Kevon Miller Law

Top Free Contract Templates for Small Businesses and Freelancers

employment contracts for small businesses

It’s also good for both employers and employees to know that not all jobs require employment contracts, and many don’t involve them at all. However, human resources professionals are recommending employment contracts more and more as they protect both employers and employees and help avoid misunderstandings and uncomfortable situations. Don’t make the mistake of assuming you’ll have to hire a human resources team or legal consultant in order to put together worthwhile employment contracts, either.

Protection against unfair dismissal from day one

  • This can result in misunderstandings or disputes if provisions aren’t fully adapted to the parties’ requirements.
  • They also reduce legal costs since there’s no need to hire a lawyer for every document, thus making high-quality legal documents accessible to those with limited budgets.
  • Note that, if an employee has a problem receiving their written statement, you’ll be the first person they speak to.
  • Because North Carolina law has highly intricate contract statutes, you need to avoid legal action by using the essential terms to keep your contracts airtight.
  • All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice.
  • A confidentiality clause contract ensures employees keep company business within the company.

With a formal written contract, you will be able to hold the contractor accountable. This section of your contract of employment notifies the employee that once signed the current contract supersedes any previously signed contracts. Additionally, this is the section to state that this contract may be amended in the future only by written and signed documentation. You can also take it a step further to state that employees are not allowed to engage in outside businesses that directly compete with your company. However, be sure not to use language that prohibits an employee from seeking gainful employment upon termination from your company, as new rules have been proposed. If you and the employee agree in advance to terms like 30 days’ notice or severance payments, be sure to include that language in the contract itself.

Legal professionals usually develop these templates to cover typical clauses and stipulations. This ensures essential legal aspects are included, reducing the risk of disputes. In an increasingly digital world, the accessibility of free contract templates empowers users to streamline their operations while maintaining professionalism. By leveraging these resources, businesses and individuals can confidently manage their contractual obligations, fostering trust and transparency in their professional relationships.

employment contracts for small businesses

By setting clear expectations and obligations from the outset, parties involved can minimize misunderstandings and foster trust. There should be fairness, give and take between the employer and employee. Handbooks, agreements and policies exist to benefit the employee employment contracts for small businesses as much as the employer. Laying out and following these “rules of the employment game” makes sure there are no unpleasant surprises, and lets your employees know they are treated equally and fairly. Now that you know what employment contracts are, let’s discuss what they can actually do for you and your small business. Multiple aspects of relationships between agents in the sphere of employment require dozens of various employment templates and labor contract samples.

What Documents Are Required When Hiring a New Employee?

A document that both parties do not sign is hard to defend in a court of law, as the person who didn’t sign it can claim they didn’t know about it. An at-will employment clause should be added to any employment contract so that there is no question as to whether a worker can be terminated. Codes of conduct must be easily accessed by employees, say, in an employee handbook, intranet or on a noticeboard. The contract terms should also be in the offer letter from the employer.

Here, we’ll explore the most common types of employment contracts and how they can benefit your small business. As a small business, you’re probably very aware of your competition and the negative impacts of what could happen if you lose a valuable employee or client to them. An employment contract can be crucial in helping to minimize this with a non-compete agreement. This agreement will limit the employee’s ability to compete to compete with your business, the catch is that you have to include specifics about the time period, geographical location, and type of business. As with confidentiality clause, the help of an Employment Law Attorney is crucial in making sure you have an agreement that can stand up in court.

They assist users in adhering to basic legal requirements while allowing customization for specific terms and conditions. Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling, shift planning, time clock, team communication, hiring, onboarding, and compliance, managers and employees can spend less time on paperwork and more time on growing their business. With an employee scheduling app, employee schedule maker, and work schedule app, Homebase is built for staff scheduling, shift swapping, predictive scheduling,  auto scheduling, rotating schedules.

Can an Employment Contract be Changed After it is Signed?

Ideally, your contract should cover any breaches or disputes that may arise. You’re at risk because your employee could resign and make a claim against you for, say, constructive or unfair dismissal. That’s why it’s best to have an open door policy and encourage employees to come to you with problems in the first instance. ‘Implied terms’ are also part of the contract, even if they’re not in writing. It could be employees not stealing from their employer or you as an employer providing a safe working environment for your member of staff. We’ll take you through the most important parts of an employee contract alongside a contract template to give you a solid idea of what the document should look like.

A strong employment contract template should include terms of the agreement, the employee’s responsibilities, compensation and benefits, and an at-will statement. However, free contract templates can lack specificity, potentially leading to gaps in terms or conditions that don’t fully address unique nuances of certain transactions. Users may also face outdated legal standards if templates aren’t regularly updated, increasing the risk of non-compliance.

These clauses place limits on employees’ activities after they leave your company, covering things like working for competitors, soliciting clients, or sharing confidential information. A severance agreement is an employment contract that outlines expectations when employment is terminated. It should include details about the severance package, including salary, benefits, and other compensation, such as stock options or bonuses. A confidentiality clause contract ensures employees keep company business within the company. If you, as an employer, have proprietary information, you need legal protection from informational leaks.

The Brown family has maintained a tradition of excellence as legal practitioners for more than 65 years. For three generations the family has championed their clients in a manner that greatly exceeds the expectations of the client. The representation of their clients demonstrates the ideal practice of law.

Free contract templates save time by providing a ready-made structure that simplifies the drafting process. Users can focus on customizing documents to specific needs instead of starting from scratch, which is particularly beneficial when dealing with standard agreements like leases or nondisclosure contracts. They also reduce legal costs since there’s no need to hire a lawyer for every document, thus making high-quality legal documents accessible to those with limited budgets. Furthermore, templates often come from reputable sources, ensuring compliance with common legal standards. They are typically formal, written documents that employers develop with the help of a lawyer, human resources professional, or HR tool and ask team members to revise and sign before their first day. However, especially in the small business world, employment contracts may be more informal or even verbal, though this isn’t recommended from a legal perspective.

Leave a Reply

Your email address will not be published. Required fields are marked *

6 − 5 =

Kevon Miller Law