Most business entities would not operate without any employees who work with them. Thus, employment issues are big factors to consider in establishing a company. It is very important then to determine how to create a pleasant employer-employee relation that would be beneficial to both parties. Hence, a perfectly and lawfully designed employment agreement is vital in attaining this goal. If the company fails to furnish this helpful contract, then expect some problems to occur in the future.
An employment agreement is a company document that is settled upon by both the employers and the employees through signing. This practically states the terms and conditions that should be adhered to by both parties. Therefore, it would serve as a reference in clarifying employment relation problems that arise or if a civil court ask for it in future litigations.
Commonly, this piece of document contains important stipulations such as:
- Employment tasks - The job position that an employee is expected to perform, explaining entirely his or her duties. It should also remind the employee that the task might be expanded or modified according to the need of the business.
- Wages - The amount of base salary that an employee would receive upon employment and the requirements for bonuses and commissions should be properly set forth.
- Benefits - It should have the listing of benefits that the employees may receive including a provision that the employer has the right and discretion to exclusively alter their wages and benefits.
- Stock options - In companies that allow their employees to have stock option grants, the employers should clarify that the grant is a stock option rather than shares of stocks.
- Employment duration - This specifies the length of time that the services of an employee is maintained in the company. Yet, it is highly advisable for the employers to engage in an employment at-will bond.
These are just some of the vital requisites in accomplishing an employment agreement. Nevertheless, since this contract could serve as a legal document, it is quite relevant for you to consult our Expert Los Angeles Attorneys to guide you in drafting a suitable agreement for your company. Our competence in this line of work will ensure you of avoiding legal impediments in the future. So contact us immediately and we will gladly assist you in formulating your company's employment agreement.
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