Florida is an employment at will state, which means that an employer and terminate an employee for any reason and an employee can quit for any reason. This arrangement works well for lower level employees, but if you want to ensure that your company is able to attract and keep a talented manager or executive, you will need to have a contract that provides sufficient compensation and other incentives.
What are the Key Provisions in an Employment Contract?
A good employment contract protects both the employee and the employer and usually contains the following provisions:
- Set Term - Most agreements state the the employee agrees to work for a set period, usually one to three years. The employer cannot terminate the employee except for cause.
- Conditions for Termination - The agreement usually defines situations when an employee can be terminated, such as committing a crime, violating company policies, etc.
- Severance - In the event the employee does leave, with our without cause, the employee is entitled to a payment.
- Salary and bonuses - Often the employer and employee will agree that if the employee meets certain benchmarks, the employee will be entitled to additional compensation.
- Non-Compete, Non-Solicitation, Confidentiality - The employee agrees not to compete with the employer, do business with its customers, or use its confidential information after the employment ends.