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Common employment agreement terms and disputes

On Behalf of | Sep 20, 2023 | Business Law

An employer and employee may decide to enter into an employment agreement, and it is important to understand comment elements that should be included.

Employment agreement overview

An employment agreement outlines the terms and conditions of the employment relationship. It should include the names and contact information for both parties, the position and the job description, the work hours, and the employee’s salary or hourly wage. It should also state how often the employee will be paid and the method of payment.

If the employer is providing benefits, like health insurance, a retirement plan, and paid time off, that should also be included, as well as any terms under which the parties can terminate the employment relationship.

Also, if the employer wants to prevent the employee from working for another employer or keep business information confidential, a non-compete clause and confidentiality clause should be included.

The specific terms may vary depending on the employer’s business and the scope of work the employee will perform.


Occasionally, disputes may arise when there is conflict over the employment contract. This may be because there is a disagreement with the compensation, including overtime pay that is outstanding.

A dispute can also happen when an employee is terminated, challenges the enforceability of a non-compete clause, or where there is a disagreement over working conditions. There can also be allegations of misrepresentation or fraud regarding certain aspects of the job the employee was expected to perform.