Ty Hyderally is a legal expert in employment law and his firm has had many successful years of litigation concerning contract law and employment law in New Jersey. The terms of at-will employment presume that the employment is indefinite; meaning that employees may quit at anytime for any reason. It also presumes that the employers may layoff or otherwise relieve the employee of duty at anytime with or without reason. Basically, either of the parties may break the employment relationship at anytime without being liable. However, in many instances it is preferable to obtain an employment contract.
An employment contract is binding by law. Employees mainly in executive level positions usually seek to establish job security and stability. Employees may also design employment contracts to help protect confidential business information, patents or trade secrets. In such crucial situations it is best to detail the mutual obligations of both parties involved in the employment relationship. A meaningful employment contract will carefully consider all the various contingencies that could possibly arise during the time involved in the employer-employee relationship.
An employment contract will take the place of the arrangements that are understood by an at-will employment. It becomes a legal document in which the relationship between the employer and employee is written out in great detail. It will include particulars about compensation, stock options, bonuses and severance packages. It will also detail any fringe benefits that are intact during the period of employment as well as retirement.
The employee will usually be asked to sign paperwork that goes along with the employment contract. This will include items such as being forbidden from sharing internal information about the business even after the contract comes to an end. This post employment confidentiality includes refraining from coming back to remaining employees after the contract is terminated and soliciting other employees.
These types of forms are typically signed at the time the contract is drawn up at the time of employment. This usually includes details concerning the terms of the contract and its termination if applicable. The position can only be withdrawn as lined out in the contract. And in many instances it also prohibits the employee from working for a competitive company for at least a certain amount of time. (Usually three years)Even though some of these terms are applicable after the initial contract is terminated, they are still considered part of the conditions of the employment and are legally binding.