Employment Agreements: Key Clauses Worth Understanding

An employment agreement shapes the relationship between employee and employer for the entire duration of employment. Reading it carefully, before signing, can prevent friction later on.

Compensation and benefits

Beyond base salary, it's worth understanding how additional pay components, bonuses and benefits are defined, and how they are affected by future changes in role or scope of employment.

Confidentiality and non-compete clauses

These clauses can affect the ability to work for another employer or start a competing business after employment ends. Their scope, duration and enforceability vary from case to case.

Termination terms

Employment agreements typically include provisions on notice periods and various termination scenarios. Understanding them in advance helps both sides know what to expect if the relationship ends.

The above is general information only and does not constitute legal advice. For review of a specific agreement, please seek tailored legal counsel.