When starting a new job, one of the many documents you may be presented with is an employment agreement. This document outlines the terms of your employment and the expectations of both you and your employer.

One important clause that may be included in an employment agreement is the assignment clause. This clause outlines whether or not your employment agreement can be assigned to another entity.

Assignment clauses are becoming more common in employment agreements as companies merge, acquire, or divest businesses. If your employment agreement includes an assignment clause, it is important to understand what it means and how it may impact you.

What is an Assignment Clause in an Employment Agreement?

An assignment clause in an employment agreement allows your employer to transfer the rights and obligations of the agreement to another entity. The entity could be a subsidiary of your current employer, a new owner if the company is sold, or another entity with which your employer merges.

An assignment clause can impact various aspects of your employment, including:

– Your job duties: If your employer assigns your employment agreement to another entity, your job duties could change as a result. You may be required to work for a different department or under different management.

– Your salary and benefits: If your employer assigns your employment agreement to another entity, your salary and benefits could be impacted. The new entity may offer different compensation packages.

– Your length of employment: If your employer assigns your employment agreement to another entity, your length of employment may be impacted. You may be required to start a new employment agreement with the new entity.

Why Do Employers Use Assignment Clauses?

Employers use assignment clauses in employment agreements for various reasons. One reason is to provide flexibility for business transactions. If a company is sold or merges with another entity, it is more efficient if all employment agreements transfer to the new entity.

Additionally, assigning employment agreements can provide a level of job security for employees. If a company is struggling financially, assigning employment agreements to a stronger company can help ensure that employees remain employed.

What Should You Consider?

If your employment agreement includes an assignment clause, there are several things you should consider:

– Read the clause carefully: Make sure you understand what the assignment clause means and how it may impact you.

– Consider negotiating: If you have concerns about the assignment clause, consider negotiating with your employer to modify the clause to better suit your needs.

– Understand your job security: If your employment agreement is assigned to another entity, you may have job security with the new entity. However, you may also be at risk of losing your job if the new entity opts not to retain you.

In conclusion, an assignment clause in an employment agreement is becoming more common in today`s business world. If your employment agreement includes an assignment clause, it is important to understand what it means and how it may impact you. Be sure to carefully review the clause and consider negotiating with your employer if necessary.