Login
Password

Forgot your password?

7 Things You Should Include in an Employment Contract

By Edited Mar 3, 2016 0 1

Employment contract specifies all the responsibilities and rights of both employers and employees. It is made so that parties will be able to work properly with each other and build a harmonious work environment.

However, a poorly drafted employment contract can lead to disputes, especially if the duties of each party were not clearly stated. In order to avoid confusion or other problems that may arise due to an employment contract, employers are advised to seek legal help from a Los Angeles employment lawyer while making it.

Your lawyer will likely advise you to include the following terms and provisions in the contract:

  • Non-compete clause- The employee should not be employed in rival companies during a specified time after his employment.
  • Confidentiality agreement-Your employee will not be able to reveal information regarding the company's business operations to outside parties. This provision will enable you to protect your trade secrets from outside parties. Trade secrets like data, formulas, recipes, or plans should be protected because they are being used by a company in order to stand out among its competitors.
  • Resolving disputes- Parties involved in a dispute may be required to undergo mediation, instead of going to courts. Mediation can be a faster and cheaper way of resolving workplace problems.
  • Salary and benefits- Remember that the primary reason why your employee is working in your company is to earn money. The contract should clearly state how much your employee will receive. In addition, it should also mention the different benefits the company is providing like health insurance or disability leave.
  • Termination- You can specify the different actions that can lead to an employee's termination. The contract should also state the any party may choose to end the employment contact, provided that there is a valid reason for it.

If an employee is planning to resign, he should provide a proper notice at least two weeks before he leaves the company. It will give you enough time to look for a replacement.

  • Absences and tardiness- The contract should also state your rules on absences and tardiness. For example, an employee who has been absent for three consecutive days should present a medical certificate to the Human Resources (HR) Department.
  • Ownership of all inventions- It will apply to workers who are required to make or invent things or gadgets like phones or stereos. Your worker should agree that all the things that he was able to make or develop while working for you are owned by the company.

This article is not meant to be interpreted as a legal advice. To know the available legal options regarding your case, consult an Employment Law Attorney for more information.

Advertisement

Comments

Sep 23, 2010 3:23am
scheng1
Some companies compose very concise employment contracts since the employee handbooks cover all the details.
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money