The Importance of Well Drafted Employment Agreements
Not every business is of the type that requires contracts with employees, particularly businesses that have high employee turnover, but, otherwise, most business owners should seriously consider whether to enter into employment agreements with their employees. Some of the reasons for doing so are to
- clearly define the employee’s job and your expectations;
- clearly set out compensation;
- clearly set out other benefits and vacation;
- clearly set out whether the employment is at will or for a specified term;
- clearly set out codes of conduct and bases for termination of employment;
- limit the employee’s ability to compete with your business should they leave;
- limit the employee’s ability to steal your clients, customers, other employees, or vendors should they leave; and
- have the employee provide certain assurances and promises as to competence, loyalty, professionalism, and confidentiality, among others.
A well-drafted employment agreement addressing the foregoing points will go far to protect you and your business and to avoid costly litigation. While you may be tempted to prepare a document like this in house without the advice of a lawyer, it is very important to work closely with a competent professional who can carefully craft an employment agreement that will work for you and your business.
This blog post is not intended to consist of legal advice and you should always consult with a lawyer before acting on anything you find on the Internet. If you have questions or comments about this post, about the topic, or if you need legal assistance, you should feel free to give us a call or send us an email.