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What should be in an employment contract?

On Behalf of | Mar 10, 2021 | Estate Planning

A strong employer-employee relationship is important for any business, and it’s in the interests of both parties to avoid conflict and disputes whenever possible. One way Maryland businesses can accomplish this is through a carefully drafted employment contract. This is a legal agreement that outlines the rights and responsibilities of both parties and can provide protection in the event of a dispute or problem that may otherwise lead to litigation.

Specific and important terms

The terms of an employment contract matter. The more specific the terms included in the agreement, the less likely that confusion or disagreements will arise in the future. Some of the specific things that should be in an employment contract include:

  • Salary or hourly wage the employee will make
  • Duration of employment
  • Responsibilities and rights of the employee
  • Confidentiality terms or a nondisclosure clause
  • How communication will work between employee and employer

When drafting an employment contract, Maryland businesses should aim to be fair and reasonable in case the contract comes under scrutiny in the event of a dispute. The intent of these contracts is to provide protection to both parties, and employers may use the signing of an agreement as a condition of employment.

Strong contracts, good business

Good employment contracts can improve and sustain good relationships between employers and employees. Employers should carefully consider what they need in their agreements to ensure peace of mind and reduce the chance of problems. These agreements can be custom-tailored to suit the needs of the business and its employees.