A physician’s employment contract helps to protect both the employer and the practitioner to ensure that their rights are reserved.
One of the documents that play a part in how a contract is prepared is the physician’s letter of intent, which helps both parties have more precise expectations of what each of them needs. In this article, we’ll tell you all about what’s often included in the letter of intent and what it does for a medical practitioner in New Jersey.
What is the letter of intent?
The LOI is a document that details the demands and expectations of the physician. It may not be used as a contract, but it can and will be used by an employer as a guide when he or she drafts the offer letter or contract.
What is included in the LO?
A letter of intent will typically include the basic terms of the employer’s arrangement with the employee, such as compensation, pay benefits and how much the physician expects to earn in a year or given period of time.
For example, if they’re looking to make around $200,000 a year, the employer can look at their resume and assess whether they’re worth the quoted amount or if they need to negotiate a different amount.
However, you need to keep in mind that the salary noted in the agreement is always final on your end and it will not look good if you try to ask for anything higher than that without good reason. You need to keep that in mind before submitting an LOI.
What does the LOI do?
The most important thing you have to understand about the LOI is that the major terms included in it are not legally binding in any way. The LOI is used by both parties to help each other understand their needs and expectations, which means that contract negotiation can take place between the two before the deal is finalized.
The LOI will often include a clause stating that if any legal issues will arise from the case, each party will have to be responsible for their own legal fees. Furthermore, the LOI will often state that its contents are confidential and must remain a secret between the physician and exclusively with the employer.
How do I write an LOI?
There are many examples of how to write an LOI on the internet and you can use those as a guide to writing your own. Nonetheless, you need to keep in mind that the terms and agreements you put in your LOI should fit your needs.
Think about the specific needs that you need to have met, including your primary responsibilities and concerns. Lastly, you should also detail your plans for the future including your timetable, as that will give the employer a more comprehensive guideline for what they should do with you.
Do I need to have my lawyer go over the LOI?
For the first draft of the LOI, you typically don’t need to work with a lawyer, as it’s usually not incredibly detailed. However, you must make sure that you note in the LOI which parts of the document are negotiable, as that will help your prospective employer save time and effort by not having to go over everything before the contract is drafted.
Once you see the contract, we recommend that you have a professional lawyer go through it to make sure that everything is in order. If there are clauses in the contract that aren’t aligned with what you and your employer discussed and what you wrote in your LOI, it will be used as a point of argument against your employer.
If the case is to go to court, the signed LOI will be a crucial piece of evidence that the physician can use against the employer.
If you’re looking to have your physician contract reviewed in New Jersey, Romano Sky Law is your best option. Get in touch with us today to see how we can help.