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What to include in an employment contract

As the owner, manager or senior executive of a California business, you will likely, at some point, need to establish guidelines that will protect your company and the worker, should the relationship not work out. One effective method of doing so involves crafting a carefully worded employment contract that covers any number of areas relating to a new hire’s employment. At the Law Firm of Lan Quoc Nguyen & Associates, we are well-versed in the various areas that most employment contracts cover, and we have helped many people in your shoes draft employment contracts that fit their needs.

According to Inc., one thing you must be sure to include in your employment contract is an overview of what you expect from the employee as well as language describing how you plan to compensate this person for work performed. Once you have an overview of the position and compensation in place, you will likely also want to devote some attention to including non-compete and non-solicit clauses.

non-compete clause sets guidelines you expect your hire to follow in the event that he or she leaves your company and wants to sign on with a competitor. This part of the employment contract can prove a bit tricky, because, while you want to cover yourself, you also do not want to limit your employee’s future so much that he or she thinks twice about agreeing to work with you in the first place. A non-solicit clause, meanwhile, typically sets guidelines preventing your employee from trying to take other workers with him or her, should he or she decide to leave.

A solid employment contract will also devote some attention to any severance packages you plan to have in place, and it should also outline what types of actions or behaviors could prove grounds for termination. You can find more about business law on our webpage.

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