Common use of Title and Reporting Relationship Clause in Contracts

Title and Reporting Relationship. Depending on the circumstances of the new hire or promotion giving rise to the creation of an employment agreement, the title of the employee’s position may not be clear or may be negotiable. Sometimes a title that is perceived by the em- ployee as more impressive can be helpful in the negotiation process. On the other hand, it is important that the title of the position accurately reflect the job description. The employment agreement should specify to whom the employee is to report. In advising your business client, it is critical that an accurate and comprehensive job description be in place before the employment agreement is drafted. As the scope of duties and responsibilities of the job are considered, so too should the organizational chart be reviewed and revised as appropriate. The job description and organizational structure will support decision making with respect to title and reporting relationship.