Hiring a new employee is a major commitment for an organization. The company needs to absorb numerous ongoing expenses including the cost of the worker’s weekly pay and the benefits that the company offers. Employees represent more liability than just financial obligations. They can make mistakes on the job that lead to legal issues for the business. They may mistreat coworkers, which could lead to disruptions in the workplace or even lawsuits against the company.
Organizations, therefore, need to be very cautious about what terms they include in employment contracts, as hiring someone new is a risk in addition to being an expense. What contract inclusions can reduce the risk inherent in expanding a company’s workforce?
Companies in Pennsylvania often add restrictive covenants to their employment contracts to limit the risk of workers harming the organization in the future. Including restrictive covenants in an employment contract can prevent a worker from posing a threat after they leave their job. Noncompete agreements can prevent workers from starting a job at a direct competitor or creating a competing business themselves. Non-solicitation agreements can limit the risk of workers trying to hire their teammates or do business with customers and clients after leaving the company. Non-disclosure agreements can help protect an organization’s trade secrets from misuse.
Media, social media and technology clauses
There are many ways that a worker’s use of technology could damage a business. They might say inflammatory things on social media while listing the organization as their employer, leading to a flood of negative feedback. They might use artificial intelligence AI to do part of their work, leading to major mistakes or intellectual property law violations. They could talk to reporters about the company and unintentionally cause issues. Having very clear rules regarding how workers use technology to do their jobs, if they can talk to the media about the business and how they use social media can all help protect a business from reputation damage.
Clear standards on discipline and job performance
Employees who do not understand their job responsibilities are more likely than others to do a poor job. Including very clear expectations about someone’s job performance can help workers. Additionally, including clear standards regarding performance evaluations and disciplinary actions in employment contracts can protect organizations against future accusations of discrimination and other misconduct if the company decides to terminate a worker.
There are a host of other possible inclusions that may be useful in employment contracts depending on the industry in which a business operates in the role that it hires a worker to fill. Creating custom employment contracts can help businesses minimize the challenges that come with bringing on new employees.