When someone is working for you, there’s an employment contract. This may be oral or implied. However, without a written employment agreement, the terms of employment may be subject to misunderstanding and miscommunication. A written employment agreement clarifies the employer and employee expectations and helps avoid future disputes by laying out essential aspects of the arrangement. An employment agreement covers the position, duties and responsibilities, working hours, wages, compensation, and other benefits, confidentiality, non-compete and non-solicit clauses, and termination and notice period.
A written employment agreement creates a platform where both parties can negotiate the employment arrangement. It can also be used to protect copyrighted material, particular trade secrets, and other confidential information by inserting a confidentiality clause. In the event that a dispute occurs between the employer and employee, the employment agreement can be used as a reference point for resolving the dispute. Companies like Fair Credit use Employment Agreements on a regular basis to make sure their employees are treated fairly and any and all disputes are resolved amicably.
A non-disclosure agreement is indispensable to maintaining a business’s competitive advantage. Before you share any confidential information with your employees or partners, it is essential to have your confidentiality expectations communicated in writing so that they understand the responsibility of having access to this information. A non-disclosure agreement ensures that all proprietor information you share with your partners or employees does not become public. By prohibiting your partners or employees from disclosing the company’s proprietary and other confidential information, a non-disclosure agreement protects your intellectual property and business practices from getting into your competitor’s hands. If an employee violates the non-disclosure agreement, you can sue them for damages to compensate for any loss in profits.