Key terms to negotiate in an employment contract

Securing talent in today’s labor market is tough. Those who are seeking employment have a lot of options at their disposal, which means that they often have the upper hand when it comes to negotiating an employment arrangement.

However, one way that you can entice top talent to your business while protecting your interests is to utilize employment contracts. These agreements can provide an employee with a sense of stability while specifying what you will get in return.

Negotiating your employment contract

As you consider whether to use employment contracts in your business, you need to think about the terms that are most important to you so that you are better prepared to negotiate them. Here are a few of the key terms in an employment contract that you may want to pay particularly close attention to:

• Job description and duties: You will want to make sure that you are giving yourself enough flexibility here so that you are giving a realistic picture of what the job entails while still keeping it somewhat open to allow for changed needs.
• Compensation: Of course, you will want to make sure that you are offering a compensation and benefits package that is enticing but that does not leave you in a precarious financial position.
• Terms of termination: Is the position going to have an identified end date? If not, then you will want to specify what can justify termination. You may also want to indicate how disputes will be resolved, such as through arbitration or mediation.
• Confidentiality: If you are dealing with sensitive information that you want to protect, you will want the agreement to be crystal clear in how that information is to be handled and the restrictions placed on its use and distribution.
• Noncompete clauses: If you want to prevent the employee from going to work for a competitor in your region after leaving your employ, you might want to implement a noncompete clause in your contract. Be aware, though, that Texas law has some restrictions on the use of these agreements that you will want to take into consideration as you negotiate the contract.

Secure the guidance that you need in your employment matters

Running your business can be tough. And with so many moving parts, it can be tempting to cut corners to save yourself some time and money. But don’t let your daily stress put your business at risk. By working with an experienced business law firm, you can have some of the burden lifted from your shoulders so that you can focus on making your business successful.