In Michigan as in the rest of the United States, most employees are at-will employees with no employment contract. High level or executive employees, however, are often in a position to negotiate an employment contract that can, among other things, protect them from discharge at will. For people in this position, setting the terms of the employment contract prior to execution is very important. Once a person is hired, they have no leverage to negotiate a better deal.
Terms of employment contracts should be well-negotiated for the best deal. Recently, the seven-year employment contract of University of Michigan's new football coach was revealed and the contract's value was far more than anticipated. He will earn close to $40.1 million over seven years.
Employment contracts are executed between employers and employees so that the terms and conditions of employment, including severance pay in cases of termination, are clear to both parties. This is standard everywhere in the country, including Michigan. Today, most employment contracts signed by senior executives in U.S. corporations include a change-in-control clause.
Michigan residents are aware that it is very important for an employee to read the employment contract clauses before accepting or declining a job offer. After an employee has signed on the dotted line, the employee will not be able to renegotiate benefits, job roles, compensation or even the terms of severance with the employer.
Michigan residents are probably aware that employment contracts are binding to both the employee and the employer. It is a foundation on which an employer-employee relationship can be built, and needs to be respected by all concerned parties.
Michigan state employee unions are launching a campaign against the state's governor, claiming he is a "flip-flopper" on the topics of bargaining and right-to-work legislation. Just two years ago, the governor pledged to collaborate with the unions collectively, which union representatives now say is a complete reversal of what is currently being put into practice. Workers within the coalition of unions are reporting that the new legislation is limiting their rights in the workplace.