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What are some common employment law contract terms?

| Sep 13, 2018 | employment law |

There are numerous ways that businesses in California can seek to attract talent, and potential employees can negotiate the terms of their employment. The most common way is through the creation of an employment contract. Prior to entering into one of these agreements, it is critical to understand the types of terms that may be included in them. If you don’t, then you may find yourself signing off on something that could end up working to your detriment.

There are many terms included in an employment contract. The most obvious amongst them are compensation and benefits, including paid time off, retirement packages and health insurance. Yet, there are a number of other terms that can be just as important to your future. For example, the determination of how intellectual property will be owned can be crucial. A term in an employment contract may state that an employer is the sole owner of all intellectual property created while an employee is employed, or it may provide carve-outs that allow an employee some leeway to create his or her own works.

Non-compete agreements are also common in employment contracts. Here, employers restrict the types of employment a worker can obtain after leaving the employer, and it usually dictates a timeframe during which that employment is barred. The purpose of these agreements is to limit competition. An employee who leaves a company to work for competitor can be extremely damaging to the company who used to employ the individual in question.

These are just a few of the many provisions that can be included in an employment contract. Proper negotiation of one of these agreements can be critical to your future success, regardless of which side of the table you sit on. Therefore, before signing off on an employment contract, make sure you understand the employment law terms of the agreement, so you can negotiate a deal that is fair.