Employment Agreements – “Without Cause” Termination Rights
Employment agreements are a very common practice for employers. Employment Agreements are beneficial for both the employer and the employee – a well written and negotiated employment agreement provides a detailed road map as to the parties roles and responsibilities throughout their relationship. One major concern that an employee should be aware of is the provision that allows an employer to terminate an employee “without cause” or for “any reason”. In general, this provision will negatively affect your term of employment, if any, that has been negotiated by you in your employment agreement – effectively allowing the employer to terminate the agreement and your employment term at any time. While this provision is good for the employer, the consequences on an employee could be critical, especially if the other provisions in the employment agreement (such as severance and effect of termination “without cause” on certain restrictive covenant provisions like non-competes) were not negotiated by an attorney. It doesn’t matter what profession you are in, if you have been provided with an employment agreement, always contact an attorney for advice prior to signing the employment agreement. Contact Bashian & Papantoniou, P.C. located in Long Island, New York, for more information.