Types Of Employment Agreements You Should Know About

When you join a company, you must sign an employment agreement with your employer. There are different types of employment contracts that may be presented to you. It is important to understand what each type means for your future. Other than that, it is also recommended to read the terms of your employment before signing the contract.

If you have recently received an employment agreement, you need to get legal advice to go over it to make sure it complies with state and federal labor laws. Experienced attorneys help employees stay protected in the workplace and have a successful career without obstacles.

Types of employment agreements

  • Non-disclosure agreements

A non-disclosure agreement is an employment contract where the employer prevents the employee from discussing the confidential information of the business or company with people outside the department or the business. Sometimes an employee hired at a higher position in the company is entrusted with trade secrets or other secret information. This legal document protects the company and allows the employer to sue if something goes wrong.

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However, sometimes an employer may wrongfully accuse an employee of sharing confidential information. If you are in such a situation, speak to an attorney today.

  • Non-competent agreements.

A non-competent agreement is a type of employment contract that prevents employees from taking up a job in a similar position in another company which is their rival. This is usually signed by workers entrusted with top-secret information related to the business.

For example, if you are appointed the CEO of a company, you cannot accept the job offer of a CEO in another similar company, especially a competitor. Moreover, the employee is not allowed to use the strategies and business ideas of the previous company.

  • Severance agreements

A severance agreement dictates that the employer cannot do or say certain things about the company in exchange for money when they get laid off. The employee receives some amount in their severance package, which helps them until they find another job. However, such agreements often come with a bunch of complex terms.

It is important to understand each of these terms as, in most cases, you won’t be able to take legal action against the company after you sign it. To ensure your severance agreement has reasonable terms, ask an experienced attorney to review it.

Although employment contracts can include several things, certain things undermine the document’s legality. Some of them include:

  • The employee is prohibited from participating in political activities.
  • The employee’s rights are violated.

Contact an attorney today.

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