While many Indiana residents do not have a formal contract of employment, those that do are sometimes unaware of the types of restrictive provisions that may be included in their contracts. In addition to specifying what a worker's duties and responsibilities are, an employment contract may restrict what kind of work an employee can perform after they leave their employer. Other employment agreements could limit the legal rights of workers who have resigned or been terminated.
One such provision is called a non-compete clause. This type of provision may prevent a former worker from securing employment in the same field or starting a business that would compete with their former employer. This clause may have a set time limit, or it could apply to a specific area. The terms of a non-compete agreement may go into effect when an employee either leaves their position voluntarily or is fired for any reason. If your work prospects are being hampered by a non-compete agreement, or if you have already violated such a provision, an attorney with employment law experience could argue on your behalf that the clause concerned is unwarranted or excessive.
If you are a senior executives or manager, you may be offered a severance package when your period of employment ends. This type of package typically offers financial benefits in return for an agreement that you will not file a lawsuit against your former employer. If you have been offered such an arrangement, it may be advisable to discuss the matter with an attorney before agreeing as the rights you are surrendering could have significant value.
While employment contracts are frequently fair and useful, there are occasions when their provisions could be considered excessive by a court. If you feel that your contract of employment is unfair or illegal, or if you would like more information concerning employee's rights, please visit our page dealing with the subject.
Source: Law Office of John H. Haskin, "Indiana Employment Contracts And Severance Agreements Attorney", October 24, 2014