Board Resolution for Employment Agreement: What You Need to Know

When a company hires an employee, it’s important to have a clear understanding of the terms and conditions of their employment. One way to achieve this is by having a board resolution for employment agreement. In this article, we’ll discuss what a board resolution for employment agreement is, why it’s important, and what it should include.

What is a Board Resolution for Employment Agreement?

A board resolution for employment agreement is a document that outlines the terms and conditions of an employee’s employment. It’s typically created by the board of directors or a human resources department and is signed by both the employer and the employee.

Why is a Board Resolution for Employment Agreement Important?

Having a board resolution for employment agreement is important for several reasons. Firstly, it helps to establish clear expectations and responsibilities for both parties. This can reduce the likelihood of misunderstandings or disagreements that may arise during the course of employment.

Additionally, a board resolution for employment agreement can provide legal protection for both the employer and the employee. If either party violates the terms of the agreement, the other party may be able to take legal action.

What should be Included in a Board Resolution for Employment Agreement?

A board resolution for employment agreement should include several important elements, such as:

1. Job Title and Description

This section should outline the employee’s job title and a detailed description of their responsibilities.

2. Compensation

This section should specify the employee’s salary, bonuses, benefits, and any other compensation they will receive.

3. Employment Term

This section should specify the length of the employee’s employment and whether their employment is at-will or for a fixed term.

4. Termination Clause

This section should outline the circumstances under which the employment agreement may be terminated, such as for cause, or without cause.

5. Confidentiality and Non-Compete Agreements

If the employee will have access to confidential or sensitive information, this section should include a confidentiality agreement. Additionally, if the employee will be prohibited from working for a competitor after their employment ends, this section should include a non-compete agreement.

Conclusion

Creating a board resolution for employment agreement is an important step in establishing a clear, fair, and legally binding employment relationship between an employer and an employee. By including key elements such as job responsibilities, compensation, and termination clauses, both parties can have a better understanding of what is expected of them during the course of the employment. So, it’s essential to have a board resolution for employment agreement to avoid any future disputes and maintain a healthy work environment.