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Employment Law: Definition and Why Does It Matter

Employment Law

What is Employment Law?

Employment law, also known as labor law or employment relations, is the body of laws, administrative regulations, and precedents that address the legal rights of employees and employers. The laws used in such a system are anti-discrimination laws and employee rights. Employment law is also the name of the subfield of civil law, which deals with employment relationships, including labor unions, collective bargaining agreements, and trade or vocational associations.

Why Does Employment Law Matter

1. Ensures Employee is Offered an Offer Letter

An offer letter is an essential document in many organizations. It states the employee’s designation, tenure of the post, basic salary, and allowances with dates on which they will be effective. It is imperative for any candidate to have a look at the complete terms of employment listed in the Offer Letter since this acts as a mutual agreement between both parties. It denotes the terms and conditions of the employment relationship.

2. Avails Employee Agreement

Employee agreement acts as a mutual contract between the employer and the employee that ensures they are on the same page regarding duties, salaries, rules & regulations, and others. The Legal team usually writes an employment agreement in consultation with both parties involved to avoid future discrepancies. Though a junior position may not require signing an employment agreement, senior positions require signing one.

3. Employee Handbook

Employee Handbook is one of the best protection for employers. It has all the information regarding the rules and regulations of an organization, which helps in reducing company risk. It also outlines the responsibilities and rights of employees. A standard employee handbook provides all the necessary policies that are compulsory to keep on record. One should always read through these terms since it also contains disclaimers on topics like confidentiality of proprietary information & trade secrets. When an employer wants to fire someone due to conflict of interest or other disciplinary issues, the employee handbook guides them with a proper procedure.

4. Guides in Issuing Termination Letter to Employees

Employment termination is one of the most challenging tasks for employers to manage. Employers are legally bound to give valid reasons for termination. Termination letters act as proof of the notice period granted to employees during their tenure period. The letter acts as a legal document where the employee has signed, even if they have received it by email or direct delivery. It also gives a chance for both parties to end on good terms by avoiding any legal battle in the future.

5. Ensures Legal Compliance/Avoidance of Claims

At times, employers fail to meet labor law requirements regarding fair pay, labor standards and family medical leave act rights, etc., which may result in lawsuits against them. An employer should be aware of all the relevant information regarding employment law. Employers must understand the legal implications of federal, state, and local employment laws since each one varies in principles and procedures.

For successful compliance with labor law, employers need to have a grasp of the basic legal principles & rules. In case of employee discrimination, wrongful termination, sexual harassment, and salary or overtime disputes, Potts Law Firm situated in Texas is the best to represent one’s case. Its team of attorneys are experts in various areas of law and help employees to resolve their issues. For more information about Potts Law Firm, visit their website at