As a business owner, you understand the importance of taking steps to ensure the long-term well-being and stability of your company. You worked hard to establish your business, run it well and make a profit, but you may still need to take the important step of creating employment contracts for all workers in your company.
Employment contracts are legally binding agreements that outline the rights and responsibilities of both employees and employers. Having these contracts may not seem necessary for your specific type of business, but they can provide protection for you and those who work for you. They can be important tools that offer benefits to both sides and reduce the chance of complex litigation in the future.
What’s in the contract?
Like other types of business agreements, you can custom-tailor an employment contract to suit your needs and objectives. Your contracts should reflect your specific business model and operations. While these contracts are completely customizable, you may consider including the following useful elements in your agreements:
- Termination — Employment contracts should include terms that outline grounds on which you can terminate employees.
- Compensation — You can outline in your contracts, such as how much your employees will make, opportunities for advancement and other pay-related details.
- Procedures — You can use these contracts to outline how you expect employees to act while on the job, as well as what they should do if they have a grievance.
- Post–employment — You can use these contracts to outline how employees must function post-employment. This includes non-disclosure terms, non-compete terms and more.
Your employment contracts should reflect your specific needs, but it is critical to include terms and draft them in a way that will withstand any potential scrutiny in the future. When all parties are clear on expectations, procedures and rights, it can make the employee-employer relationship much more conducive and less likely to result in difficulties in the future.
Protect your business
Even if it does not seem as if these contracts are necessary, you will find it beneficial to consider how business contracts can provide your business with some protection and benefits. Employment contracts are some of the most cost-effective ways to protect the long-term legal and financial interests of your New Jersey business.