Employee Contract Agreements

An employee contract agreement defines the terms of employment between a manager and her worker. Standard information contained in employee contract agreements includes compensation, responsibilities, confidentiality issues and termination rights.


While employee contract agreements traditionally come in written form, some states do consider verbal agreements to be implied contracts with legal standing. According to Find Law, an online resource for legal information, a verbal statement must be measurable in order to be considered an implied employee contract agreement. For example, a verbal agreement between a newspaper manager and a writer saying “write articles for the newspaper” wouldn’t be considered a binding contract, but “write three articles a week” could be considered an implied contract.


According to Find Law, workers use the termination rights dictated in employee contract agreements to protect against wrongful termination. At the same time, the terms of employment spelled out in employee contract agreements help to ensure a manager that he receives quality service from his workers. Additionally, the termination rights included in employee contract agreement protects managers from frivolous wrongful termination lawsuits.


A worker should be allowed as much time as needed to read through an employee contract agreement before signing. This may include having time to consult a lawyer about the document.