How We Can Help With Employment Contracts

Contracts are a work of art. Once the financial terms have been agreed upon, the hard work begins. Contract language requires careful craftsmanship, especially involving such technical issues as bonuses (i.e. when is a bonus earned, accrued and payable?), stock options (vesting and forfeiture issues), retirement benefits; deferred compensation and related benefits.

Restrictive covenants and such contract terms as "cause" for termination likewise require deft handling.

The Arfa Firm is highly skilled in the drafting and negotiation of contract language. Contract language can make the difference between an executive receiving all that he bargained for and litigation arising out of unmet expectations.

A word about employment contracts. Employment contracts are not self-enforcing. What that means is that no matter how clear the agreement is, and regardless of the unconditional rights on the part of the executive and obligations on the part of the employer, neither you nor your attorney has the unilateral power to successfully enforce your demand that your employer fulfill its obligations under its agreement with you. An executive and counsel can implore, beg, plead and threaten litigation. At the end of the day, however, absent an employer that is voluntarily prepared to fulfill its obligations to you, only a court of law, in the context of litigation, has the power to require that the employer do so.

Most executives recognize that litigation is an expensive distraction. That is why The Arfa Firm understands that it is critical that an agreement be entirely clear on all points. It is preventive drafting.

Depending upon the complexity of the arrangements, the negotiation and drafting of the agreement may involve a number of lawyers and other professionals on both sides including, financial advisors, accountants, retirement and tax and benefits experts.

Arfa Rule of 15

The Arfa Firm follows the following rule of thumb: give the final draft of your proposed agreement to a 15 year old, reasonably bright high school student. If that student can tell you what and how much you are going to get; when you are going to get it; what, if anything, can intervene to cause you not to get it; and what you are agreeing to do in return, the document passes the threshold test of clarity -- that's The Arfa Rule of 15.

But, unless the document is clear enough for a 15 year old to answer those questions with specificity, the document is not clear enough for you to sign and may be an invitation to litigation.