We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Employment Contract Law?

By Daphne Mallory
Updated May 17, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Employment contract law is the body of law related to agreements made between employers and employees. Written, oral, or implied contracts often give rise to disputes in an employment relationship, and in some cases the end result is wrongful termination. There are several types of employment contracts, including non-compete agreements, waiver of rights agreements, and severance agreements. An at-will employee is a worker who is offered no employee contract who or is offered a contract but can be terminated at any time. Employment workplace issues pertaining to at-will employees or employees under long-term contracts are often beyond the scope of employment contract law.

Employees often hire attorneys to review a contract of employment to avoid legal pitfalls and to ensure that their rights are protected and that the contracts are in their best interests. For example, an employee may have waived his rights to trial in the contract and must go to arbitration where a panel of judges decides the issues. Attorneys representing both sides of an employment contract law dispute often have to litigate on breach of contract matters, but some employment contracts call for alternative dispute resolution methods in lieu of litigation. Non-compete agreements are also significant for employees and employment contract law, because in those agreements employees often agree not to work for existing or future competitors for a specified length of time. Once a non-compete agreement is signed, courts often enforce it unless it’s shown to be too restrictive under regional employment contract laws.

Employers often use attorneys to ensure that the contracts they offer are in compliance with national and regional regulations and laws, such as anti-discrimination laws. They often use employment contract law as a way to protect their business. For example, a non-compete agreement may include a restriction on the employee to solicit the employer’s customers for a period of time after the employment is terminated. The rationale is that if there is no such restrictive covenant, employees could steal customers away and cause the company to suffer losses. Waiver of rights agreements are often contained in severance agreements to shield employers from future lawsuits from employees after paying them additional monies upon termination.

Employment contract law also includes independent contractor matters. Some employers run the risk of an independent contractor being classified as an employee for tax purposes. Disputes may arise between employers and government tax agencies concerning the independent contract, as well as whether the employer’s actions contradict the contractor status.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.