Why Every Employee Needs an Employment Contract
Employees need to know the advantages of having employment contracts to ensure they are doing the work properly. An agreement between a company and an employee should not be accepted over mere terms. There is a need for a well-outlined, documented and signed legal statement between the two parties involved in the business.
An employment contract is a signed legal agreement between an employee and employer. It usually contains the salary or wages, duration of employment, well-detailed responsibilities, benefits, schedule, holidays, non-disclosure agreement (NDA) and sometimes non-compete agreement. Here are reasons why every employee needs an employment contract.
Clear Roles and Responsibilities
Bankers, Doctors, Programmers, Engineers and basically every professional newly employed in a company will expect to play specific roles and responsibilities. However, employees can work more than expected if this is not well defined. The employers may assign extra duties asides from the general position, which would be a loss on the employee's side.
Fortunately, an employment contract solves this problem. It consists of clearly defined duties you need to carry out as an employee. You'd know the exact schedule, timeline and different tasks you are to carry out daily.
Protection Of Rights
An employment contract protects the rights of both parties in agreement. Employees will now have legal backing to prevent power abuse from employers and neglect of duties from employees. It can also form the backing behind contract termination if anyone breaches the agreement.
Companies have to state clearly their set terms, which usually include the non-compete and non-disclosure clauses. These are mainly employed when the company doesn't want you to work for a competitor as you have all their insider information.
As an employee, you should also negotiate suitable conditions that favour your workâfor example, a discussion of benefits and job protection against unwarranted contract termination.
It is recommended you get an employment contract from experts like The HR Dept to get a legally compliant statement covering your work conditions. They are a professional company that ensures both working parties are protected.
Maximize Up-front Investment
Professionals are knowledgeable individuals who have expertise in a particular field. Nevertheless, some specific information is required to carry out certain tasks in companies and industries. To maximize effectiveness on the side of employers, they set up up-front investments in the employees. This can come in the form of pre-training sessions, courses and lectures.
However, employees may take the training sessions and leave the company with the information. To prevent the high risk of losing information, it is best to have a signed employment contract. The signed document will state all work conditions and ensure they stay to benefit the company afterwards.
Protect Company's Sensitive Information
For job offers which involves handling secret company document and information, an employment contract is the best way to protect your business. A non-disclosure agreement is a document that employees sign to pledge to never leak or disclose insider information to the outside.
A non-compete form can also be in the contract to prevent employees from working in a competitor's business. In summary, a well-written agreement precludes the leaking of sensitive information to the wrong party and safeguards business.
Invention Assignment
A company hiring an individual to build a product or an invention can protect against ownership theft using an employee contract. The clause will state all conditions pointing the ownership to the company. Hence, employees have no right to it despite using their creativeness and the company's resources to develop it. They would also agree not to share information used in building the invention.
Legal Purposes
Another benefit of having a signed employment contract is to provide legal binding in case of contract breach. If your employer abuses or breaks an agreement, you can always go the legal way when you have the document. This will serve as proof and justify your plead.
Improves Working Standards
When you understand all the set roles that your company demands, you will efficiently work at high standards resulting in increased productivity. With the set standards, there'd be less room for unacceptable work behaviour and ethic. You would also develop a good relationship at work and feel happier, contributing to the company's success.
Retain Good Employees
Labour turnover costs organizations a lot of money and can disrupt day-to-day operations. An employment contract has many advantages, including defining the conditions of employment and limiting the circumstances under which an employee may be allowed to quit early.
An organization can't prohibit an employee from leaving, but it can put up incentive schemes to maintain the best employees. Vesting schedules for stock options are an excellent example of this.
It can be pretty tricky to land the best employees when the hiring market is so tight. Most top-tier job seekers don't hang around for very long before receiving various offers. You may be able to set yourself apart by negotiating a good work contract.
Endnote
Do not begin an official job with a company without having a signed employee agreement. The document saves you a lot of stress and provides clear information on duties, salary, holidays and lots more. It also protects rights and provides legal backing in an agreement breach.
