Maryland is what is called an employment “at-will” state. As such, the idea of an employment contract may strike some people as a bit counter-intuitive.
Depending on how they are drafted, a contract may limit a Maryland business’s legal right to terminate an employee for any lawful reason. On the other side of the coin, an employer can manage their employees with company policies and practices without ever offering an employment contract.
Sometimes, though, it makes sense for employers to offer a contract to employees.
- Executives and professionals like doctors and lawyers typically expect contracts.
- In certain trades and professions, employment contracts are standard. For example, teachers in both public and private schools generally receive contracts.
- Offering contracts can be a way to attract a certain skill set or talent pool to a business. A contract, especially if it comes with perks like guaranteed employment, can give a business a competitive edge.
- Contracts can help a business retain key employees.
- If the terms of employment were negotiated, the contract can clearly reflect the agreement between the employer and employee.
- Sometimes, it makes legal and financial sense to spell out the rights and responsibilities of both the employer and employee in a contract.
It is important for a business to understand the details of any contract they offer
Aside from base salary and job responsibilities, employment contracts can cover a range of topics, including guaranteed bonuses and other incentives, as well as what will happen if either the employer or employee want to leave the relationship.
Should a business in the greater Baltimore or D.C. areas decide to offer a contract to an executive or other employee, they should make sure that they understand the consequences of what their agreement says.
They also need to be sure they have a clear agreement that protects all their interests.