Why have one?
- Great business exercise. Negotiations happen quickly and we often forget to discuss all the details of the job. Reviewing a contract together is like going through a checklist to avoid surprises later on.
- The Law is often silent. Labour laws exist for the protection of the parties, however the details of the job, benefits, etc. should be documented in order to supplement and personalize the law.
Top 3 reasons to have aan Employment Contract
- Clarity on Compensation. Whether you’ve agreed on a fixed salary, base salary plus commission or any other creative compensation, documenting the terms is an important way to avoid misunderstandings on the issue.
- Avoid hearing “It’s not my job!”. Providing a clear scope of the job is key to avoiding frustrations and disputes relating to an Employee’s responsibilities.
- Prevent ‘Sleeping with the Enemy’. The employment relationship is based on trust, where confidential information, like client lists, pricing and trade secrets flow freely. Non-Competition and Non-Solicitation clauses can prevent an Employee from using confidential information they have received to the detriment of the Employer, both during and for a limited-time after the Employee chooses to leave.