Wyndham Worldwide Corp. announced the terms of its Chairman and Chief Executive Officer employment contract. The Parsippany, New Jersey- based company extended Stephen Holmes employment period to three years from his past termination date. Under the new terms, if Holmes is terminated without cause, an agreement in the employment contract states that he shall receive a lump sum equal to 299% of the sum of his base salary and highest annual incentive compensation for any of the three years preceding the year his employment was terminated. In addition, Holmes will be exempt from Code section 499-excise tax gross-up in relation to severance agreement payments.
Contents of a Successful Employment Contract
Most employers use employment contracts to safeguard themselves from liability in the workplace. However, employment contracts do not always contain everything to appease both parties – the employee and employer. Many times, employers provide inadequate employment contracts to new hires that do not support their position in the event of a lawsuit. It is best to contact a New Jersey commercial attorney who understands how to construct an employment contract to suit both parties. Below are key tips to discovering a successful employment contract:
- The Responsibilities of the Employee – In this section of the employment contract, the employer states the job duties the employee must perform. This section may also include information explaining the employer’s right to modify job duties and duty of loyalty.
- The Commitments of the Employer – In this section, the employment contract lists the salary the employee can expect. It also states whether the employee is an hourly or salary employee and provides information about when to expect payments. For higher positions, bonuses, commissions, and incentive-based information is explained. For most positions, this section will interpret insurance information, how much vacation time is allowed, 401(k) options, etc.
- Duration of Employment Contract – This section explains the company at-will policy and establishes fixed terms of the position.
- Severance Benefits – Gives information about options to consider if the employee is terminated.
Employment contracts can be complex to assemble. There are many laws that must be kept under consideration when constructing an employment contract. It is best to contact an experienced New Jersey contract lawyer.