Understanding employment agreements

Understanding employment agreements

On Behalf of | Jun 16, 2023 | Employment Law

A candidate who is offered a job in the hospitality industry may be presented with an employment contract.

Employment contracts outline the rights, obligations and expectations of the employer and the employee. They can help to provide clarity and protection to both parties and there are essential components that should be included.

Employment contract basics

A well-drafted employment agreement should start by including basic information for both parties. This includes their names, addresses, job titles, the employment start date and the length of the contract if the candidate is being hired for a specific project or period of time.

It should also include the scope of work, including the employee’s expected responsibilities. This may include the employee’s title, working hours, reporting structure or other information that defines the employee’s work.

The employment contract should also include the employee’s salary or hourly rate, how often they will be paid, and any bonus structure. If the employee is entitled to benefits, like health insurance, retirement plans including any company matches, and paid time off, those should also be included.

Additional considerations

The contract should also outline the conditions for termination and the procedures if termination is necessary. It may also include a required notice period and any severance pay the employee is entitled to upon termination.

Employees may also be asked to complete a non-disclosure agreement as part of the contract process. This requires the employee to keep certain business information confidential.

Some agreements also address how disputes will be managed, including deciding whether the parties will have to enter into alternative dispute resolution before bringing their disagreement to court.