Employment Contract

Archive for January, 2011

What Are Restrictive Covenants in an Employment Contract and What Do They Do?

January 30th, 2011

What Is The Definition Of A Restrictive Covenant?

A restrictive covenant is a term placed into your contract of employment to prevent you from taking certain action when you leave your current role.? They are put into employment contracts to protect the employer and not the employee?

What Types Of Restrictive Covenant Are There?

There are several different types of restrictive covenants including the following:-

1.?Non-competition covenants (these restrictive covenants are inserted to prevent you from working in the same area as your employer after you leave.? They can be for a certain period of time and within a certain specified geographical area).

2.?Non-solicitation (these covenants will stop you from taking clients of your current employer).

3.?Non-poaching (this covenant is inserted to stop you returning to your old employer and taking staff with you to your new role).

4.?Restrictions on use of confidential information (these covenants will stop you from sharing confidential information which you obtained whilst you were working for your employer).

A restrictive covenant can have a dramatic affect on your ability to obtain employment after you leave your current role.? Therefore it is essential that you realise how serious restrictive covenants are before you sign a contract of employment.

Can Restrictive Covenants Be Enforced?

If a covenant is reasonable and necessary to protect the business interests of your employer then they can be enforceable.? However, if your employer attempts to make the covenant too broad by making it for too long a period of time or covering too large a geographic area this may prevent it from being enforceable.

Another factor to take into account when considering whether a restrictive covenant is enforceable is the position of employment of the employee; for instance, a managing director or a chairman of a company will have more severe restrictive covenants than a secretary or receptionist for example.

Restrictive covenants can also be rendered unenforceable if the employer fails to follow the disciplinary or grievance procedure laid down in the employment contract.? This action alone can render a restrictive covenant unenforceable.

Summary

Restrictive covenants can have a severe impact on the ability to obtain employment after you leave your current role.? You should seek expert and specialist employment advice from an employment solicitor before signing a contract that contains restrictive covenants.

By: Nicholas Jervis

About the Author:

The Work Ethic are Employment Lawyers Edinburgh. Looking for an Employment Law Solicitor?

Nick Jervis is a Legal Marketing Consultant for solicitors and Legal Service Providers.

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Employment Contracts in Arizona Must Be Written to Be Enforceable

January 30th, 2011

In Arizona oral contracts are generally enforceable, provided one can prove the existence of such a contract. In certain situations, however, contracts must be written to be enforceable. One of these situations is a contract for employment.

Arizona Revised Statute section 23-1501, although recognizing that the employment relationship is contractual in nature, provides that either the employee or the employer may sever the employment relationship, at their whim or pleasure, unless there is a written and signed contract between the parties stating that the employment relationship will remain in effect for a specified duration, or otherwise restricting the termination rights of either party. The statute is clear that both the employee and the employer must sign this written contract, or, alternatively, the written contract must be expressly stated in an employment handbook, manual or similar corporate document that is provided to the employee. To be enforced as an employment contract, that document must clearly express the intent that it is a contract of employment, and not disclaim such fact, or must be set forth in a writing actually signed by the party to be charged. Unlike in many contract relationships requiring a written contract pursuant to the Statute of Frauds, section 23-1501 specifically states that Partial performance is not sufficient to eliminate the requirements of a written contract.

The legal effect of this statute is that, contrary to the understanding of many Arizona employees, they may be fired at any time absent some written agreement to the contrary. This general rule, however, is subject to various provisions of Arizona state law and federal law that preclude retaliatory firing in certain situations as well as discrimination against certain classes of protected individuals.

Because these legal principles are complex, if you feel that you have been terminated in violation of a written agreement or that your termination was a retaliatory or discriminatory act, you should quickly seek the counsel of an experienced Arizona employment attorney.

By: Kevin R. Harper

About the Author:

Kevin R. Harper is an Arizona employment attorney, representing individuals and small businesses throughout the state of Arizona from his centrally-located office at 1 N. Central Ave., Suite 1130, in downtown Phoenix.

For more information about Arizona employment law, feel free to contact Harper Law PLC at 602-738-2090, or visit the firm online at http://www.HarperLawArizona.com

The above article is designed for informational purposes only and, because every situation is different, is not intended as definitive legal advice. You should not act upon this information without seeking independent legal advice about your individual situation.

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Short Term Employment Vs Long Term Employment

January 29th, 2011

For a long time now businessmen have been debating which one is better, short term employment or long term employment. This issue however shouldn’t even be debated. Both kinds of employment have their place in business. Depending on the type of business you have short term or long term employment can fill your manpower needs. Both of these types of employment have their advantages and disadvantages. Choosing between these two types of employment would be easy if you know what you really need for your business. Certain business types would benefit more from hiring short term employees and certain businesses would benefit more from long term employment.

A lot of businesses benefit from the short term employment style of employing personnel. Some of the benefits of hiring personnel for short term employment are that the employers are not obligated to pay for the benefits of the employees; it is easier to terminate the services of a problem employee, all you have to do is to wait for the employment contract to expire; and the salaries tend to be cheaper compared to long term employees which has to be raised on a yearly basis as mandated by law. However, there are disadvantages too. One is that it is difficult to cultivate employee loyalty if you have to changed employees every few months or so; and another is it can be difficult to maintain and improve product and service quality if you’re hiring new employees all the time. You cannot afford to really invest a lot of your resources in their training because they are contractual employees.

As opposed to hiring contractual personnel, hiring employees for regularization can be more expensive. When you employ an individual long term you are obligated by applicable labor laws to provide your employees with the benefits as governed by law. You are obligated to pay their bonuses and incentives as well. It can get difficult to terminate the services of a problem employee because of his right as stipulated by the law. Such situations must be handled carefully. Illegally terminating a regular employee can be cause for a law suit against your business. Sounds expensive if compared to hiring contractual employees. The advantages of hiring regular employees however cannot be overlooked. Regular employees tend to be more loyal to their jobs because they have job security. It helps boost the quality of your products and services as the quality of your employees improve over time as they get better and better at what they do. You can afford to invest in their training because they will be serving your business for a long time.

One fact that needs to be understood though is that no business can rely solely on one type of employment. There are certain positions in a business where hiring a contractual employee might be counter productive. You can’t hire managers for only three months. Such positions are better filled by regular employees with extensive knowledge of the business and experience. Short term employment is more applicable for more simple jobs such as working the counter in a fast food chain or labor jobs where the employees require little or no training to fulfill their task.

By: Neoko Cortwell

About the Author:

Neoko Cortwell is a freelance writer and web designer. If you want to start your own creative journey to becoming a freelance designer yourself, visit Sitegrinder Review for more information.