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Contracts protect companies and their employees

On Behalf of Hantzes & Associates | Jul 6, 2022 | Business Law |

Employment contracts are an essential part of any business as they protect both the company and the employee by outlining the terms and conditions of employment.

Companies invest a lot of time and resources into training their employees. They want to ensure that their employees can do their job well and contribute to the company’s success. On the flip side, employees want to be treated fairly and not have their rights infringed upon.

Employment contracts outline expectations

They can include things like job duties, salary, and benefits. They can also specify what happens if the employee is not able to perform their duties or if they leave the company before their contract is up. In addition, they can help to prevent disputes from arising by clarifying the roles and responsibilities of each party.

What should be in an employment contract?

When drafting an employment contract, it is important to include several key clauses, including:

  • The nature of the employment relationship and outlining the duties of the employee, the contract length, and any probationary period.
  • Compensation and benefits that the employee is entitled to receive, which may include salary, bonuses, vacation days, and health insurance.
  • Issues such as confidentiality, non-compete clauses, and termination.

What are the consequences of not having one?

Without an agreement, the employer and employee are at risk. The employer may find it challenging to enforce workplace policies, and the employee may not have the same job protections they would otherwise be entitled to.

In addition, without a contract, either party can terminate the relationship without notice leading to disruptions in the workplace and uncertainty for employees.

In short, an employment contract is essential for protecting both parties and ensuring a fair and stable working relationship.

 

 

 

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