A written contract is often used today to provide both employers and employees the necessary employment protection. It is a document signed by both parties which specifies the terms and details of their relationship.

The main purpose of having a written contract is to specify the employee's nature of work and the employer's responsibility in providing salary to the employee. Aside from this purpose, a contract may also contain the following:

* The grounds for an employee's termination.

* The duration of employment. The employee can promise that he or she will not work for another company doing the same business during the time of his or her employment.

* Protection of the company's client lists and trade secrets like data, plans, machinery, or formulas.

* Methods to be used when disputes arise. Arbitration clauses may be seen in many kinds of contracts. It will require parties to undergo arbitration rather than seeking resolution from the court by filing a lawsuit.

* The employer's ownership of any work product of the employee. Included here are books, or invented gadgets and technologies.

* Limit on the employee's capability in competing with the employer's business once he or she leaves the company.

* Benefits the employee will receive including vacation leave, heath insurance, and disability leave.

* The state law that will be followed if ever one party decides to file a lawsuit. This is important because employment laws differ from one state to another.

Advantages of Having Written Contracts

If you are an employer, having a written contract will be an advantage if you want to have control over your employee's ability to leave the company.

For example, if finding and training a new employee will cost too much or will be time consuming for you, having a written contract is advisable. It can require the employee to work for a specified term. It can also ask the employee to provide you sufficient notice to train a suitable replacement if ever he or she decided to resign.

However, a written contract also requires something from the employer because it is used to bind both parties. You have to fulfill the provisions of the contract and it may give you problems later on if you realized that you do not agree with its terms.

Help by Attorneys in Making a Written Employment Contract

If you are an employer who is thinking of entering in a written contract, it is advisable that you consult an attorney. Contracts may take various forms. Every employee in a company may be asked to sign a similar contract, or each may have a different contract with the employer.

The terms included in it is legally binding for both parties. Acquiring legal help from an attorney will ensure that the terms of the contract will provide you and your employee the employment protection needed.

To provide you with more information regarding employment contracts, consult with our experienced employment attorneys. Visit our website and dial our toll free number.

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