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Inside an Employment Agreement in Utah: Clauses, Enforceability, Types, and More
While signing an employment agreement in Utah before commencing a job may not be mandatory, it probably should. Both employers and employees deserve a robust measure of protecting their interests and rights, and an employment agreement can provide just that.
The contract will spell out each party's rules, rights, and responsibilities, making the working relationship even more professional. And like in other states, Utah has its unique laws governing the enforceability and drafting of such contracts.
Continue reading to learn more about this.
What is a Utah Employment Contract, and what does it contain?
An employment agreement in Utah is a legally binding document that the employer and the employee must sign. As mentioned, it spells out the two parties' roles, rights, and responsibilities. It will also include other aspects like special obligations or terms unique to the position.
These contracts are commonly used when hiring permanent employees. But they are also recommended when hiring a contractor or a freelancer. And considering that there are various employment agreements in Utah, they may contain different forms of information. But some of the common details to expect include.
- Job duties
- Compensation
- Salary and benefits
- Company policy
- Cause for termination
- Days off and vacation terms
Are Employment Contracts Enforceable in Utah?
Employment contracts are fully enforceable. But since the Utah contract law governs them, they must contain an offer, acceptance, and consideration to be legally enforced. The agreement will also be fully implemented if it features clearly defined terms, meaning the document should not break any laws or public policy.
Like in other states, Utah permits an at-will employment policy. Under this doctrine, employers and employees can terminate a working relationship, with or without reason. However, the termination should not happen under duress or for discrimination reasons.
It is also crucial to note that a valid and fully enforceable employment agreement in Utah will be superior to an at-will employment arrangement. As such, an employer or employee may not end a working relationship at will. Instead, the contract can only be terminated under the causes outlined in the agreement.
The Legal Requirements of Utah Employment Contracts
Utah is quite reluctant when it comes to the laws surrounding employment agreements. Under the Utah contract laws found in Title 15 of the Utah Code, the contracts do not have to be in writing.
But the contract must be written if the job on offer cannot be performed within a year. Otherwise, an oral agreement can comfortably accommodate a working arrangement that will go on for less than a year.
Regardless, it is recommended for the agreements to be always in writing. Such contracts, especially if duly signed, are easy to back up in a court of law and may as well serve as evidence.
Types of Employment Contracts
Utah has different types of employment contracts. This variance depends mainly on the kind of job on offer, the contract duration, and the employee to be hired. They include the following.
- A non-disclosure agreement is a restrictive clause that prevents employees from sharing confidential company information, data, and trade secrets.
- A non-compete agreement prohibits employees from starting competing ventures. It also limits them from working for a competing company to the employer.
- A permanent employment contract is used when hiring permanent employees with set working hours and compensation terms.
- A contractor agreement is used for companies hiring employees to complete tasks for a preset time. This can be an employment contract for a 1-year job or less.
Are you looking to draft an agreement for an employment bond for 1 year or more? Simply get the free Utah employment agreement forms at Forms.legal to create your contract. All you have to do is complete the sample form online download and print it at your convenience.
Also check standard employment contract and driver employment contract template here.