Quick Facts — Employment Contract Lawyers (Virginia)

What is a Virginia Employment Contract?

A Virginia employment contract is a type of contract entered into by employers and employees that details the terms and conditions surrounding employment. Important issues that are covered and negotiated in an employment contract include:

  • Job title
  • Job duties
  • Working hours
  • Salary
  • Benefits
  • Time off and vacation time
  • Company policies
  • Reasons for termination
  • Non-compete clause
  • Non-disclosure clause
  • Confidentiality clauses

It is most common for employers to draft an employment contract when hiring a highly paid or uniquely skilled worker. However, these agreements are also useful when hiring regular employees, contractors, consultants, and freelance workers.

Virginia is one of the many states that follows the “at will” employment doctrine. Under these laws, employers have the right to fire employees without a reason and without notice. The only firing restriction is the public policy exception which states that an employer cannot fire an employee if it involves an employee’s compliance with state policy.

A valid and legally enforceable employment contract will override the “at will” employment law and classify an employee as a “contracted employee”. This will grant the employee certain rights and protections in accordance with terms in the contract.

Are Employment Contracts Enforceable in Virginia?

Yes. Employment contracts are enforceable in Virginia as long as they abide by all applicable contract laws. Laws governing contracts require that an enforceable contract have an offer, acceptance, and consideration. The contract must be entered into voluntarily by competent parties and cannot violate criminal statutes or public policy.

Restrictive employment contracts like non-compete agreements are also enforceable in Virginia as long as they meet certain requirements as described in the Code of Virginia about protection of employees.

Some of these restrictions include:

  1. The non-compete agreement cannot have restrictions greater than necessary to protect employer’s business interests
  2. The agreement cannot be excessively severe or oppressive in restricting an employee’s ability to find work
  3. The agreement cannot violate Virginia public policy

In 2020, a new Virginia law banned non-compete agreements completely for low wage employees. Low wage is any worker who’s weekly earning is less than the average weekly wage in Virginia.

What Are the Legal Requirements for a Virginia Employment Contract?

Employment contracts in Virginia can be written or verbal and there is no required formant for the contract. Due to the lenient legal requirements for employment contracts, employers should cautious when corresponding with employees or making promises. An informal conversation or even text message could create a binding employment contract even if the employer did not mean to create an agreement.

Employment handbooks and manuals can also create a contractual relationship and override “at will” employment law. Employers should avoid including promises in their manuals or any language that refers to the employee as “permanent”.

Types of Virginia Employment Contracts

There are several types of employment contracts used in Virginia including:

  • Permanent employment. An indefinite contract where an employee is hired to work for a company until the employee no longer wishes to work or the employee is terminated in accordance with the contract provisions.
  • Fixed term employment contract. A contract that has an agreed upon start date and end date. The end date can be the completion of the task or project laid out in the contract.
  • Independent Contractor agreement. Used for contractors and freelancers who are hired by an employer but are not employees of the company.
  • Confidentiality agreement. Sometimes called a non-disclosure agreement, this restrictive covenant prevents the employee from releasing valuable information about the business.
  • Non-compete agreement. Protects the employer by limiting the employee from working for competitors or creating a competing business within a certain number of years or within a certain geographic boundary. This clause must follow certain legal requirements to be enforceable.

Frequently Asked Questions

How do I hire a lawyer to draft an employment contract in Virginia?
How much does it cost to hire a lawyer to draft an employment contract in Virginia?
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Asked on Apr 27, 2023

What's the arbitration agreement in an employment contract?

I am currently in the process of negotiating an employment contract with a new employer. I am concerned about the arbitration agreement in the contract, as I am not sure what it is or how it could affect me in the future. I want to make sure that I understand the implications of the arbitration agreement before signing the contract.

Gagandeep K.

Answered May 27, 2023

An arbitration agreement is a legally binding contract between two parties or more so in this case between you and the employer. In the Arbitration Agreement both parties agree to use alternative dispute resolution (e.g., mediation, settlement conferences, neutral evaluation, arbitration) rather than pursuing civil court litigation in case a dispute arises. The Arbitration Agreement typically describes the scope of the disputes covered as well as the process, procedure and other requirements related to arbitration. You can read more about Arbitration Agreement here https://www.contractscounsel.com/t/us/arbitration-agreement.

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Diane D.

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Asked on Jul 15, 2025

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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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Asked on Apr 12, 2025

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Jerome L.

Answered Apr 15, 2025

This is a great—and very common—question. Whether the company can legally withhold your performance bonus after resignation depends heavily on how your employment agreement is written and how the bonus is classified. Key Factors to Consider: 1. Is the Bonus Discretionary or Earned? If your contract defines the bonus as discretionary, the employer generally has the right to decide whether to pay it and can condition it on continued employment. If the bonus is based on meeting specific performance goals or metrics, and those have been satisfied, it may be considered earned—even if the payment date is in the future. 2. Does the Contract Require You to Be Employed on the Payout Date? Many agreements include language stating the employee must be actively employed on the bonus payout date. If such a clause exists, the company may be within its rights to withhold the bonus, even if the performance was completed. 3. What Is the Bonus Period? If your bonus was based on a performance period that has already ended (such as a calendar or fiscal year), and you met your goals, you may have a stronger case for claiming the bonus as earned compensation. Georgia-Specific Note: In Georgia, employment is at-will, and courts generally uphold the terms of a written employment agreement. However, Georgia courts have also recognized that earned wages (which can include bonuses if not discretionary) must be paid. If the bonus is performance-based and the company has paid similar bonuses under the same conditions in the past, you may have grounds to assert that the payment is owed. What You Can Do: Review your employment agreement and any bonus policy documents closely. Look for phrases like “discretionary,” “earned,” and “must be employed on the payout date.” If the language is unclear, you may want to consult an attorney to evaluate whether the company is legally permitted to withhold the bonus—or if you may have a claim based on how the bonus was structured and earned. If you would like help reviewing your agreement, I’d be happy to assist.

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