Should I Use Employment Contracts in My Business?
The Pros and Cons of Using Formal Employment Agreements in Your Business
The vast majority of employees do not have written employment contracts, beyond perhaps a signed initial offer letter. This means their employment remains "at will," and can be terminated at any time by either the employer or the employee, for any reason (so long as it is not an unlawful reason).
Usually, employers want to retain this kind of flexibility, and address specific terms of employment as they come up through company policies, which can be changed at any time.
You can have a written contract that protects certain interests- non-solicitation, non-disclosure, non-compete provisions and ownership of intellectual property are common examples- without providing for a fixed term of employment. These contracts generally state specifically that employment remains at-will and can be terminated at any time.
There are times when it might be in your interest to agree to a fixed term of employment, especially if you are making significant upfront investments in new employees, and/or the position is challenging to recruit for.
Learn more here about employment contracts in Massachusetts.
Need Help With an Employment Contract?