enjoy.
It is very important to study and examine the content of the agreement before accepting such because this will serve as a pr
omise by the employer to respect and attend to the welfare of his worker.
These contracts usually contain information such as the hours of work per day, monthly salary, sanctions for offenses, proper work etiquette, and a whole lot of work related stuff.
Having this contract would not only give off that professional vibe, but also give both employers and employees a sense of security about their jobs. This also serves as proof in case of a breach of contract, which happens when one or more of the stipulations is broken by either party.
Apart from the general details about yourself and employment the contract may also include the following important terms and conditions:
Confidentiality Agreement
Here employee promises not to share any information about the details of the employer's business or the employer's secret processes, plans, formulas, data, or machinery. It lasts even after the employee no longer works for the employer.
Non Competition Agreement
In the noncompetition clause, the employee agrees that for a certain amount of time after he or she stops working for the employer, the employee will not become employed by a rival company or any company engaged in a similar type of business, and the employee will not set up a company that will compete with the employer's business.
Ownership of Inventions
This provision applies to employees who invent things as part of their jobs. In this part of the contract the employee agrees that anything he or she invents at work becomes the employer's invention, not the employee's own invention.
No additional compensation
The no additional compensation clause states that if the employee becomes an elected director or officer of the company or serves on a company managing committee, the employee will not be entitled to additional compensation for doing that work.
Choice of Law
The "choice of law" provision in an employment contract is an agreement that, if the parties ever have a dispute that results in a lawsuit, the laws of a particular state will govern it, no matter where the lawsuit itself is filed.