Ask Asha! Episode 009: Employment Agreement or Contract, What’s the Difference?

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Yes, there are differences between employment agreements and contracts and it’s important to know what you’re getting yourself into with either one.

The main difference between the two is that employment agreements reflect an at-will employment relationship; meaning the employer can fire the worker for any reason or no reason at all, as long as it is not discriminatory.  The employee can also quit for any reason or no reason and is not required to give notice.

In contracts, there is a specified start date and end date to the working relationship and if either party breaches the contract before it has concluded, that party may have to pay the other side if financial harm is incurred.

Whether you have an agreement or a contract, make sure you include the following items:

  1. The party names;
  2. The hire date (and end date if it’s a contract);
  3. The place of employment; and
  4. The compensation rate and duties.

Listen to the podcast for more details and leave a message if you have any questions.

About author:
Asha Wilkerson is the founder of The Wilkerson Law Office, P.C. Ms. Wilkerson provides skilled advice and counsel to for-profit, non-profit, and faith-based organizations in the areas of business and employment law. Her mission is to preserve the longevity of your business by ensuring that every aspect of your organization is legally sound and operating in compliance with state and federal law.

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