An employment agreement specifies the responsibilities and duties expected of the employee, as well as the benefits to which he is entitled. The agreement ensures that the employee knows what is expected of him in the organization and the terms of his employment.
At the very least, the employment agreement should include the following:
The restrictive terms of employment are crucial to the employment agreement, and may be the only way to protect your intellectual property, work product, etc. against disclosure or misuse if an employee ceases to work for you. The most important of such restrictive terms is the non-compete clause, in which an employee pledges that for a given period (usually 12 or 24 months) after the termination of employment, regardless of whether someone is fired or quits, the employee will not directly or indirectly affiliate with any business or engage in any activity that might compete with your business in the county or geographical area in which your business operates. It is essential that this clause is drafted clearly, comprehensively and within the bounds of your jurisdiction’s law; if it is too narrow, you will not be adequately protected, and if it is too broad, it will not be enforceable in a court of law.
You should note that in some cases, it is especially difficult, if not illegal as against the public interest, to limit your former employees to completely refrain from practicing their profession. You should thus always include in your employment agreement a clause that protects the confidential knowledge your employee may have gained in the course of his employment (i.e. customer/ client information, trade secrets, certain practices that are exclusive to your business and other such “insider” or non-public information that an individual can only learn as an employee). You should also insert into your employment agreement a provision that requires your employee to refrain from soliciting your customers or prospective customers (and define who constitutes a prospective customer), or your other employees, such as if he starts his own business and recruits some of your staff.
Contact an Experienced Business Law Attorney
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