Written employment contracts are not required. However, many employers use them when hiring for a high-level or professional position. Most written employment contracts will describe the scope and duties of the job in addition to the salary and any other compensation or benefits.
Once the applicant has accepted the job, there is a legally binding contract of employment between the employer and the applicant. The law does not require witnesses or a signature to make it valid.
Their agreement will be enforced so long as it does not violate legal strictures external to the contract, such as laws affecting union membership and activity, prohibitions on indentured servitude, or the many other legal restrictions . . . which place certain restraints on the employment arrangement.
A legally binding contract involves: An offer by one party to the other; A “meeting of the minds”; Both parties exchange lawful consideration; and. Each party accepts the offer. The employment relationship is governed by an Employee Handbook that spells out the parties' respective rights and obligations.
When hiring employees, you may consider an employee contract to protect your company and your employees. You don't always need an employment contract. There is no legal requirement for a written employment agreement for every employee.
The truth is that California is an “at-will” state, meaning that an employer has the right to terminate an employee at any time without cause. While there are exceptions, it is important to understand how at-will employment works and your rights under the law.
§ 2751. In California, there is a presumption of at-will employment absent an express agreement specifying the length of employment or grounds for termination.
In some cases, yes--especially if you're not working under a contract. Without a formal contract, you're considered to be employed at will, which means that both you and your employer have the right to terminate the employment relationship at any time.
Written contracts ensure clarity and provide a tangible reference in case of disputes. A contract can protect both the employer and the employee. Even when not required by law, it is a best practice in HR management.
Until you sign an offer letter with a certain employer, you are not closed off from accepting other job offers. However, nothing is legally binding until an employment contract is signed. Employment contracts allow everything in the offer letter to be legally binding.