Efficient And Effective Business Litigation

Is utilizing employment contracts right for your business?

On Behalf of | Aug 10, 2021 | Employment Disputes |

A crucial part of building a successful business is obtaining and developing talent. This is especially true in executive positions and other roles that require extensive knowledge and skill. That’s why many California businesses turn to employment contracts for help. These binding agreements can specify the parameters of employment in a way that protect your interests while at the same time rendering the position appealing to the prospective employee.

To successfully utilize employment contracts, though, you need to know some of the major terms of them. Let’s look at some of them here:

  • Job duties: This may sound obvious, but you want to make sure that the employee’s duties are clearly spelled out and leave little room for interpretation. This is one of the best ways to ensure that you’re getting what you bargain for.
  • Benefits: To be enticing, your employment contract is going to have to lay out all of the benefits that the employee will receive. While this certainly includes salary, it also might include other benefits such as vacation time, insurance, and other perks such as parking or even fitness center access.
  • Term: Each party to the contract needs to know when the agreement starts and ends. There may also be an optional renewal period. Again, you want to make sure that this aspect of your agreement is crystal clear.
  • Avoid restrictive covenants: A lot of businesses want to include a non-compete clause in their employment contract. Be careful here, given that most California courts find these kinds of arrangements to be unenforceable, meaning that including one in your contract could set you up for litigation in the future.

Do you need help setting up an employment contract?

Employment contracts can play a pivotal role in your business. However, a poorly drafted contract can have severe ramifications for your business. Therefore, in order to protect your interests as fully as possible, you may want to discuss these matters with an experienced business law firm like ours before proceeding.