G.A. Finch, Michael, Best & Friedlich, Chicago

Employment Contracts: More Than Just a Handshake

Coach Mike Ditka once said, "Success isn't permanent, and failure isn't fatal." I often think about this quote when considering employment agreements, but in the context of employment, I would add one important point: It sure helps to have a contract. With the increasing rate of turnover in employees and executives, the prudent firm—and its executives and professional staff—will seriously consider entering into an employment contract to protect the interests of all concerned. Like parties to a marriage who sign a prenuptial agreement, by using employment agreements, A/E firms and their employees are not anticipating an imminent divorce. They do, however, desire clear expectations of, and reasonableness in, the terms for their parting of the ways, if that should turn out to be the case. In recent years, we have seen a marked increase in the number of top-level executives and key employees who are demanding employment contracts before taking positions with new firms—or deciding whether to stay with their existing employers.