Are You Hiring Employees For Your New Business Venture? Learn About Employment Contracts

11 March 2015
 Categories: , Blog


If you intend on opening a business and hiring people to work for you, it is a good idea to make sure there is an employment contract in place for your security. Having set terms for employment at the beginning can prevent you from getting sued if one of your employees neglects to follow the rules and gets fired. In this article, learn what an employment contract is all about and how a lawyer can draft up one that is tailored to your business needs.

What is an Employment Contract?

An employment contract will basically set legal terms for what the employee will do for your business. The contract will also state how much you will compensate the employee for his or her services, which can be limited to a certain amount of money if you don't intend on offering any raises. You will find an employment contract highly convenient if you are hiring employees on a temporary basis, such as for a one year work contract.

The contract will also detail what can lead to an employee forfeiting his or her business relationship with your company. Having strict and detailed rules about job termination is the best way to prevent losing a lawsuit if a fired employee decides to sue you for unlawful termination out of bitterness.

One of the important ways an employment contract can benefit you is by setting rules for employees who want to quit working for you. For instance, you can require employees to give you a notice that they will be resigning within a certain amount of time before they actually leave. It will give you more time to find new employees so your business won't experience a lower productivity rate.

Why Should a Lawyer Be Hired to Draft Up an Employment Contract?

You should leave the drafting of an employment contract to a lawyer because doing it on your own can lead to you making a contract that limits flexibility with employees. You don't want to unknowingly put legal terms in the contract that binds you to an employee in ways that you did not intend. A lawyer will place terms in the contract that give you the ability to change it at will, such as having terms that state you can terminate the contract with little or no cause. Consult with a business lawyer from a firm like Caldwell Kennedy & Porter to come up with the perfect contract for your new business.