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Employment Contract

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A contract with two pairs of hands visible in the picture

An Employment Contract Protects the Interests of Employers and Employees

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An employment contract is a written legal document that lays out binding terms and conditions of employment between an employee and an employer. An employment contract generally covers:

An employment contract is written most frequently for high level jobs and for senior employees who have a lot to lose if an employment relationship does not work out as planned. An employment contract is also negotiated for union represented employees. A union contract covers employment issues that an employment contract may not, such as grievance procedures, hours of employment, representation by a union steward, and layoff procedures.

A job offer letter is an informal employment contract that usually spells out just the basics of compensation and benefits, job title, and reporting relationships. Employers may need to offer senior level employees a job offer letter that spells out many of the components of the employment contract.

Depending on the position the employment contract defines, the employee may be required to sign a non-disclosure agreement and / or a non-compete agreement.

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Also Known As: contract, union contract, union agreement
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