Why You Should Be Using Employment Contracts

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When I was a kid, many of my friends wanted to be firefighters, teachers, and policemen when they grew up. Interestingly, I told everyone who was interested that I wanted to be a lawyer. I was fascinated with crime shows. While watching my favorite television programs as a child, I was captivated by actors who played the roles of tough, successful lawyers. No matter what they were facing at trial, they always discovered the truth in every case. While I majored in business instead of law, I still have an amazing appreciation for the work attorneys do today. On this blog, I hope you will discover the importance of lawyers in our society. Enjoy!

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Why You Should Be Using Employment Contracts

26 November 2019
 Categories: , Blog


As the owner of a business, you want to ensure that your business is protected when you bring in new employees. One way to do this is to provide your employees with employment contracts, which also protects their own interests. Here are three reasons why employment contracts are important for your business:

These Contracts Define the Employee's Position and the Scope of Their Employment

Employment contracts give you the opportunity to define the nature of the position in as much detail as possible. You can outline the terms of employment and include information and behavior that would terminate their position. By laying out this information in black and white, you are ensuring that everyone is on the same page from the start. Your new employee is aware of what is expected of them, and in the event that any issue arises you can refer back to the employment contract that they signed at the start of their employment with you.

These Contracts Inform Employees of Benefits Available to Them

If employee benefits like paid time off, health insurance, and the like are offered, this information can be outlined in the employment contract. If an employee accepts or declines any of the benefits that are offered to them, this can also be stated in the employment contract. By having these details in this document, the employee will be able to fully understand and be able to easily access the benefit options should further clarification be needed later down the line.

These Contracts Preserve Trade Secrets and Your Company as a Whole

Depending on the nature of your business, you may have some trade secrets that you don't want getting out. There may be some sensitive or confidential company information that could harm your business if your competitors found out. Therefore, keeping these things secret will essentially ensure the longevity and success of your company. With that being said, a non-compete agreement or nondisclosure agreement (or both) can be included in the employment contract, preventing an employee from going to work with a competitor and limiting what information an employee can share about the operation of your business, respectively.

If you would like to learn more about how an employment contract can benefit your business or would like to get an employment contract drawn up for your current and/or future employees, get in touch with an employment lawyer in your area today.