California business owners know that contracts are an important aspect of doing business. These protect your interests as the owner, as well as the other party involved. It is particularly beneficial to leverage the benefits of employment contracts to shield yourself from potential complications with your employees.
Employment contracts allow you to outline the terms of the employee-employer relationship. From listing responsibilities to benefits and compensation, contracts are useful and beneficial tools for your business. It is practical to draft strong, thoughtfully worded contracts with every person who works for your company. Not only are verbal agreements not enforceable, they can lead to complications in the future.
What should be in your contract?
You have the right to customize your employment contracts to match the specific nature of your business and your objectives for your employees. Most employment contracts contain specific details regarding the following:
- Policies regarding vacation days and sick leave
- Health insurance and other benefits provided to employees
- How employees can deal with effective grievances
- Issues and actions that could lead to termination of the employment
Employers can use their employment contracts to protect the interests of their business during the employee’s time there, as well as in the event that the employee leaves the company. You may consider including provisions related to the following in your contract:
- Confidentiality regarding the proprietary information of your business
- Non-competition clauses to prevent an employee from working for your competitors in the future
- Business policies regarding compensation, bonuses and commission
What you need to accomplish with your employment contracts depends on the nature of your business and multiple other factors. If you do not have contracts with your employees or wish to draft a contract for future employment opportunities, you may find it beneficial to learn more about how you can protect your company.
Protecting your business
Business owners can take specific steps to protect their interests and shield their companies from the possibility of litigation and financial loss in the future. You can reduce the chance of a costly and lengthy legal battle with former employees through your employment contracts, but it can be prudent to seek experienced help as you draft contracts that are enforceable and help you accomplish your objectives.
Employment contracts are just one of the many employment law matters you may need to address as a business owner. It can be helpful to seek a full assessment of your case to better understand your legal needs and the solutions available to you.