Employment Agreement in Tennessee: What it Entails and Why You Need It
Signing the dotted lines of an employment contract is everyone’s dream. It signifies the start of a new and exciting chapter in your career. Not only that, but it also gives employers a sigh of relief, having found the right hire for a position.
An employment agreement in Tennessee is critical as it establishes a clear working relationship between the employee and employer—by setting out essential frameworks, policies, and expectations.
Please continue reading to learn more about employment contracts and what they mean to employers and employees.
What Are Tennessee Employment Contracts and Why They Matter?
An employment agreement in Tennessee is a legally binding document signed by the employer and the employee. It spells out what is expected from each party, including their rights and responsibilities.
While employment contracts differ significantly in Tennessee, they usually contain more or less the same information. These may include job description, salary and benefits, contract termination terms, employment duration, holiday and vacation terms, etc. Others, like non-compete agreements, may feature restrictive clauses stipulated by the law.
For employees, the agreement offers job security by outlining the terms of the employment. It will detail the duration of the employment, whether fixed-term or short-term, as long as salary expectation. An employment agreement in Tennessee will also enable employees to understand their duties and responsibilities to provide role clarity.
The agreement will protect employers from risks like underperformance and breach of confidentiality. With restrictive contracts like non-disclosure, employees will not share sensitive information with the media or sell the company's trade secrets. Non-compete clauses also restrict employees from working for competing companies or starting a venture in the same field.
The Enforceability and Legalities of Tennessee Employment Contracts
Employment agreements are enforceable in Tennessee under Title 50 of the Tennessee Code. Under these laws, a contract is only enforceable if it includes the essential contract components— offer, acceptance, and consideration. The contract must also not violate any laws, including public policy.
Tennessee also accepts written, oral, express, or implied contracts. But a written contract is highly recommended as it clearly outlines the terms and conditions of the agreement and is also easy to enforce. Employees can also prove the existence of an implied contract even without a written contract.
At the same time, Tennessee is an at-will employment state. Under this doctrine, employers and employees can legally terminate a working relationship with and without reason. But the reason, or none thereof, must not be discriminatory or violate the law.
Since valid employment agreements are enforceable in Tennessee, they will override at-will employment law. With this, employers and employees cannot end a working relationship for any reason. But instead, based on the cause of termination outlined in the contract.
Types of Employment Agreements
Employers in Tennessee have several options for employment contracts depending on the intent of the agreement, the employee to be hired, and the employment duration. Some of the commonly used options include:
- A general employment contract outlines the duties, responsibilities, compensation, and company policies.
- A non-compete agreement is a restrictive contract prohibiting employees from working for competing companies. It also limits them from starting a venture in the same industry as their employer.
- A severance contract outlines the rights of employees to receive compensation whenever they are fired or leave the company unwillingly.
A Tennessee employment agreement is a crucial tool that must be concise and correct. That is why whenever you are looking for a free Tennessee employment contract download, only get it fromForms.legal. We are a reputed provider of employment forms that you can quickly complete online, download, and print at your convenience.