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What Should I Include in My Business's Employment Contract?

It is important to have a legally sound contract to protect yourself and your business, especially when hiring new employees. But what should you include in your employment contract? Below, we explain the 5 things you need to include in your business's employment contract.

1.Employment Information

Employment information is one of the most important areas to outline in an employment contract. You should include the details of the position, expectations, general tasks, and who the employee will report to. You can also include how you plan to evaluate the employee's work and goals.

2.Compensation and Benefits

It is important to outline all details concerning employee payment. Include the salary or hourly wage, any bonus information, overtime information, and other incentives. You should also identify all details regarding benefits, such as medical, dental, eye care, and life insurance. Make sure to include the employee-paid portion versus employer-paid portion of the policies, and identify any additional benefits, such as 401(k)s or stock options, available to the employee.

3.Time-off and Sick Day Policies

As an employer, you should understand and anticipate the needs of your employee outside of work. This includes accounting for time-off, or vacations, and unexpected sick days. Make sure to outline your policies as clearly as possible. Do you give employees an allotted number of paid sick days? Do you allow them to work from home, or make up any missed hours? These are all questions you should answer in your employment contract.

4.Confidentiality Agreement

Your employees will have access to sensitive information regarding your business, which means you'll need to anticipate what might happen with this information should your employee eventually leave the company. Safeguard your business details with a confidentiality agreement. This allows you to hold former employees legally responsible in the event that they share sensitive information to a third party during or after employment.

5.Terms of Employment and Termination

Along with the overall expectations of the job, you should identify the expectations of employment. This includes the length of the contract, whether the job is full-time or part-time, expected hours, and the employee's general schedule.

You should also identify whether the person is an employee or an independent contractor. As the business owner, it's your job to organize when and where employees work, and you must follow the proper tax compliance for them. Contractors generally have control over when and where they work, and do not require the same tax requirements as employees. There are serious legal punishments for misclassifying an employee as an independent contractor, so make sure to indicate the role correctly.

Contact Our Dallas Commercial Litigation Attorney

At The Hunnicutt Law Firm, we understand the importance of protecting your business. That is why our commercial litigation lawyer takes the time to analyze your company and build a solid employment contract for your business. We can also help analyze your current employment contract, and create solid solutions to fill any legal gaps. Our attorney has over 25 years in business law and is ready to help you.

Schedule your consultation with our Dallas commercial litigation lawyer today - (214) 361-6740.

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