As a business owner on the lookout for additional staff, you should prepare an employee agreement. This contract sets out your responsibilities and rights and those of your organization’s new worker. When attorneys give legal advice to business clients, they typically tell them to include specific items such as the ones below when drafting this document.

4 Items to Incorporate Into an Employment Agreement

1. Names & Titles

Your employment agreement should contain the official names of the employer and employee. The title of the position the employee will hold and the name and title of the person signing on behalf of the employer need to be included as well as their dated signatures. 

2. Compensation

Include items such as base salary, commission, insurance, bonuses, and terms under which they will be paid. Paid holidays, vacation time, sick leave, and other reasons for compensated time off should be stated as well. Explain how time off, pension or retirement benefits, and other compensation accrues.

3. Terms of Service

If the employment agreement is for a set time, specify what that period is, whether the relationship can be extended or renewed, and if so, how that is done. Specify any grounds for which the employer can suspend or terminate the contract—such as drug use, conflicts of interest, or technological misuse. Also, state what the employee’s procedure should be if they want to leave the role. If there is a probationary period during which the relationship can be terminated, make it clear when it begins and ends.

4. Confidentiality Provisions

To protect your company’s trade secrets or intellectual property, attorneys include standard confidentiality provisions in employment contracts. Be clear about the level of access the employee has to company websites and social media accounts and include a formal statement that the company retains ownership of any employee work on such media forums. If the job involves the invention of new products or services, specify that these remain the property of the company as well.

From his offices in Lincoln, NE, David R. Webb, Attorney at Law offers sound legal advice to employers throughout the Lancaster County area who are hiring new talent. Dedicated to assisting clients in growing their businesses and protecting their assets, this attorney applies more than 30 years of experience to every situation. Find out what other clients say about this lawyer’s skill and professionalism by reading Google reviews. Learn more about his practice areas online. Then call (402) 477-7577 to schedule a consultation appointment.