Employment contract term is up soon, should there be new consideration in new employment contract?

UPDATED: Oct 1, 2022

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Employment contract term is up soon, should there be new consideration in new employment contract?

employment contract ending. Company wants me to sign new contract with same terms as previous contract. Should there be new consideration in the new contract to make it legal and binding ie. raise, new bonuses, more vacations, etc.??

Asked on January 8, 2019 under Employment Labor Law, Arkansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, there is no need for new consideration once your current contract is up. Remember: employment in this country is "employment at will" except when you are under a still-in-effect (unexpired) employment contract. Once the contract expires, therefore, you are that point an employe at will and could be terminated (or anything less than termination: e.g. demoted) if the employer wants and have no guaranty of employment. Therefore, just letting you keep your job would be enough consideration for a renewal of the contract, since they don't have to do that.

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