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Employment Agreement Issues

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Some employment contracts contain a clause prohibiting a party from performing similar employment for a certain period of time in a specific geographical area. From a legal point of view, we speak of a “restrictive agreement” or colloquially of a “non-compete obligation”. Non-compete obligations stem from the idea that an employer who invests a lot of time and capital in an employee wants to have the convenience of knowing that the employee is not leaving the company and quickly begins to use the newly acquired skills for the benefit of a competitor. Employees are often willing to accept the non-compete clause because they are getting a desirable job. An enforceable non-compete obligation must be limited to an appropriate geographical area. When looking at the geographic area, courts often look at where a company does business. With that in mind, I think it`s interesting to look at the impact of mobile technology and the virtual office on a court`s geographic analysis. Let`s take the example of a Chicago company with clients in the Midwest that employs a San Francisco-based project manager. Is the company from Chicago to San Francisco “doing business” just because the project manager connects to his computer? (This topic will be explored in more detail in a future article). Non-compete obligations can be highly controversial and controversial. Regardless of one`s own opinion on non-compete obligations and regardless of one`s position as an employer or employee, each non-competition clause must be carefully structured and analysed in order to avoid costly litigation. These types of clauses must be fair, reasonable and legal to be enforced in court.

A company may also require an employee to sign a separate confidentiality agreement or other agreements that go beyond the terms contained in the employment contract. The parties may negotiate these provisions before starting work. In this way, the employment relationship can be continued without either party having to resolve the issues later. An agreement promotes cooperation in the future. Indeed, the terms of the agreement are binding and cannot be revoked or modified unilaterally. The extent of employment and responsibilities raises a number of questions: an employment contract is a binding contract between an employer and that employer`s employee. The contract covers specific aspects of employment. These include salaries, health insurance benefits, pension benefits and premiums. The agreement contains grounds for termination. The agreement may also provide for severance pay in the event of dismissal of the employee.

This may seem obvious, but it can certainly lead to employment problems. Small businesses can hire employees without describing the job. Without these basic terms, a lot of confusion can arise. An employment contract contains information about whether the employee is considered a full-time or part-time employee and distinguishes between employees and independent contractors. It is important for small business owners to understand the differences between these types of jobs. (b) Duration – The duration of the relationship between the parties should be formulated in such a way as to reflect the agreement between the parties. We warn employers not to use a specific end date unless both parties know that the employee will be hired for a certain period of time. If the parties agree on a limited duration and an employee works for the employer beyond the end date of that term, the courts will find that the employee was intended to be a permanent employee.

In the event that the courts make this type of decision, the restrictions on the employer`s obligations contained in the work contact may be lifted. For example, with respect to the notice period in such a case, the employer may be liable to give the employee reasonable notice or to pay in lieu of that notice. 3. Employment for a certain period of time (with severance pay): When hiring employees who would be difficult to replace or who would occupy an important position in the company, such as . B an employee of senior management, the employer may want to negotiate a job for a certain period of time. The employer should also consider discussing with the employee whether and when he or she is entitled to severance pay at the end of the employment relationship. The use of employment contracts has both advantages and disadvantages. Since employment contracts are legally binding, there are consequences if someone violates the terms of the contract. The importance of a written and signed employment contract is invaluable to both the employer and the employee, as it contains a written representation of the agreement between the parties and gives the parties a clearer understanding of their duties, responsibilities and obligations to each other in their employment relationship.

In general, you should use an employment contract if you pay or receive money for any type of work completed. An employment contract is a legally enforceable document and therefore protects all parties to the agreement. Employment contracts offer many protections to employers and employees, while having a number of their own problems. Employment contract problems can be difficult to decipher. If you believe your employment contract has been violated, talk to an employment lawyer to determine your legal options. 4. Change of control: As a general rule, senior executives or key employees are advised when the employer must enforce certain provisions in the event of a change of control (sale of assets, sale of shares, merger, etc.), to include these conditions in an employment contract. The employer may also consider including an assignment provision – as permitted by applicable state law – to award the employment contract to a company that purchases the employer`s business. In some cases, an employer asks a new employee to sign a written employment contract at will.

In principle, this document generally reaffirms the employer`s right to dismiss an employee at any time. This contract can be a signed letter of offer, a manual confirmation or an employment contract at will. In addition to the existence of a binding legal agreement between the parties, a carefully drafted employment contract by an employment lawyer should provide both parties with a point of reference that clearly defines the obligations of each party for the duration of the contract. In cases where the parties have not entered into a written contract of employment, Canadian courts recognize that they often pay attention to the parties` intention to import the rights and obligations they deem appropriate in the context of an employment relationship. [4] Therefore, in the absence of a contract of employment, an employer may have more obligations to an employee than one of the parties had anticipated. Therefore, employers are advised to take the necessary time and devote the necessary resources before an employee joins their team, thereby reducing or limiting the possibility of further litigation. Legal fees always outweigh the costs of preparing an employment contract. Companies expect that any inventions or business ideas developed by the employee in connection with the activities of the company during the period of employment will be the property of the company: when operating his business, an employer should consider whether and when he must implement employment contracts with certain employees. When considering whether an employee should perform an employment contract, employers should consider the following five factors: If you want advice on how to enter into an employment contract, you should consult an employment lawyer. An experienced labour lawyer in your area can help you ensure that the terms of the agreement are clear and fair. The lawyer can also help you if the other party violates the agreement.

m) Dismissal – it is imperative that an employment contract provides for the provision for the dismissal of an employee and, in particular, the amount of dismissal to which an employee is entitled if he is dismissed without giving reasons. Under no circumstances shall the termination clause contravene the provisions of the Provincial Labour Standards Act, otherwise such a clause will be unenforceable and the employer may be subject to a higher obligation to dismiss or grant severance pay with reasonable notice. .

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