The Employment Agreement

September 2nd, 2011

Generally, Texas is an “at will” state which gives few rights to the employee that are not created by statute or governed by labor regulations.

The employment contract is one of the most important contracts used in business today. It is the employment contract that sets out the terms on which a company hires an individual or an individual hires a company. If properly prepared, the contract is a legally binding agreement.

Contract terms can come from a number of sources and can include the following:

  • Verbal agreements
  • Agreements in writing or document form
  • Agreements required by law
  • Implied – not written but understood to exist
  • An offer letter
  • An employee handbook
  • A company notice board
  • Collective agreements

Wrongful dismissal is a breach in the way the employee is dismissed, i.e. without being given proper notice or following the procedures as set out in the contract.

In order to change a contract, there must be an agreement between the parties. Under certain circumstances, the employer may need to make changes to the contract because of economic circumstances. Things that might change include:

  • Rate of pay
  • Work time
  • Duties and responsibilities
  • Work Location
  • Correcting an error in the contract
  • Disciplinary action – check disciplinary procedures to make sure this is done properly

Employees may ask for a change in a contract to:

  • Improve their work environment
  • Get a raise in pay
  • Get more vacation or holiday time
  • Change work hours

A breach of the contract occurs when either the employer or the employee breaks a provision of the contract. A breach may be the result of a verbal or an oral (implied) agreement. If you think a breach of contract has occurred, it is best to take the problem to the employer first and attempt to work out a solution. If you decide to take legal action, remember you will need to prove financial loss in order to get compensation. Damages are based on net pay (after taxes) not gross pay. Legal action may prompt the employer to counter sue, if the employer thinks it has a legal ground. An employer has the legal right to sue the employee for damages just as the employee has the right to sue the employer.

The Nacol Law Firm PC
Law office of Attorney Mark Nacol
Serving clients in the Dallas – Fort Worth Metroplex area for over 30 years
Tel: 972-690-3333

An Employer’s Perspective

April 27th, 2009

The best employment law defense counsel takes every aspect of a case into account, but most importantly the impact a lawsuit may have on the reputation and finances of the Company. Employers must be aware of state and federal laws that govern employee hiring, compensation and treatment. Federal and State employment laws concerning wages and overtime are complex and impose significant responsibility on the employer.

Other things an employer should consider are:

  • Anti-discrimination laws
    • sexual discrimination
    • age discrimination
    • disability discrimination
    • race discrimination
  • Hiring practices (contracts)
  • Compensation (wages, bonuses, paid leave, vacation pay, benefits, severance packages)
  • Family and Medical Leave
  • Termination
  • Immigration matters
  • Sexual harassment
  • Intellectual property rights

Employers should also be cognizant of employees that are allowed access to intellectual property information created or developed for the Company by employees in the course of their employment.

There are a number of questions to be addressed by the Employer both at the time of hiring personnel and at regular intervals throughout the course of their employment, such as:

· The scope of the employees duties, and how those are to be documented;

· Their level of seniority;

· Whether their duties involve a requirement that they invent (or contribute to inventions);

· The employee’s propensity to invent;

· The access which the employee has to the employer’s resources (both during and after hours) for their own purposes.

· Proprietary Information Agreements

· Non-competition Agreements, where indicated

On the basis of recent decisions of the Federal Court, only very brave employers are likely to decide that they do not require employment agreements with their senior employees or with those employees privy to confidential or proprietary information.

If you are an employer facing legal issues in any aspect of employment or intellectual property rights, consult Mark A. Nacol of The Nacol Law Firm for guidance.

The Nacol Law Firm PC Law office of Attorney Mark Nacol
Serving clients in the Dallas – Fort Worth Metroplex area for over 30 years
Tel: 972-690-3333

Serving clients throughout Texas, including Collin, Dallas, Denton, Ellis, Grayson, Kaufman, Rockwall and Tarrant counties and the communities of Addison, Allen, Arlington, Carrollton, Dallas, Fort Worth, Frisco, Garland, Grapevine, Highland Park, McKinney, Mesquite, Plano, Richardson, Rowlett and University Park, Murphy,Wylie, Lewisville, Flower Mound, Irving, along with surrounding DFW areas.