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Be prepared to address these issues in an employment contract

Hubbard Snitchler & Parzianello

An employment contract can be a great way for you to secure talent while also ensuring that your business needs are met. But you shouldn’t negotiate and draft these agreements lightly. After all, they can set the terms of a business relationship for years to come, and any breach of those obligations could lead to extensive and costly litigation.

What terms should you include in an employment agreement?

Some terms of an employment contract are obvious, such as compensation, benefits, and the job’s description. But there are other terms that require just as much attention and need to be carefully negotiated and clearly dealt with in writing. Amongst those are each of the following:

  • Employee classification. If you misclassify your employee as a contractor, then you could find yourself running afoul of tax laws and face insurance issues later down the road.
  • Confidentiality agreements. If you’re business and the employee will be dealing with sensitive information, then you need to ensure that the employee isn’t going to share that information.
  • Non-compete agreements. These agreements prevent an employee from working for a competing business for a specified period of time after leaving your employ. These agreements are subjected to a reasonableness standard. Keep in mind, though, that there’s a lot of attention on restricting the use of these agreements, so be careful with how you utilize these arrangements.
  • Severance and termination clauses. You’ll want your contract to specify what terms must be met before the employment relationship can end, including notice requirements, and what any severance may look like.

Protecting your interests so that you can do business

Dealing with the legalities of your business operations can feel onerous at times. But properly addressing these matters can be key to your success and protecting your interests in the event that something goes wrong. So, if you’d like to ensure that you’re doing everything you can to protect yourself and business, then you may want to speak with an experienced business law attorney about whatever issues you may be facing.

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