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What should an employment agreement cover?

On Behalf of | Aug 23, 2021 | employment contracts |

Whether you are signing one or creating one, it is essential to ensure an employment agreement covers all the important aspects of the job. It needs to create a clear picture of expectations and make it easy to start off on the right foot.

When assessing an employment contract, The Street explains there are some top issues that you will want to see in it.

Duties and responsibilities

A very important part of the contract is to outline the duties and responsibilities the employer and employee have. This needs to be complete and clear. If you are the employee, you should have no questions about what you will do and how you will do it. You should understand the expectations as well. As the employer, the explanation should offer the employee a comprehensive description of what you expect.


The contract should outline if the employee will have a probationary period. It also needs to give details on discipline and how that works. In addition, the document should cover performance reviews and how that process will go.

Salary and benefits

The contract should clearly lay out what you will earn. It should include all aspects of compensation, including any perks, bonuses and overtime. You also want to see an explanation of all benefits. This should provide detailed information and give dates to let you know when you will qualify for benefits.

Special situations

If there will be a nondisclosure or there are similar details involved with the job, it needs to be in the contract. An employer must make it clear what is and what is not acceptable when it comes to sharing information about the job and keeping things confidential.

Ending the contract

It is essential that a contract includes information about termination. This should cover both voluntary and involuntary. It also should outline any dates associated with the ending of the contract if it is for a specific period.