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Contracts for your employees could be good for your business

 Posted on October 10, 2018 in Uncategorized

Texas business owners understand there are various challenges associated with owning and operating a small business. One of the unique issues you may have to address is how to deal with your employees. Regardless of the type of company you have, it can prove beneficial to draft employment contracts.

Employment contracts are a simple yet effective way you can protect your company and prevent many types of complications in the future. Written contracts provide both parties with significant benefits as they allow for everyone involved to know and understand their rights and obligations. If you do not have employment contracts or believe you should implement these in the future, it can be helpful to understand how to draft effective and enforceable agreements.

What should be in your contracts?

It is important when drafting employment contracts to be thorough, thoughtful and pursue terms that will be beneficial for you and protect the rights of those who work for you. Poorly drafted agreements or those that leave out important information could be invalid or unenforceable in the event that a former employee disputes it. Some of the things you may wish to include in your employment contracts include:

  • The expected duration of employment, whether it is indefinite or for a specific period of time
  • Health benefits, salary for the employee and information about compensation plan
  • How employees can use sick days and vacation days
  • What qualifies as unacceptable behavior and grounds for termination
  • Instructions regarding how employees must handle proprietary information owned by your company

These types of contracts should be specific to your needs and objectives as a business owner. You have the right to custom-tailor your agreements according to the unique nature of your business and the specific roles that your employees will fill. While many business owners do not see the need for contracts, it is actually a practical way to protect the financial legal and financial interests of your company in case of a dispute down the road.

The importance of meaningful agreements

As you consider moving forward with drafting employment contracts, you may find it beneficial to work with a lawyer experienced in business law as well as contract drafting and enforcement. It may also prove useful for you to get additional information about the legal protections you can put into place for your small business. There are many risks involved with owning a business, but you do not have to navigate complex employment challenges alone.

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