Law Offices of Louis Spitters

What should employment contracts cover?

Numerous employers in the state of California utilize contracts when hiring staff. These contracts should lay out exactly what is to be expected from both the employer and employee. Solid employment contracts should be pretty detailed. There is some key information that, if not included in one's contract, one may want to request be added before signing anything.

So, what should an employment contract cover? First, compensation is big and should not be overlooked. Who wants to work for a company that is not clear on how much it will pay? When it comes to compensation, the contract can include information on base salary and bonuses, as well as the terms for a salary increase or possible reduction.

Second, it is important to know exactly what one's role is within a company. So, an employment contract should specify the scope of one's employment. This keeps everyone on the same page as to one's roles and responsibilities.

The third item that will be discussed is benefits. Is there a benefit plan, and, if so, what does it entail? Health and dental insurance, retirement savings, pension, disability and a number of other benefits can cost a person a pretty penny over the course of a career. It is good to know and get in writing what one's employer is willing to sponsor and pay for.

After those basic items are addressed, a few other things that every good employment contract typically includes are confidentiality restrictions, terms of termination, post-employment limitations and acceptable dispute resolution methods -- among various others. In all, it is a lot. California residents who are presented with employment contracts would be wise to take time reading and reviewing the information carefully before signing their rights away. Those who have questions about the proposed terms or wish to negotiate the terms can turn to legal counsel for assistance.

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Law Offices of Louis Spitters
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