The Importance of Signing an Employee Contract

One of the main goals that both contractors and companies create employee contracts is to protect the interests of all concerned. Additionally, an Employee Contract gives the employer a chance to make the employee aware of his or her distinct responsibilities.

The contract may also protect the business clientele and intellectual property of a company. In fact, it’s in an employer’s best interests to pursue professional legal advice to ensure he or she has the knowledge of how to write a legally binding contract. It’s also in the employee’s best interest to seek professional advice to ensure he or she understands the agreement before signing off.

Formal legal obligations needn’t be a hassle. To be sure, the value in avoiding potential misunderstandings down the road in the business relationship is well worth the legal investment. Essentially, the employment contract is a legally binding agreement between the employer and employee, designed to give both parties protection and reassurance.

Here are several more reasons that demonstrate the importance of signing an Employee Contract.

1. An employment contract assures the employee that he or she is working for a professional business with clearly defined responsibilities.
2. A well-penned employment contract protects the interests of the company from a potentially harmful lawsuit.
3. Oral agreements are generally unenforceable and virtually impossible to prove if contested by either party. A clearly written contract is hard evidence for the parties concerned when backing up a claim.
4. Besides, an effectual contract visibly outlines the expectations and obligations of both parties, preventing potential misunderstanding and assumptions.
5. The employment contract establishes protocol in the event of conflict and dispute resolutions.
6. An Employee Contract sets out performance standards. This offers signing individuals extra security and the opportunity to discuss and clarify expectations prior to signing.
7. An Employee Contract may refer to terms and conditions in collective agreements or other procedures of the company that directs the employee to further reading, such as in a handbook of company rules. Therefore, the employee is informed from the start about the rules and regulations of his or her new company.
8. Examining an employee contract also gives the employer and employee the opportunity to ask further questions, discuss expectations, and solidify the new working relationship.
9. Writing a detailed Employee Contract gives the employer the option to forbid an employee from working for a competitor as well.
10. In addition, the employer can state that the employee is not permitted to reveal confidential company information.

Finally, a great Employee Contract creates more possibilities. For example, a smaller scale company may obtain a wider talent pool with a contract that offers guaranteed employment and income security. This can be of great value to workers in a highly competitive field.

The employment landscape has been thrown into a tailspin of change since the COVID-19 pandemic. Businesses and employees have been faced with difficult decisions. Saanichton Law Group has been offering expert legal services in Saanichton for well over two decades. A legal Employee Contract may just provide the confidence that your rights are protected during these unpredictable times. For assistance with all of your employee contracts, call us today 250.544.0727.