Defines Expectation
An employment agreement clearly defines an employee’s responsibilities and expectations- and the remuneration that is payable if adequate performance is achieved- before they start in a position.
A term that non-award staff must “work as many hours as is necessary so as to perform the role and all assigned tasks” makes expectations very clear.
Division of salary into a base component- with additional sums for process compliance, productivity achievement and revenue outcomes – can all be documented and recorded.
Protects Intellectual Property and Confidential Information
To protect a company’s intellectual property, client lists, business processes and other confidential information, a confidentiality covenant is essential.
The covenant should prevent employees from making copies or otherwise recording by any means – including in social media contact lists – customer details and the contents of strategic and business sensitive information.
Preserves Goodwill
Employers certainly don’t want staff to leave their business, set up in opposition and take their customers with them. But that’s exactly what can happen if a carefully crafted non-competition restraint is obtained from the employee.
Post-termination competition restrictions must however be reasonable and risk being struck out if they unfairly prevent the employee from earning an income or engaging in fair competition.
Performance monitoring
The agreement must also regulate processes and risks employers face employees regarding performance management, termination and disputes.
A well- crafted agreement will specify the processes to be undertaken so as to provide clarity and avoid uncertainty.