The working relationships between executives and their employers usually begin upon the foundation provided by employment contracts. If this foundation is weak, your relationship with your employer may crumble. If the foundation is sturdy, your working relationship can grow strong, too.
New executives in the Los Angeles workforce risk much by signing work agreements without a solid review. Often, these executives believe they will lose opportunities by negotiating contracts. In our experience, this is rarely the case. Some employers even expect new executives to negotiate some of the contract’s terms.
What terms are necessary?
It depends upon the contract itself, the nature of the employment opportunity and what all parties expect from the working relationship. In most cases, it is wise to seek a legal opinion about the contract before adding your signature. However, there are a few items that all corporate employment contracts should have.
A narrow definition of cause for termination:
When these definitions are too broad, you risk losing your job over minor occurrences. Insist that this definition is focused and narrow so you will never have to wonder why you lost your job or if your termination was fair.
A detailed description of your compensation:
It is one thing to talk with a prospective employer about wages, bonuses and other forms of compensation. Unfortunately, these details do not always make it into the contract. Insist that your agreement contains as much detail as possible regarding your wages and other income.
Clear definitions of your responsibilities and duties:
Overly broad contract language can leave you doing everything from your job duties to running personal errands for your boss. Insist that your duties and responsibilities are clear, fair and easy to understand.
The items above represent only a few critical terms all executive employment contracts need to protect all parties. Continue reviewing our website content, or contact our firm if you would like to learn more.