Employment contracts come in many forms. Most contracts include common elements including the start date, salary and benefits. You can think about what kind of employment contract works for you before signing.
An employee confidentiality agreement is a contract where an employee promises to never share information about how the company is conducted, secret processes, plans, data, formulas or machinery.
A noncompetition agreement has the employee agree that after a certain amount of time not working for the employer, he or she will not become employed by a rival company or any company engaged in a similar type of business. This agreement may also prohibit the employee from forming a company that will compete with the employer’s business or solicit its customers.
An ownership of inventions contract makes the employee agree that anything created at work or during a certain time after termination becomes the employer’s invention.
A best efforts contract states that the employee promises to work according to the best of their ability and be loyal to the employee. Exclusive employment contracts state that the employee will not work for anyone else in a similar type of business.
A no additional compensation clause states that if an employee becomes an elected officer or serves on a company managing committee, they will not be entitled to additional compensation.
A termination clause states that either party can terminate the contract for any reason by giving a certain amount of notice. It can also include that the employer can terminate the contract if it is violated by the employee. The clause can also state that if the employee becomes disabled or ill and can no longer perform the job, they can be terminated.
An arbitration clause allows the employee to agree if they have a dispute, they will submit it to arbitration rather than a court of law.
A choice of law clause states that if a dispute should end in a lawsuit, it will be governed by laws of particular state.