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Used Correctly, Employment Contracts Can Protect Business


A strong workforce is an important part of running a strong business. Because of this, when it comes to hiring, in addition to getting the right person in each role, it is also important to take steps to protect your business. This may be accomplished via the use of an employment contracts. While the information included in an employment contract could vary depending on your business needs, there are certain elements that should be included, no matter what.

Many of the things that should be included in an employment contract are the basics. These include the:

  • Job title
  • Department
  • Supervisor
  • Compensation and bonuses or incentives
  • Benefits
  • Time off policy

In addition, if known, the length of the employment relationship should be articulated. So too, should information regarding flexible working arrangements available to employees. To make sure that insurance and tax matters are complied with, it should be clear whether the new hire is a contractor or employee. An employment contract is also a good place to layout the company’s policies regarding the use of company property with personal email accounts and social media.

It is in the best interest of most businesses to include clauses regarding what happens when the employment relationship comes to an end. Along with notice requirements for either party regarding termination of the relationship, confidentiality and if desired, anti-compete clauses should be included here.

Certain businesses may want to add additional information to an employment contract. Working with an employment lawyer is the best way to make sure that is done in a matter that accomplishes the goals of the business.