Employment Contracts and Executive Compensation
While it is true that virtually all employment arrangements involve a contract, the agreement between most employers and most employees is an unwritten agreement that either party is free to end at any time and for any reason—that is, the contract is terminable at-will by either the employee or the employer.
Written contracts, by way of contrast, typically provide that an employee will perform certain work for a given period of time and will receive a certain amount of compensation in return. The terms of the contract determine under what circumstances the employee can leave his or her employment and under what circumstances the employer can terminate the employee. Such contracts may also restrict the employee with regards to future employment opportunities, or provide for penalties if the employee wishes to leave before the term is up.
Before entering into any written agreement with an employer, it is wise to have the terms and conditions of the agreement reviewed by counsel and explained to you in common sense terms. Employers can also benefit greatly by retaining counsel to review and comment on employment contracts they use with their workforce. The attorneys of K&G Law Group, PLLC, have experience on both sides of the equation—that is, from the management side as well as from the plaintiff’s side.