Employee Contract Agreements

by Zachary Fenell; Updated September 26, 2017

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.

Types

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.

Significance

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.

Considerations

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.

About the Author

Zachary Fenell is a 2009 graduate of Notre Dame College of Ohio. He holds a Bachelor of Arts in communication with minors in philosophy and writing. Fenell has been writing since 2002, when he joined his high school newspaper, "The Arc Light." In college Fenell won awards for excellence in English and communication.