An employment contract must stipulate that the employer does not terminate the employee without a valid reason during the term of the contract and indicates specific reasons for dismissal. Common examples are failure to meet financial goals, failure to fulfill obligations or be convicted of a crime. A “duty not to compete” or “non-compete clause” is a contractual provision of employment in which a worker agrees not to compete with an employer in a given profession or trade once that person`s employment relationship has ended. Employers and workers should recognize that competition bans (also known as Covenants to not compete) have legal limits. Under Texas law, non-compete clauses are subject to certain restrictions and must be proportionate in their scope, time and geographic area. Equal Employment Opportunity Commission in www.eeoc.gov; or the Labor Department of the State Bar of Texas in www.laborlaw.org. This article sets out the general provisions of the employment contract. It also answers questions about benefits and protective measures for both the employer and the worker. This material is a complete excerpt from a brochure of the Texas Young Lawyers Association. The employer should clearly describe the worker`s work. What exactly are you asking him to do? If you don`t describe the position, how will one of you know if you`re getting satisfactory results? Indicate whether you expect the employee to devote all of their work time and effort to your business. Perhaps you would like to ban working outside with another company that might be in conflict or competition with your company.
An employment contract can also set out the conditions under which a person is hired by a company or vice versa. This is a legally binding agreement in the eyes of Texas courts. While employment contracts are not required to be used by Texas employers, these legal documents are becoming more frequent. The terms of an employment contract may derive from one of the following sources: subcontract agreement – A contract that a company can use when subcontracting work to another contractor. In order for an employment contract to be amended, each party must agree to the updated terms. An employer may change certain aspects of the contract for economic reasons, including the rate of pay, working time, obligations or place of work, as well as to remedy an error in the original contract or in disciplinary measures.