There are many different types of contracts that arise in employment relationships. Sometimes when offering a perspective candidate employment, it may be necessary to ask them to sign an employment contract. Usually, the contract will set forth compensation, benefits, and duties. It may also include confidentiality or non-compete provisions. Confidentiality provisions are usually designed to protect what are called trade secrets. They may also provide that anything the employee designs or develops while working for your company belongs to the company. A non-compete provision is a little different. It prevents the employee from employment with a competing company after employment is terminated. In order to be valid, the provision must be limited in time, scope, and geographic area.
Employment relationships end for a number of reasons. Sometimes everyone parts on good terms; other times, the relationship looks more like a nasty divorce. Often when an employee is terminated or laid off, he or she will be asked to sign a separation agreement in exchange for severance pay. Separation agreements usually require the employee to waive any potential claims he or she may have against the employer in exchange for severance pay. Often they will also include confidentiality or non-compete provisions. There may also be provisions such as “non-disparagement” clauses that are designed to prevent the employee from bad-mouthing a prior employer. Ultimately the agreements usually require an employee to give up some right in exchange for severance pay. Learn more about separation agreements in Minnesota.
Why hire an attorney?
If you are faced with the responsibility of firing or hiring new employees, you may wonder if it is worth it to hire an attorney to review an employment contract. The answer is yes! If you are hiring, it is important to have an attorney review your employment contract to determine if it will adequately protect your company if the employee chooses to leave the company in the future. Similarly, if you are offering a severance or separation agreement, it is a good idea to have an attorney review it first. The attorney can help you evaluate whether there are other potential claims that your company would be wise to include. Contact us today to find out your options.
Whistle-blower statutes, also known as anti-retaliation statutes, provide protection for people who report wrongdoing or file lawful claims. There are several different kinds of statutes. One well-known example is that of worker’s compensation. An employee cannot be terminated for filing a legitimate worker’s compensation claim. Similarly, an employee cannot have their employment terminated for reporting illegal activity to a government authority. The purpose of such laws is to encourage people to do the right thing without fear of retaliation from employers.