Five Important Reasons For Employment Contracts

  1. Certainty – At the conclusion of employment (all employment concludes at some time) the precise consequences including severance pay is spelled out.  There should be no need to involve lawyers in most cases.
  2. Protection – The contract will eliminate any doubt about what information is confidential and will be protected.  The contract can also protect against unfair competition after conclusion of employment.
  3. Flexibility – A contract can establish the right of the Employer to transfer or change the duties of an employee.
  4. Accountability – A contract can establish performance standards and important duties for the employee.
  5. Cost – The cost of an employment contract is negligible compared to the cost of defending a wrongful dismissal action, paying court established severance pay, or using the courts to protect confidential information or restrain unfair competition.

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