As an employer, one of the most important parts of your job is hiring the right people and making sure that they are successful at what they do. One of the key tools in helping you to do this is the employment contract. When drafted correctly, this can help you to be empowered as an employer to manage your business correctly.
In addition to employment contacts, many employers also opt to create compensation agreements, which many believe are valuable ways to explain the rules of employment, motivate employees and reward great talent. With contracts such as these, however, there can be a danger because if they are not adequately enforced, costly litigation processes might result.
What to consider when writing a compensation agreement
A compensation agreement often handles information such as rights to paid vacation and sick leave, health benefits, and confidentiality agreements. It is vital that as an employer you draft these agreements very carefully, since employees can hold the signed copies against you if you refuse to fulfill the terms.
It is also important that you go about protecting yourself as an employer and as a company in the drafting of a compensation agreement. It's important to establish who will own the rights to things that are created and invented within work hours, Noncompetition agreements are also a vital clause to include in order to ensure that you do not lose talent.
If you are facing a dispute with an employee because of an employment contract or compensation agreement, it is important that action is taken immediately to try and resolve the issue.