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The Information You Must Know About the Employment Agreement in Illinois!
An employment agreement in Illinois is a legal contract between a company/employer and an employee. Typically, it highlights the terms of employment, including hours of work, rate of pay, employee duties, and how the contract can be terminated.
The contract safeguards the interests of the employers by outlining various terms and conditions the employees must adhere to while working in the company and even after leaving.
The agreement also protects employees' interests and rights. They have peace of mind knowing that when they complete their duties, they will earn compensation and benefits as outlined in the contract.
Details to Include
An ordinary employment agreement in Illinois can include the following details:
- Employer details
- Employee details
- Rates per hour
- Working hours
- Benefits
- Disciplinary procedures
- Vacation and days off
- Company Policies
- Causes of termination
Note that Illinois has many types of employment contracts; hence, the details can vary from one agreement to another. The details will heavily depend on the kind of job and the employee hired for the same. So, when creating your contract, check out different model employment agreement forms to know what to include.
The Legal Requirements
Illinois recognizes four primary agreement forms: written, express, implied, and oral.
- A written agreement usually outlines the terms of the employment in writing. The document is signed by both the employer and the employee. Creating this agreement is easy; you can use a simple online employment contract template.
- The express agreement involves exchanging promises where the hiring party and the employee agree upon details and can be put in writing or declared orally.
- An oral agreement is a contract created and declared orally and not backed by any documentation.
- An implied agreement is a legally binding agreement created based on both parties' actions and conduct.
So, having a written and signed agreement is not a legal requirement. But if you want to be safe, creating a well-written employment agreement that abides by Illinois employment contract laws and public policy is essential. It would be easy to enforce the agreement.
Types of Employment Contracts in Illinois
Employers in Illinois use different types of employment agreements, which include the following.
- Permanent employment contracts are the most common in Illinois and are used when hiring permanent employees with regular working hours and regular compensation.
- Fixed-term contracts are used by companies hiring employees for a specified time. Employees can be hired permanently when the contract ends or a new contract is created and signed. In some cases, they are not engaged again.
- Independent contractor agreement applies when a company hires a contractor or freelance worker to handle a specific job.
Enforceability of Employment Contracts in Illinois
Well-created employment agreements, per Illinois laws, can be enforced in court. However, strict rules surround enforcing restrictive contracts, making it more challenging for companies/employers to implement them. Here are some points to note:
- Restrictive covenants must be supported by adequate consideration if a worker has served the company/employer for at least two years.
- The non-compete contract cannot be enforced if a worker earns less than $75,000 annually.
- Non-solicitation contracts cannot be enforced if a worker earns less than $45,000 yearly.
It is also important to note that Illinois permits at-will employment, meaning that the employees may quit or be dismissed at any time and for almost any reason. However, there will be an exception with a valid employment contract.
If you want to draft an employment contract in Illinois, Forms.legal has your back. We provide free Illinois employment agreement templates that you can take advantage of at any given time. All you have to do is select the form you need, enter the required details, and download and print it when ready.