The employment contract is just as crucial to your business as any of your other contracts. Yet, the employment contract seems to cause more heartache and confusion than any of your other contracts. This is because it deals with people, emotions, and the law.
The employment contract is a business agreement between you and your new employee. It includes your hiring practices, the salary, and everything that may happen once they start to work for you.
What common employment contract mistakes do you need to look out for?
Read on to learn more about the most critical employment contract mistakes and why you must avoid them.
Not Having an Employment Contract
You may not think you need an employment contract as a small business owner. However, not having an agreement may lead to issues.
Without a contract, you’re failing to protect your confidential information. There’s also no straightforward way of ending the relationship.
Make sure you take the time to create an agreement that will protect your business interests.
Failing to Include Key Provisions
This can lead to several problems down the road, including disputes over the terms of the agreement or even legal action.
Provisions that should be included in every employment contract are the employee’s duties and responsibilities. They should also have the extent of the employer’s control over the employee. It is also essential to include the length of the contract, salary or wage, and any benefits or perks included.
Enforcing the contract or holding employees accountable for their performance can be difficult without these in place. If you’re unsure about what to include in your employment contracts, it’s always best to consult with an experienced small business lawyer.
Including Illegal Terms
Another common mistake is including illegal terms. While it is tempting to want to include language that protects your business, such as non-compete clauses, these clauses are often unenforceable.
Also, other terms, such as at-will employment, can be interpreted differently than you intend, leading to legal trouble.
Working with an experienced attorney ensures that your contract is legally binding and includes only terms that will benefit your business. Read here if you’re interested in hiring an attorney.
Being Unclear About Expectations
As a small business owner, you must be clear about your expectations with your employees. Unfortunately, this is often not the case, and small business owners make common mistakes that can lead to problems.
This can be frustrating for everyone involved and lead to general discontentment in the workplace. If you are unsure about what you expect from your employees, take the time to sit down and hash it out. This will save you a lot of headaches in the long run.
Avoid These Common Employment Contract Mistakes
You need to be aware of the potential mistakes that can be made when drafting an employee contract. These mistakes can be costly and time-consuming to fix, so it is essential to take the time to get it right the first time.
Now that you’ve read through these common employment contract mistakes don’t forget to check out our other business articles for more tips on running your company.