If you are an employee at a company with a formal employment contract, it is critical that you understand all of the terms of your contract. This can help you ensure you get everything you are legally entitled to from your employer, as well as help protect you in the event you are fired or get into some other employment-related dispute. Here are seven important terms you should know in your employment contract:
- Job Description and Duties
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- Your employment contract should clearly set out exactly what your job is and what you are responsible for in your position. This can be important if you are ever accused of failing to perform your job duties, or are forced to perform tasks you were never meant to be responsible for.
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- Compensation and Benefits
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- Every employment contract should also lay out your compensation, including your salary and any other benefits your job entails (such as stock options, a 401(k), or health insurance). These are critical details for any employment dispute involving dispute over pay, access to benefits, or any other aspect of your compensation.
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- Sick and Vacation Leave
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- If you are entitled to sick or vacation leave, it should specify how much in your employment contract. This can become important if you are ever denied the ability to use up your sick or vacation days, or if you are unjustly deprived of leave that you are otherwise entitled to.
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- Confidentiality / Non-Disclosure
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- Many employees, particularly those in positions involving sensitive data, will have employment contracts that have confidentiality or non-disclosure clauses. Knowing the exact terms of these clauses in your contract will be important if you are accused of breaching confidentiality or disclosing sensitive information.
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- Non-Compete Clause
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- If you have a non-compete clause in your contract, it can strictly limit your employment opportunities after you are fired or leave your company. It can become an even bigger problem if you are accused of violating a non-compete clause by working with a competitor company or by starting your own business.
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- Arbitration Clause
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- If your employment contract has an arbitration clause, it can mean you will be forced into private arbitration to settle any potential legal dispute. If this happens, it can significantly impact the possible outcome of your case, and what opportunities you have to appeal an unfavorable outcome.
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- Termination Terms
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- Employment contracts will often lay out exactly under what circumstances you can be fired from your position, including explaining what happens if you are not fired for cause. This can be critical to helping you get the maximum possible compensation in a severance package.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 44 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
