F. Next Step: Get it in Writing

Once agreement is reached on key employment terms, ask the employer to put these terms in writing, especially if you are accepting an executive or high-paying managerial position. This can reduce potential misunderstandings and decrease your chances of being fired unfairly. With a written agreement, it is easier to prove the terms of the relationship since oral agreements are often interpreted differently by employers and employees. A handshake confirms only that you accepted employment; it does not prove what was contracted for. Some employment contracts say that terms cannot be changed without the written consent of both parties. If such a clause was included in your contract and the employer attempted to unfairly reduce your salary or other benefits, this could not be done without your written approval. You are also protected if you are fired in a manner prohibited by the contract.

Counsel Comments:A contract is an enforceable agreement that can be written, oral, or implied by the actions or intentions of the parties. The words agreement and contract legally mean the same thing. Presuming that the parties entering into the contract were of sound mind, that there was mutual acceptance of agreed-upon terms, and that consideration (something of value given or promised by one party in exchange for an act or promise of another) was given, a valid contract may be found to exist. Although many contracts can be oral and still enforceable (assuming you can prove what was agreed upon), employment contracts that cannot be fulfilled within a year (i.e., one-year contracts) must be in writing to be valid. This is to satisfy a legal requirement called the statute of frauds. For example, depending on the facts and other circumstances, if an employer has promised lifetime employment (e.g., "You have a job here with us as long as you want to work"), but the promise isn't in writing, you can probably be fired legally on a moment's notice due to the statute of frauds principle.

For important jobs, request a written contract that spells out the parties' understanding and clarifies your rights. The document should clearly confirm basic terms defining compensation, benefits, job security, notice of termination, severance pay, and other considerations. When you obtain an employment contract (or any business document), read it carefully. Question all ambiguous and confusing language. Consult an employment lawyer if you do not understand the meaning of any terms. Be sure that all changes, strikeouts, and erasures are initialed by both parties and that all blanks are filled in. Always obtain a signed copy of the executed agreement and keep it with your other valuable documents in a safe place.

The two documents beginning on the next page illustrate the kinds of employment agreements that are routinely drafted by employers. The first is a comprehensive document typically given to executives. The second document is drafted in the form of a letter; both agreements are valid provided they are written clearly and signed by all pertinent parties.

(Note: The following documents are provided for illustrative purposes only. Since they were drafted by employers, they are slanted in favor of the employer and not the employee. Do not use such documents for your own purposes without speaking to a competent lawyer for advice and guidance.)

If the company fails to prepare and send you a written agreement, it is advisable to write a letter yourself confirming any oral agreements related to your job. The letter can serve as a written contract provided you can prove delivery and it is not ambiguously drafted.

Tip:The key is to state at the close of the letter that if any terms included in the letter are ambiguous or incorrect, the company must respond within a specified period of time; otherwise the letter shall be considered to confirm the parties' entire understanding. Then, if the company fails to respond within the stated time, the letter can serve as a valid contract in many instances.

Counsel Comments:Send all such letters by certified mail, return receipt requested, or have them hand-delivered. This is how you can turn an oral handshake into a written agreement. The sample letter on the next page illustrates the kind of letter you should consider sending whenever you do not receive a written employment agreement from a company.