Employment Contracts
An employment contract is a written legal document that lays out binding terms and conditions of an employment relationship between an employee and an employer. Differences exist in private and public sector employment contracts because the goals of an employment contract are different in each sector.
Every employment contract is different.
An employment contract generally covers:
• an overview of job responsibilities,
• reporting relationships,
• salary,
• benefits,
• paid holidays,
• paid vacation,
• paid sick leave,
• paid time off (PTO),
• sales commissions,
• bonus pay potential and how bonus is determined,
• profit sharing and how profit sharing is determined,
• stock options and stock buy-back provisions,
• employment contract signing bonus,
• phone allowance,
• company car,
• car mileage and travel allowance, and
• moving and transition expenses,
• any additional negotiated perks,
• details of employment termination including potential causes, the severance package, and the termination notice.
You cannot expect to find all of these items in every employment contract. But, this list gives you a decent idea of the possibilities.