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Employment Agreement in Pennsylvania: What It Is, Its Benefits, and More!
You can never be more careful with your new hires as an employer. You want employees you can trust to handle the day-to-day operations of your company. They should also be in a position to handle sensitive and confidential information.
If you don't have the proper measures, these employees can leak your trade secrets to your competitors, while others can use the confidential information to start a competing business.
And that means your business will be at risk. The good news is that an employment agreement can protect your business in Pennsylvania against such acts. It will also protect the employees’ interests while streamlining their expectations.
What is a Pennsylvania Employment Agreement, and What Does It Include?
An employment agreement is a legally binding contract between an employer and the employee. It outlines employment terms, including job title, employee duties, working hours, salary, and benefits.
It also outlines vacation time, days off, company policies, reasons for contract termination, disciplinary procedures, and other details to ensure a perfect background for a lasting employer-employee relationship.
It is important to note that there are various types of employment contracts in Pennsylvania. So, details in a contract will vary with the type of contract (permanent, short-term, casual, etc.), the job, and the type of worker to be employed.
With this, for example you can always expect a sales employment contract to differ from a permanent one. So, keep that in mind when creating contracts for sales persons, permanent employees, and contractors.
Why You Need an Employment Contract?
As an employer, an employment document or agreement will prohibit employees from sharing your trade secrets and other confidential information. It will also prevent an employee from working for or establishing a competing business in your area.
As an employee, an employment document provides job security. An employee understands the contract's duration, responsibilities, and reasons for termination. They will work towards fulfilling their part of the deal, allowing them to keep their jobs and get compensated as outlined in the agreement.
Employment documents also help establish a professional relationship between the employer and the employees. Both parties clearly understand their responsibilities and obligations, helping avoid misunderstandings.
Are Employment Contracts Enforceable in Pennsylvania?
Employment contracts that adhere to the contract laws and do not violate public policy are enforceable in Pennsylvania. If one party breaches the terms of the agreement, the other can take legal action against them. For the contract to be enforced, the following requirements must be met:
- A valid and legally binding agreement must exist
- The victim party fulfilled their part of the bargain
- The aggrieved party sustained damages as a result of the breach
- The other party breached the contract
Restrictive contracts, like non-obligation and non-compete, are also enforceable in Pennsylvania. But they must be reasonable and not cause undue hardship on the employee or injure the public.
What Are the Legal Requirements for Employment Agreements?
Pennsylvania is moderate regarding legal requirements surrounding contracts of employment. The state recognizes written and oral agreements with intent, definite terms, and consideration.
While oral agreements are enforceable, they are more challenging to prove. And that is why using written and signed Pennsylvania contracts is highly recommended.
Note that Pennsylvania is an at-will employment state. As such, an employer can fire an employee for any reason and at any time. However, with a legally binding employment contract, an employee can only be fired for reasons included in the termination clause. This means a valid employment agreement with a termination clause supersedes at-will employment.
Common Types of Employment Contracts in Pennsylvania?
Here are various types of employment agreements commonly used:
- Permanent contract
- Fixed-term contract
- Contractor Agreement
- Sub-contractor agreement
- Non-compete contract
- Non-disclosure agreement
Creating an employment document in Pennsylvania today is no longer as challenging as in the past, thanks to online service providers like Forms.legal. You can use our free Pennsylvania employment agreement templates to draft your contract anytime. The process is easy and convenient, eliminating the hassles of creating the contract from scratch.
Also check Freelance employment contract and executive employment agreement here.