An employment contract is a legal agreement established between an individual employee and an employer. The agreement determines the rights and responsibilities of each party under the contractual terms.
In this article, you will discover the main terms of a Florida employment contract.
What Clauses Are Included in an Employment Contract in Florida? – Key Elements
Employee’s Position, Duty, and Location
No employee may start to work for a company without knowing what the job will be, which duties the job will involve, and where the employee must perform the required tasks. All employment contracts must provide a detailed description of these items.
In Florida, most companies offer a reference compensation or salary. Depending on how the agreement is structured, an employee may have the right to discretionary compensation (e.g., bonuses, stocks, etc.).
Florida is an “at-will” state. Unless expressly provided in the employment contract, both employer and the employee can terminate the employment relationship at any given time for any reason.
If the contract is not “at-will,” it is crucial to proper language to outline which reasons justify an employment termination on shorter notice.
Termination for Cause
Specific employment relationships require the inclusion of a clause regarding “termination for cause.” Considering the contract will determine whether certain acts or omissions by the employee justify a termination, it is fundamental to use accurate, non-subjective language to define “cause.”
An employment agreement must detail:
- What happens if another company purchases the current owner?
- Will the ownership transition affect the employee’s obligations?
- Are the restrictive covenants of a previous employment contract enforceable under the new ownership?
What Clauses Are Included in an Employment Contract in Florida? – Restrictive Covenants
It is not unusual to find Florida employment agreements containing restrictive covenants. When an employee signs a restrictive covenant, he or she promises to not engage in specific actions outlined in the agreement.
The enforceability of a restrictive covenant depends on a set of statutory rules. Consult with an expert attorney to identify whether the terms of a restrictive covenant are actually enforceable.
A non-compete agreement is a clause included in many employment agreements. Under this clause, the employee agrees not to compete against his or her employer during and after the employment term is over.
The clause must specify the activities in which the employee cannot engage within a reasonable geographical scope and time limit. In most cases, non-compete clauses with a limitation period superior to two years are considered unreasonable.
Companies that rely on trade secrets, proprietary information, and other types of intellectual property tend to use nondisclosure agreements to prevent employers from disclosing this type of sensitive information.
The enforceability of this type of restrictive covenant depends on whether the information is actually secret, the language used in the document, and whether the employee is aware of the confidentiality of the information.
Building a solid customer base is a time-consuming and demanding task. Many companies use non-solicitation agreements to prevent former employers from soliciting customers, other employees, or vendors.