Company employment contracts come in many forms. The two most commonly used, though, are those that are written and those that are implied. Michigan business owners can help protect themselves and their company by having contracts that legally protect the best interests of their business.
Written employment contracts can be a standard form for every employee or be unique for each position filled. These contracts generally list an employee’s start date, salary information, benefits and other provisions. Agreements about confidentiality issues, termination and non-compete guidelines are often included. If standard contracts are used for every employee, it is important to review the information provided to ensure it is up-to-date with current company policies and procedures. Individually drafted contracts require even more attention to detail to ensure neither business owner or employee is overstepping any legal boundaries and that all necessary protections and provisions are properly in place.
Implied contracts are created through information provided in company handbooks, memos and policy statements. Legal issues may present themselves if handbooks and policy statements are out-of-date. Assistance is available to ensure the information provided in these company booklets are current and up to par with company goals, standards and offerings.
The information provided in employee contracts, whether written or implied, can have a significant impact on the bottom line of a businesses. If proper legal protections are not in place, business owners open themselves up to litigation and all the negative effects associated with such action. Michigan business owners, whether new or currently established, can seek legal assistance when preparing or updating company employment contracts to ensure their company is fully protected.
Source: FindLaw, “Employment Contracts and Compensation Agreements“, Accessed on March 16, 2015