Dallas, Texas (WiredPRNews.com) — Although most employees do not enter into employment contracts with their employers, many corporate executives do work pursuant to written employment agreements. An employment agreement is an agreement between an employee and an employer that sets forth the terms and conditions of the employment.
Most employment contracts will contain terms related to the following elements:
• Job description and duties;
• Compensation, including salary and bonus pay;
• Grants of stock options;
• Length of the employment relationship, including the starting date;
• Grounds for termination;
• Competition with the company following a separation;
• Fringe benefits; and
• Ownership of intellectual property.
In most circumstances, an individual should seek counsel to review a proposed employment agreement. An attorney can identify terms that could lead to potential problems and suggest ways to restructure the agreement. Oftentimes an attorney can render advice without getting involved in the negotiation process itself. This may enable the individual to handle the negotiations in an amicable manner with his new employer. Or, if the individual is worried that the negotiation process could become strained, he may ask his attorney to handle the situation.