When you’re looking to hire someone as an employee in the Lone Star State, it often makes sense to use a professionally prepared Texas employment contract in order to prevent misunderstandings while ensuring both employer and employee understand their respective rights and responsibilities.
Important Areas to Cover in a Texas Employment Contract
As a Dallas Business Lawyer, here are eight of the most common areas I believe you’ll want to cover in the employment agreement.
1. Employment Term.
How long will the employee’s initial term of employment be? One year? Is there a probationary period? Is the employment at-will?
Related Article: Can A Job Interview Form A Verbal Employment Agreement?
2. Compensation.
How much will the employee be paid? When? And by what method?
Will there be overtime compensation? What about discretionary or performance bonuses?
3. Employee’s Duties.
What days and hours of the week must the employee work? What are the employee’s responsibilities during those work hours?
Can the employee work a second job for another employer or moonlight as an entrepreneur?
4. Paid Time-Off (PTO).
Will the employee receive paid personal leave during the term? If so, how many days and what’s the methodology by which paid time-off accrues?
Will there be holidays off? If so, which days? Will they be paid or unpaid?
5. Expense Reimbursement.
Will the employer reimburse certain business-related expenses incurred by an employee? If so, what types of expenses and what are the procedures for submitting a claim for reimbursement?
6. Intellectual Property Rights.
Who owns the intellectual property the employee creates for the employer?
7. Employer’s Responsibilities.
What are the employer’s obligations to the employee? For example, will the employer provide the employee with an office and a parking space?
8. Early Termination.
When and how can employment be terminated by either the employer of the employee prior to the end of the employment term specified in the agreement? Is prior notice required? If so, how many days and by what method can notice be given?
Of course, there are other many other issues one can cover in a Texas employment contract, including a covenant not to compete and confidentiality provisions. An experienced Texas business lawyer can prepare a customized agreement designed to protect your company as the employer.
