Before you begin a job, one of the most important things that you will have to deal with is signing an employment contract. Putting your name on the dotted line means more than just saying that you are committed to your future job. It also says that you agree with the terms and conditions that the company sets forth. So, what exactly is an employment contract? And if you live in the state of Pennsylvania, where can you fight employment contract disputes? The information presented in this article will attempt to help you answer these questions.

An employment contract is a formal agreement between an employer and an employee that states the terms of employment in an organization. The focus of most employment contracts is employment wages. Other important terms that must be heeded in the contract are: notice periods in the event of dismissal, holiday pay rights, and the place of work and pension organizations.

Are you concerned about what your benefits package may look like? The employment contract specifies fringe benefit packages. Under the umbrella of personal benefits, you should also look to find information concerning the retirement plan, employee stock options, and holiday entitlement.  The last major stipulations that you should check on with your employment contract are: required work hours and compensation arrangements (how often you will be getting paid). 

Some companies may include Non-Disclosure/Non-Compete clauses in their contracts. These are clauses that protect a company’s trade secrets from being spread when an employee leaves the business. Depending on which state you live in, laws regarding/ enforcing these clauses can vary.

There are three different types of employment contracts. The first is a Verbal Contract, which is any contract that is expressed in words, either written or spoken. A Verbal Contract must comply with the Statute of Frauds, and if it is not fulfilled within one year, then it is void.

The second kind of contract is a Written Contract. This type contains clauses that govern the length of employment, termination grounds, and non-compete agreements. A Written Contract is centered around a promise made by the employer.

The third type of contract is an Implied Contract in which the promise from the employer must be specific in order to be enforced. With an Implied Contract, you may be presented with not only an employment contract, but with various agreements as well. Two examples of these potential agreements are: a Confidentiality Agreement and an Ownership of Inventions.

A Confidentiality agreement is a promise not to reveal any of the employers’ secrets. It can stand alone or be a clause in a larger contract.

An Ownership of Inventions dictates that anything the employee invents while employed becomes the property of the employer. An employee may, however, retain his or her rights to ownership. The most important thing under the Ownership of Inventions agreement is that it must be made in writing and signed by both the employer and the employee.

In Pennsylvania, there are many law offices that handle employment contract disputes. If you are fighting in a contract dispute, you should look for any Arbitration Clauses. These clauses, found in some employment agreements, prevent the employee from filing suit against the employer. When an Arbitration Clause is stated in an employment contract, disputes have to be settled through different methods, such as Arbitration and Mediation.

With Arbitration, the case gets submitted to one or more impartial parties who form a final and binding decision, or an “award,” made in writing. For more information about filing an Arbitration action, go to: http://www.sec.gov/answers/arbproc.htm.

In the case of Mediation, mediators sit down with both sides and attempt to reach an agreeable settlement out of court. For more information about Mediation, visit: http://www.mediate.com/articles/kelsey.cfm.

For a listing of Pennsylvania attorneys who specialize in employment law and handling employment contract disputes, to go: findlaw.com.