Many employees have never heard of the written employee contract. You might see it as an unnecessary annoyance mucking up the hiring process. Others have worked in fields or amongst employers who have utilized the written employee contract for all new employees. They may see it merely as a formality observed almost ritualistically or there may be clear and obvious reasons that make it necessary. Today we’ll look at the actual advantages of signing a written employee contract.
What are the Benefits of a Written Employee Contract?
Entering into an employment contract during the hiring process is not always necessary. As mentioned in the previous article defining the written employee contract, it is actually an exception to the rule rather than a basic procedure required for every employee. But there are certain advantages that should be considered.
Employment Contracts are Useful if:
1. You are a contractor or temporary hire handing a special project. The written employee contract can clearly specify terms of employment that can provide you with a written guarantee that you will have the opportunity to continue your work through project completion without fear of dedicating time, energy & expertise to an endeavor that will be handed off to someone else when the end is in sight.
2. You want to protect confidential and/or sensitive information regarding your business or business practices. Confidentiality clauses can be inserted into written employment contracts to protect trade secrets that the employee brings to the table. This can be important for employees who want to protect their life’s work while also joining in on group projects in their field.
3. You want job security. The written employment contract can offer job security and clearly agreed upon beneficial terms of employment.
4. You desire greater control over your employment status. Standards for performance can be clearly determined and agreed upon in writing – making it clear what is expected and what consequences/rewards will occur in response to given circumstances. The written employee contract removes the need to depend on promises from new employers. It is a written documentation of exactly why you agreed to take the job.
Watch for the next article in the series outlining the disadvantages of signing a written employee agreement during your hiring process here on the Blumenthal, Nordrehaug & Bhowmik blog or call today to talk to an expert on the legalities of hiring and how to protect your company during the process.