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What to include in an employment contract

As a New Jersey business owner, chances are, you have a firm understanding of the value of finding and retaining good employees, and the first step in setting yourself up for success while protecting your workers and business involves creating a solid employment contract. At Nicoll Davis & Spinella LLP, we recognize that a carefully crafted employment contract can help you avoid problems and potential legal disputes before they arise, and we have helped many business owners facing similar circumstances take preventative measures to protect their interests.

According to Inc., in most cases, the primary goal of an employment contract is to ensure that the business and the employee have certain protections in the event that the professional relationship comes to an end. So, what types of matters might you want to address in an employment contract?

The first sections of an employment contract typically outline the job itself and how you plan to compensate the employee for work performed. Most employers also typically include some type of noncompete clause in their employment contracts, which outlines your expectations as far as what your employee can or cannot do or disclose, should he or she leave your company and sign on somewhere else.

A solid employment contract also typically covers what your employee might expect as far as a severance package, should you decide to let him or her go. You may also want to include language about what types of behaviors or circumstances might be grounds for employee termination. You can find out more about business contracts and dispute litigation by visiting our webpage.

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