How to Draft a Great Employee Contract

Employers need to create detailed contracts for their team members. There are several benefits to utilizing contracts in your business, but before you can start reaping the benefits, you need to draft your contract. Here's what all businesses need to know.

Running a business can be incredibly exciting. Not only do you get to launch a fantastic product or service, but you also get to hire a team of well-rounded employees who are dedicated to the craft. One of the most vital aspects of running a business, however, is drafting an employee contract your team can count on. Employee contracts are an important part of any business. They not only protect both the employer and employee legally, but they ensure that each person is on the same page, so to speak, when it comes to employer/employee relations. Before you start drafting your employee contract, there are a few things you need to know.

1. Outline expected behavior protocols

Your contract needs to let your team know exactly what you expect from them. One of the most important aspects of building a quality company is ensuring that you and your employees communicate clearly and effectively. This starts before your team members are even hired. Your contract should outline what you expect from your team members when it comes to behavior. This includes both personal and professional behavior. For example, do you want your team members to work overtime? Do you have a policy in place for how you'll handle sick days? What if a team member fails to show up for work? How will you deal with this? Let your team know before they even start working for you what you expect. This will help you communicate better and it will ensure that your company runs more smoothly.

2. Include information about termination

Unfortunately, terminations do occur. Even great employees can make mistakes and even people who interview well can later let you down. Understand that terminating an employee does not reflect poorly on you or your company. Sometimes it's a necessary part of running a business. You should, however, be specific in your employee contract. Let your team members know what types of behavior or mistakes are grounds for termination. If someone misses a certain number of work or fails to complete a project, for example, is this grounds for termination? Outline this clearly.

3. Be as specific as possible

While being vague can make sense when you don't want to hurt someone's feelings, understand that when it comes to a business contract, specifics are key. Always include specific numbers, dates, and percentages in your employee contract. It's also important that you clearly outline guidelines and standards of conduct in your contract. Having specific information in your contract, whether it be related to the duration of the contract or the types of things that will result in termination, specifics are key to communicating effectively with employees.

If you're ready to draft an unforgettable employee contract, you'll want to meet with a commercial attorney who can help. A business lawyer understands contract law clearly and will help you create something that will benefit both you and your organization.