Many employment attorneys talk about what executive contracts should and should not contain. We have written about and discussed contract clauses several times in our legal blog. These topics are important to executives concerned about protecting themselves, but sometimes, these discussions are a bit too general.
We wanted to take a few moments to put a tighter focus on three clauses that frequently appear in employment contracts. Hopefully, our insight can help all executives in the Detroit region acquire a contract that is as beneficial to them as it is to their employers. To add an extra layer of protection, consider acquiring legal counsel to evaluate your agreement prior to signing.
Change in control
Most executive contracts do include a change in control clause, but often they are vague. Make sure such a provision in your contract has clear language detailing your benefits and payment rights should a change in control occur.
Cause for termination
Many employment contracts contain generous provisions for executives that are terminated without cause. However, nefarious employers may wish to terminate an employee without abiding by the contract’s terms. As such, they may fire an executive for “cause,” which means they may terminate by you claiming you did something wrong. Make sure your contract contains a narrow definition of such cause before you sign.
Notice and cure
This clause essentially means that if you receive a notice of termination, you will have a period of time to correct or cure the problem. By insisting that your contract has a clearly-worded notice and cure provision, you will have time to fix any problem that resulted in a termination notice. If irreparable, the clause can open the door to severance negotiations between you and your employer.
Sometimes, the corporate world can feel as dangerous as a dark alley. However, with diligence, knowledge and legal advocacy, you can thrive as an executive without risking your livelihood or your reputation. Keep browsing our website for more about employment contracts.