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Why Do You Need to Make an Employment Contract? - Part 2

By Edited Dec 1, 2016 0 0

Asking an employee to sign an employment contract will enable you to specify what kind of working relationship should exist between you and him. This written document will also specify the different responsibilities an employee will have as well as the punishments he will face if ever he failed to meet your expectations or comply with the rules that are being implemented in the company.

The first article discussed the importance of acquiring a Los Angeles employment lawyer. This legal expert will determine if making this agreement is advisable for you. If both of you decided in favor of the contract, he will then make sure that all important issues relating to employer-employee relationship will be covered by it.

One of the advantages of making an agreement is that it enables you to control and monitor your employee's performance and employment period. For example, you may require a certain employee to work in the company for three years if you know that you will not be able to replace him right away. If the employee does not agree to this condition, then you can require him to give you a resignation notice months before his last day at work.

Here are other uses of an employment contract:

  • Stop an employee for revealing trade secrets or other important information- You may need to reveal trade secrets or other confidential details about your business operations to a certain employee. If you want to prevent him from revealing these details to your competitors or any outside party if he resigns or was terminated, you can include a confidentiality clause in it.

Aside from protecting confidential details, it will also prevent a former employee from joining your rivals once your ties with him have ended. You can achieve this goal by including a non-compete clause in it.

  • Evidence in an employment case- If you terminated an employee who performed a serious misconduct, you can use it as evidence if ever he decided to sue you. You will be likely spared from any liability if your attorney can show that the plaintiff violated a certain provision in it.

Although making this agreement can be good for the company, you can also face problems because of it. You will have to follow the terms that are included in it even if you are against them. For example, you decided that an employee is not the one that you want for the job. You cannot easily fire him, especially if he did not violate any company policy. In this case, you will have no basis for his termination so you will be required to work with him until his employment period ends.

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