As someone who makes important hiring decisions at your Indiana place of business, you may find it advantageous to create a carefully worded employment contract to protect you and your business’s interests anytime you hire someone for a senior position. While employment contracts can serve any number of different purposes, the main goal in crafting yours should be to protect your business in the event that the relationship between you and this new hire ultimately turns sour. At Dale & Eke, we understand that strong employment contracts can help you secure and retain prime talent, and we have helped many people with similar interests design and implement solutions that meet their needs.
According to Inc., while your employment contract needs will vary to some degree based on the specifics of your business, there are a number of critical elements that any strong employment contract should have. First, it should clearly outline what you and other senior executives expect out of this person in terms of job duties and performance, and it should also clearly dictate when and how he or she will receive compensation.
Second, a good employment contract will typically outline what types of behaviors or actions might be grounds for termination, and generally, the more specific you can be here, the better. This is also the place where you may want to consider including language about what, if any, type of severance package you plan to offer the person you hire, should the need arise.
Third, you will probably want to consider including some type of noncompete clause in your agreement that clarifies your expectations for the person you hire, should he or decide to leave your company and pursue employment elsewhere. This part can be tricky, because, while you want to include language here that protect you and your business’s interests, you do not want to limit your hire’s other options so much that he or she balks at signing on with you in the first place. You can find out more about business law on our webpage.