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.
In the list below, you will find just a few of the components many executive employment contracts in Michigan include.
Non-competitive clauses: These are common clauses asking the employee to agree not to work for a competing business after the current work relationship ends. It is typically only for a limited amount of time and only in specific geographical areas.
Confidentiality agreements: This means you will agree not to disclose private information you may learn in the company. These agreements usually occur on a permanent basis, meaning you are bound by the agreement even after your employment ends.
Compensation packages: This component details your entire compensation plan and can include severance pay details, stock options, overtime pay and many other elements. Make sure the compensation is to your liking before you sign the contract.
Termination: One of the most important components, the termination section may give the employer the right to fire you for any reason. Make sure to read the section carefully and do not sign if you have a problem with this clause.
Of course, the above elements are only the tip of the iceberg. Executive employment contracts can be very specialized in some cases. To make sure your rights remain protected, you might consider letting an employment attorney review the contract before you agree to sign.
Source: FindLaw, “Employment Contract Provisions,” accessed June 20, 2017