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The foundations of a sound employment contract 

On Behalf of | Mar 9, 2022 | Employment Law For Employers |

Like most relationships in business, the employer/employee relationship is governed by a legal contract. Contracts generally serve the purpose of protecting the interests of all parties. They can be utilized as a means of preventing disputes that result in costly legal battles. 

However, poorly drafted contracts can cause uncertainty, confusion and unfairness, which means they are counterproductive. For an employment contract to be successful, it must outline some key factors.

Getting classification right

Self-employed workers, part-time and full-time staff and temporary workers are all classified differently. Each category of worker has separate tax obligations as well as legal rights. Employers must make sure that they classify employees correctly so that their hiring process and business practices remain above board. It is also important that employees know where they stand in terms of holiday entitlement, benefits and other legal rights. 

Salary and benefits

While there are people who genuinely love their job, they still do it for the money. Employment is a way to look after yourself and provide for your family. You need to make sure that you are getting the compensation that you deserve and this should be outlined in writing. Your salary is something that can be negotiated before you start, or at other periods, but you should make at least the minimum wage in California


It is beneficial for both you and your employer to respect each other’s privacy. During your application and employment period, you may have parted with sensitive information about yourself and this should not be released to third parties without your permission. At the same time, the company you work for may rely on a unique technology that must not fall into the hands of competitors. A contract can ensure that the privacy of all parties remains intact. 

The relationship between employers and their workers should be founded upon trust. A contract is one way of ensuring that everyone is protected. If you are caught up in an employment dispute, take a closer look at the legal remedies open to you.