{"id":4749,"date":"2016-04-04T10:47:41","date_gmt":"2016-04-04T15:47:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/pros-and-cons-of-written-employee-contracts.html"},"modified":"2024-06-06T05:24:37","modified_gmt":"2024-06-06T10:24:37","slug":"pros-and-cons-of-written-employee-contracts","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/pros-and-cons-of-written-employee-contracts.html","title":{"rendered":"Pros and Cons of Written Employee Contracts"},"content":{"rendered":"\n
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Pros and Cons of Written Employee Contracts<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Hiring new employees is a big step for small businesses. When hiring employees, you may consider an employee contract to protect your company and your employees. You don’t always need an employment contract. There is no legal requirement for a written employment agreement for every employee. However, in some situations, an employment contract is essential for defining the employment relationship between worker and employer.<\/p>\r\n

This article focuses on the advantages and disadvantages of written contracts for small business owners. See FindLaw’s The Hiring Process<\/a> section for more related articles.<\/p>\r\n

Types of Employment Contracts<\/h2>\r\n

There are many types of employment contracts. C-suite executives or intellectual property creators need clauses specifying product ownership and severance packages. Small businesses need standard job agreements with basic clauses about terms and conditions of employment.<\/p>\r\n

Standard Employment Contract<\/h3>\r\n

A basic contract<\/a> contains the job description, the start date, the starting pay rate or salary, and the job title. The contract must conform to the union requirements if it is part of a collective bargaining agreement. If you use an employment contract template, you should remove any clauses that do not apply to your business. Otherwise, you may be bound by the terms.<\/p>\r\n

A standard contract may include:<\/p>\r\n