Fictional dramas about lawyers tend to portray them spending their workdays either in the courtroom or preparing for their next court appearance, but this is only a fraction of what lawyers do in their work. Especially in practice areas like employment law, lawyers spend more time reviewing and preparing documents that will prevent their clients from having to go to court than they do attempting to persuade a judge or jury of their position. Employment contracts are a powerful tool for resolving disputes between employers and their employees before the disputes even begin. Therefore, reviewing your employment contract with a lawyer before you sign it is a worthwhile investment of your time and money.
Likewise, if a dispute arises within an employment relationship, then if an employment contract exists between the parties, this contract, more than anything else, determines the outcome of the dispute. The Bozeman employment contract lawyers at HKM Employment Attorneys LLP can answer your questions about employment contracts and resolving contract disputes in an employment relationship.
What Happens if You Do Not Have an Employment Contract?
Employment contracts outline the rights of the employer and the employee, but workers in Montana still have rights, even if they do not have a contract, as most workers do not have one. In a dispute with your employer, you can cite state and federal employment laws as evidence of your rights that your employer has violated. If your employer gives employees, even those without contracts, greater protection than what the law stipulates, such as if it guarantees them paid leave, then you may cite your company’s employee handbook or any of its other official documents that list its policies.
For example, Montana law grants employees greater protection against arbitrary termination of employment than most other states do. Most states follow the rule of at-will employment, where, as long as no discrimination or unlawful retaliation is involved, the employer can terminate the employment relationship at any time, even if it is for no reason. Instead, Montana has the Wrongful Discharge from Employment Act. This state law stipulates that, once an employee has completed the probationary period at the beginning of his or her term of employment, the employer can only terminate the employment relationship if it cites a specific reason for doing so. In other words, employees have the right to know whether they are being fired because of misconduct or being laid off because of the employer’s financial hardships.
What Does an Employment Contract Say?
An employment contract indicates the specifics of an employment relationship beyond what the parties could assume based on state law. First, it names the parties to the contract. It indicates the employee’s position title and job duties. Then it states what the employer owes the employee in exchange for his or her work, such as salary, insurance benefits, and perquisites such as paid vacation time, contributions toward the educational expenses of the employee’s children, or use of company-owned vehicles or housing. The contract indicates when the employment relationship begins and ends and whether it is renewable; if it is, then it includes instructions on how to renew it.
These are the parts of your contract that you naturally read first if your employer has just offered you a job. The other parts are more important in the event of a dispute. These are the employment contract provisions that seem boring to you, even as the employment lawyer who reviews your contract fixates on them:
- What compensation does the employer owe the employee if the employer terminates the employment relationship before the contract expires? In other words, does the employment contract guarantee severance pay in the event of a layoff?
- What constitutes a breach of contract? What should the parties do to repair the breach if one of them breaches the contract? What are the force majeure events, such as natural disasters, that prevent one party from suing for breach of contract if the other party is unable to fulfill its contractual obligations?
- If a dispute arises in the contractual relationship, do the parties have recourse to the courts of Montana to resolve the dispute or must they resolve it through mandatory arbitration?
What Does an Employment Contract Do?
The biggest difference between having an employment contract and simply working for your employer in accordance with state law is that the contract is a written record of what you and your employer specifically promised to do. It is legally binding for the same reason that other written agreements, such as contracts of sale, lease agreements, and prenuptial agreements, are legally binding, namely that private individuals have the right to agree to do almost anything that does not break the law, and if they formalize these agreements in writing, the courts will enforce their agreements if one party does not fulfill its promises.
How an Employment Contracts Lawyer Can Help You
When you are a newly hired employee, it is easy to think of your employment contract as simply a party favor celebrating the fact that you have a grown-up job. Thus, reviewing your contract with an employment lawyer before you sign it can give you the reality check you need. Based on this reality check, you might feel empowered to negotiate for better pay or guaranteed severance, or you might even request that the employer amend the contract so that the courts of Montana have jurisdiction to rule on disputes arising from the contract instead of requiring you to resolve your disputes through arbitration.
If you have already signed an employment contract, your employer can help you de-escalate a breach of contract situation, pursuant to the terms of your contract, before the matter gets to the courts. It can also represent you in court if you sue your employer for breach of contract.
Contact HKM Employment Attorneys About Employment Contracts
The Bozeman employment lawyers at HKM can counsel you about employment contracts. Contact the employment lawyers at HKM Employment Attorneys LLP in Bozeman, Montana to set up a consultation.
