An employment contract is a legal document that describes the parameters or scope of an employer-employee relationship. Creating employment contracts can be an important step to take for business owners in Atlanta, Georgia.
Not all companies require employment contracts. Many businesses operate under implied contracts only, which use general federal and state employment rules. If you are dealing with one of the following situations, however, creating your own contracts may be in your best interests.
You have a highly skilled employee
An employee with a special skill set or high level of expertise might require a unique employment contract. You may need to create a contract spelling out the terms of employment to protect yourself from the person leaving without notice. Otherwise, the person could quit without putting in a two week’s notice according to Georgia’s at-will doctrine.
You have trade secrets to protect
If your company has valuable trade secrets an employee will become privy to, it is wise to create an employment contract to protect these secrets. Trade secrets are important assets that could hurt your business in the wrong hands. Creating a contract with clear language as to what an employee can and cannot do with trade secrets can prevent stolen information and ex-employees becoming competitors.
You want an edge in the talent pool
Offering an employment contract with special promised benefits or job security could give your company an edge over the competition when it comes to hiring people in your industry. The right contract could sweeten the deal and convince high-quality talent to join your company instead of going to competitors.
You want to prevent competition
An employment contract could include language such as a non-compete agreement. A noncompete prohibits current employees from using sensitive company information to steal customers. Many non-compete agreements also enforce a minimum period of time that must pass before ex-employees can use a company’s information.