Most business owners take great caution as they hire new employees. For many, a written employment contract isn’t necessary for every employee you hire. There are some instances where a signed agreement between the two of you makes sense though. Before you write up a contract between you and your employees, it’s important to understand that there are pros and cons that come with these contracts. Kajioka & Associates Attorneys at Law is here to talk about employment contracts and the advantages you will see as well as the disadvantages.
What are the Main Things that Should be Included in a Contract of Employment
A written employment contract is a document that clearly lays out the terms of your relationship. It usually mentions what the employee will be doing for you as well as what you will be paying them to complete the job. There are other things that are often included in these contracts too.
– Time: How long will your employee be expected to work for you? This could be one or two years as well as indefinitely.
– Expectations: This clearly states what you expect the employee to accomplish and their responsibilities as long as they are employed.
– Termination: Lay out clearly what your grounds for termination are.
– Limitations: Once the employee leaves your business, you will let them know the limitations as far as their ability to compete with your business.
– Protections: If you have trade secrets and client lists, you need to know they are protected should your employee leave.
– Ownership: Whatever the employee produces for you should be yours and not the employees. This could be things like products made and designed, books written, etc.
Advantages of Written Employment Contracts
If you are looking for control over whether or not an employee can leave your company, a written contract is good. When you have to invest significant funds into training someone and replacing them, having a contract can help you get the money you invest in an employee back. These contracts can lock an employee in for a certain number of years as well as require that they give you a specific amount of notice before they leave. It can also safeguard all client lists, and products produced by the employee.
Disadvantages of a Written Employment Contract
A written contract with an employee isn’t only for you the employer. It locks you into the agreement just like it does the employee. This can put you in a bind if you decide down the road you want to switch things up in your business and won’t allow you to violate the contract in any way without repercussions.
Criminal Defense, Personal Injury, Business Attorneys & More in Greater Las Vegas, Nevada
If you have a written employment contract that has been violated and need negotiating or is in need of settlement, you can call on the professionals at Kajioka & Associates Attorneys at Law to help you settle any dispute. Call us today!
