While most employers understand the benefits of providing new hires with an employment contract, this doesn’t necessarily hold true across the board. There will always be companies that want to skip this step for one reason or the next (all of which benefit them).
As an executive or other high level employee, there are many benefits of having an employment contract. These include:
- Clarity: Your employment contract will provide clarity on your job responsibilities, pay, benefits and other key details. Without this, you’re simply relying on the conversations you’ve had with your new employer, and that’s not enough to protect you in the event of future trouble.
- Opportunity to negotiate: Once the company makes an offer and extends an employment contract, you can review it, make note of things you want to negotiate and then take action. This provides the opportunity to get everything you want, or close to it, from your new position.
- Peace of mind: When you have concerns about your employment, such as potential grounds for termination, it’ll eat away at you. With an employment contract, everything regarding your job is clearly laid out, giving you the peace of mind you deserve. Anytime you have a question about your employment, you can review your contract for a detailed answer.
Even with an employment contract in place, it doesn’t mean you’ll never find yourself at odds with your employer. For example, you may have a severance clause in your contract, but your employer may look for ways to avoid paying upon termination.
If your employer violates your contract for any reason, learn more about your legal rights so that you can take the appropriate action.