HR Glossary

Individual employment agreement

Individual employment agreement refers to a document contracted between employer and employee setting and describing their legal relationship.

what-is-individual-employment-agreement

Individual employment agreement definition

An individual employment agreement is a contract between an employer and an individual employee that outlines the terms and conditions of employment. This type of agreement is distinct from collective bargaining agreements, which are negotiated between employers and a group of employees, usually represented by a union.

Individual employment agreement segments

Key elements of an individual employment agreement typically include:

Job Description : Clearly defines the role and responsibilities of the employee.

Duration of Employment: Specifies whether the employment is for a fixed term or ongoing.

Compensation and Benefits: Details the salary or wages, as well as any benefits like health insurance, retirement plans, or bonuses like OTEs.

Work Hours and Leave: Outlines the expected work hours, overtime policy, and leave entitlements such as vacation, sick leave, and parental leave.

Confidentiality and Non-Compete Clauses: These may include clauses that restrict the employee’s ability to share confidential information or work for competitors after leaving the company.

Termination Conditions: Specifies the conditions under which either party can terminate the agreement, including notice periods and grounds for termination.

Dispute Resolution Mechanisms: Outlines the process for resolving disputes that may arise between the employer and employee.

Other Specific Terms: These can include job-specific conditions, such as travel requirements, work-from-home policies, or expectations regarding professional conduct.

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