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Are Employment Agreements Important?

July 18, 2019

What is an Employee Agreement?

An employment contract is an agreement based on the business relationship established between an employee and an employer, in accordance with the Employment Contract Act under the Illinois labor law. Under the Employment Contract Act, an employee agrees to work for an employer in return for timely wage payments and other benefits.

Why is an Employment Agreement Necessary?

Employee contracts or agreements are an essential part of any workplace. It determines the number of hours an employee is required to work. The contract includes crucial information such as conditions for termination, settling payments, job description and other different elements of a job.

Many employees do not work under a contract, which indicates they agree to perform the duties mentioned in the job description under an implied employment agreement. The Federal Government and the state predetermine most of the terms and conditions for an implied agreement also known as the Common Law. If you are unsure what to include in an employment contract, a skilled employment law attorney will help compile a contract for your employees.

Hiring a Highly Skilled Employee

There are certain jobs that require particular expertise and skill that makes them a rare find in the job market. For such highly skilled, difficult to replace employees, it’s essential to have a written employment agreement. Employers must provide an employee with an employment agreement that clearly explains:

1. Working conditions

2. Time and work duration for each day

3. Wages and benefits

4. The period of wage payment

5. Provisions to be followed in case of termination

Protecting Confidential Information

An employment agreement will be necessary if the company has some sensitive information accessible to employees. Agreements with employees help companies protect their trade secrets and other classified sensitive information. However, the Whistleblower Act in Illinois does provide protection against employer retaliation against an employee. Corporate espionage and data theft are serious crimes that could land the culprit in jail. An employment agreement will include the terms and conditions related to termination and possible action if an employee is caught sharing classified company information with a third party.

If you want to know more about employment contracts, retaliatory discharge, or any other employment law issue, don’t hesitate to schedule a free consultation. Contact the Law Office of Michael Smith to talk with an experienced wrongful termination lawyer.