Terms of Employment


Overview
- The Terms of Employment is signed by new employees to acknowledge that they understand the basic terms of their employment arrangement.
- This document should not be used with employees that are covered by a collective bargaining agreement or union contract until carefully reviewed by the company's labor counsel.
- Although many employee rights and employer obligations are established by federal law, state law still controls a great deal of the employment relationship.  Employers are urged to have the Terms of Employment and other related employment forms reviewed by the company's local attorneys, and to use those forms in a manner prescribed by local law.  
- The Terms of Employment form establishes that employment is "at will".  This means that employment may be terminated at any time by either the employee or the employer.  The employment "at will" doctrine does not exist in all states, and not every state views it the same way.  However, even if a state does not recognize "at will" employment, having an "at will" clause in the document helps to clarify the intentions of the employer and employee.
- Most states permit and enforce this type of employment document.  To ensure that the terms can be enforced, the Terms of Employment (and other related documents) should be signed when employment begins.

When You Need It
- To inform each new employee at the beginning of employment, providing basic employment conditions that protect the company, and helping to ensure that the employee is fully aware of the terms of the employment arrangement.
- The Terms of Employment document should be used in connection with other policy and rules employment forms.


Getting Started

You will need:
- Name of the company who is enacting the terms.
- Review each item in the document and revise as may be necessary to fit the particular needs of your company and/or employees.

When to Review and Revise 
- To correct the information contained in the terms.
- To amend the terms to respond to changing business climates, new laws, etc.