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What Should Be Included in a Contract of Employment?

What Should Be Included in a Contract of Employment
Key Takeaways
  • A contract of employment defines the terms of your job, protecting both you and your employer.
  • Standard contracts should outline pay, benefits, essential duties, work schedule, and termination clauses.
  • Commonly included clauses may address intellectual property, performance reviews, relocation, or social media policies.
  • Missing or ambiguous terms can lead to disputes over wages, termination, or workplace rights.
  • New York employees can consult an employment contract lawyer to review agreements before signing.

Landing a new job is exciting. Maybe you’ve just wrapped up a lengthy interview process or finally received an offer from a company you’ve eyed for months. But before you pop the champagne or update your LinkedIn headline, there’s usually one more big step: signing an employment contract.

On the surface, a contract might look like a stack of legalese you skim through before scribbling your name at the bottom. But here’s the thing—those terms could dictate everything from your monthly take-home pay to what happens if the company decides to restructure in a year.

A well-drafted employment contract benefits not only the company; it protects you, too. Read it carefully. However, having a lawyer review it is a smart move before starting a new role. The experienced New York employment lawyers at Joseph & Norinsberg can help you understand the terms of your employment contract and ensure your rights are protected.

What Should Be Included in a Contract of Employment?

At its core, an employment contract is a legally binding agreement between you and your employer. It defines the relationship: what you’ll be doing, how you’ll be paid, and what both sides can expect if things go smoothly—or if they don’t.

When drafted correctly, these contracts keep both sides accountable. They lay down the rules and expectations, which help prevent misunderstandings. If disputes arise later, the contract becomes the playbook. And while employment law varies by state, most contracts include similar elements no matter where you work.

In New York, contracts are also subject to state labor standards. The New York State Department of Labor enforces workplace laws, ensuring that agreements meet minimum requirements, such as wage and hour rules.

Why Are Employment Contracts Important?

Think of an employment contract as your job’s blueprint. Without it, the walls of your employee-employer relationship can collapse under confusion and “he said, she said” arguments.

Here’s why these contracts are so important:

  • They provide clarity. Contracts put the terms of your job in black and white—salary, benefits, responsibilities, and every little detail that can otherwise be left open to interpretation.
  • They prevent disputes. A written agreement helps keep expectations aligned. If disagreements arise, you and your employer can refer to the contract to resolve them.
  • They cover termination conditions. These sections spell out what happens if the company wants to let you go—or if you decide to leave. Knowing your rights and obligations up front can save headaches later.

Without an employment contract, or with a poorly written one, you could find yourself battling over issues such as unpaid bonuses, disputed vacation days, or even wrongful termination. In fact, employees in tricky situations often turn to a wrongful termination lawyer when their contract doesn’t provide enough protection.

What Are the Essential Elements in an Employment Contract?

While the details vary depending on the industry, company, and state law, most contracts include a handful of core provisions. Here are the ones you’ll almost always see:

  • Job title and duties: Your official role and responsibilities should be clearly defined and documented. This prevents employers from suddenly shifting your job scope without consent.
  • Compensation and benefits: Salary or hourly rate, bonuses, health insurance, retirement contributions, and other perks belong here.
  • Work hours and schedule: Whether you’re expected to work 9–5, travel, or be on call, the contract should clearly reflect these expectations.
  • Employment status: In New York and most states, jobs are “at-will,” meaning either side can terminate the relationship at any time, unless otherwise specified. Your contract should clarify this status.
  • Leave policies: Policies for vacation days, sick leave, family leave, and holiday schedules must be outlined.
  • Confidentiality and non-disclosure agreements: These clauses prevent you from sharing sensitive company information.
  • Non-compete or restrictive covenants: These provisions restrict your ability to work for competitors after leaving the job. In New York, however, the law around non-competes is shifting, and the state recently passed a non-compete ban.
  • Process for resolving disputes: Some contracts require arbitration or mediation before going to court.
  • Termination clauses: These explain under what circumstances your employer can fire you, or how much notice you must give to resign.

The New York Department of Labor enforces labor laws and standards that employment contracts must follow. These provisions aren’t just formalities. They’re the backbone of a legally enforceable agreement. Without them, things get messy quickly.

What Are Commonly Included Clauses in Employment Contracts?

Beyond the basics, many contracts contain additional clauses that vary by industry or company culture. These aren’t mandatory, but they’re common enough that you may encounter them:

  • Intellectual property ownership: If you create content, designs, software, or inventions during your employment, this clause states whether you or the company owns them.
  • Relocation and travel requirements: Some roles involve relocation or frequent business travel, and the contract may specify how associated costs are covered.
  • Performance reviews: Your employer may outline how and when your work will be evaluated, which can tie into raises or promotions.
  • Technology and social media policies: With remote work and digital branding on the rise, employers often set rules around email, device use, and what you can or can’t post about the company online.

Sometimes these clauses are more favorable to the employer than the employee. If anything feels unfair or overly restrictive, consult an employment contract lawyer to level the playing field.

What Happens if a Contract is Missing Key Terms?

Here’s where things can get dicey.

Maybe your salary is listed, but there’s no mention of whether you qualify for overtime. Or perhaps your duties are vaguely worded, leaving the door open for your boss to pile on responsibilities outside the original scope. If your contract excludes important terms, you could face multiple interpretations in key areas of the agreement.

Missing terms can also prompt legal disputes. For example:

  • Ambiguity: Different interpretations of the same clause can spark conflict.
  • Wage disputes: Without clear compensation details, an employer may try to underpay you or skip paying you for certain hours worked.
  • Termination fights: If the conditions for firing or resigning aren’t outlined, disputes over wrongful termination are more likely.

The good news? Federal and state laws often step in when contracts fall short. Employee protections—such as minimum wage and overtime rules—still apply regardless of what’s missing in your contract. That said, it’s far better to have a comprehensive document than to rely on outside laws.

When contracts leave too much room for interpretation, workers sometimes find themselves negotiating after the fact—or even filing claims. That’s why many choose to seek advice from a New York severance lawyer or review resources on identifying red flags in severance agreements.

Contact Joseph & Norinsberg For Your Employment Law Cases

Employment contracts can feel overwhelming, but you don’t have to navigate them alone. Whether you’re reviewing a new offer, renegotiating terms, or facing a dispute, the lawyers at Joseph & Norinsberg have seen it all.

Our firm is passionate about representing the underdog and believes cases aren’t won by flashy courtroom tactics but by relentless preparation behind the scenes. Our attorneys regularly assist clients with employment contracts, executive compensation matters, and wrongful termination cases.

Contact us online or call 212-227-5700 today for a free consultation.

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Jon Norinsberg
Content Reviewed By:
Jon L. Norinsberg
Senior Partner
October 20, 2025

An extensive track record of success has resulted in Jon becoming one of the top civil rights litigators in New York City. A true trial lawyer, he is not intimidated by the intense challenges complex civil rights and constitutional law cases present.

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