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The fundamentals of a sound employment contract

On Behalf of | Feb 8, 2022 | Contract Law

With every transaction we make, we are virtually always dealing with some form of contract. Generally, we do this without thinking, which is a sign that the contract may be working as intended.

As a business owner, you rely on your employees to carry out the tasks that have been designated to them. In turn, they rely on you to offer a working environment that suits their needs. Often, relations between employers and employees are prosperous, with both parties getting what they need out of the arrangement. Sound employment contracts tend to be at the heart of these mutually beneficial relationships. So, what goes into a sound employment contract?

Getting the basics right

First and foremost, an employment contract needs to be accurate. This means that the designated employee must be named appropriately and their position in the company should be clearly defined. Once this is in place, you may want to get into the specifics of the job position. For example, how long do you want the employee to work for you? How much will they be paid? Giving a clear indication of the job length offers both protection for the employer and security for the employee. You will also want to define the employee’s role and duties, as well as any expectations you have of them in terms of job performance and company ethics.

Specific terms offer you protection

You may also wish to pay close attention to specific terms that could protect your business. For instance, do you have a rival competitor in the region who could benefit from knowing who your clients are or your specific methods? The potential is there for you to include confidentiality agreements in any contract with your employees.

Successful employment relationships are founded on the basis of sound employment contracts. If you find yourself in any sort of dispute as a business owner, learning more about your legal rights in Texas will be of great benefit to you.