When you hire someone new, you might expect a large amount of the preparation to be on their end. Sure, they’re getting their work attire ready, arranging a departure with their previous employer, and maybe even reading some materials in preparation – but your company also has plenty to do on your end!
With 39% of workers looking to change jobs in 2022, there is no time to waste once you’ve secured a qualified candidate. Give them a positive experience on their first day by ensuring your employment contracts are up to par, looking out for their best but also protecting your company! Below are some commonly asked questions on employment contracts.
What is the purpose of an employment contract?
An employment contract is an agreement between a company and its new hire on the terms of their employment. It ensures both parties are on the same page when it comes to expectations, vacation days, salary, benefits, and more. If either party breaches the contract, they may be held legally responsible in court. Hopefully, both parties do their due diligence in negotiating the contract so they are happy to abide with the end result.
What should be included in my employment contract?
Your employment contracts should include a job title, salary, vacation/sick days, confidentiality clauses, grounds for termination, and details on severance. While this list is not exhaustive, it’s a great place to start. And remember, you and your new hire should negotiate terms before signing!
What are the advantages of having a detailed employment contract?
An updated, detailed employment contract provides clear communication between you and your new hire on expectations and responsibilities. It allows them to start off on the right foot, and provides them longevity at your company. As questions or issues might arise during their time at your company, you can always go back to the negotiated terms of their contract.
Do I need legal advice when drafting employment contracts?
Yes – it is always best to seek the advice of professionals when drafting contracts. This is to protect both parties and to ensure you fully understand the terms of the contract. At Mattingly Ford Law, our experienced attorneys work with small business owners and service providers to draft, review and offer professional advice on employment contracts. We also provide a wide range of other small business legal services. Contact us today!