San Antonio Employment Law Blog

Is an employment contract good or bad in Texas?

There are a number of pros and cons for written contracts in Texas, both for an employer and an employee. First of all, your written contact will have a number of facts in it that you’ve agreed to. It should note the term of employment, the responsibilities you have as an employee, the benefits you’ll receive as an employee, the vacation and sick day policies, nondisclosure agreements, ownership agreements, assignment clauses, the method of dispute resolution, grounds for termination and other important facts.

Employee contacts have some benefits. For instance, you know exactly how long you’re meant to be employed and the only reasons you can be fired from your position. You have an exact description of pay, benefits and holiday and sick day benefits. These are all good for you, because if you’re let go for reasons other than those listed, you may be able to get your job back or to seek compensation from your employer for wrongful termination.

There are disadvantages to contracts, too. For instance, maybe you don’t like your job and want to quit. Does your contract have penalties? If so, you could have fees or punishments as a result of quitting. At the end of a contract, you may have to renegotiate it. That leaves you open to scrutiny and could leave you will a lesser contract or one that you feel obliged to sign.

If you’re working under contract and have questions about the paperwork you’ve signed, make sure you speak to someone who understands the legal obligations you have. You may have ways around the contract in special circumstances.

Source: FindLaw, “Pros and Cons of Written Employee Contracts” Oct. 24, 2014

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