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Why Do You Need to Make an Employment Contract? - Part 1

By Edited Feb 10, 2014 0 0

Hiring qualified employees is one of the most important things that you need to do so that your company will be successful. You have to interview all applicants, ask them to take an exam, and conduct background checks on them so that you will know if they possess the skills that are needed for the job. Once you have chosen who among them will be hired in the company, you should then ask him to sign an employment contract.

An employment contract is a written document which specifies the rights and obligations of each party. You can make one if you want to let your employee know all the things that you expect from him. For example, he will need to sell five products each month. Aside from his obligations, the contract should also cover the salary and benefits he will receive from the company.

Because the employment contract covers different issues between you and your employees are, it is advisable that you seek the legal help of a Los Angeles employment lawyer when making it.

Your attorney will make sure that these areas will be covered by the contract:

  • Resignation- It will require your employee to give you a notice of resignation weeks before his last working day. You can use this time to look for another person who will take over his position.
  • Basis for an employee's termination- You can include the different actions an employee can do which may result in his termination. For example, you can state that an employee who is not performing well or is always absent may be removed from the company.
  • Resolving disputes- You can choose a method which will be used when resolving disputes outside of the court. Employees who were involved in a dispute may be required to undergo mediation so that they can resolve it with the help of a mediator.
  • Attendance- The contract should state how many days and hours an employee is required to work each week.
  • Salary- The amount of money that your employee is entitled to get should be clearly specified in the contract. Aside from salary, it should also cover health benefits, sick and vacation leave, and overtime pay.
  • Non-compete agreement- The employee should promise that he will not work for your competitors immediately after leaving the company.
  • Punishment- You should state the punishments an employee will face if he violated a company policy.

Additional information about employment contracts may be seen in (2).



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