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´╗┐Legal Buffer: Employment Contracts

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When you have your own business, one of the biggest things that you need to watch out for is all the legal matters that can come about. This is especially the case when you are a small business owner that has a lot of stock and effort put into the company. If a legal matter were to arise in this kind of situation, it could be very detrimental not only to the company in general, but to your own well being as well. One of the better ways to protect yourself and your company legally is for your employees to sign an employment contract. Although this may sound like an odd thing to require, most companies are doing it these days. Not only will it protect you, but it will also protect the new employee. For that reason, it is really a win-win situation and both parties should easily agree to fill out an employment contract.

There are certain terms and conditions that must go into the legalese of an employment contract in order to make it good and safe. For starters, one of the bigger things that ends up on the contract is the agreed upon amount that the new employee will be paid. This applies to hourly and salary wages, or another other wages that you may end up giving your employee. All of this information should be listed in the employment contract. Another thing that is important to list is all of the benefits that the employee will receive while working for you. This includes any health insurance, retirement plans, or scheduled paid vacations. This helps both the employer and the employee because each party will know for sure what will be given and received. If it isn't clearly reported, there will be a lot of confusion on both sides.

If you are starting a new business and haven't gotten your employment contracts ready yet, there are a few ways that you can go about this. If you have a company lawyer that you are already putting on your payroll, you can have them draw up the generic papers. You can also hire a contract lawyer to figure out this particular assignment. If you can't afford to hire a lawyer, there are some lower cost options for the smallest businesses. There are books and websites out there that give examples of employment contracts. You can use these as the basis for your own. Only do this if you absolutely have to because you definitely don't want to make a mistake on this type of contract.


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