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.
Massachusetts Checklist — Employment Agreements: A Comprehensive Guide Introduction: Employment agreements play a crucial role in establishing the terms and conditions of employment between employers and employees in Massachusetts. This checklist aims to provide a detailed overview of the essential components that should be included in an employment agreement while adhering to the specific legal requirements of the state. Adhering to these guidelines ensures compliance with Massachusetts employment laws and helps protect the rights and interests of both parties involved. 1. Job Description and Title: Clearly define the employee's position, duties, and responsibilities to avoid any ambiguity or confusion. 2. Compensation and Benefits: Specify the salary, payment frequency, bonuses, commission structures, or any other form of compensation. Include details regarding health insurance, retirement plans, vacation and sick leave, and other benefits offered to the employee. 3. Duration and Termination: State the starting date of employment and if the agreement continues indefinitely or for a specific period. Additionally, mention the notice period required for termination by both parties. 4. Confidentiality and Non-Disclosure Agreement: Include provisions to protect the company's confidential and proprietary information by requiring employees to maintain confidentiality during their employment and even after it terminates. 5. Non-Compete and Non-Solicitation Clauses: If applicable, incorporate clauses that prevent employees from working for competitors or poaching clients, customers, or fellow employees after leaving the company. Note that Massachusetts has certain limitations on this type of agreement, and they must be reasonable in scope and duration. 6. Intellectual Property: Clearly outline the ownership and rights of any intellectual property, inventions, or innovations created by the employee during their employment. Ensure that the employer retains the rights to all work-related materials and inventions. 7. Restrictive Covenants: Include provisions related to restricting employees from engaging in activities that might harm the company, such as engaging in illegal behavior, defaming the company, or breaching company policies. 8. Governing Law and Venue: Designate Massachusetts law as the governing jurisdiction for the agreement and specify any preferred venue for dispute resolution, if required. 9. Entire Agreement and Amendment: State that the employment agreement represents the entire understanding between the parties and that any changes or modifications must be in writing and agreed upon by both parties. Types of Massachusetts Employment Agreements: 1. Permanent Employment Agreement: This type of agreement is drafted for an open-ended employment relationship where no specific term is defined. 2. Fixed-Term Employment Agreement: Contracts of this nature outline an agreed-upon period during which the employee will be employed. The agreement concludes at the end of this duration unless renewed or extended. 3. Confidentiality Agreement: This agreement primarily focuses on maintaining strict confidentiality of trade secrets, proprietary information, and sensitive business data. It is often used in conjunction with an employment agreement but can also exist as a stand-alone contract. 4. Non-Compete/Non-Solicitation Agreement: This type of agreement restricts employees' ability to work for competitors or solicit clients, customers, or fellow employees upon termination of employment. Conclusion: Creating an employment agreement using this checklist ensures that important aspects of the employment relationship are covered and legally compliant in Massachusetts. However, it is advised to consult an employment attorney to customize the agreement according to the specific needs and circumstances of your organization.
