What information should go in employment contracts?

On Behalf of | May 24, 2022 | business law | 0 comments

As an employer, you want to protect your business interests, so that it remains profitable and operational. This means entering into contracts with your employees that effectively outline the terms of their employment.

Your employees also have rights, which, according to the California Department of Industrial Relations, include the right to minimum wage and overtime, rest and meal breaks, benefits if injured, a safe workplace and the right to take action without retaliation.

Including certain terms in your employment contracts can help you protect your business while ensuring the rights of your employees.

Compensation and employee benefits

Include details about what you will pay your employees and when in your employment contracts. If you provide health, retirement or other benefits to your employees, include this information in these contracts as well.

A description of job duties

Outline your employees’ responsibilities in your employment contracts. This does not need to be extensive but should provide a basic overview of required duties.

Circumstances that warrant termination

Your employment contracts should outline what circumstances need to be present for you to terminate one of your employees. Stating in the contract that the employment is on at “at will” basis can help protect your business from claims that the employee was guaranteed employment for a certain term or entitled to continue the employment absent “just cause” for termination. You should also include what information you will need from your employees if they decide to leave their job.

There may be additional information you want to include in your employment contracts based on the specific needs of your business. For example, you may want to add terms for how to solve employment disputes, the days and times your employees should work and information about when the employment relationship begins.