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Protecting your business interests with employee contracts

If you own a business in California, you know that one of the most potentially complex aspects of operating your own company is effectively managing employment matters. If you have employees or expect to expand and hire additional help in the future, it is smart to know how to protect your interests as an employer. One way is through effective employment contracts. 

It's not enough to simply interview someone and hire them. Having employment contracts is a good way to avoid future legal issues with your employees, as well as protect the interests of your company. It can be prudent to draft your employment contracts with the help of someone who knows the law and knows how to shield your business from unnecessary conflicts.

What should be in your employment contract? 

Like other business contracts, it is possible to custom-tailor an employment contract to meet the individual needs of your company and your employees. You can be very specific about certain issues, and it could be prudent to address major issues that often come up in employee-employer relationships, such as:

  • Number of vacation and sick days
  • Policies for reporting in sick
  • Standards for promotions and advancements
  • Proper use of company property
  • Procedures for filing grievances with the company
  • Problems and behaviors that could lead to termination

It is possible to include various factors that could be important to the unique nature of your business. This can include everything from the use of a company car to sales quotas.

Employment contracts can also protect the interests of the employee in the event of a dispute. The wording and scope of these contracts is critical when they come under scrutiny. Verbal contracts and agreements made with employees should be included in contracts, and it may be beneficial to occasionally update these contracts, especially after an employee gets a promotion or new position within the company.

The protection of your business

You have worked hard to build your business, and legal disputes with current or former employees can be a threat to your well-being. You may be able to avoid certain issues simply by having your employees sign thoughtful and intentional contracts.

You may also find it prudent to consider terms regarding the protection of your intellectual property and non-compete concerns. When there could be a lot at stake, employment contracts could be essential for the success of your company.

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