When it comes to drafting an employment agreement, there are certain key elements that should be included to ensure that both the employer and the employee are on the same page. One of these key elements is the effective date of the agreement. This date is critical because it establishes when the terms of the agreement come into effect and when the employment relationship begins.
The phrase “this employment agreement is made effective as of” is a standard way of indicating the effective date of the agreement. The exact wording may vary, but the meaning is the same: the agreement becomes binding on the parties as of a certain date.
Why is the effective date important?
The effective date of the employment agreement is important for several reasons:
1. It ensures clarity: By establishing a clear effective date, both the employer and the employee know when the agreement takes effect. This helps avoid confusion or misunderstandings about when the employment relationship begins.
2. It sets deadlines: Many employment agreements have provisions that require the employee to complete certain tasks by certain dates. The effective date of the agreement is often used as a starting point to establish these deadlines.
3. It provides a reference point: When disputes arise, having a clear effective date can be helpful in determining which version of the agreement is applicable. For example, if the employer tries to enforce a clause that was added after the effective date, the employee can point to the effective date as evidence that the clause is not valid.
Tips for drafting the effective date clause
When drafting the effective date clause, there are a few things to keep in mind to ensure that it is accurate and clear:
1. Use the correct date format: Depending on your location, there may be different conventions for writing dates. Make sure you use the standard format for your region.
2. Be specific: Don`t just say “as of today” or “as of the date of signing.” Use a specific date so that there is no ambiguity about when the agreement takes effect.
3. Include time zone information: If the employer and employee are in different time zones, it`s important to specify which time zone the effective date refers to. For example, “this employment agreement is made effective as of April 1, 2021, at 12:01 am Eastern Standard Time.”
4. Consider the start date: The effective date of the agreement may not necessarily be the same as the employee`s start date. Make sure that both dates are clearly defined in the agreement.
In conclusion, the effective date of an employment agreement is a critical element that should not be overlooked. By using clear and specific language, employers and employees can avoid confusion and ensure that they are on the same page regarding when the employment relationship begins.
