When you start a new business, you may not even think you need employment contracts for your new employees? Why?
You may already know your employees. They may be friends or family members you trust. Or you may be so sure you’ll hire the right people that you feel that a contract is unnecessary.
Why do you need employment contracts in your business, no matter how small your company is? We’ll cover that and then we’ll talk about aspects of a good employment contracts.
Why Do You Need One?
While may first-time business owners may over look this step, having good employment contracts in place is a big deal.
Employee contracts protect both you and your employees.
Contracts clearly lay out responsibilities and the length of time those responsibilities must be carried out. Having a written, legally-binding contract also give you the legal backup you need if you are ever called to court.
If there is no written contract, then you have to go through the trials of proving you had an implied contract between you and your employees. This can be a long and expensive process.
While it is true that you can prove and implied contract in court, meaning you and the employee had an understanding of how things would work and the employee showed through their actions that they understoof and agreed with that implied contract, having the terms in writing can prevent misunderstandings or having to go to court in the first place.
Now, let’s look at three aspects of a good employment contract.
A vague or ambiguous contract doesn’t do anybody any good. They are hard to understand and are also difficult to hold up in court.
Instead, your contract should be specific and clear. What are the employee’s responsibilities? How long will they be working? What are they allowed and not allowed to do? What will their compensation be?
The more specific those things are, the better for both parties.
Of course, a contract can be too specific. The relationship between boss and employee can change over time, especially as your business grows, so a contract can make room for some of that growth.
Nobody likes reading and signing a long contract. After all, it becomes more likely that you missed something and that you’re signing your life away because of some clause that’s hidden deep in the small print.
On the other hand, it doesn’t do any good for a contract to be incomplete and missing important details.
Many employment contracts miss details like vacation allowances, bonus systems, and other benefits which lead to problems later.
Be in Compliance
A contract is a written agreement between two parties, generally speaking. But there is a third party that absolutely must be considered: the law.
Employment contracts must be organized and correctly worded so they comply with current employment laws. To do that, you may want help from a lawyer, and that’s where My Legal Valet comes in.
Employment Contract Help
Jumping into the world of employment contracts can be very intimidating. You didn’t open a law business, after all. You have another passion, a company you need to get back to!
Thankfully, My Legal Valet can help you get your contracts ready without taking up too much of your time or charging you an arm and a leg.
We’ll help you draw up employment contracts, ones that are specific, complete and compliant, and we’ll provide other services that help protect your business from legal woes, such as legal and business management consulting. And, if you need further services, as a subsriber, you can get a heft discount off our public rates!