Employment Contracts: Usually Unnecessary Documents Trying To Be Something They Are Not
Posted: 11/01/2012 12:00:00 AM EDT | 3
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Many companies unnecessarily use employment contracts with all their employees. Instead of these documents providing specific legal protections for the company (the very reason to utilize a contract), many documents I see in my practice are often trying to be something they are not and are more of a hassle for the employer in the long run. Take away? Unless the new hire is a senior executive with a complex compen...
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Contributor:
Devora Lindeman |
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Good piece of advice!
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Good piece of advice!
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Good post, Devorah, and interesting points! I recently wrote on the subject on my blog, The Emplawyerologist. I mostly agree with you. A contract that is poorly written or that tries to encompass more than an contract should can be more trouble than no contract. If I may leave you with the following thoughts:
I do believe that a contract, properly drafted, is good to have and can clarify, and minimize the occurrence of, at least some of the issues that we have seen in lawsuits. Without a written contract, a court may find an implied contract and decide the terms based on unwitting statements or behavior. At a minimum, a properly drafted contract will either expressly preserve employment-at-will, or if the employer for some reason does not want an at-will relationship and wants to spell out how and when the parties can terminate the employment relationship. While many may say an at-will disclaimer can be included in a handbook, I feel it does not hurt if the individual contract contains a disclaimer and states that the contract terms control if there is a conflict between its and any other document's provisions. The handbook, as you pointed out, is for general policies, procedures that would apply to all or most employees. The contract can spell out terms that will apply to a specific employee. Again, I think we are mostly in agreement, and your points are well-argued and well-taken!
Thanks for a great post!
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