Employment Agreement

In simple terms, an at-will employee can be terminated at any time, for almost any reason, with or without notice. This arrangement could be very attractive for an employer that wants to have the flexibility to adapt their workforce to the changing needs of the business. That said, the employer's right to fire an at-will employee is not unlimited. This is due to the fact that most states have certain laws that consider some forms of termination as illegal, regardless of whether or not the employment is at-will. 

Although some employment agreements require more detail than others, a properly drafted agreement will cover the following details: 

• The full names of the employer and employee
• The full term of the employment, whether it be for a fixed term or indefinitely 
• A general description of the employee's duties under the agreement 
• The employee's right to perform services for other employers during the agreement's term 
• A description of the employee's salary structure 
• A list of additional benefits offered to the employee
• Ownership of any intellectual property generated by the employee 
• A description of any applicable dispute resolution structure 
• A full description of any non-compete requirement
• A confidentiality requirement preventing unwanted disclosure of the employer's confidential information
• A non-solicitation provision preventing the employee from adversely interfering with any of the employer's business

The term "duties" refers to the set of tasks and expectations that make up the responsibilities of the vacant position. It is very important that the soon-to-be employee has a clear idea of all the duties related to the position in order to avoid any potential conflicts with the employer. Given its importance, this part of the agreement should be reviewed multiple times in order to make sure it is well drafted and is not missing any important details. 

Unlike an employment agreement, a service contract is used to acquire services from contractors, not employees. Given its limited use, a service contract will have a limited term, usually determined by how long it takes to render the service. Simply put, if you need to hire an employee, then an employment agreement is the right document to use. Otherwise, if what you need is a service from a contractor, then a service contract is the way to go.