The Importance Of Employment Contracts To Employee And Employer

Even though companies in Florida are not legally required to draft and sign an employment contract with their employees, it is always advisable that entrepreneurs seek the help of an expert attorney in Florida to tailor an adequate employment agreement. 

In this article, you will discover the importance of employment contracts to employees and employers.

Employment Contract in Florida – Understanding the Concept 

An employment contract is a type of contract in which the two parties involved in a labor relationship – an employer and an employee- are attributed their respective rights and duties.

Also known as a contract of employment, the agreement must provide all the terms and conditions of employment, including the details regarding both the employer and the employee, details of remuneration, and events that could lead to the termination of the contract. 

Even though some companies use oral employment contracts, it is advised that the contract be written in detail. Usually, an oral employment contract can be enforceable, but a written contract is much easier to prove in court.

Notice that, in unusual cases, employment contracts may even be implied. In this type of situation, a labor law litigation would be assessed by a court differently, usually looking at several factors around the implied agreement, including:

• Payments made by the employer
• Duties undertook by the employee
• Term of employment

If you are entering an employment agreement, you must seek guidance from an expert attorney to oversee your case and ensure your rights are safeguarded. 

Employment Relationships in Florida – As Provided by Law

In Florida, employers are allowed to fire an employee without having a “just cause” for termination (as long as the reason behind the termination is not illegal, such as wrongful termination).

At the state level, general labor regulations are provided by Florida Statutes 448.101. 

According to the statute, the definition of the term “employee” is an individual who performs services for and is under the control/direction of an employer in exchange for remuneration. 

Even though the statute does not include independent contractors in the definition, the term “employer” refers to any private business, individual, firm, or association that employs ten or more individuals. 

Employment Contracts in Florida- Terms and Clauses 

Every state has specific requirements for employment contracts. In Florida, certain provisions are highly recommendable to include when drafting a written employment contract. 

An adequate employment contract must include:

• The employee’s job title and job description
• The terms of employment (if they exist)
• The employment periods
• A detailed description of the employee’s duties 
• Termination terms and conditions
• The employee’s benefits under the contract
• The parameters used to evaluate the employee’s performance
• Vacation policy
• Time off the company – sick days, emergencies, and unpaid leave
• Requirements after termination (if necessary)

Another important term to add on would be a dispute resolution provision, which allows the parties involved in the agreement to choose between arbitration or litigation as the method for settling any disputes that may appear in the future. 

The Use of Restrictive Terms 

Generally, many employers in Florida also like to include some type of restrictive term in employment contracts. The most common restrictive terms included by business owners are non-disclosure and non-compete provisions. 

Non-disclosure provisions protect the business’s sensitive and confidential information.

Consequently, employees who sign an employment contract containing a non-disclosure provision are prohibited from sharing information deemed confidential. 

An employee who signs a contract with a non-compete provision agrees not to enter into direct competition with an employer, either by working for a similar company or starting a similar business. 

Non-compete provisions have to follow certain legal requirements to be deemed valid in the court, such as geographical area and period.

Employment Contracts in Florida- What Are the Advantages? 

Firstly, a written employment contract protects the interests of the employer and the employee. 

A contract will register all the details of the business relationship, including the employee’s benefits and duties. The detailed information regarding termination and resolution of disputes will stimulate both parties to work in a predictable and orderly manner.

Employers can rely on employment contracts as protection against liability from an employee’s potential lawsuit.  

Additionally, a written agreement will set clear expectations regarding the employee’s performance. Hence, promotion and termination provisions will be clearer, as the parameters considered satisfactory and unsatisfactory will not be subjective.

Employment Contracts in Florida – We Can Help You

At Jurado & Farshchian, P.L. we have expert lawyers that will guide and instruct you throughout the process of drafting and signing an employment contract. 

Get in touch with us today by calling (305) 921-0440 or emailing [email protected] to schedule a consultation.

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