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Smith Welch Webb & White Blog

Wednesday, April 15, 2015

Top 3 Reasons Employers Should Review Employment Contracts

 

There is a lot to take into consideration when hiring a new employee.  Once an employer has determined the applicant has the skill level, industry knowledge and people skills needed to do get the job done, it may be tempting to hasten through the paperwork and get back to the day-to-day of running your business.  However, employers should not underestimate the importance of employee contracts. 

 

There are a number of risks associated with using generic employment templates.   Here are the top three reasons it’s smart for employers to periodically review and update employment contracts:

 

First, the contract language should be as clear as possible and crafted with your specific business needs in mind.  If an employee takes an employer to court, any ambiguous terms used in the contract may be interpreted in favor of the employee.  Specific language regarding grounds for termination, your ownership of the employee's work product and non-compete clauses should be included to protect your company's vulnerabilities in your specific industry.

 

Second, while contracts can protect employers, the documents can also unintentionally limit an employer's flexibility.  For example, an employer may commit to a 2-year employment contract to protect its investment in training and avoid a personnel shortage mid-project.  At the same time, employers need to protect their right to terminate the contract early if circumstances change or the work is not meeting their standards.  A thorough contract review can ensure that an employer is protected, while not unnecessarily limiting its ability to adapt to and thrive amid changing market conditions.  

 

Third, it pays to periodically review employment contracts because - like many areas of law - employment law is constantly changing.  Courts and government agencies are continually issuing new opinions interpreting employment laws on a daily basis.  Plus, circumstances surrounding employment are evolving, such as the growing role of technology plays in our everyday personal and professional lives. 

 

Employment contracts can play a vital role in protecting an employer’s ability to recruit, retain and refresh the labor needed to succeed in today’s marketplace.  If you have questions about employment contracts, or would like an employment law attorney to review your existing contracts, contact Megan Pearson today at mpearson@smithwelchlaw.com or call 770-957-3937. 

 

Smith, Welch, Webb and White, LLC is recognized as a premier law firm throughout the State of Georgia with expertise in employment law. We have an uncompromising commitment to serving our clients and our community. Our team of experts routinely handles a wide range of legal matters, and will provide outstanding legal service for you, your family or your business.

 

 

Any representations regarding the law in this Blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog publisher. The Blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.


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