You’ve worked hard to establish your business and it is now really starting to take off. You started out on your own, so employment contracts were not something that you really needed to worry about. Now that the firm is growing, you’re taking on an increasing number of staff members, and you want to shore things up with written agreements.
This is a very sensible move, as contracts provide clarity and rights to both parties. Nonetheless, this is only the case if the written terms are clear, fair and within the confines of the law.
Recognizing some of the more common unfair contractual terms will help you to avoid making any mistakes with your documents. Outlined below are some important things to consider.
There are very few businesses who don’t have wastage, breakages or other types of losses from time to time. This is part and parcel of running a company. You may see the impact that this is having on your bottom line and want to recuperate some of the losses. It may be tempting to make deductions from employees, particularly if they have caused the losses by being careless. However, you have to be very careful. Terms about making deductions in such instances could be ruled unfair, meaning that you potentially lose out on more in the long run.
Rates of pay
The standard working week in Pennsylvania is 40 hours per week. While workers can go over this time, they need to receive a fair amount of remuneration. If your contract includes payment terms that do not meet the legal requirements of the state, then a worker can argue that the contract is unfair. Typically, employees should be paid one and a half the rate of their usual pay per hour.
Unfair contractual terms are not always the result of malice, but they could still land you in trouble. When drafting agreements, make sure you have some legal guidance on your side.