You probably already realize that good employees are hard to find. Once you do find that unicorn, there is the long onboarding process, which includes background and reference checks, paperwork, negotiating an offer and then waiting for them to work out their notice with their previous employer.
Considering all the time you put into finding and hiring an employee, why would you not put as much effort into ensuring a long, mutually satisfying employer-employee relationship?
Critical components of an effective employment agreement
Every business is different, and their employment agreement should reflect that. These agreements lay out the expectations of both employer and employee. Ensuring that everyone understands and agrees to the terms and conditions of employment can help prevent litigation.
Here are some things that should be in every contract:
- Job description and duties, pay rate and work hours form the employee agreement’s foundation.
- Bonuses and benefits, including opportunities for promotions. If your company offers tuition reimbursement, outline the criteria, such as how long the employee needs to work to be eligible.
- A clause that explains that Texas is an at-will employment state and how that impacts the termination of employment.
- Confidentiality clauses to ensure employees understand their obligation to keep proprietary information private. Without one, former employees could expose trade secrets, harming your competitive edge.
- Including a dispute resolution procedure can help prevent minor disagreements from escalating into costly lawsuits and negative publicity.
Drafting an employment agreement that protects your business and is legally compliant can be challenging. It’s crucial that you work with someone who understands federal and state employment laws.
