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Important employment contract terms

On Behalf of | Feb 4, 2022 | Business Litigation

When recruiting employees in California, business owners often use employment contracts to define the terms and conditions of each employee’s work. Employment contracts include a variety of clauses that serve to protect both the business and the employee in the event of any disputes or litigation.


It’s important to include the employee’s name and job title in the contract. This will help to prove that they are an employee and not a contractor.

Employment duration

The contract should state how long the employment will last. If it is for a fixed period of time, then both parties must agree to end it in writing. If it is an indefinite contract, either party can terminate it by giving the required notice period.


Most employers know how important it is to provide benefits to their employees. The contract should list the benefits that the employee will receive, such as paid holidays, sick leave and pensions as well as extra perks related to increased job risks, such as fire outbreaks. This will help to prevent any misunderstandings or disputes in the future.


The employee’s job description should be outlined in detail to avoid any ambiguity or misunderstanding of their role. The business must also outline its expectations of the employee in terms of their conduct and behavior.

Termination and disputes

The contract should state the circumstances under which either party can terminate the employment. This could include firing for gross misconduct, redundancy or illness. It’s important to have a clear procedure in place so that both parties know what’s expected if termination does occur.

The business should also include a dispute resolution clause in the contract so that both parties are aware of how to deal with any disputes or disagreements to prevent costly business litigation processes.

Employers should take the time to carefully draft an employment contract that covers all aspects of the relationship between employer and employee. This can help to avoid any business issues, including disputes, in the future.