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When is an employment contract necessary?

When getting a new job in Indiana, you may be asked to sign an employment contract. However, this is not always common practice. Many industries do not routinely use contracts for employment, but there are some specific jobs or situations where an employment contract is necessary.

According to The Balance, an employment contract is usually used for high-level management positions or when hiring a professional. These situations typically call for using some type of binding agreement because such employees may be more difficult to replace than your typical employee if they were to quit. These documents will usually say you cannot quit for a specific amount of time and often have penalties if you do.

Contracts are also often used to protect information. if you have access to confidential information or proprietary information, employers want to protect that from being shared with others outside the company. In addition, a document can also be used to ensure you cannot go to work for a competitor, taking your knowledge of the company and possibly even clients with you.

In most cases, these binding agreements are used to protect the employer, but they do give employees some benefits, such as knowing they cannot be fired outside the terms of the document. Breaking a contract can have serious consequences for either party. Usually, this means legal battles and awarding of damages because like any contract, an employment contract is a legally binding agreement. This information is intended to educate and should not be interpreted as legal advice.








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