As you may already surmise, employment contracts can vary widely. Often, it depends upon the industry, the company and the type of executive position that is on the table. If this is your first executive contract, you are wise to seek more information about what is common and uncommon in an executive employment contract. Doing so can help you avoid being taken advantage of either willfully or unknowingly.
Scenario: You are a star on the rise in the world of business and have just been offered your first executive-level position. While you are excited about this new chapter in your career, it means that you will have different considerations as you move up in the company.
In simple terms, a golden parachute is simply a severance package. However, it is unlike almost all severance agreements because the value of a golden parachute is typically substantial. Entry-level or even mid-level employees will probably never be offered a golden parachute in their employment contracts. This clause is reserved for top, executive-level employees only.
Executive level employees must often sign employment contracts upon hiring. While employment contracts are valuable tools in establishing the rights and responsibilities of all parties, it is vital to ensure the contract will benefit your needs as an employee. Contract negotiations can provide Detroit executives with the means to control some of the risky aspects of a written contract such as the compensation package.
Executive employment contracts can be as varied as the Detroit weather. The elements contained within typically address areas specific to the type of employment, the industry and the needs of the employee and employer. However, all solid C-Level employment contracts should definitely contain specific items to ensure that you, as the employee, will always receive fair treatment.
Michigan residents who make their living in sales know the stress they will face when trying to meet their quotas. In many cases, the amount they are paid is contingent on achieving certain sales goals, and it is in their contract that they must reach these numbers. An employment agreement can be complicated and if there are changes made to the terms that the person believed he or she was working under, it can negatively affect their ability to earn a living. One issue that can arise has to do with territory realignment.
Some employment contracts require that the employer pay an employee a severance package before terminating their employment. Those who are dismissed from their jobs need to know what they are entitled to based on employment contracts. On the same token, employers - whether it is a public or private entity - also need to know what the contracts require of them. In some cases, the parties may have a legal disagreement over whether or not the contract should be paid.
Workers who have faced termination from their jobs in Michigan need to have a firm understanding of all the legal issues that surround severance pay. If a former employee received a severance package upon termination, this can have an effect on the unemployment benefits he or she is entitled to. The law states that severance and other payments that an employer made after an employee was dismissed will lower the amount the former worker will receive in unemployment benefits. An exception is the Supplemental Unemployment Benefits.
Many employees in the United States, including many in Michigan, are required to sign a non-competitive agreement at their place of business. The non-competition clauses, based on time and geography, impose certain conditions on an employee. For example, a non-competition clause may forbid an employee from working for a competitor within 100 miles of the current company's zip code for a year after resigning. Such an employment contract benefits the employer but not the employee. For the employee, that can be restrictive and it can be an obstacle in the way of career growth and progress.
For some Michigan workers, signing an employment contract may not be a simple task, especially if there's a non-competition clause associated with it. Generally, a non-competition agreement refers to a contract under which employees cannot join or start a venture similar to their current employers' company if they leave their employment. In employment law circles, there is a lot of debate over how far these contracts can go in restricting employees' freedom.