A legally binding agreement between an employer and employee outlines the terms and conditions of employment. Such agreements frequently include stipulations detailing how and when the employment relationship can be ended, by either party. For example, an agreement might stipulate that the employment relationship can be terminated with two weeks’ notice or for just cause, such as misconduct or poor performance.
Clear stipulations for ending the employment relationship offer protection and predictability for both employers and employees. They provide a framework for managing expectations and minimizing potential disputes arising from unexpected job loss or dismissal. Historically, the absence of such formal agreements led to significant power imbalances and potential for exploitation. Modern legal frameworks and best practices emphasize the importance of these documented terms to ensure fairness and transparency in employment relationships.
