A Detailed Overview of the Employment Agreement in Louisiana
An employment agreement in Louisiana is a legally binding contract agreed upon by an employer and employee. The contract outlines many details, including an employee's duties, salary, benefits, and other job elements.
The contract protects the employer’s interests by outlining the restrictions and rules employees must adhere to. It also provides stability and certainty to the employer and helps avoid disagreements, lawsuits, or disputes.
In addition, the agreement protects the interests and rights of employees. Most importantly, employees feel comfortable knowing their compensation is guaranteed upon completing the assigned tasks/duties.
The Legal Requirements for Louisiana Employment Agreements
In Louisiana, there are several types of employment agreements: written, verbal or oral, and implied.
- Written employment contract has its terms and conditions put into writing, and both the employer and employee must sign the document for it to be valid.
- A verbal or oral employment contract is enforceable but challenging to prove. The terms of employment are agreed upon orally, and nothing is put into writing.
- An implied employment contract is created based on the actions and conduct of the employer and employee. For instance, when you tell an employee during an interview that they can always keep working in your company as long as they perform well, that can be an implied employment contract.
Critical Components of a Louisiana Employment Contract
A written employment agreement in Louisiana has the details of the employer and employee. The contract also features terms and conditions of employment like salary, duties, and responsibilities of the employee and employer, rights of the employee, privileges of the employer, duration of the contract, and terms of contract termination. You can check a sample contract of employment online to learn other details.
Common Types of Employment Agreements
Employment contracts are essential across all industries in Louisiana. Most businesses use these contracts to protect their interests when hiring employees, freelancers, or contractors. Here are the different types of agreements that apply in Louisiana:
- A permanent agreement is ideal when hiring permanent employees.
- Fixed-term contract is essential when hiring workers for a specified period (short or long-term).
- Independent contractor agreement is used when hiring freelancers or contractors to complete specific projects or tasks.
- Subcontractor agreements are usually used by a contractor when hiring a subcontractor to complete a particular project or assignment.
All these contracts have one significant objective – to protect the interests of the employer and employee. So, if you want to protect your business and avoid lawsuits from employees, create a contract that clearly outlines employment terms and conditions. But, you must ensure the employees read and understand the agreement before signing it to prevent disputes.
Enforceability of Employment Contracts in Louisiana?
Employment agreements in Louisiana are enforceable if they don't violate contract laws or public policy. However, restrictive employment contracts like non-competition agreements are challenging to enforce in Louisiana due to the strict terms and conditions requirements.
Considering Louisiana is an at-will employment state providing flexibility to both parties, an employee can quit or be fired by an employer for almost any reason without any consequences. But there are exceptions to protect both parties if they have a justifiable reason to terminate the contract. And more so if there is a valid employment contract in place.
Do you need to create an employment contract in Louisiana? The process is pretty easy, especially if you can lay your hand on an online template or sample contract, which can be found at forms.legal. We provide free Louisiana employment agreement forms that you can fill in online, download, and print when you are done. It is an easy process that is not only cost-saving but also convenient.