Employment Agreements

Employment Agreements are contracts that provide senior executives and key employees with a written understanding of certain compensation, benefits, perquisites, and rewards.  The terms and conditions of employment are stipulated in the Employment Agreement as well as the time frame that the agreement covers.  Typically, Employment Agreements contain a clause allowing either party to notify the other party of its intent not to renew the contract beyond the specified contract period.  Another common clause is for the contract to automatically renew for an additional twelve-month period if such termination notice is not given.  This "evergreen" or passive renewal clause protects both parties in the event that an administrative error prevents a proactive signing of a new agreement.

Employment Agreements are a strong golden handcuff tool for the organization as they retain the employee for a specific period of time.  Likewise, the executive is relieved of being subject to discretionary or ad hoc employment decisions that may affect him during the agreement's term.  Also, the employee is further protected in instances of management replacements or organizational changes in control.

CRI has drafted numerous employment agreements for individuals and/or companies which provide the necessary compensation arrangements for competitiveness.

To find out more on how Compensation Resources, Inc. can help your company with Employment Agreements, please contact us or call us directly to speak with our compensation consultants at 877-934-0505.