Often courts overrule the non-compete terms of a contract if they are considered overly restrictive or unreasonable. For small businesses, I recommend presenting, at least, a written offer letter that sets out pertinent details, plus getting the new employee’s acknowledgement and adherence to the employee policy manual, if you have one. Now that you understand the basics of an employment contract, it’s time to start creating these documents for new hires. Lots of people try to create an employment contract on their own but leave out crucial details that put the business at risk. In some cases, the documents are done so poorly that they would never hold up in court. Creating any legal document from a blank page is intimidating, and it’s not something that I can recommend with confidence.

One report found that switching to e-signatures can save a business up to 30% in paper, printing, and filing costs. BambooHR not only helps with employment contracts, but also with documents like application forms, feedback forms, evaluation https://www.bookstime.com/ forms, and time-off forms. This section provides forms and contracts to help small business owners with many aspects of business operation — including business start-up, employing workers, and managing strategic transactions.

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Unlike independent contractors, a fixed-term employee is treated just like a regular employee for the duration of the contract. Fortunately, the best online contract management systems empower businesses to store and process data securely more effectively. At Juro, we have strict data security provisions built into our software that make safeguarding client and employee data effortless, such as encryption and two-factor authentication amongst other things.

The best way to do that is to create an employment contract that is legally binding and protects your small business. BambooHR is an all-in-one human resources solution with tools for recruiting, hiring, and new employee onboarding. The software comes with a built-in electronic signature employment contracts for small businesses feature to help you streamline the onboarding experience. You can distribute employment contracts and collect signatures from new hires more efficiently. Some employment contracts will include the days, hours, and other elements of the schedule that an employee is expected to work.

Reasons Your Small Business Needs Written Employment Contracts

Choosing a legal specialist will ensure you have comprehensive and legally accurate contracts of employment in place to protect, not only you as an employer, but also as protection and an incentive to your employees. When boundaries are clear and employees know what is expected of them, they are more likely to add value to your business. In most small businesses, an in-house lawyer will typically ‘own’ the contract process. Your employment contract should state up front how long it is valid, as well as specific dates when it begins and ends.

• If the Employer is an Entity then an Authorized Signature Representative may sign this document on behalf of the Employer.
• The Employee shall comply with all company policies, rules and procedures at all times.
• Part-time employment typically falls within the hours per week range but can be anything below what’s considered full-time in that state.
• It is against the law for employers to discriminate against applicants.
• One aspect that makes employment contracts an attractive option for employees is the promise of severance pay.
• It may surprise you, but as a small business owner you have a contract with your employees, whether it’s written down or not.

To define each expense the Employer will reimburse the Employee for obtaining, select the checkbox corresponding to its description. If the concerned Employee is defined by a specific period of time, then a discussion on the Employer’s ability to terminate this contract early should be engaged. One of two checkboxes should be selected to present this definition. If the Employer retains the right to terminate this contract’s effect early, then the “Shall” checkbox should be selected, and the remainder of this statement completed.