Free Texas Employment Agreement

The Impactful Information About Employment Agreements in Texas

Getting into a working relationship means a great deal. It is a new milestone for the employee and a breakthrough for the employer. Essentially, everyone benefits. However, employment can be contentious, as any minor misunderstanding could lead to costly legal consequences.

That is why it is recommended for both the employer and employee to consider signing an employment agreement in Texas. This written and legally binding agreement between the employer and employee will spell out everyone’s expectations and their rights.

What Is an Employment Agreement in Texas, and What Does it Contain?

An employment agreement is a legally binding document that the employer and employee sign before or after the latter accepts the job offer. Its biggest role is to provide job security for the employee and protect employers from risks like lower productivity and loss of trade secrets.

The contract also ensures that the employee abides by the organization's rules. It also details ways to resolve disputes during the working relationship. It further protects employers by prohibiting employees from sharing company information and trade secrets.

While Texas employers only execute contracts when hiring high-level permanent employees, the agreements will also be helpful when securing temporary employees. And despite Texas's varying types of agreements, they will contain some of the following details.

  • Job title and description
  • Salary and benefits
  • Termination terms
  • Duration of employment
  • Working hours
  • Holiday and vacation entitlement

Are Texas Employment Contracts Enforceable?

Employment agreements are enforceable in Texas. However, the agreement must be based on mutual consent and not violate laws or public policy. The contract must also involve consideration and will not be enforced if excessive. Here is how to determine if the contract is unconscionable.

  • Lack of mutuality
  • Unfairly one-sided
  • Prohibit legal rights.

Texas also notes that most employers usually draft contracts that favor them. As such, for an agreement to be legally enforced in Texas, it must be drafted and reviewed by a lawyer.

The state also adopts the at-will employment doctrine. Under this law, and especially without a valid employment contract, employees and employers can willfully choose to end the working relationship with or without reason. Otherwise, the working arrangement can only end under the stated causes of termination in the employment contract.

Legal Requirements of Texas Employment Contracts

All employment agreements must adhere to the legal guidelines provided by the Texas labor code. The labor law contract of employment states that these contracts can be written or oral. But the latter can only be enforced if it lasts less than a year.

Legally binding employment agreements in Texas can be created in the following ways.

  • Verbal agreements
  • Offer letter
  • Employee handbooks
  • Company notices boards
  • Implied agreements
  • Emails.

A definite term of employment or specific circumstances under which an employee can be fired must be included in the contract to make it legally binding. Otherwise, the employment can be assumed to be at will without these terms. This could leave employees at the risk of losing their jobs.

Types of Employment Contracts

Employment contracts in Texas come in many forms based on the kind of work, the employee to be hired, and the duration of the engagement. Below are some of them in detail.

  • Permanent contracts are used by companies to hire permanent employees, often with regular working hours.
  • Contractor agreements are used when hiring a contractor or freelancer who is not an employee of the company.
  • Non-disclosure agreements are restrictive in nature and work to prevent employees from sharing valuable company information like trade secrets.
  • Non-compete agreements prevent employees from working for competing companies or starting a venture in the same industry.

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