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Make sure your employment agreements protect your business

On Behalf of | Jan 27, 2023 | Business Law

Sooner or later, every growing business will need to hire employees. When that time comes for you, well-drafted employment agreements can do much to protect you from worker-initiated legal disputes.

You want to respect the rights of employees while also looking out for your business interests. You may accomplish these goals and reduce the risk of disputes by strengthening your employment contracts.

Include the basics

All employment agreements need terms outlining the responsibilities, obligations and rights of both parties during the employment term. It should also include the position title, job description and the agreed-upon compensation. Terms like these are vital, but you may need more to safeguard against complicated legal issues.

Employee standards

It may surprise you to learn that many business disputes involving employees arise from misunderstandings. If you expect a specific level of professionalism and conduct, remember to include it in your employment agreement. So long as they violate no federal or state laws, they can prevent many misunderstandings.

Clearcut definitions

Those who write their own employment contracts already know what the words they contain mean, but other parties may need more details. In other words, do not sacrifice clarity to save space. For example, if you plan to cover some employee expenses, ensure the contract defines what qualifies as reimbursable expenditures.

Protective clauses

Employees can learn much about a company during their tenure, including secrets like client lists and technological applications. Sometimes, exiting employees can use this knowledge against you by stealing trade secrets or luring away clients. You can preserve these and other business assets by adding non-disclosure, non-compete and non-solicitation clauses to your agreements.

Don’t forget to have your employment agreements and other business contracts reviewed by a legal representative with a firm grasp of New York business law.