• A large number of workers offer their services "at will." In an "at will" situation, the employer and the employee can cease the employment relationship at any time, for any reason (as long as the reason does not violate laws such as civil rights laws). If an employment contract is in place, however, the employer and the employee must abide by its terms.
  
  

Choosing the Type of Relationship

• Employment contracts can create an employer-employee relationship or be drafted along the lines of an independent contractor status. The type of relationships is critical as it determines certain rights and obligations of the parties. Independent contractors are responsible for their own taxes; employers do not have to pay stare or federal unemployment or social security taxes nor do they have to pay worker's compensation premiums. Conversely, in an employer-employee relationship, the employer is responsible for the above-mentioned taxes and fees.
  
  

Probationary Periods Clauses and "For Cause" Termination

• Often, an employment contract stipulates a probationary period. During this time, the employee may be subject to more rigorous examination and review of work product to determine whether the employee is a "good fit." At the end of the period, upon satisfactory review based on guidelines set forth in the contract, the employee may be extended an offer for long-term employment. If offered a long term position, often the employee may only be fired "for cause." The contract should describe what "cause" means. Disclosing trade secrets or working for another employer (especially if there is an "exclusive employment" clause) may be causes for termination.
  
  

Noncompetition Clauses and Notices

• Employment contracts typically state that, should the employee leave the company, that employee cannot work within a certain mile radius of the company for a company that conducts similar business. Further, if an employee wants to leave the company, or if the employer intends to hold a meeting to discuss whether cause exists for termination, notice must be given on the proper person. The employment contract should spell out the form of notice and when it should be delivered.
  
  

Alternative Dispute Resolution

• Another key issue is how to handle disputes should they arise. Rather than taking the employer or employee to court, which is often timely and expensive, the contract may state that disputes must be arbitrated outside of court. These clauses should spell out how a party initiates the process, picks the arbitrator and whether the decision is binding in court.