Why should an employer enter into an employment contract?

Author: Melanie Perez-Vellios, VP Group, LLC

An employee contract can be an excellent tool in detailing both the employer and prospective employee's expectations with regard to the position being filled, job responsibilities, employment benefits and compensation. Additionally, should termination of employment become necessary, an employment contract can allow for certainty regarding dissolution of the employment relationship. For example, the employment contract may include a termination clause, choice of law provision, noncompete agreement, restrictive covenants and other provisions to protect the parties' particular interest in the event the employment relationship must be terminated.