Ensure your employment contracts are sufficient to protect your business

Employment contracts are a critical part of any business as they outline the terms and conditions of the employment relationship between an employer and an employee.

A robust and compliant employment contract protects the interests of both parties and can help prevent disputes, lawsuits, regulatory and compliance issues.

We look a some simple steps to ensure your employment contracts provide the best protection for your organisations

Include Key Clauses in Your Contracts:

Your employment contracts should contain specific clauses that help protect your business and employees. These clauses may include terms such as confidentiality agreements, non-compete clauses, intellectual property clauses, and termination clauses. Including these clauses in your employment contracts can help protect your business interests, prevent breaches of confidentiality and prevent disputes.

Ensure Your Contracts are Clear and Specific:

Your employment contracts should be clear and specific to avoid ambiguity and misunderstandings. Clear and specific employment contracts can help prevent disagreements and disputes between employers and employees. Ensure that your employment contracts specify the employee’s job duties, working hours, compensation, benefits, and termination procedures.

Review Your Contracts Regularly:

Employment laws and regulations are continually changing. It is crucial to review and update your employment contracts regularly to ensure that they comply with current laws and regulations. Reviewing your employment contracts annually can help you identify any potential compliance issues and update your contracts accordingly.

Train managers to know and understand your employment Contracts:

Your management staff should be familiar with basic employment laws and regulations and how to comply with them. Training your management can help ensure that they are aware of legal requirements and that your employment contracts comply with them, along with answering questions employees may have.

Implement a Contract Management System:

A contract management system can help streamline your employment contract  template creation, review, and signing process. This system can help ensure that your employment contracts are consistent, legally compliant, and up-to-date. A contract management system can also help reduce the risk of losing important contracts or having outdated contracts in circulation.

Obtain Signed Contracts from Employees:

It is essential to have signed contracts from all employees to ensure that they have read, understood, and agreed to the terms and conditions of their employment. Obtaining signed contracts can also help protect your business interests in the event of a dispute or regulatory investigation.

Obtain expert advice:

One of the best ways to ensure your employment contracts are robust and compliant is to consult with employment law experts. Employment laws and regulations can be complex and vary by state and industry. Consulting with experts who specialise in employment law can help you understand and comply with legal requirements.


If you’d like help or advice in regards to your organisations employment contracts please reach out PeopleStart and our expert consultants will be more than pleased to assist.


Rob Gallacher -Director
PeopleStart Human Resources