At the beginning of each year the company sets its goal and objections and meets with employees to advise. The goals and objectives are the same for everyone and you have a no say so. You either meet, exceed or fail. The result is of course a raise and bonus. Is this a verbal agreement between employee and employer?

Do you sign a paper that you agree or disagree?

Agreement of what? This sounds like the standard merit increase process.

Hello Loonatuna,

A Performance Review and an Employment Contract are two different things. However, during a Performance Review you may be asked to sign some paper. Any documentation of such is added to your employment contract. If you don't have an employment contract, then any documentation in your personnel file is used as the basis. So the key thing here, as Wondergirl points out: "Do you sign a paper that you agree or disagree?"

I never thought of a performance review as a contract. In the company I worked at the signature at the end of the review was only considered to be an acknowledgement that the review was completed.

Hello L:

An agreement is just that - BOTH sides AGREE. Here, this was foisted upon you. If you had NO say, you DIDN'T/COULDN'T have agreed.

excon

No it is not a contract

Thanks all for the answers

Hi Loonatuna,

Just to clarify: the Performance Review in itself is NOT a contract. Say you have a review where your employer decides not to give you an increase because you did not reach a quota, then at the end of that review has you sign it off. This is simply an acknowledgment. But say that at the end of that review they have you sign a document stating that if you reach a certain quota, then you will get an increase. This IS a contract (provided it meets all legal aspects to be enforceable by law). Simply put, a contract is an agreement between two parties where each party agrees to a certain form of action. You agree to reach a certain quota. They agree to give you an increase.

Now you mentioned "verbal agreement". Contract law can be a tricky thing. I recommend you get your work agreements in writing. I hope this helps. Good luck to you.