Five Contracts Your Business Needs – Employment Agreements

Employment Agreements

The previous three articles in our series of the top five most commonly requested business contracts discussed LLC operating agreements, partnership agreements, and corporate bylaws.  In this article, we will discuss the next contract in the series:  Employment Agreements.

In Pennsylvania, an employment agreement need not be in writing to be enforceable.  Nonetheless, employers and employees alike will find it in their best interest to have a written contract containing specific terms, rather than a verbal contract, the terms of which may become a matter of opinion and debate.  Few non-union employees will have employment contracts, but those few are often organizations’ higher paid, vital employees.

To be enforceable by either party, an employment contract must contain the employer’s agreement to either employ an individual for a definite period of time, or to limit the employer’s ability to discharge the individual at will.[1] An agreement that provides for a definite period of time but lacks promised employment for said period may be insufficient.

Other terms that employers should consider covering in an employment agreement include the employee’s position and title, duties, and performance standards.  Employers must take great care in building flexibility into employment agreements, while also setting parameters for acceptable performance and required duties.  Compensation and benefits will likewise need to be addressed, as these terms will probably be tied to performance standards and duties.

For assistance drafting or reviewing an employment agreement, or for help with any other matter related to your business, call Scolieri-Beam Law Group, P.C. Located in western Pennsylvania, our attorneys are experienced in Pennsylvania business law and can help you navigate employment contracts and other matters affecting your business. Contact us today at (412)765-0546 or info@scolierilaw.com.