In today's growing economy, one's business is only as good as the employees who work there. This means that attracting and maintaining top-notch talent can be crucial to a business's success. Although there may be many ways to try to attract beneficial employees, one way to try to secure desirable employees is to offer them an employment contract.
There are many benefits to an employment contract. First of all, it can ensure that an employee is secured for a specific period of time. Additionally, one of these agreements can specify salary, benefits and even place restrictions upon an employee's post-employment work. In other words, by negotiating an employment contract, employers know exactly what they are getting in an employee.
On the flip side, employers need to recognize that they have obligations under these contracts that must be adhered to. In addition to abiding by the terms in the agreement, an employer is also restricted in how he or she can terminate an employee's position. Whereas non-contract employees may be terminated at will, prematurely ending an employment contract can result in a legal claim being filed for a contract breach. A breach of contract can occur when any terms of the contract are violated, of course, so employers need to make sure they understand that they must abide by the terms they negotiated.
The stakes can be quite high when a breach of contract claim is levied. The losing side, whether employer or employee, can be ordered by the court to pay significant damages. Additionally, one of these claims can cause damage to an individual or business's reputation. Those who would like assistance negotiating, drafting and taking legal action can discuss the Matt with a qualified business law attorney.