Create And Maintain An Employment Contract That Protects Your Business

Law Blog

When a company onboards a new employee, the two are entering into a partnership. As a result, each party has to ensure they are protected. In terms of the business owner, it's essential that you create an employment contract that protects your company's assets, trade secrets, and safeguards you against undue costly legal action.

At-Will Employment

When an employee is underperforming or your operational needs change, you want to be at liberty to terminate an employee if necessary. If you do not include specific information within an employment contract that categorizes their status as an "at-will" employee, a former employee might be able to legally pursue compensation from you for undue wages for future employment. 

This label makes it legally justifiable for your company to terminate employment whenever you deem it necessary. Without this detail, an employee can easily come after you for wrongful termination. 

Confidential Information

Your business is successful because you have something that sets it apart from other competitors. Whether it's a special ingredient in a food item, unique technology, or another factor, it's essential you keep this information private to protect your business. 

Without a confidentiality agreement in the contract, an employee might be at liberty to divulge information about your company and maybe even start their own business with your information. A confidential agreement includes guidelines on what information an employee cannot share and outlines the consequences if this rule is not followed. 

Compensation Guidelines

One of the biggest areas of contingency between employers and employees are compensation issues. It's the duty of the employer to ensure this information is up-to-date. If an employee takes a compensation issue to court, the judge will use whatever language the employer listed in their contract, from salary details to paydays to vacation time calculations. 

For instance, say a company changed the vacation time calculation from 3.2 hours to 3.0 each pay period. However, they forget to update the contract for new employees. If an employee is terminated, and their final check only reflects the 3.0-hour rate, they can legally come after the company for the extra .2 hours because of what is reflected in the contract. 

A generic version of an employment contract you can find online is likely not enough to protect your business. You need a personalized contract to reflect the specific needs of your company. Speak with a business lawyer for assistance with this matter. 


19 July 2019

Bringing Your Baby Home

My husband and I are excitedly preparing to welcome our beautiful adopted baby into our home. Are you thinking about adopting a child in the near future? If you plan to expand your family through adoption, you’ll need to secure the services of an experienced attorney. A reputable lawyer can help you finalize your adoption. This professional can help you determine what documents you’ll need to bring to court. Your attorney can also speak for you during the finalization proceedings in court. On this blog, I hope you will discover the numerous reasons obtaining the services of a lawyer during the adoption process is a good idea. Enjoy!