Good Employment Contracts Can Prevent Expensive Disputes
Oct. 19, 2020
Many people have said that the most valuable asset any business has is the people that work for it.
Whether one agrees with that or not, the reality is that Houston business of all sizes need to be careful how they hire, terminate and manage their employees if they want to avoid lawsuits or government action against them.
While not necessary for all position, a first step in this direction will often be a well-drafted and thorough employment contract.
Employment contracts are particularly common when a company hires an executive or someone who is bringing a special skill set or professional certification to the business.
Employment Contracts Are About More than Salary
Of course, an employment contract should describe in detail how the employee will receive compensation. These details should also address bonuses, fringe benefits and the like.
However, employment contracts need to cover a lot more territory as well so that expectations are clear in all aspects of the relationship.
For example, employment contracts should have information about the employee’s job duties and what the employer’s work expectations are.
The contract should also address what will happen when the relationship ends.
On a related point, the agreement should also include any confidentiality and other agreements that the employer may want to have in place in order to protect its company secrets. Of course, it is important to be sure these agreements strictly comply with Texas law.
The contract can even address how the employer and employee will resolve their differences should any arise. A provision of this sort can head off expensive courtroom litigation at the outset.
A Houston business which is in the process of hiring a new executive or professional may wish to seek a legal professional’s help with preparing an employment contract.