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Minn. Stat. § 465.72, <br />subd. 1 <br /> <br />Clarification of special terms. A written employment <br />contract allows any special terms, or conditions of <br />employment that are agreed upon by the council and <br />administrator or manager to be specified in detail, again <br />avoiding miscommunication. <br /> <br />Clarification of severance terms. A written employment <br />contract can be used to clarify severance terms in case <br />the council decides to terminate the employment of the <br />administrator or manager. This eliminates the need to <br />negotiate a settlement at an emotionally difficult time for <br />all the parties concerned. This can help reduce the likelihood <br />of lawsuits. <br /> <br />Performance reviews.. A written employment contract can <br />be used to specify how and when the performance of the <br />administrator or manager will be reviewed, as well as outline <br />the role of the administrator or manager in general terms. <br /> <br />Recruitment. A written employment contract can be used as <br />a recruitment tool for applicants who prefer to work under a <br />formal contract. <br /> <br />Objectivity. A written employment contract can help to <br />remove the appearance of self-interest when changes to the <br />city's personnel policy are being considered. <br /> <br />2. Cons <br /> <br />The following are some of the arguments against using an <br />employment contract for a city administrator or manager: <br /> <br />Multiple contracts. A poorly drafted contract could mean the <br />city will pay until the end of the contract if the administrator <br />or manager leaves early or is terminated. The city could end <br />up paying for two contracts: the contract of the old employee, <br />and the contract for the new employee. <br /> <br />Severance pay. Severance provisions often become outdated <br />because succeeding councils don't realize this language may <br />have been included in the contract to deal with a specific <br />termination problem. As a result, severance benefits in the <br />contract may be more beneficial to the administrator or <br />manager than they otherwise would be. (Note: State statute <br />prohibits severance pay from exceeding an amount equal to <br />one year of pay.) <br /> <br />30 <br /> <br />League of Mi{mesota Cities <br /> <br />-47- <br /> <br /> <br />