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Strong employment contracts can help you avoid complications

As a California business owner, you know how complicated it can be to effectively navigate issues related to employee disputes and concerns. When facing these matters, your main concern is protecting your legal and financial interests and seeking a positive resolution in a timely manner. One of the ways you can shield your business against employee-related issues is through strong employment contracts.

Employee contracts are useful tools for many businesses. The legal needs of your company depend on the type of business you have, what you require of your employees and your objectives for your company. If you do not yet require employee contracts or currently only have verbal agreements, you may consider the benefits of this form of legal protection.

What you can accomplish through your employee contracts

Employee contracts can provide your company with protection against the threat of a potential lawsuit in the future. Like any legal agreement, your employee contracts should meet your unique needs and objectives, allowing you to accomplish specific goals for your business. You may find it beneficial to include the following elements in your contracts with future employees:

  • Explanation of the terms of the employment and its expected duration
  • How vacation and sick days will work
  • Company policies for termination and reasons for firing employees
  • Method for dealing with disputes and concerns
  • Explanation of company benefits, such as insurance
  • Non-compete covenants
  • Nondisclosure agreements to keep company information private

No two businesses are the same, and you may find it beneficial to seek guidance as you work to craft agreements that are reasonable in scope and duration. The wording of your employment contracts is important, and inappropriate terms or clauses could lead to legal complications in the future. When there are important issues at stake, it is helpful to avoid drafting contracts without appropriate and knowledgeable guidance.

Protecting the future of your company

Contracts are tools that businesses can use to outline obligations between parties and avoid complex and costly legal disputes in the future. If you do not have employee contracts, you could be risking litigation in the event of a dispute or disagreement with an employee.

You can protect proprietary information, shield your trade secrets from exposure and even protect the interests of your employees through strong, fair and thoughtfully worded contracts. You may find it beneficial to seek an evaluation of your case to better understand how to effectively leverage the benefits of employment contracts.

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