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The basic parts of an employment contract

Many people sign employment contracts when they start a new job -- especially when they go to work for a new company. In evaluating such a contract, the more you know about what these contracts normally include the better.

With this in mind, let's review the basic parts of a good employment contract:

  • A definition of the job: Your employment contract should tell you exactly what your job requirements are. These should include the essential duties and name of your position. This definition will also need to clarify the hours you will work and where you will work.
  • How long the agreement lasts: Your employment contract should clarify how long the agreement is good for. It should also have timetables for noncompetition clauses, how much notice you should provide before ending your employment and other timetables.
  • Performance expectations: Your performance requirements need to be detailed in your contract. In addition, your contract should detail performance metrics that will be used to measure your success as an employee.
  • Compensation: Most importantly from your perspective, your contract needs to clarify exactly how much you will receive as payment and compensation. This includes hourly wages, yearly salary and/or commissions that you should expect to receive -- in addition to other benefits like health benefits, company perks, retirement savings plans and other extras.

There are other important things that your employment contract should include, like guidelines for the circumstances under which your employment could be terminated. By discussing your employment contract with an experienced employment law attorney before signing the document, you can ensure that your legal rights are protected. Check out our website for more information.

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