For example, the issues of concern to a five-person software start up seeking to secure the services of an engineer to oversee the beta testing stage and finalize the first version of a software package will differ greatly from the needs of an already successful multimedia company hoping to secure the services of a top level marketing manager. Below we will briefly look at each of these provisions. As noted above, the term of employment refers to the period of time during which the two parties contractually agree to the employer-employee relationship. In California, an employment contract will not be enforced against an employee beyond seven years from the commencement of services. However, the vast majority of employment contracts call for a term nowhere near seven years.
Most employment contracts range from a one to three year term.
The term provision may contain options, exercisable by either or both parties at a specified time or upon the occurrence of a stated event. The term of this employment contract shall include any automatic extensions pursuant to the preceding sentence. Both parties should put great thought into clearly defining the duties and authority of the employee to avoid confusion and misunderstandings as to expectations. Although it is almost always impossible to clearly outline all duties inherent in a particular position, objective specifications of duties and standards of performance are desirable not only to avoid confusion but also to avoid litigation. In drafting this clause the parties must be aware that if litigation arises concerning an employee's performance of his or her duties or the employer's provision of appropriate authority to enable performance of those duties, a court or arbitrator will look to this clause first to determine what the parties expected of each other.