Employment contracts vary in terms and detail depending on the specific circumstances of an employee’s hiring. Most every employment contract, however, contains terms describing benefits, salary and start date. Some other terms which employers oftentimes include are:
- Termination Clause: Articulates how much notice an employer will give to an employee upon termination. Also provides a monetary amount that an employer must give the employee if notice requirement is not satisfied.
- Non-competition Clause: Restricts employees from going into direct competition with employer. Because non-competition clauses are hard to enforce they must be limited in scope and narrowly tailored to the employer’s interests.
- Confidentiality Agreement: Prohibits employees from sharing certain information. Most confidentiality agreements provide: (i) Definition of confidential information; (ii) Description of duty not to disclose; (iii) Time limit on restriction; (iv) Remedies available to employer if employee violates the agreement.
- Best Efforts Clause: Requires employees to provide employers with their best efforts and to remain loyal to employer while employed.
- Arbitration Clause: Requires employers and employees to submit to arbitration in the event of a dispute instead of going to court.
