When you are looking to hire employees for your business, you should have an employment contract. A good contract will explain all the terms of employment clearly and protect you from liabilities. If you do not have a comprehensive contract, you may face lawsuits from your employees if something goes wrong.
Every employment contract will be unique, but you should always cover certain general issues. Here are three your employment contract should address.
1. Job details
Your employment agreement should have a clause that describes the position, title and hours of the job in as much detail as possible. You should lay out the expected duties for your new hire so the job description is easy to understand. However, you should also include some flexible language because the position may evolve. A business lawyer can help you include language that will allow you to assign other duties without facing accusations of breaching the contract.
2. Compensation and benefits
As the employer, you are responsible for explaining the pay and benefits you will provide to your employees. The compensation section should spell out any salary, bonuses, commissions and incentive pay. You should go into detail about whether the salary is on an hourly or weekly basis and how overtime is managed. The contract should also explain any benefits, such as vacation time, sick pay, stock options, health insurance and any other perks related to the job.
3. Noncompete or confidentiality clauses
Your company may deal with proprietary information that you want to keep private. If these details go to your competitors, your business may struggle. Your contract should specify what information is confidential. Talk to a contract attorney about whether you should include a noncompete clause.
Hiring employees may seem complex and daunting, but a good contract will save you from legal headaches down the road.