employment contract should clearly define all terms and conditions of the employment relationship. The most common elements to any employment contract include the following: Terms of employment Employee responsibilities Employee compensation (i.e. wage/salary, benefits) Employment absence Dispute resolution Nondisclosure agreements Ownership agreements Assignment clauses Employment opportunity limitations Grounds for termination Common Clauses Scope of employment Each employment contract contains a job description including the range of activities that an employee is reasonably expected to perform. Scope of employment often identifies demotion, transfer to different responsibilities, and modification or increasing current responsibilities. Travel and relocation can also be discussed in this section. Compensation and benefits Compensation includes a negotiated base salary or earning potential for an employee, performance incentives, production bonuses, signing bonuses, equity, and stock options. Benefits include insurance (health, life, vision and dental), pension plans, paid time off, vacation time, sick and personal leave. This section will also include if or when an employee's salary can be reduced for instances such as suspension or company financial distress. Probationary period Some companies begin employment with new employees on a probationary basis. An employee is hired for a trial period that gives the company an opportunity to evaluate an employee's job performance and conduct. The duration of the trial period, training guidelines and assessment standards should be outlined in this section. If an employee's performance is found to be unsatisfactory, the employer can terminate the employee at the end or before the completion of the probationary period. This section should also detail how the employer will inform the employee if they wish to continue the employment at the end of the probationary period. A probationary period can only be extended if agreed by both parties or if the employment contract allow it. Non-competition A non-competition clause prevents an employee from taking a position with a competitor of their employer following the termination of employment. The employer must have a legitimate interest in restricting the employee from future employment and the clause must be reasonable in time, activities, and geographic area. Non-solicitation A non-solicitation clause prevents an employee from soliciting the employer's clients, customers, or employees for his or her own benefit. The employee also cannot solicit the employer's clients, customers, or employees for a period of time after the termination of the agreement. This section protects the employer's information and tries to ensure company loyalty. Non-disclosure Under a non-disclosure or confidentiality