Your employment contracts protect your business operations and relationships with employees. However, they can also get you into disputes if you fail to observe certain things. A significant percentage of contractual disputes stem from simple mistakes.
Below are two mistakes that some employers make regarding employment contracts:
Not following laws
You need to draft your employment contracts in accordance with state and federal laws. Your agreements may not be enforceable if you fail to follow regulations. Thus, obtain more information from the word go to ensure you draft legally binding contracts.
Not making necessary changes
You may need to update your contract in certain circumstances. For starters, when laws change. As mentioned before, agreements must be drafted following regulations. So, if such laws change, the existing contract may no longer be valid. Thus, you need to update your contracts when laws concerning minimum wage, overtime pay, rest breaks and so on, change.
Further, if you and your employee agree to change an aspect of their job, their employment contract should reflect so. For example, if you increase or reduce their work duties, increase their compensation, or promote them.
Another instance that calls for updating employment contracts is when you change your workplace policies or practices. These include your attendance policy, dress code, confidentiality policy, health and safety policy and vacation days, among others.
Can you make such changes without informing your employees?
Notifying your employees about the changes you make to the terms and conditions of the agreements they signed can help establish transparency and boost employee morale. However, depending on your contract, you may or may not make changes without notice.
You should ensure your employment contracts are enforceable at all times. Consider seeking legal guidance to avoid costly mistakes.
