Employment Agreement in North Carolina: What It Is, Why You Need It, and More!
A typical employer/employee relationship usually comes with complex and demanding commitments. The same goes for the case in states like North Carolina. As such, an employment agreement comes in handy to cement this relationship and define each party's expectations.
Essentially, a North Carolina employment agreement is ideal for hiring permanent and temporary employees. It can also be used when hiring contractors and subcontractors. And its benefits can never be overemphasized in protecting the employers’ interests and the employees’ rights.
Continue reading to learn more.
What is Included in a North Carolina Employment Agreement?
An ordinary employment contact can have a variety of details, including:
- Employer and employee details
- Job title
- Employee duties
- Working hours
- Time off and vacation
- Employment start date
- Salary and benefits
- Contract termination clause
- Non-compete clause
- Non-obligation clause
With different types of contracts available, some of these details can vary. For example, you'll find that a driver employment contract differs significantly from other agreements.
Why Do You Need an Employment Agreement in North Carolina?
Both the employer and employee need an employment contract to protect their interests. For the employer, the agreement prevents an employee from releasing confidential information to strangers. It also prohibits an employee from working for or starting a competing company, which can lead to unfair competition.
The agreement provides certainty and stability to employees, ensuring they focus on completing their roles. Most importantly, the contract helps both parties avoid misunderstandings that can ruin the employment relationship.
Are Employment Contracts Enforceable in North Carolina?
All kinds of employment contracts that adhere to state labor and contract laws are enforceable in North Carolina. In addition, the agreements must have an offer, acceptance, and consideration.
Contracts with restrictive agreements like non-compete are also enforceable in North Carolina, but stricter regulations govern their implementation. This ensures the clauses protect legitimate business interests and employees' right to work and earn a living.
The Legal Requirements for North Carolina Employment Contracts
The legal requirements for employment contracts in North Carolina are pretty moderate. The state requires that these agreements be in writing. However, there are situations where oral contracts are enforceable.
The state also requires that the enforceable contracts have clear terms that don't violate any law or public policy. An agreement will only be legally binding if it adheres to set regulations.
North Carolina has more strict regulations governing employment contracts with non-compete clauses. The state requires such agreements to have a definite duration. Here are other requirements to be met;
- The agreement must be in writing.
- The non-compete agreement must be part of the employment document/agreement.
- It must have terms that protect legitimate business interests
- Must have reasonable terms and conditions surrounding duration and geographical area
- It should not violate an employee's right to work and earn a living
North Carolina is an at-will employment state, meaning that an employee can fire an employee at any time for just any reason. On the other hand, an employee can quit at any time without legal consequences.
However, with an employment agreement, an employer cannot fire an employee without cause. They can only fire them if the provisions in the termination clause are met. Without an agreement, North Carolina courts consider the employment arrangement to be at-will.
Types of Employment Agreements in North Carolina
Most employers use the following contract types;
- A permanent contract is used when recruiting new permanent employees.
- A fixed-term contract is used when hiring employees for a specified period.
- Independent contractor agreement is used when hiring a freelance worker or contractor to handle a particular job. These employees are not part of the hiring business or company.
The process of creating a North Carolina employment contract may seem complex. But it is not, especially if you consider using the online forms provided at Forms.legal. With our free North Carolina employment agreement templates, you will draft your contract quickly.