Langsam Law LLP

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Employment Contracts–Bane or Boon to the NY Employment Relationship?

Posted September 28, 2017
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{2 minutes to read} One of the more hotly debated issues in New York corporate law circles is whether an employment agreement better serves the interests of an employee or an employer in the creation of the initial employment relationship. Often, particularly in New York State, which is an “employment at will” jurisdiction, employers hesitate to surrender the flexibility of downsizing payroll by entering into an employment agreement for a specified term.  On the other hand, employees tend to believe that one of their strongest tools in the employment relationship is having an agreement with negotiated, and thus fixed, terms and conditions.

The reality is that employment agreements are to the benefit of both the employer and employee if they are structured well and negotiated at arm’s length.  That is, if both sides are prepared to negotiate the various terms and conditions (as opposed to “here, sign this or go elsewhere for work”) an employment agreement can present a “win- win” situation.  In the case of the employee, knowing the basic terms, conditions and expectations is very valuable when entering into a new position. Similarly, an employer benefits when its expectations are clearly expressed, negotiated and preserved in a written and enforceable document. 

In other words, if both parties enter into the relationship with “eyes wide open,” it is more likely that the relationship will get off to a good start with everyone rowing in the same direction, thus helping both the business and the employee succeed.  At Langsam Law, we have extensive experience negotiating and drafting employment and executive compensation agreements for all levels of employment. Our initial consultation is always without charge.

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