Employment Agreements (Drafting, Review, Negotiation)
We strongly recommend that all employees have their employment contracts reviewed before they accept an offer from a prospective employer.
This will ensure that you understand everything that you are being asked to sign and how the employment agreement will impact your rights both during and after the employment relationship.
For many employees, once they understand the employer’s terms, they will then be able to negotiate further changes to the proposed agreement.
This may involve redrafting the contract or using their knowledge about the contract to ask for greater compensation or other benefits.
Common Pitfalls in Employment Agreements
Common pitfalls which we frequently encounter in employment agreements include:
- Termination clauses. These clauses frequently attempt to limit your rights to severance upon termination and can have drastic consequences.
- Non-competition and non-solicitation clauses. These clauses can dramatically alter your ability to work in your industry after leaving the employer.
- Constructive Dismissal Protection. These clauses give the employer the right to make dramatic changes in your employment relationship, including changing your hours of work, duties, and even location of employment. As a result, you may be prevented from bringing a constructive dismissal claim against your employer in the future as a result of these employer friendly protections.
- Temporary layoff clauses. Due to the Covid-19 pandemic, many employers are now including language in their employment agreements which gives them the right to place you on a temporary layoff. This can have a dramatic impact on your livelihood and your ability to earn an income.