Under U.S. employment law, most companies avoid entering into an employment contract with the majority of their employees. This article by Alan Kaplan of Masuda Funai explains why employment contracts can provide an effective way to define the relationship between an organisation and certain employees.
Contracts offer certainty
An employment contract offer what most business people want in the form of certainty, says Alan Kaplan of Chicago, Illinois law firm Masuda Funai, a member of the alliance's Global Mobility Services Group. Under U.S. law, the various parties in an employment relationship have the ability to draw up their own rules to govern the relationship, provided that specific requirements are fulfilled.
Contracts are not for everyone
However, employment contracts are not suited to every employment scenario. Depending on the job, the type of legal relationship and the requirements of the various parties, not having a contract in place might serve a company better.
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