Employment Contracts-Severance Pay Agreements

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Employment Contracts

An employment contract is simply an agreement to work in exchange for compensation. Under “common law” principles, every contract has three elements. The first element is an offer. There must be an explicit offer from the employer to the employee for employment. The second element is acceptance. The employee must state that they will accept the position and terms offered by the employer. The third element is called “consideration.” In legal jargon, “consideration” is meant to refer to whatever each party brings or gives up for the contract. In employment terms, the consideration the employee offers is their time to work for the employer. In exchange, the employer pays the employee money based on time worked.

It is generally understood that employment contracts must be in writing to be enforceable. This is not true. With a few exceptions, the general rule is that oral contracts for employment terms of less than one year are as enforceable as written contracts.

Severance Pay Contracts

Given the downturn in the economy we have been approached dozens of times regarding severance agreements. BEFORE YOU SIGN A SEVERANCE AGREEMENT YOU MUST HAVE AN EMPLOYMENT ATTORNEY REVIEW IT AND YOUR EMPLOYMENT HISTORY. The problem here is that you may have valid claims against your employer that will be extinguished by the severance agreement for pennies on the dollar. We offer affordable flat rate reviews of severance agreements.

Contact Us if Your Employer Breached a Contract