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What are the requirements for an effective employment contract?

As your business in Texas continues to grow steadily, you have begun to weigh your options for hiring and recruiting. Are there ways you can encourage your employees to be loyal and work hard? Are there things you can do to secure the confidentiality of sensitive information and intellectual property? One of the things you may have considered is implementing an employment contract that new hires will sign upon being offered a job. Understanding the requirements of this beneficial and important agreement may help you to better articulate content that suits the unique needs of your organization. 

According to Chron, an employment contract provides you with the means to give your employees a detailed definition of important aspects of their job and what you expect of their performance and conduct. Some of the critical elements that should be featured in your contract include the following:

  • The amount of compensation you will pay them, including any conditions relating to commission, salary, overtime and bonuses. 
  • A clear description of the nature of the position and what your employee will be responsible for in his or her role. 
  • Information discussing how termination will be handled and what kind of warning system your employees can expect.

Still, there are other components including benefits, the length of your employees' agreement and tenure, and the type of behavior and conduct that you expect from each of your employees. 

The information in this article is intended for educational purposes only and should not be taken as legal advice.  

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