The ‘what’ and ‘why’ when structuring an employment agreement

Whether you are forming a business or looking to revamp how you approach your company’s employment matters, it may be beneficial to review and read up on those vital pieces that should be in every relevant contract. After all, ensuring that the right elements make it into your Alabama employment agreement may save you from litigation down the road.

The technicalities

Every employment agreement should address the technicalities of the job. That is, it should address the location, the hours of work and whether the signing employee is or is not an at-will employee.

The responsibilities

The agreement should also address the responsibilities and duties involved with the position. If there are no clear expectations on the role for which you are hiring the employee, it may be difficult to address performance-related issues in the future.

Protecting your interests

Odds are you have a product or service which is protected by intellectual property laws. Vital information such as strategies and customer details may not have protection, however, so you will probably want to have a non-disclosure clause as part of the contract. Other necessary, related elements include non-solicitation and non-compete clauses.

The perks of the job

Make sure your contract is specific as it addresses the rate of pay and overtime. The agreement should also list out the employee’s insurance benefits as well as paid time off hours, breaks, holidays and maternity and paternity leaves. If there are any incentives—awards for quarterly goals, commissions, etc.—you may want to also mention those.

Protecting your interests as an employer and business owner starts with taking care of your employees and understanding the weight each agreement can bear, no matter how seemingly harmless the employee’s role may be.