The formation of the relationship of employer and employee by written agreement is generally determined by the usual principles governing the formation of all contracts. The basic elements of any enforceable contract are as follows:
" an agreement;
" between competent parties;
" based upon the genuine assent of the parties;
" supported by consideration;
" made for a lawful objective; and
" in the form required by law.
Arizona Checklist — Employment Agreements: A Comprehensive Guide to Drafting Employment Contracts in Arizona When it comes to creating employment agreements in Arizona, it is crucial to cover all necessary aspects to ensure legal compliance and protect the rights and interests of both employers and employees. This checklist serves as a practical guide for employers and HR professionals in Arizona, highlighting key components that should be included in an employment agreement. 1. Job Description and Title: Specify the position, responsibilities, and expected duties of the employee, providing a clear understanding of their role within the organization. 2. Compensation and Benefits: Outline the employee's salary or wages, payment schedule, and any additional benefits, such as healthcare coverage, retirement plans, vacation days, and sick leave policies. 3. Duration and Termination: State the intended duration of employment, whether it is an indefinite period or for a fixed term. Include provisions on termination, notice period, and grounds for termination, ensuring compliance with Arizona employment laws. 4. Non-Disclosure and Non-Compete Agreements: If applicable, include clauses that protect the employer's confidential information and trade secrets. Address any restrictions on the employee's ability to compete with the company for a certain period after termination. 5. Intellectual Property Rights: Specify ownership and usage rights for any intellectual property created by the employee during the employment period, ensuring that the company retains all rights. 6. Confidentiality and Non-Disclosure: Clearly define the employee's obligation to keep company information, trade secrets, and client information confidential, even after termination. This safeguards sensitive data and ensures compliance with Arizona's trade secret laws. 7. Non-Solicitation Agreements: Include provisions to prevent the employee from soliciting or poaching clients, customers, or other employees from the company for a specific period after termination. 8. Dispute Resolution: Specify the preferred method for resolving any employment-related disputes, such as mediation or arbitration, and identify the jurisdiction in which disputes will be settled (commonly Arizona state courts). 9. Governing Law: Indicate that the employment agreement is governed by and interpreted according to Arizona state laws, promoting consistency and adherence to local regulations. 10. Employee Handbook and Policy Compliance: Reference the employee handbook, ensuring that the employee agrees to read and abide by its policies and procedures. This helps maintain a consistent work environment and promotes awareness of the company's expectations. Types of Arizona Employment Agreements: 1. At-will Employment Agreement: An agreement that establishes the employment relationship, but allows either party to terminate it at any time, with or without cause, as long as it does not violate other laws. 2. Fixed-term Employment Agreement: A contract with a predetermined duration, specifying when the employment relationship will end, unless renewed by both parties. 3. Confidentiality and Non-Disclosure Agreement (NDA): A separate agreement that focuses solely on protecting confidential information and trade secrets of the employer, supplementing the general employment agreement. By utilizing this comprehensive Arizona Checklist — Employment Agreements, employers can ensure that their employment contracts adhere to state laws and protect their interests while fostering a healthy and transparent employer-employee relationship.
