This assures the employee the job s around for at least that long, and the employer can end the relationship after that by simply declining to renegotiate the contract. Provide an employee with some protection in the event of a layoff or firing, spelling out details such as severance pay and purchase periods for stock options. Employment contracts often include agreements that bar employees from competing with their former employers for a certain period after they leave the company. If a competitor hires you, your new employer may want you to sign an agreement that protects them from any non-competition or proprietary rights agreements you had with your old employer. Employers sometimes propose arbitration because it allows for a dispute to be decided by a neutral third party rather than by a jury.
Arbitration also tends to be a quicker way to resolve disputes.
An attorney's fees clause can be a double-edged sword. Employers tend to be afraid of them because if an employee sues and wins, the employer has to pay for the lawyers on both sides. But, by the same token, an employee could also end up on the hook for all the attorneys' fees if he or she loses. Keep an eye out for a provision that says your contract constitutes the entire agreement of the parties. Although it's standard language, it could have far-reaching effects, since any oral understandings or other agreements that aren't incorporated into the written document may not be enforceable.