One of the most important aspects of running a business is maintaining solid relationships with employees. A critical component of a positive relationship between employer and employee is a thoughtful contract that protects the interests of both parties. If you own a business or are in management, you need employment contracts to shield both you and the individuals who work for you from unnecessary risk.
An employment contract is a legally binding agreement between an employer and employee that outlines the responsibilities and expectations for both parties. You can customize your contract to suit the needs of your business and your specific concerns related to intellectual property and closely held information. As with any type of contract, it is beneficial to ensure these contracts are legally enforceable and valid.
What should be in it?
The details of your employment contracts are contingent on the duties you will require of your employees and the specific information the employees will be able to access. Some of the specific details you may need to include in your contracts include:
- Salary, hourly wages, future pay increases
- Benefits and health insurance
- Retirement benefits and investment opportunities
- Duration of employment
- Expectations for employees
- Non-compete or non-disclosure clauses
- Responsibilities of employee and employer
- Communication procedures between employees and employer
There are significant benefits to having employment contracts. These agreements protect your business from the possibility of legal action in the event of a dispute with the employee. It also provides protection for employees as it reduces the chance of confusion over responsibilities and expectations. A carefully crafted employment contract can provide invaluable peace of mind and make for better relationships within the company, something that is ultimately good for business.
When drafting contracts for your employees, you will benefit from thinking long-term. Consider terms that will make sense well into the future, not just right now. These agreements can have a direct impact on your company, including lowering the chance your New Jersey business will face costly and stressful litigation.
It is wise to implement these agreements with all employees, regardless of the role they have within the company. As you consider your contract, you may find it helpful to learn more about the specific types of legal protection that your company needs. This will allow you draft detailed, strong and protective agreements.