Running a business is hard work. You’ve got to build and maintain a brand while appealing to consumers, all while dealing with supply chains, personnel, and payroll. It’s almost inevitable that you’re going to face a business dispute at some point, but there are steps that you can take to help minimize the risk. One of those actions is considering whether employment contracts are beneficial to you and your business.
On their face, employment contracts are pretty easy to understand. They can spell out the length of time that an employee will work for you, specify his or her salary, and dictate the employee’s job duties. But under the surface these agreements can be fraught with legal nuances that, if handled correctly, can provide you and your business with greater protection.
For example, you may have a contract with the individual who handles your communications so that it is clear how social media accounts are to be handles and that the communications belong to your business. You can then set parameters around what types of issues are appropriate to discuss, and which issues are not. This can help protect your business’s image in the public, increase brand awareness, and spur growth. As with every aspect of a contract, though, clarity is key. So you’ll need to be very specific when putting limitations on an employee’s actions.
Another area where an employment contract may prove beneficial is an ownership agreement. At some point, you may have an employee who creates materials for the business. The employment contract can specify that those materials made in the line of his or her work belongs to the business rather than the individual who created it. This can ensure that your business has the stability it needs to thrive even after that employee leaves your employ.
There are a whole host of other matters that an employment contract can address. You can utilize it to protect confidentiality and minimize the risk of the employee competing against you once he or she leaves your business. In order to be effective, though, these contracts need to be thoughtfully negotiated and crafted. So, if you want to learn more about employment contracts and assistance in analyzing whether they are right for your business, consider discussing the matter with a qualified business law professional.