As a business owner, one of the most critical steps you can take in your effort to ensure your long-term success is developing strong relationships with your employees. This includes treating your employees fairly and with respect, as well as establishing a clear understanding of the role of each person who works for your company. One way to do this is through thoughtful, carefully crafted employment agreements.
The details of your employment contracts depend on the needs of your individual company. Like any other type of legal agreement, you can custom-tailor these to suit your objectives and the unique operational details of your individual business. Through the terms of your business, you can also protect trade secrets and closely held information that are crucial for your company’s success.
The details of your agreements
The more detailed your employment contracts, the less likely it will be that you experience conflict or confusion with your employees regarding the rights and responsibilities of each party. Some of the specific provisions that may benefit your employment agreements include details regarding the following:
- Employee behavior after the employment relationship ends
- Base salary and other ways that an employee will receive compensation
- Employee grievance procedures
- Vacation, sick leave and procedures for requesting time off
- Health insurance and other types of benefits offered to employees
- Terms of employment
- Grounds for termination of employment
Depending on the role of the specific employee and what he or she will have access to in the course of his or her employment, it may be helpful to include non-compete or non-disclosure terms in your employment contracts. This will prevent an employee from working with a direct competitor for a certain amount of time, and it will prevent that individual from disclosing information about your company. Any employment agreement must be fair in scope and terms in order to be enforceable in the event of a dispute.
When considering what should be in your employment contracts, it will be beneficial to think about the potential long-term needs of your business. This will allow you to create employment contracts that will provide your company with protection now and well into the future. If you are unsure of the terms that will most benefit your company, it may help to seek an assessment of your business, operations and specific objectives to learn more.