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Employment Agreement in Michigan: What You Should Know!
A Michigan employment agreement is a legal contract between an employer and an employee. The agreement spells out the terms and conditions of employment and outlines the responsibilities of both parties.
An employment agreement provides certainty and stability for both parties. It also helps avoid/resolve misunderstandings or disputes that may arise between an employer and the employee.
What's Included in a Michigan Employment Document?
Although employment agreements are mainly used when hiring permanent employees, they are also applicable when hiring temporary employees and contractors. So, this is a vital contract that every employer should create to ensure a professional employment relationship.
In addition, employees should also ask for these contracts before accepting a new job as they will protect their interests.
A typical executive employment contract should have essential information, including Job title, roles & responsibilities, salary, benefits, contract duration, employment start date, company policies, time off, and contract termination terms.
Note that contract details will vary with the type of employer, job on offer, and employee to be hired. So, some contracts will have more details than others.
Are Employment Contracts Enforceable in Michigan?
Yes, employment contracts are enforceable in Michigan. However, every agreement must adhere to state laws to be legally binding. The agreement should not violate the rights of the parties involved.
In Michigan, restrictive employment contracts, like non-compete, are the most regulated because they limit employees from seeking employment and establishing competing businesses.
The courts determine the reasonableness based on the type of employment, geographical areas, duration, and legitimate business interest. The courts ensure fairness, ensuring no employee is deprived of the right to work and earn a living.
You should also note that Michigan is an at-will employment state, meaning an employer and employee can terminate the employment contract at will for any reason. However, there are exceptions where the employer may not fire an employee for any reason.
For example, an employer may not fire an employee for refusing to commit a crime due to their color or sexual orientation. In addition, an employer cannot terminate an employment agreement in Michigan if there is an implied contract between them and the employee.
What Are the Legal Requirements for Employment Contracts?
Michigan is very lenient regarding the legal requirements of employment contracts. The state recognizes written and signed contracts, which must be signed by both parties without duress or coercion. Most importantly, the contracts must abide by Michigan laws and should not violate public policy.
In addition, Michigan recognizes verbal employment contracts. Although these contracts are enforceable, they are harder to verify and enforce. And that is why people are encouraged to use written agreements because they come in handy in employment disputes.
Different Types of Employment Agreements in Michigan
There are different types of employment contracts. Here are some of the common options available.
- Permanent employment is used by companies and institutions looking to hire permanent executives and workers with regular hours and compensation. A permanent executive employment agreement has a job title, duties, salary, benefits, termination clause, etc.
- Independent contractor agreement is used to hire contractors and freelancers to complete certain assignments or jobs.
- A fixed-term contract is used to hire temporary employees for a specified period.
- A non-compete contract is used to protect the interests of an employer by preventing employees from working for competitors or starting competing enterprises.
If you want to create a Michigan employment document easily, Forms.legal is the go-to place. We offer free Michigan employment agreement forms you can fill in online, download, and print when you are done. The process is simple and convenient, helping you save time and money.