Employment contracts can sometimes be confusing. Whether you are applying for a new job or working for the first time, it is essential to know what is within these agreements. The job contract outlines the terms and conditions of your employment and helps you understand your work responsibilities.
What your contract says and why it matters
At-will employment is the default status for most employees in Florida. This means that either you or your employer can end your working relationship at any time, for any cause except for illegal reasons such as discrimination or retaliation. While at-will employment arguably allows for flexibility, having an employment agreement, particularly one for a set term (such as a year, two years, etc) and that includes circumstances upon which the terms of employment, including termination, is a good way to safeguard your rights in the workplace.
Work contracts are especially valuable in roles featuring nonstandard schedules, performance incentives or commission-based pay. These contracts clarify your work hours, bonus calculation and payment terms. A written agreement allows you and your employer to set professional expectations for each other.
Common clauses you might see
Every employment agreement is different, but here are some common terms you may encounter:
- Job duties and responsibilities: This clearly outlines what your role entails, from your daily tasks to who you report to.
- Compensation terms: This section details everything, from potential bonuses to overtime rules.
- Noncompete clauses: These agreements may restrict where you can work or who you can solicit, such the company’s employees or clients. They are intended to protect a company’s business interests after an employee leaves.
- Confidentiality and IP (Intellectual Property): This means keeping sensitive business information private. It also acknowledges that any innovations or creations you develop on the job typically belong to the company.
- Termination clauses: These lay out the conditions for ending employment. This includes any required notice periods, potential severance pay or specific reasons for dismissal.
- Dispute resolution: This pertains to how legal disagreements between you and your employer will be handled. Many contracts use arbitration, a private process, instead of going to court.
Understanding these clauses is a great first step, but interpreting how they apply to your specific situation can be more complex.
Know what you are signing into
Employment agreements are meant to protect both parties. A well-written agreement helps prevent confusion. If you are unsure about any part of your contract, it is best to consult an experienced employment attorney before signing the contract.