Initially, your small business started out as a one-person operation. Due to the success of the company over the years, you needed to establish a team of employees to share the workload with. In fact, you’re constantly seeking to bring in new talent.
Employment contracts seemed like a bit of a hassle in the beginning, because you carefully selected the people who were brought in and trusted them completely. While this may work out for a while, the truth is that you always want any type of business relationship to be founded upon a contract. Outlined below are some key reasons why this is the case.
Contracts outline roles and responsibilities
Clarity is important in professional relationships. Your employees need to know what is expected of them in terms of conduct and job performance. A written contract can outline their title, role and work-related duties. You can also include terms such as yearly salary, paid holiday entitlements and much more.
Crucially, employment contracts also inform workers of their rights. They’ll know where to turn should anything go wrong with daily operations, which is the case sometimes even in the most successful companies.
Protecting your privacy
Your firm may rely on unique technologies and procedures to stay ahead of competitors. Such aspects are generally referred to as trade secrets and they form part of the intellectual property of your business. If this information fell into the hands of your rivals, it could be disastrous as they could replicate what has made you so successful. In an employment contract, you can include terms that insist employees protect your trade secrets, even if they have left their position and taken on a new job elsewhere.
If you need further clarification on how to draft effective employment contracts, it could benefit you to seek some legal guidance. This will help ensure that your company continues to go from strength to strength.