Employment Contracts

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Like any other contracts, employment contracts can be written or oral.  It is almost always a better idea to have a written document so later disputes can be resolved more easily.  Larger companies with employee handbook’s can create employee rights based on language in the handbook.  It is important to have an attorney review contracts and other employee documents to be more certain of the rights bestowed upon a company’s employees.

In New Jersey, most employees are subject to “employment at will.”  This doctrine dictates that an employer can terminate an employment contract for any reason – or even no reason whatsoever. Employment at will applies unless the employer discriminates or the employment contract states otherwise.

There are many other provisions an employer can choose to put in an employment contract.  For companies concerned about trade secrets, they can limit an employee’s use of proprietary information or include a covenant not to compete.  Employment contracts should also define employee benefits like vacation and sick days, health benefits, and investment options if they are intended to given to the employee.  Some employers create non-disparagement agreements to prevent employees from expressing negative comments about their employer.  From an employee perspective, it is important to thoroughly read an employment contract, or at least have a lawyer read it.

If you are an employer or employee and need to draft or review an employment contract, you can contact Stone Law at 732-444-6303 or leave us a message on our website.