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Minn. Slat. § 40572, subd. <br />[ <br /> <br />1. Pros <br /> <br />There can be some advantage~ to an individual employment agreement <br />once the city, in consultation with an attorney, decides that an agreement is <br />necessary. For example, fin individual employment agreement, if well~ <br />thought out and well-drafted, can provide the following: <br /> <br />· Help avoid miscommunication about verbal offers and terms. <br /> <br />· Clarify special terms and conditions ofemployrnent unique to tile <br /> position, such as car allowances, additional vacation or memberships in <br /> professional associations. <br /> <br />· Protect the city's "fi'ont-end" investment in the employee, such as <br /> relocation expenses, by specifying that the employee must reimburse <br /> such expenses if he or she resigns within a certain period ultime. <br /> · <br />· Address severance issues up-front in order to eliminate the need to <br /> negotiate a settlement at the end of employment, which may be an <br /> emotionally difficult time; <br /> <br />· Be used to specify how and when performance evaluations will be <br /> conducted as wel!as outline the expectations for the position in general <br /> terms. <br /> <br />· Assist lin recruitment of qualified candidates. <br /> <br />· Help to remove the appearance of self-interest when the manager or <br /> administrator recommends changes to personnel policies. <br /> <br />2. Cons <br /> <br />In addition to potential legal issueS, individual employment agreements <br />may cause other problems: <br /> <br />· It can be confusing and administratively burdensome to have different <br /> agreements in place for different employees or groups of employees. <br /> <br />· Different levels ofbenefits.forhighly compensated employees can <br /> sometimes violate Internal Revenue.Service regulations. <br /> <br />· Provisions in the agreement can become outdated when state and <br /> federal laws change. <br /> <br />· Allowing the chief administrative officer to operate under a separate <br /> contract may cause other levels of supervisors and managers to <br /> demand their own contracts. <br /> <br />· Future councils may not agree with the contract provisions but may <br /> nevertheless' be bound by them. <br /> <br />('it3 <br /> <br />27 <br /> <br />-49- <br /> <br /> <br />