Within the world of work, there are many types of employment contracts, each with its own characteristics and purpose. Most contracts contain similar information but are distinctly separate in various regards. Read on to find out which contracts are right for the employees in your organization.
According to L&E Global, there are no minimum requirements for employment contracts in the United States. New employees are typically given a written offer of employment that contains information typically found in an employment contract. There's no legislation governing the length of a fixed-term contract or employment trial periods. Rather, organizations will decide on an introductory or probation period at their own discretion, usually between 90 and 180 days in length.
Termination isn't governed by law either. Instead, it's assumed that both the employer and employee understand that employment can be terminated at any time by either party (an "at will" agreement) or according to any relevant provisions in the written offer of employment. However, the Worker Adjustment and Retraining Notification Act states that employers must give 60 days' notice to employees who will be affected by plant closings or mass layoffs.
As ContractCounsel explains, employment contracts set out the terms and conditions of employment. They may be written or verbal and both are considered legally binding. Per Factorial HR, written contracts offer both the employer and the employee the most protection (in case of a breach of contract) because there is physical evidence.
You can decide which contract is right for an employee based on how long you want to employ them, how many hours you want them to work, the nature of employment (i.e. the employee's responsibilities) and compensation and benefits you're able and willing to offer.
Regardless of the type, employment contracts commonly include: