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.
Below is a brief list of the items a solid and fair Michigan employment contract should contain.
Termination for Cause: Many employment contracts define termination for cause in a very broad manner. Ensure your contract’s definition for cause is narrow and specific.
Resignation with Severance: The best way to ensure you can resign your position and still receive adequate severance is to make sure your employment contract contains a clause allowing you to resign with good reason.
Notice and Cure Provisions: This clause requires your employer to give you a written notice of termination along with a specified period of time during which you can cure or remedy the problem.
Change of Control Provisions: Companies shift or merge all the time, putting the jobs of executives at risk. This clause provides that you will remain entitled to certain benefits and payment during a change of control.
Other elements all good executive employment contracts should contain include:
— Details about compensation and benefits
— Specific information about the scope of employment
— Termination and term of employment details
— Intellectual property issues
— Liability protection
— Expenses reimbursement details
Signing an executive employment contract is a big deal that could have an effect on many aspects of your life. Having an employment law attorney review the contract ahead of time can protect you for the duration of your employment.
Source: The Business Journals, “5 things all executives should have in employment agreements,” Mark J. Oberti, accessed Feb. 03, 2017