Why should you use an employment contract?

On Behalf of | Mar 9, 2021 | Business Law | 0 comments

Your employees are the lifeblood of your Illinois-based business. Without them, you may not have the success that you currently enjoy. As their employer, you promise steady income in exchange for their skills and abilities.

An employment contract can aid you in protecting your organizational objectives while also encouraging compliance from your employees.

Outline roles and responsibilities

The most effective employees are the ones that clearly understand their role within your organization. While training plays a key part in preparing your employees for their responsibilities, including an outline of their duties in an employment contract can provide reinforcement. According to Bizfluent, you should include your responsibilities in the contract as well.

Along with job-related duties, disclose your employees’ pay including commission or bonus structure. Describe how overtime incentives work. If an employee changes positions within your company, update their contract to reflect the changes in their role and responsibilities. Keeping this information current will prevent confusion if you ever encounter legal trouble.

Define expectations

As an employer, you have the right to determine the behavior you expect from your employees. Some of the expectations you can address in your contract may include the following:

  • Your policies on leaving the organization to work for a competitor
  • Your protocols for handling disciplinary measures and termination
  • Your procedures for addressing and solving disputes

An employment contract can provide a valuable reference for both you and your employees. With clear expectations, roles and responsibilities outlined in a formal document, a well-written contract can protect you and your employees and facilitate a sustainable business relationship.