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Common Issues with Employment Contracts

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When joining a new company, employees often have the power to negotiate over their contract to produce an agreement more favorable to their economic interests, and one that is fair to both sides. Employees may be in a particularly good bargaining position if they are experts or highly skilled in a particular employment field.

While navigating through the various clauses of an employment contract, prospective workers should take note of some of the most common issues with these agreements as they can have long term repercussions on the candidates’ earnings and prospects for advancement. As with most contracts, speaking to an experienced Chicago area employment contract attorney about the situation can greatly benefit the employee.

Compensation

How much one gets paid is almost always the most pressing matter for the individual. However, there are many nuances to compensation, including:

  • Frequency of pay increases;
  • Possibility of signing bonuses for coming aboard a new company;
  • If bonuses will be available; and
  • If a base salary before bonus and commission can be reduced in certain circumstances.

Benefits

Employers often attempt to sweeten an employment offer with benefits. In circumstances where employees are not offered the rate of compensation they expect, they may be able to bargain for certain benefits like:

  • Medical insurance;
  • Disability coverage;
  • Life insurance;
  • Pensions; and/or
  • Stock options.

Scope of employment

The scope of one’s employment can include much more than simply a job title and responsibilities. Included in the scope of employment portion of an employment contract the employer may be able to designate:

  • The place of employment and whether the employee can be relocated;
  • If the employee can be demoted or have their responsibilities reduced or modified; and
  • If the employee will have influence over other facets of the company’s operations.

Grounds for termination and length of contract

How long a contract lasts and under what circumstances it may be prematurely terminated is among the most important of considerations. Employees should take the time to understand whether they are under “at will” employment or if they can only be terminated “with cause” for actions like:

  • Breach of contract;
  • Criminal charges; or
  • Refusal to perform reasonable duties.

Also, the contract may include arbitration and dispute resolution clauses for employee grievances.

Chicago area employment contract attorneys

Before you sign an employment contract, contact the Chicago area employment contract attorneys of Goldman & Ehrlich for a consultation. Our office has years of experience serving clients throughout Cook County, Lake County, DuPage County, Will County, Kane County, and McHenry County.