There are times when an employee has a written employment agreement for a specific period of time. Traditionally highly paid executives or key employees will have such employment agreements. These agreements provide a specific term of employment, provisions for when the employee can be terminated, stock options and severance provisions. When there is such an agreement, both the employer and employee must abide by the terms of the agreement with respect to performance of duties and any employment action.

When there is no such employment agreement, then the employee is considered an at-will employee, which means the employee can be terminated for any reason, as long as the reason is not a violation of law.

More often an employee has an employment agreement designed to protect the interests of the employer. Such an agreement concerns non-competition, non-solicitation and non-disclosure provisions, as well as protection of intellectual property rights. These employment agreements, when enforceable, can restrict an employee's ability to accept employment with a competitive business or start his or her own business.

Every agreement is different and one's rights are almost always affected. Be very careful when signing any agreement and make sure that you fully understand how your rights will be affected.