{"id":4749,"date":"2016-04-04T10:47:41","date_gmt":"2016-04-04T15:47:41","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/pros-and-cons-of-written-employee-contracts.html"},"modified":"2026-08-31T11:16:56","modified_gmt":"2026-08-31T16:16:56","slug":"pros-and-cons-of-written-employee-contracts","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/pros-and-cons-of-written-employee-contracts.html","title":{"rendered":"Pros and Cons of Written Employee Contracts"},"content":{"rendered":"\n
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Pros and Cons of Written Employee Contracts<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

An employment contract<\/span> is a legally binding agreement that defines the work relationship, terms, and conditions between an employer and an employee. This document outlines key details like job duties, compensation, benefits, termination grounds, at-will status, and dispute resolution<\/span>. It can also incorporate protective covenants<\/span> such as noncompete<\/span> or nondisclosure clauses. While not always legally required, written contracts help clarify expectations and mitigate legal risks.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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There is no legal requirement to have a written employment agreement<\/span> for every employee. However, in some situations, an employment contract<\/span> is essential for defining the employment relationship<\/span> between worker and employer. This article focuses on the advantages and disadvantages of written contracts for small business<\/span> owners<\/span>. An employment law<\/span> attorney<\/a>\u200b can help draft these contracts.<\/p>\n

What\u2019s in a Written <\/span>Employment Contract<\/span>?<\/h2>\n

A basic written <\/span>employment contract<\/span><\/a>\u200b includes the\u00a0job description<\/span>,\u00a0start date<\/span>, starting pay rate or salary, and\u00a0job title<\/span>. A standard contract may include:<\/p>\n