What To Include In Employee Contracts
Johnstone Adams • March 30, 2023
When you hire a new employee, you will have them sign a variety of forms and documents before they start their position, including an employee contract.
This contract can protect your business by outlining exactly what is expected of the employee and can serve as documentation in case you need to later terminate their employment.
Because of this, it’s essential to consult a business attorney to determine what needs to be included in a contract.
Items to Include in Employee Contracts
All employee contracts should include the following information:
- Job information: Make sure you define the role and responsibilities. This should include the job title and description, what department the person will be in, who they report to, role requirements, skill requirements, and any additional requirements.
- Compensation and benefits: A key item to include in the contract is the employee’s compensation and benefits. This should state their annual salary or hourly wages, any raises or other incentives they can achieve, health benefits, retirement packages, a signing bonus (if applicable), stock options (if applicable), and other benefits offered by your company.
- Time off policies: Contacts should also state how much vacation and sick time the employee is allotted, and how those days or hours can be accrued. It can also include how those days off must be requested and who needs to approve them. You can include sick leave and family medical leave or emergency situations in this section, or you can address it in a separate section, as well.
- Classification: This might seem obvious, but it’s important to document if the person is an employee or a contractor. This is important to protect your company legally later. How an employee is classified will impact their benefits and tax filings.
- Schedule: Make sure the contract states if it is a full-time or part-time position. It should also state if this is an ongoing position or if it’s only for a set time, such as seasonal help. This is also the area to state if there are specific hours the person needs to work, or certain days they need to be available to work (such as if the position requires weekend work). Putting this in the contract makes it clear to the employee if this is a long-term or short-term job, and what the schedule expectations are.
- Confidentiality: It’s essential to include a section on confidentiality, privacy, and responsibility in employee contracts. This protects your company to ensure the person cannot take your trade secrets and share them with others. If they do, it provides legal backing for you to use against them. This is also an area where you can include non-compete agreements.
- Termination: Including termination policies in your new-hire contract can seem dark, but it’s necessary. Including what can lead to termination, what’s required for either party to terminate employment, and how terminations and severance are handled can protect your company if you and the employee need to later part ways. You can also include any mandates they must follow after leaving your company in this section.
Creating employee contracts can require a lot of detail and legalese to ensure they are accurate and contain the right information. Hiring a business attorney to help create these documents can benefit your company.
Why Hire Us for Help with Employee Contracts
If you have questions about creating employee contracts, let our experts help.
Ranked in the 2022 U.S. News – Best Lawyers® “Best Law Firms” list regionally in 12 practice areas, we have experts in many areas of law to give our clients top-notch representation. In business for more than a century, our firm can mix its experience with the ability to evolve with the changing times.
Discover the benefits of hiring a local estate planning attorney in Mobile, AL, for personalized legal guidance. Contact Johnstone Adams, LLC at (251) 432-7682!
Mobile, AL. United States, January16,2025 ··Johnstone Adams LLC has been recognized in the 2025 edition of Best Law Firms*, a testament to its unwavering commitment to legal excellence. Ranked by Best Law Firms regionally in 8 practice areas, Johnstone Adams LLC has distinguished itself in the legal industry, earning this prestigious accolade. Firms included in the 2025 Best Law Finns& list are recognized for professional excellence with impressive ratings from clients and peers. To be considered for this milestone achievement, at least one lawyer in the law firm must be recognized in the 2025 edition of The Best Lawyers in Americaf). "At Best lawyers, we are proud to recognize law firms that show an unwavering commitment to excellence, innovation, and client satisfaction, • said Philip Creer, Chief Executive Officer of Best lawyers. "In the legal arena. Credibility is earned through consistent quality, which has propelled these firms to the forefront of the legal industry. • Achieving a ranking in Best Law Firms signifies high-quality legal practice and a depth of legal proficiency. Recognized firms, categorized into three tiers, receive acclaim on both national and metropolitan levels, reflecting the extent of their practice and geographic reach. Receiving a tier designation represents an elite status, reflecting the integrity and reputation earned by law firms. The 2025 edition of Best Law Firms* includes rankings in 75 national practice areas and127 metropolitan-based practice areas. The highest-rated firm in each national practice area attains the prestigious "Law Firm of the Year" honor. The transparent collaborative research process employs qualitative and quantitative data from peer and client reviews, supported by proprietary algorithmic technology, to produce a tiered system of industry-led rankings of the top 4% of the industry. Johnstone Adams LLC received the following rankings in the 2025 Best Law Firms®: • Regional Tier 1 o Mobile • Employment Law - Management • Labor Law - Management • Litigation - Labor and Employment • Workers• Compensation Law - Employers • Regional Tier 2 o Mobile • Employee Benefits (ERISA) Law • Health Care Law • Litigation - Construction • Tax Law ### About Johnstone Adams LLC Johnstone Adams LLC is committed to providing its clients with the full range of services necessary to meet their legal needs. Our lawyers develop and maintain the knowledge and experience to provide top notch legal representation consistent with the needs of our clients, both as to time and expense. Johnstone Adams, LLC specializes in the following practice areas: • Banking, Finance & Creditors• Rights • Business and Corporate including Business Dispute and Shareholder Rights Litigation • Construction Litigation • Employment, Labor and Workers• Compensation Law • ERISA, Tax, Trusts & Estates • Health Care including Mental Health • Immigration including Employment, 1-9 Compliance and Family • Insurance Litigation: (1) Defense: Construction & Completed Operations; Major Claims & Professional Liability; (2) Coverage and Regulatory: Agency, Commercial, Fidelity, Personal lines & Title • Real Estate including Conveyancing, Environmental & Zoning • Real Estate Litigation, including Conveyancing, Lien Priorities & Titles For more than a century Johnstone Adams LLC has strived to improve upon how we deliver legal services to our clients in this ever-changing economic climate.
Johnstone Adams LLC Lawyers Recognized as Best lawyers® Award Recipients Mobile, AL. United States, January 16, 2025 •• Johnstone Adams LLC is pleased to announce that 7 lawyers have been included in the 2025 edition of The Best Lawyers in America• Since it was first published in1983, Best Lawyers has become universally regarded as the definitive guide to legal excellence. Johnstone Adams LLC would like to congratulate the following lawyers named to 2025 The Best Lawyers in America list • Celia J. Collins • Employment Law Management. Labor Law Management. Litigation • Labor and Employment. and Workers' Compensation Law • Employers Rick A. La Trace - Bankruptcy and Creditor Debtor Rights I Insolvency and Reorganization Law • E. Russell March Ill - Elder Law • Wade B. Perry Jr. - Employment Law- Management, Health Care Law, and Litigation - Labor and Employment • Elizabeth Darby Rehm - Employment Law - Management, Labor Law - Management, and Litigation - Labor and Employment • Lawrence J. Seiter - Litigation - Construction and Workers• Compensation Law - Employers • E. Watson Smith - Employee Benefits (ERISA) Law and Tax Law ### About Johnstone Adams LLC Johnstone Adams LLC is committed to providing its clients with the full range of services necessary to meet their legal needs. Our lawyers develop and maintain the knowledge and experience to provide top notch legal representation consistent with the needs of our clients, both as to time and expense. Johnstone Adams, LLC specializes in the following practice areas: • Banking, Finance & Creditors• Rights • Business and Corporate including Business Dispute and Shareholder Rights Litigation • Construction Litigation • Employment Labor and Workers• Compensation Law • ERISA, Tax, Trusts & Estates • Health Care including Mental Health Immigration including Employment, 1-9 Compliance and Family • Insurance Litigation: Defense: Construction & Completed Operations; Major Claims & Professional Liability; Coverage and Regulatory: Agency, Commercial, Fidelity, Personal lines & Title Real Estate including Conveyancing, Environmental & Zoning Real Estate Litigation, including Conveyancing, Lien Priorities & Titles For more than a century Johnstone Adams LLC has strived to improve upon how we deliver legal services to our clients in this ever-changing economic climate.
FOR IMMEDIATE RELEASE Johnstone Adams LLC Lawyer Named to 2025 Best Lawyers: Ones to Watch® in America Mobile, AL, United States, August 15, 2024 — Johnstone Adams LLC is pleased to announce that 1 lawyer has been included in the 2025 edition of Best Lawyers: Ones to Watch® in America. Best Lawyers: Ones to Watch...
You might be focused on signing new clients and building their projects when running a construction company. While you’re busy with that, you might overlook the importance of crucial paperwork – like your contract. While rushing to get started on your project and meet timelines, it’s crucial to stop and take the time to create...
Hiring new employees, managing teams, promoting staff members, and more is a lot of work and requires you to follow strict guidelines to ensure workers are treated fairly. This is already a lot – before adding in complications when hiring immigrants. However, don’t let the fear of immigration laws prevent you from hiring immigrants. These...
Do you think estate plans are for your parents or grandparents? While these might be more common for older people – or those with more assets – they can also benefit younger individuals. Even if you don’t have a lot of property or money in the bank, an estate plan can benefit you and your...
Does your business need a NDA? You need to work with many people to meet demanding business needs. You might rely on numerous people, from employees to consultants and even agencies, to keep your business running – and thriving. While this might help you get work done and grow your business, it can also put...
Corporate Transparency Act’s New Reporting Requirements On Jan. 1, the Corporate Transparency Act (CTA) was enacted. This requires certain companies in the U.S. to disclose information regarding who owns or controls a company. Companies must report this to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Which Companies Need to Report to FinCEN? For U.S.-based...
Estate planning after divorce may not seem a priority. Your life can be chaos. Your finances can be a mess, you might have just moved, and you’re trying to build a new personal life. Added to this list is updating your estate plan. While updating your will and beneficiaries might not be at the top...
