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What to include in an employment contract

On Behalf of | Nov 15, 2018 | Contracts, Firm News

As a Michigan or Illinois business owner or someone who otherwise has a hand in company hiring decisions, you may find it beneficial to create an employment contract that protects your business, should you and your employee part ways. At Pentiuk, Couvreur & Kobiljak, P.C., we understand that a solid, carefully worded employment contract can prove to be your best line of defense against litigation, and we have helped many people in your shoes take measures to protect themselves and their lifeblood.

According to Inc., while your employment contract is a good place to include specifics about your decided-upon payment arrangements and your expectations for your employee as far as job duties, you can also accomplish much more with this document. More specifically, many employers choose to include noncompete clauses within their employment contracts, which can help you make sure that your workers do not leave you and take everything they have learned from you to one of your competitors.

Drafting your noncompete clause, however, involves a careful balance, because while you need to protect your business interests, you also want to avoid scaring off your employee by making your noncompete language too strict or limiting. You may, too, want to consider including a non-solicit clause alongside your noncompete one, which bars former employees from trying to take existing ones with them when they leave.

It may also help protect your business and reduce the chances of winding up in litigation down the line if you include language in your employment contract about termination and severance. If you offer a severance package to laid-off employees, you can detail it in your employment contract, and you can also outline what types of matters or actions may lead to termination. You can find more about business contracts by exploring our webpage.