Not every business is of the type that requires contracts with employees, particularly businesses that have high employee turnover, but, otherwise, most business owners should seriously consider whether to enter into employment agreements with their employees. Some of the reasons for doing so are to
- clearly define the employee’s job and your expectations;
- clearly set out compensation;
- clearly set out other benefits and vacation;
- clearly set out whether the employment is at will or for a specified term;
- clearly set out codes of conduct and bases for termination of employment;
- limit the employee’s ability to compete with your business should they leave;
- limit the employee’s ability to steal your clients, customers, other employees, or vendors should they leave; and
- have the employee provide certain assurances and promises as to competence, loyalty, professionalism, and confidentiality, among others.