Employment Agreement Business Dictionary: Understanding the Language of Your Contract
When it comes to signing an employment agreement, it is important to understand the terms and language used in the contract. This is because the employment agreement sets out the terms and conditions of your employment, including your job responsibilities, compensation, benefits, and other important details. To help you navigate through the legal jargon, we have compiled a business dictionary that explains the most common terms used in employment agreements.
Compensation: This refers to the salary or wages that are paid to you in exchange for your services. It can also include bonuses, stock options, and other forms of compensation.
Benefits: This refers to the various perks and benefits that you are entitled to as an employee, such as health insurance, retirement plans, vacation days, and sick leave.
Termination Clause: This is a clause that outlines the circumstances under which your employment can be terminated, such as for cause, termination without cause, or resignation.
Non-Compete Clause: This is a clause that prohibits you from working for a competitor for a certain period of time after you leave your current employer.
Confidentiality Clause: This is a clause that prohibits you from disclosing confidential information about the company or its clients.
Intellectual Property Clause: This is a clause that protects the company`s intellectual property, such as patents, trademarks, and copyrights.
Severance Pay: This is a payment that you receive if your employment is terminated without cause. It is usually based on the number of years you have worked for the company.
Arbitration Clause: This is a clause that requires any disputes between you and the company to be resolved through arbitration rather than through the courts.
Indemnification Clause: This is a clause that indemnifies you from any legal liability arising from your employment.
Force Majeure Clause: This is a clause that excuses the company from performance of its obligations under the agreement in the event of a “force majeure” event, such as a natural disaster, war, or other unforeseen event.
By understanding these important terms and clauses that are commonly found in employment agreements, you can better negotiate the terms of your contract and ensure that your rights are protected. If you have any questions or concerns about the language used in your employment agreement, it is always best to consult with an experienced employment lawyer.