Four Employment Contracts That Can Protect Your Business From Litigation
Running a business can be a daunting task. Successful businesses rely on their employees to make the operation function, but employees can also represent a huge risk. The best way for employers to protect themselves from costly litigation is to institute certain contracts and agreements outlining what is and is not allowed for employees. There are four crucial employment contracts that can easily protect your business:
- Non-Disclosure Agreements – Employees often have valuable information about your company. To keep this information from reaching competitors or other vendors working in your sphere, employers should utilize non-disclosure agreements. This prohibits employees from sharing sensitive information and provides a legal framework for pursuing employees who violate this agreement and cause harm to your business.
- Non-Compete Agreements – When you work hard to build relationships with your clients, the last thing you want is for employees to leave your company and vie for the same accounts. Non-compete agreements prevent employees from joining other companies or starting their own companies as your direct competitor.
- Employment Contracts – Many employment disputes arise out of ill-defined expectations. Employment contracts should outline job duties, benefits packages, severance packages, vacation day policies, and employee grievance procedures among other important topics.
- Compensation Contracts – Most employers use some type of contract that states an employee’s compensation. Compensation involves more than just a single number, however, as there are many unique situations that should be discussed in a compensation contract, including paid holidays, paid time off, and overtime pay.
Not Just Any Contract Will Do
While standard employment contract forms may seem quick and easy, the reality is that every contract needs to be tailored to your specific business to truly protect you from costly litigation. When you work with a contract lawyer, he or she will analyze your situation, discuss your business goals, and draft contracts protecting you from legal threats.
Contract Drafting Attorneys
Employment contracts are simply another form of insurance for your company, and an important step in protecting your business. Having properly drafted contracts that meet your company’s specific needs can prevent costly litigation down the road. Chasnoff Valkenaar & Stribling, LLP works with businesses of all sizes to draft employment contracts. Contact us today to schedule an appointment with one of our contract attorneys.