Pennsylvania Employment Contract: Definition, Key Considerations

Quick Facts — Employment Contract Lawyers (Pennsylvania)

What is a Pennsylvania Employment Contract?

A Pennsylvania employment contract is a legally binding agreement that is executed between an employer and a new employee. This agreement describes the employee’s job duties and company policies that must be adhered to, and in return lays out compensation and benefits that the employee will receive in exchange for their work.

Pennsylvania is an “at-will” employment state. Under at will employment, employers have the right to fire employees at any time without cause or reason as long as the termination of employment doesn’t violate any discrimination laws.

The only other exception to at will employment is the existence of a valid employment contract. To supersede at will employment, the employment contract must include one of the following provisions:

  1. An agreement for employment for a definite duration
  2. A clause stating that an employee can only be fired for just cause
  3. Additional consideration
  4. Public policy consideration

Once an employee becomes a contracted employee, the terms of their employment are no longer “at will” and are now governed by the terms in the contract.

Are Employment Contracts Enforceable in Pennsylvania?

Yes. Employment contracts are legally enforceable in Pennsylvania. If either party violates the terms of the contract, the damaged party can pursue legal action for breach of contract.

For an employee to assert a claim of breach of contract and enforce an employment contract, Pennsylvania laws requires that a party prove the following four elements:

  1. A valid and legally binding contract existed
  2. The employee complied with the contract by performing their obligations
  3. The employer breached the contract
  4. The employee has sustained damages as a result of the breach

Employment contracts can also be enforced by employers against employees. Restrictive covenants like non-compete agreements protect the employer’s business interests by limiting an employee’s actions after a term of employment.

Non-compete and non-solicitation agreements are enforceable in Pennsylvania as long as they are reasonable. When considering reasonableness, courts will look at the duration of the contract, the geographic boundaries in place, and whether the agreement could cause harm to the public.

What Are the Legal Requirements for Pennsylvania Employment Contracts?

The legal requirements for a Pennsylvania employment contract are governed by Pennsylvania contract laws. Contracts can be either written or oral, but all enforceable contracts will contain the following elements:

  1. Intent. There must be clear intent that the parties planned to be bound by the contract terms. A signature on a written contract is one way to prove intent. Intent becomes harder to prove for oral contracts.
  2. Definite terms. The terms of the contract must be clear to be enforced.
  3. Consideration. The agreement must be supported by consideration. Consideration means that something of value is promised by one party to the other in exchange for something else of value. For the purposes of an employment contract, consideration can be the employee’s promise to work for compensation.

While oral contracts are legal, it is highly recommended that all employment contracts are in writing and signed by both parties. The elements of breach of contract are more difficult to prove without a tangible contract putting either party at a disadvantage if enforcement is necessary.

Types of Pennsylvania Employment Contracts

Employment contracts come in many forms based on the type of work the company does or the type of employee being hired to complete the job. Some employment contracts include restrictive covenants and sometimes these contracts are separate from the employment agreement.

Some common types of Pennsylvania employment contracts include:

Frequently Asked Questions

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How much does it cost to hire a lawyer to draft an employment contract in Pennsylvania?
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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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Dimitry K. on ContractsCounsel
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Dimitry K.

Managing Partner
Free Consultation
Philadelphia
18 Yrs Experience
Licensed in PA NJ
Rutgers School of Law-Camden

Prior to becoming an attorney, Mr. Dimitry Alexander Kaplun had been involved with many industries and professions, and helped manage, create, and advise a wide range of businesses around the world. While at Drexel University as a computer science major, he became an NASD licensed representative and was employed by Fortune 100 insurance companies, including Prudential, AIG, and NY Life, first specializing in financial investments for life and annuity products, and then expanding his expertise to mutual finds, stocks, environmental insurance, and real property. Due to his technical expertise and a clear understanding of business rules, he was soon brought on board to help assist those companies with coding their interface for the Y2K switch. Soon after switching his major to business, Mr. Kaplun worked for a telecommunication service company first in quality assurance and then as a database programmer and developer, with sole and exclusive responsibilities for a multitude of warehouses located around the continental United States. Working on-site and from the company headquarters, he was responsible for streamlining processes for internal departments while fulfilling the quickly changing needs to the company clients, most notably Verizon Wireless. Mr. Kaplun opened his practice in 2008. Prior to starting his practice, he worked as a paralegal instructor for Prism Career Institute, creating the lesson plans for the whole program and focusing his instruction on substantive and procedural laws for general practitioners. Mr. Kaplun also worked as an associate for The Law Office of Keith Owen Campbell PC, focusing on Family and Matrimonial Law, and assisted the law firm of Jeffrey Neu and Associates in securities research as well as various contact and sales agreements, mainly online reseller agreements. He currently focuses his energy on representing individuals and companies in liability insulation, contracts and business agreements, and other legal concerns that crop up in the regular operation of doing business.

Sara S. on ContractsCounsel
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Sara S.

Attorney
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Washington, District of Columbia
6 Yrs Experience
Licensed in PA DC, MD
American University Washington College of Law

With over eleven years of intellectual property experience, I’m happy to work on your contract problem. I am very diligent and enjoy meeting tight deadlines. Drafting memoranda, business transactional documents, termination notices, demand letters, licenses and letter agreements are all in my wheelhouse! Working in a variety of fields, from construction to pharmaceutical, I enjoy resolving any disputes that come across my desk. I will prioritize your project, big or small. Please be ready and prepared with all relevant documentation so we can get started as soon as you click HIRE! Hourly rate projects will be billed hourly in accordance with the timesheet. Flat rate projects will be billed in segments. Choosing an hourly or flat rate is up to you. Absolutely no refunds.

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Antonella C. on ContractsCounsel
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Antonella C.

Owner/Managing Partner
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Pennsylvania
17 Yrs Experience
Licensed in PA NJ
Rutgers University School of Law - Camden

I am a business transactional & trademark attorney with 15 years experience in the law firm and in-house settings. I am barred in Pennsylvania and New Jersey. I currently own my own practice serving businesses and entrepreneurs with business transactional and IP law.

Veronica B. on ContractsCounsel
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August 27, 2023

Veronica B.

Attorney
Haddonfield, NJ
38 Yrs Experience
Licensed in PA NJ
Widener University School of Law

I am fully licensed attorney in New Jersey & Pennsylvania. Practicing law for 29+ yrs, I've tried over civil 120 jury trials; as Plaintiff & Defendant. My success rate is 85%. People need a practical, common sense approach to solving legal issues. I have assisted in establishing 226 businesses in over 22 countries, my experience runs the gamut of reviewing commercial contracts for completeness & legal protection for the parties. I have procured & drafted contracts & agreements for municipalities, charitable organizations, start ups & more. I manage 3 LLC's in Florida. Wills & Estates is another practice area. The best way to get to know me & my legal services is to reach out & start a conversation.

Sashi S. on ContractsCounsel
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Sashi S.

Corporate Counsel
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Pittsburgh, PA
20 Yrs Experience
Licensed in PA
University of Pittsburgh School of Law

Credible history in navigating complex legal landscapes to deliver strategic solutions that optimize employee benefits programs and healthcare compliance. Demonstrated mastery in interpreting and applying ERISA, HIPAA, and ACA regulations, safeguarding client interests, and minimizing legal risks. Remarkable background in advising diverse clientele, ranging from corporations to healthcare providers, on intricate regulatory frameworks, compliance strategies, and litigation support. Adept at crafting innovative strategies, providing expert guidance, and driving compliance with unwavering precision. Skilled in leveraging unique skill set that combines medical knowledge and technological proficiency to address multifaceted challenges at intersection of healthcare and technology. Exceptional project management skills with track record of contributing to high-impact initiatives. Accomplished in drafting and negotiating contracts, mitigating legal risks, and streamlining processes.

Nathan C. on ContractsCounsel
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Nathan C.

Attorney
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Lancaster, PA
19 Yrs Experience
Licensed in PA
University of Nebraska

I have 14 years civil litigation experience. My practice has included personal injury litigation, contract review, criminal law, family law, and estate planning.

Melody P. on ContractsCounsel
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Melody P.

Managing Partner / Owner
Free Consultation
Williamsport, PA
21 Yrs Experience
Licensed in PA
Duquesne University

I have been practicing law since 2005 and am licensed in the state of Pennsylvania. I started in Pittsburgh, PA and then moved to Williamsport in 2007 where I have practiced family law almost exclusively since. I am the managing partner /owner of Protasio & Jasper, P.C. I have had multiple Pennsylvania Supreme Court family law cases that have changed the law in Pennsylvania. I pride myself on being able to arm clients with information so that they can make informed decisions about their case.

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Colorado

Asked on Oct 4, 2022

Are employment contracts confidential?

I'm considering taking a second job but would not want my first employer to know. Is there any way for them to find out? I am not sure what all of the language in the contract says and may need to get it reviewed, but I wanted to see if these contracts are kept confidential so that my employer never finds out.

Donya G.

Answered Nov 1, 2022

Typically, yes. There s generally a confidential section in your employment agreement. Is there something specific you are worried about? You can have an attorney give a consultation, review the agreement and advise you. I can do that for you. You can connect with me through the website. Thanks Donya Gordon

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Employment

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Massachusetts

Asked on Apr 12, 2023

What's paid time off in an employment contract?

I am a recent college graduate and I am in the process of negotiating an employment contract with a large company. I am trying to make sure I understand the terms of the contract, including the paid time off that is offered. I am hoping to get a better understanding of what's included in the paid time off section of the contract so I can make an informed decision about the offer.

Joseph M.

Answered May 12, 2023

Paid Time Off (PTO) is essentially days (or even hours) that the employee is not required to work but the employer still pays the employee for those hours. It can be awarded in a lump sum in advance, or earned and accumulated over time, dependent on the terms of the employment agreement. PTO may be granted in addition to or in lieu of vacation days, sick days, etc, again depending on the unique employment agreement.

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Employment

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Washington

Asked on Jul 15, 2025

Can my employer change the terms of my employment contract without my consent?

I have been working for a company for the past three years, and my employment contract clearly outlines my job responsibilities, salary, and benefits. However, recently my employer informed me that they are planning to make changes to my contract, including reducing my salary and removing certain benefits. I am concerned about the legality of these changes and whether my employer can modify the terms of my contract without my consent.

Merry K.

Answered Jul 22, 2025

I'm sorry to hear about this proposed change. Whether or not your employer can make such changes unilaterally depends almost entirely on how your contract is written. For example, if your contract clearly states that you are an "at will" employee, your employer can not only make whatever changes it wants, but can also discipline you or terminate you with no reason at all and only a one second advance notice. If it's not an "at will" contract, there may be a paragraph or two that addresses amendments to the agreement - eg, some such contracts may say that an employer can make changes with two weeks advance written notice; another may say that changes will be negotiated in advance between employer and employee. You may want to have an employment attorney, such as myself, review your contract as well as any recent correspondence you may have received from your employer. You may also want to try to very quietly try to find out whether or not other employees are possibly in the same boat as you - it's possible that the employer is cutting back on some benefits to save money, rather than laying off or terminating some or all of their employees. Good luck to you - and if you'd like to reach out to me, you can find me through ContractsCounsel.com or on WSBA.org Please be aware that the above information is provided for educational purposes only, and no attorney/client relationship has been formed Merry A. Kogut WSBA #16153

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Employment

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Asked on Apr 18, 2023

What's termination notice in an employment contract?

I recently accepted a job offer with a new company and I was given an employment contract to sign. I was looking through the contract and noticed that it mentions something about a termination notice. I'm not sure what this means or how it applies to my employment, so I wanted to ask a lawyer to get a better understanding of this clause.

Ryan D.

Answered May 30, 2023

A termination notice is a provision in an employment contract that specifies the amount of notice an employer must give an employee if they wish to terminate the contract, or vice versa if the employee wishes to leave. This is an important clause, as it offers some level of job security for the employee and some level of predictability for the employer. In most states, including North Carolina, employment is considered "at-will" unless there is a contract in place that states otherwise. This means that either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason isn't illegal (like discrimination). If your contract includes a termination notice clause, this "at-will" status is likely modified to some extent. The specific details would depend on the exact wording in your contract. It could require either party to provide a notice (often 2 weeks, 1 month, or sometimes longer) before terminating the contract. That notice period is intended to give the other party time to adjust plans accordingly. For the employee, it might mean finding a new job; for the employer, it might mean finding a replacement.

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Employment

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New York

Asked on Apr 15, 2023

What should be included in my employment contract?

I am a small business owner looking to hire an employee for the first time. I have never written an employment contract before, so I am unsure of what should be included in the contract to ensure that it is legally binding and protects both the employee and me. I am looking for advice on what should be included in the contract to ensure that my interests and those of my employee are adequately protected.

Donya G.

Answered Apr 18, 2023

Hello, Congratulations on your business. Here are some things that need to be in the agreement - amount you will pay them, when you will pay, the term of the employment, confidentiality, non solicit. Since you have never done this before, I would like to suggest that you hire an attorney to get it done to ensure it is done correctly. I am a NY attorney with over 20 years of experience. I assist small businesses like yours with their employment, vendor, investment and all their contract needs. I would love to assist you. You can contact me on the Contracts Counsel website or on my personal page - Donya Gordon Looking forward to talking to and working with you Sincerely Donya Gordon

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