Employment contract

Types of Employment Contracts
– Fixed-term contracts are used for a specific amount of time or completion of a task
– Open-ended contracts do not have a specified end date and are used for long-term employment
– Either party can terminate a fixed-term contract with appropriate notice
– Open-ended contracts can be terminated with appropriate notice or in specific circumstances such as health concerns or resignation

Employment Status
– Independent contractors provide services to other businesses and are not under outside authority
– Independent contractors are contracted on a temporary basis and paid upon project completion
– Employees work for an organization and are covered by federal and state employment laws
– Employees are entitled to benefits such as social security and workers compensation
– Independent contractors do not receive the same benefits as employees

Termination of Employment
– At-will employment allows employers to terminate employees without cause
– For-cause employment requires a just reason for termination and may involve an independent review
– Just-cause employees include federal and state employees, as well as union members
– At-will employment does not require an employer to provide a reason for termination
– For-cause employees can only be terminated for a just reason
– Termination decisions for for-cause employees are reviewed by an independent body

Employment Contract Clauses
– Compensation and Benefits: Negotiated base salary or earning potential, performance incentives, production bonuses, signing bonuses, equity and stock options
– Probationary Period: Trial period for new employees, evaluation of job performance and conduct, termination if performance is unsatisfactory, notification of employment continuation at the end of the probationary period
– Non-Competition: Prevents employee from working for a competitor after termination, employer must have a legitimate interest in restricting future employment, clause must be reasonable in time, activities, and geographic area
– Non-Solicitation: Prevents employee from soliciting employer’s clients, customers, or employees, prohibits solicitation for a period of time after termination, protects employer’s information and ensures company loyalty
– Non-Disclosure: Employee agrees not to disclose confidential or sensitive information, protects trade secrets, client information, and valuable information, non-disclosure agreement can be indefinite or have an end date clause

Additional Concepts
– Inherent Invalidity of Contracts: Contracts are invalid as they cannot transfer self-determination, labor law scholars view employment contracts as relationships of economic dependence and social subordination, labor law aims to counteract the inherent inequality of bargaining power in employment relationships
– First Employment Contract and New Employment Contract in France: Specific types of employment contracts in France aimed at increasing employment opportunities for young people, faced criticism for providing fewer protections for employees, subject to legal and policy debates in France, part of broader labor market reforms in the country
– Master and Servant Act: Historical legislation that regulated employment relationships, originated in England in the 18th century, aimed to protect the interests of employers and maintain social order, gave employers significant control over employees, repealed in many jurisdictions and replaced by modern labor laws
– Work Visa: Allows migrant workers to legally work in a country for an extended period, a legal requirement to work in a foreign country, issued based on specific criteria and regulations, often tied to a specific job or employer, can have varying durations and conditions depending on the country Source:  https://en.wikipedia.org/wiki/Employment_contract