Protecting Both Business Finances And Futures

The benefits of a well-crafted employment agreement

On Behalf of | Nov 4, 2020 | Labor And Employment Law |

Employment agreements are essential legal documents that businesses and their prospective employees review and sign to solidify their formal work-related understandings. These important contracts can cover diverse terms and topics ranging from pay and compensation to termination and grievances. A California employer can craft employee-specific agreements to ensure that they are protected from employment-related legal challenges once their new hire is on board.

There are many benefits to drafting and executing tailored employment agreements, and this post will only address some of those advantages. This post does not provide any legal advice. All readers should contact their labor and employment law attorneys for support with agreements and other employment-related matters.

Protection from implication and error

One of the biggest advantages of putting employment terms in writing in legally binding employment agreements is certainty. When a contract is written and signed by the parties, it establishes clear expectations for each of them to know what their duties and rights are with respect to their relationship. When a contract is spoken and not put on paper, it may be subject to interpretation and implication.

An oral contract may be binding, but it may not answer all of the questions a court has about an employment contract between an employer and employee about the terms of the employee’s position or job responsibilities. Writing is clear and can provide unambiguous evidence of what the parties decided when they formed their agreement.

Employee-specific terms for business protection

A business may have a dozen workers doing a dozen different jobs. Each worker may have access to different information pertinent to the operations of the enterprise and have duties specific to different business goals. When each has their own employment agreement drawn up and tailored to their role in the business, both they and their employer benefit. Depending on the type of work the employee performs, specific terms can include:

  • Confidentiality and non-disclosure terms
  • Non-competition terms
  • Exclusive employment terms

There are many ways that businesses and employees can protect their rights and interests in employment agreements. Labor and employment law attorneys can help all parties protect their rights when they enter into employment relationships.




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