Your company or your boss makes a verbal promise about payment terms, severance agreements, and other important factors related to your employment. However, time can change everyone’s memory, and intent. A promise that means one thing could be remembered completely differently years later as a lucrative severance package turns into no severance package. Thus, it is always critical to put key terms in writing in a formal employment agreement.
There are several benefits to ensuring your employment terms are in writing.
- First, writing prevents ambiguity. The terms become definite and clear. This can prevent people from forgetting the exact terms years later, and help ensure that terms are accurate.
- Second, a formal employment agreement can ensure legality and prevent disputes. The problem with an oral agreement can be a lack of witnesses to verify the terms. By having everything in writing, the terms are definite even years later.
Before signing an employment agreement, you might want to review it with an experienced employment attorney to ensure you understand all of the terms. Review the non-compete and non-solicitation language, thecompensation terms, the vacation policy, any severance provided, and understand how the agreement can be terminated.