A labor contract (agreement) under U.S. law is an agreement between an employee and an employer. It contains a number of conditions: the rights and obligations of the employee and the employer, wages, working hours, overtime pay, vacation time, benefits, and other items agreed upon by the parties. The employment contract is concluded in written form: each company develops its own form of contract or chooses from those used by others or recommended.
The employment contract signed by the parties is not the only form of its conclusion. It is widely used, especially in smaller companies, to hire by offering any form of employment: by phone, by letter, by e-mail, etc., that a person may start work from a certain date under the conditions agreed upon during the interview or specified in the offer. If the person accepts the job, an order is issued, which also means the contract is in writing.
In addition to the position and the salary, the benefits provided by the company are of paramount importance for new hires. Their set is very wide: first of all health insurance, bonuses, bonuses and other forms of remuneration; life insurance, an increase in the length of the next leave for long-time employees working in the company, the conditions of business trips (duration, payment of travel expenses), etc. Many companies also offer employees benefits such as legal assistance, discounts on lunch and parking during working hours, payment for public transportation, day care centers, cultural and educational events, etc. When dismissing diligent and long-serving employees, large companies pay monetary compensation in addition to severance pay.
Here is a case study of two employees – citizens of the former Soviet Union. After 10 years of working as a courier at one of the largest medical institutions in Los Angeles, K. resigned at his own request in connection with moving to New York, where his son was living. He was paid a bonus equal to three months’ salary.
A large insurance company relocated from Los Angeles to New York City. Employees of the divisions being relocated to New York who agreed to move with the company were offered payment of all related expenses. Others received severance pay based on length of service with the company. K., who had worked as a programmer for 19 years, was paid a bonus equal to six months’ salary.