What to Put in Your Business’s Employment Agreement
- Posted on: Apr 14 2023
Hiring employees for your business can be a big undertaking. You not only want to ensure that your employees have the skillset and experience, but also that they understand their job responsibilities. This is why an employment agreement is so important. An employee agreement lays out the terms and conditions of the employee’s role, responsibilities, rights, and wages. It should also contain relevant protections, such as non-disclosure agreements (NDAs) for both you and your employee. Here’s what to put in your business’s employment agreement.
Description of the Employee’s Responsibilities
Everyone needs to be on the same page from the very beginning. By outlining your employee’s duties for the position, it allows both of you a clear understanding of expectations. That way, there is no confusion later on and no misunderstandings or disagreements about the employee’s role.
Specifications of the Employee’s Wages and Benefits
Whether you hire an employee and pay them by the hour or with an annual salary, it’s imperative that you make clear the specific details of their wages. This should also include any overtime regulations, commissions, bonuses, health insurance coverage, retirement plans, or anything else related to what they are entitled.
Depending upon the nature of the business, there are certain contractual agreements that you should also include within your employee agreement. It’s always a good idea to include an NDA because they serve to help protect any confidential business information that transpires during the course of the employee’s time with the company. An employee cannot share any of this information with others at any time – including after leaving the company. Another important contractual agreement to consider is a non-compete clause.
A non-compete clause helps employers by preventing their employees from leaving the company and taking what they have learned from working there to enter into a similar business. However, it’s important to note that non-compete clauses must be reasonable in both time and geographic location. They cannot prevent the employee from making a living.
Another contractual agreement may detail the courts through which the employee must go should they bring a claim against the employer. These are just a few examples.
Process for Employee Complaints
The employee agreement should also include information about how an employee is to bring a complaint should they have one. This may include steps such as reporting to a supervisor or filing a formal complaint with human resources. The process included should also specify any associated timelines for resolving the matter.
An employee agreement protects both you and your employee and is necessary for setting expectations and protecting employers from subsequent disputes or litigation. But you want to be sure that your employee agreement is drafted properly to stand up in court. That’s where a knowledgeable and experienced California business attorney can help.
The Law Offices of Brian L. Fox, APLC Help those Who Wish to Establish an Employee Agreement
If you or your loved one live in California and wish to establish an employee agreement, it’s in your best interest to consult with a qualified California business attorney who can help.
At the Law Offices of Brian L. Fox, APLC we know how important it is to protect your business and your interests. We will help you to establish a comprehensive employee agreement that meets your needs, protects you, and sets you up for success. To learn more or to schedule a free consultation, contact us today!
Posted in: Business Law