When an employee is hired, that person may be required to sign a contract with the employer. While some portions of an employment contract are standardized, it may be possible to customize a contract if necessary. Common clauses added to an employment contract may be a no compete agreement or a confidentiality agreement. Other common clauses may include a best efforts clause or a no further compensation clause.
These clauses limit what an employee may do or what specifically is expected of the employee. The best efforts clause means that an employee may make recommendations to the employer that will benefit the company. A no further compensation clause may mean that an employee does not get additional financial benefit if he or she is made an officer of the company. Language may also be added into a contract saying that an employee may not agree to contracts that the employer is bound to honor.
Terms in the employment contract may determine when an employee may be terminated and what rights an employee has to contest the termination. Instead of going to court, an employment agreement may require both sides to go through arbitration. In some cases, a contract may have a choice of law provision. This clause says that a lawsuit will be decided by the laws of the state where it is filed.
If there is a dispute involving employment contracts, it may be worthwhile to seek the assistance of an attorney. It may help employees resolve the dispute in a favorable manner. If an employee is terminated or has pay illegally withheld during a contract dispute, it may be possible to win reinstatement or back pay. In addition to back pay, it may also be possible to win additional financial compensation if state law or the contract calls for it.
Source: FindLaw, "Employment Contract Provisions ", November 25, 2014