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A Comprehensive Guide to Understanding and Creating an Employment Agreement in Indiana
An employment agreement is a contract between a company or employer and an employee that details the terms and conditions of employment. It outlines how the contract can be terminated.
An Indiana employment agreement is strongly recommended for businesses and employers. It protects the interests of the company/employer by outlining terms and conditions employers must follow to earn compensation and keep their jobs.
Employment contracts also safeguard employees’ rights and ensure they are compensated as per the agreement. It also positions employees to understand better and perform their roles diligently.
What is Included in the Agreement?
Typically, an Indiana employment agreement should have the basic information of the company/employer and employee.
It should also have employment details, including employee duties and responsibilities, compensation and benefits details, causes of contract termination, company policies, working hours, duration of the contract, and more.
Note that Indiana has different agreements, and details included in various contracts can vary. Contract type, job on offer, and the type of employee you want to hire will determine what you include in your employment contract in Indiana.
The Legal Requirements
Indiana recognizes written and oral employment contracts. So, there are no legal requirements for a contract to be written and signed. However, the Indiana Statute of Frauds mentions that all employment agreements with terms exceeding one year must be put into writing.
Another essential thing to note is that all the agreements must abide by Indiana employment laws and public policy to be legal.
While you can create a written or oral part-time employment contract, it is always recommended that the agreements be written and signed by the employer and employee. This makes them easier to enforce and can be used as evidence in a dispute or lawsuit.
It is essential to note that Indiana is an at-will employment state, and employers may fire employees for almost any reason. But the case can be slightly different with an employment contract in place. An employer can also leave work due to poor working conditions or any other reason without consequences.
So, when creating your employment agreement in Indiana and handling your employees, keep that in mind to protect your interests.
Types of Employment Contracts
Here are the commonly used types of employment agreements in Indiana;
- A permanent contract is created when an employer hires an employee permanently.
- Fixed-term contracts are created to hire employees for a specified time, like a month, two months, six months, or one year. The agreement can also be used when a company hires an employee to complete a particular job.
- Independent contractor agreement is used when a company hires a contractor or freelancer to complete a particular job or project.
- A sub-contractor agreement is used by a contractor who hires a subcontractor to complete a specific project or job.
Enforceability of Employment Contractsin Indiana?
Employment agreements are enforceable in Indiana if they adhere to all contract laws. So, even oral agreements are legally binding if they don't violate contract laws.
In addition, non-compete and non-disclosure agreements are enforceable, but Indiana courts disfavor them. The courts require the employer to have a legitimate interest protected by the contract and the agreement to be reasonable so that it can be enforced.
Do you want to create an employment contract in Indiana the easy way? Forms.legal is the go-to provider of simple and printable templates that you can use online. It is as easy as filling in the required details, download the contract, and print it. This process is usually simple, affordable, and convenient.