HRCI Exam PHR Topic 1 Question 37 Discussion

The change of control clause protects the employee's job and compensation in the event of a reorganization, acquisition, or merger, for a specified period of time.

Answer option C is incorrect. Advice of counsel is a clause for advising the employee to seek legal counsel prior to signing the contract is often included.

Answer option A is incorrect. The termination clause sets forth conditions that can be a cause termination. Inability to perform, neglecting the duties of the position, misconduct, or violations of company policies can be causes of termination.

Answer option D is incorrect. This clause can be included by the employer that states what happens to the agreement in the event of the disability or death of the employee.