Terms of employment, often referred to as a letter of appointment or contract of employment, are the specific conditions of an individual's job. These terms, conditions, and benefits set by the employer and agreed by the employee become legally binding on both parties, meaning that neither the employer nor the employee can make changes to the individual's working agreement without consulting with each other and coming to an agreement.

The most important term of employment is the employment contract, which outlines the length of the job, scope of the role, and responsibilities and duties of the employee. Other common terms of employment include salary and benefits such as vacation days, health and pension plans, and bonuses. Often, the job title and job description are set as part of the terms of employment. This is important to make sure that the employee understands the tasks they are expected to perform.

Additionally, employers may include clauses within the terms of employment like non-solicitation or non-competition agreements. A non-solicitation agreement indicates that the employee will remain loyal and not try to lure away other employees from competing firms, while a non-competition agreement forbids an employee from working for a competitor during a set period of time after leaving their job.

Employers may also include policies and procedures in their terms of employment to ensure consistency and fairness among employees. This can include setting the protocol for hiring and firing, reviewing performance, dealing with grievances, and outlining how employees are expected to conduct themselves in the workplace.

Finally, employers must comply with state and federal laws, which outline the minimum terms of employment for all workers. The U.S. Department of Labor sets the standards for employee benefits, overtime pay, equal opportunity employment, minimum wage, safety and health, and special protection for minors, such as no-work rules and limited hours of employment.

Overall, terms of employment are an important way to ensure that an agreement is in place between an employer and employee and to set the expectations for the job. Whether an employee is a high-level executive or entry-level worker, they should understand the terms of their employment to make sure they are adequately compensated, their work is valued and they are protected by labor laws.