Employment agreements govern the relationship between an employer and an employee. Some of the important aspects of these agreements are described below.
Legal Effect of Employment Agreements
Texas and most other states are employment-at-will states, meaning that typically either party of an employment agreement can end the employment relationship for any reason, so long as it is not an illegal reason like discrimination or retaliation for filing certain types of claims against the employer. However, some people do have an employment agreement in place.
When an employee has an employment agreement, the terms of this contract bind both parties. Typically, the employer cannot discharge the employee except for the reasons specified in the contract, such as serious misconduct. If the employer breaches the contract by terminating the employment relationship early, the employee may be able to file a wrongful termination lawsuit and seek compensation against the employer for the damages the employee sustained.
Common Types of Employment Agreements
There are several types of employment agreements. Some of the most common types of agreements that employers may provide include:
- Express – An express employment agreement states the terms of the agreement. It may be verbal or written.
- Implied – This type of employment agreement implies that the employee will have continued work. It may be based on something the employer says, statements in an employee handbook or other assurances that the employee will continue to have work.
- Covenant not to compete – Some employers may require employees to agree not to compete with the employer by going after clients or starting a competing business within close proximity to the employer once the employment relationship ends.
- Nondisclosure agreement – Employers may try to protect their intellectual property and trade secrets by requiring employees to sign a non-disclosure agreement.
How a Lawyer Can Help
A lawyer can draft employment agreements for their clients that set out terms that favor them. They can also review an employment agreement that is offered to their client and discuss the legal implications of it. Additionally, they can modify agreements and negotiate more favorable terms on behalf of their client. If the agreement is breached, they can explain your legal options and help you protect your contractual rights.
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