An employee contract is a written document you and your employee both sign that defines the terms of your business relationship. There are some situations in which your company will benefit by having signed contracts with your employees.

Advantages of using employment contracts.

1. An employment contract allows you to list details and requirements that are specific to your business.

For example, if you are in a business in which your list of clients is highly sensitive or if you have a trade secret such a special recipe, an employee contract can protect your business interests. A non-compete clause in an employee contract will limit that person’s ability to compete with you within a defined period and/or within a defined geographic area.

2.Both parties will have a written document to refer to in the event of a disagreement or dispute.

Once you have found the right person for the job, you want to keep him or her if you can. Finding and training new staff is time-consuming and expensive. By requiring a signed employment contract that specifies a term of employment, you don’t have to worry that the employee will be with you until something better comes along. You can be assured he or she has a commitment to your company.

3. An employment contract can help you have some control over how your employees work out in the position.

By laying out the employee standards in a contract, you have grounds for disciplinary measures or even dismissal, if necessary.

4. An employment contract promote the professionalism, clarity and sense of organization.

A contract gives your employees a sense of security and even stability. They do not have to worry about what they are getting into with this position. It is all clearly laid out.

Disadvantages of using employment contracts.

1. The main disadvantage of an employment contract is that it is a contract.

By its very nature, a contract connotes lack of flexibility and therefore limits the amount of negotiation either party can do.

To set a salary in writing or a proposed schedule for salary review can be problematic for employers. A previously written time-frame does not allow for economic downturns, for instance.

2. Employment contracts is that most of them use the legal terminology requiring you to act according to the “covenant of good faith and fair dealing.”
3. Major change in company’s needs.

What if your company seems to be going in a different direction than you planned and you discover that you have no need of the project for which you hired someone? According to the contract, you cannot fire that employee. Instead you will need to renegotiate the contract or come to a settlement with the employee.

Employment contracts have both benefits and limitations. Think carefully about the specific needs of your company and weigh the advantages with the disadvantages. If your business has some special or unique circumstances, it is a good idea to talk with an attorney before drafting an employee contract.

Photo Credit: Shutterstock/Africa Studio

The post Employment Contracts: Pros and Cons appeared first on UELG.

What is an Employment Contract?

An employment contract can be defined as a document that dictates the professional relationship of an employer and employee which both an employer and employee sign. Basically, this kind of contract carries both merits and demerits. Therefore, if you are an employer, it is ideal that you’ re aware of the various factors to put into consideration when thinking about an employee contract.

What is included in Employment Contracts?

First and foremost, for an employment contract to be considered good, it must clearly spell out how the employer expects the employee to carry out his/ her tasks. The contract should also spell what the employee to expect from the employer. The following are some of the other terms that an employer can include in an employment contract;

*Terms relating to various responsibilities of a worker

*Sick day and vacation policies

*Benefits like disability, life or health insurance

*Assignment clauses which state any patent procured by employee

*Non- disclosure agreements that relate to the employer’s trade secrets

Pros of Making Use of Employee Contracts

#1: Provide an Employer the Ability of Hanging onto His/ Her Best Employees:-

This is often possible when an employer decides to add terms and conditions into the employment contract which limit the reasons that employees can use to leave his or her firm. For instance, if an employer has spent a considerable cash amount training an employee, he or she can lock the employee into a length of employment under the employee contract.

#2: Putting Confidentiality Clauses: –

When employees are learning, or working with the employer’s trade secrets, an employer is allowed to put confidentiality clauses into his or her employment contract. This can prevent employees from trying to disclose the employer’s trade secrets in the future.

#3: An Employer can Use the Contract to Hire the Best Employees: –

It is so obvious that an employer will most probably offer the best workers many different employment contracts. If this is the case, the employer can end up offering the workers the best deal thus making them end up cooperating with him or her.

Cons of Employers Using Employment Contracts

#1: The Contract Limits Employee’s Flexibility: –

Employment agreements limits employee’s agreement since the employees are normally made to adhere to the different terms and conditions imposed by the employer.

Photo Credit: Shutterstock/Africa Studio

The post Elements of Employment Contracts appeared first on UELG.

An employment contract is an oral or written, express or implied relationship that is created between the employer and the employee. Generally, a contract is an enforceable agreement between two parties. However, employment contract is a contract that has employment terms and conditions agreed upon and accepted by the parties. This law governing employment contracts are from many sources like wages and hours laws, contract law, tort law, health and safety laws and the like. Sometimes there may be an overlap between any laws.

Breach of Employment Contracts

To most of California employees, the issues of the breach of employment contracts do not apply because they are referred to as ‘at will.’ This implies that the employees have no employment contracts. An employee is able to terminate his or her employment at will with or without any reason. Also, an employer can stop an employee at will with or without any reason as long as the reason is not an illegal action. However, an employer cannot terminate an employee because of race or age discrimination. The ‘at will’ employment in California also allows the employee and the employer to terminate the employment without any notice.

Despite the ‘at will’ employment in California, the employees and the employers have a contract for a specified period. For this reason, to avoid employment contract breach, the terminations of the employment should follow the guidelines in that particular employment contract.

How to Know Whether an Employer Has Committed a Contract Violation Breach

In most of the cases, an employment will always give specific reasons that determines the termination of an employee. If at all an employee has no specified contract, a related employment contract to the way in which an employee may be terminated. If this is the case, it is outlined in the handbook or policy manual that has been set by the employer. Once the employment contract has been entered in the parties, the employer must always honor the terms that are set in the terms of the contract. If an employee wishes to terminate the employment, he/she cannot be forced to continue working for an employer. If an employee is forced to continue in the employment relationship, it is considered as violation of both the U.S and California constitutions.

If anyone is contemplating to accept any new employment, it is recommended that he/she consult an attorney during negotiations before the contract. You therefore need to get an experienced attorney from United Employee Law Group. They will be able to review the contact that is proposed and give a piece of advice on the consequences of the terms and conditions there in the contract. They will also suggest additional and revision of terms that are more favorable to you. If you feel that your employer has violated the breach of employment contract, just feel free and contact United Employee Law Group and get assisted. It is advisable that you contact United Employee Law Group for employment contracts attorney because they will simplify the process and also call you back among many other benefits.

Photo Credit: Shutterstock/g-stockstudio

The post Employment Contracts appeared first on UELG.

There are several declarations included in an employment contract. Before you start working in any firm, it is necessary for you to sign an employment contract. The contract will indicate all duties you will be required to accomplish as well as the amount of money you will earn as privileges under different conditions. It is upon you to check the contract and ensure every detail which the potential employer is promising has been well captured.

What you will find included in an employee contract

Identification

The contract identifies different parties included in the employment. You will access address; official website among other identifies which you can associate with the employer.

Effective Date of the agreement

The contract should state the date when you will start operating in a given job. It is necessary for you to know when you will start receiving the rewards associated with the contract.

Type of employment

There are different types of employment available. You can be a salaried employee who get paid on an hourly basis or a full time professional employee. You should check and ensure the contract states your job clearly.

Duties of the employee

The employee should have specific duties. For example, if an employee is required to carry out maintenance services, he should have professional licenses to carry out the maintenance services and certificates to prove ethical actions.

Extent of Services

The section covers the hours the employee is supposed to be at work place. It includes days of work and number of hours.

Benefits provided to the employee

The benefits of different employees vary. You should check with the organization to know the specific type of benefits you enjoy under a given job group.

Termination

The contract indicates clearly circumstances under which different parties can decide to terminate the contract. The part also states the type of notices required.

Notices 

There are times when notices regarding different parties can be sent. The agreement should state the channels which can be used to send notices.

Severability

The part states that if one of the parts of the contract is invalid, the rest can be valid.

Dispute process

It describes ways which can be followed to solve a dispute in a given dispute. The mandatory arbitration process should be clearly identified.

Applicable law 

It states the state in which the contract can be adjudicated in court. This is necessary to avoid confusion because different states have different labor laws.

Photo Credit: Shutterstock/Bacho

The post What is Usually Included in an Employment Contract? appeared first on UELG.