Employment contracts can clarify a business’s expectations

| Jan 12, 2021 | Firm News |

As a business owner, you understand how vitally important contracts are to the success of your company. This understanding should extend to your employees. Tailoring employment contracts to fit your employees’ various roles can help shield your business from potential lawsuits and provide clarity to employees regarding your expectations.

Get it in writing

You’re probably aware that oral contracts can be open to interpretation. It doesn’t take much for a handshake deal with even a trusted individual to go south in a hurry. While oral contracts are considered binding, you don’t want to find yourself embroiled in a lawsuit where it’s your word against the word of another.

When you put a contract in writing, you leave little room for ambiguity. You are able to state, in no uncertain terms, what you expect from the employer-employee relationship. If there is ever any dispute about an employee’s rights or responsibilities, you can simply point to the written employment contract as evidence to refute any claims.

Common employment contract terms

You will want to tailor your written employment agreements to match the responsibilities of each job. In some cases, this may mean having a dozen or more distinct contracts. Some agreements may require more terms and conditions than others. Some things you may want to consider including in the contractual language are:

  • Confidentiality agreements
  • Non-disclosure agreements
  • Grounds for termination

Courts review employment contracts narrowly. You will want to ensure that your agreements are not overly broad or restrictive. A skilled legal professional can help you craft an agreement that is likely to withstand scrutiny while protecting your business interests.

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