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Do you need contracts when hiring new employees?

There is no law that states you must enter into a formal relationship with every employee by having that individual sign a contract, but it could be a smart step toward protecting your business interests. By doing this, both you and your employee agree to fulfill the obligations outlined in the contract. 

Employee contracts should be thoughtful and carefully worded in order to avoid conflicts and problems in the future. With the help of a South Carolina attorney experienced in business law, you can be certain that your employee contracts protect your business both now and as long as that employee works for you. 

What should you include in your employee contract?

A solid employment contract will spell out what you want your employees to do. Clear wording leads to clear expectations, in turn, leading to a lesser chance of problems and issues. Other factors that you may wish to address in the terminology of your contract may include:

  • Outline of health benefits
  • Term of employment
  • Responsibilities of the employee
  • Vacation policy
  • Sick day policy
  • Grounds for termination
  • Non-compete terms
  • Ownership of company property
  • Ways to resolve disputes and voice concerns

When your employee contract outlines the terms regarding grounds for dismissal, it typically means that your employee is not at-will. This means that you cannot fire that person unless circumstances match the terms specifically outlined in the contract. Depending on the nature of your business and the obligations of the employee, this may limit you and ultimately have a negative impact on your company.

Protecting your interests

One of the most common ways to protect your business secrets and proprietary information is to include certain terms in your employment contracts. This may not be necessary for every business, but it could be important for you in case an employee goes to work for a competitor in the future.

Legal guidance for your company

There are many legal issues that you must consider when owning and operating a business, and employee contracts is just one of them. When you have the guidance of an experienced business law attorney working on your behalf, you can have assistance with employment concerns and drafting solid contracts that will protect your future interests.

These are important matters, and you would be wise to address them only with the support and guidance of an experienced attorney. Employee contracts may seem trivial, but in reality, they can have a significant impact on your company, your rights as the employer and your relationship with your employees.


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