PLLR can assist employers and employees in drafting an employment contract or advising regarding the content of an existing contract.
A written employment contract between an employer and employee can clarify the working relationship and the expectations, including termination and severance obligations. At a minimum, employment contracts should include the job description, compensation, benefits and termination notice provisions.
A well drafted employment contract can protect an employer from a large severance liability. The contract can also address a number of other issues, including non-competition, non-solicitation, confidentiality and ownership of intellectual property. As the law continues to evolve, though, we know that what is acceptable – and therefore legally enforceable – in a contract has also continued continues to change. What was legally enforceable five years ago may not be enforceable now.
That’s why we don’t rely strictly on precedent contracts. Doing so can be risky because while precedents can be a good starting point, they are often not current with the law and don’t allow for individual factors to be considered.
It is also important to ensure that an employment contract is executed properly and, if an employment relationship changes significantly, a new contract may be required – one that is also enforceable. .
Given the importance of the employment relationship, and the potential liabilities that can arise, we’ve still found many employers do not have a well-written contract in place with their employees. Even if a contract appears to limit an employer’s liability, it must still be reviewed carefully, to see whether the contract is in fact valid and enforceable. Nowhere is this more important than when an employment relationship ends, because there is great potential for wrongful dismissal claims and human rights code claims.
Practical Advice For Business Owners
The firm’s lawyers advise on employment agreements, draft contracts and provide ongoing guidance to business owners in their relationships with staff. Significant contractual issues for employers include:
- Severance liability
- Non-compete and non-solicitation restrictive covenants
For employers, a well-drafted contract is one that attracts strong talent and limits business risk. As a business law firm with more than 40 years of history offering legal services, PLLR Lawyers is well-respected by the business community.
Providing Information And Guidance To Employees
Employees solicit the firm’s advice on issues related to the prospective terms of employment, and once the contract is in place and its requirements are in dispute. Inquiries focus on contractual terms, including:
- Share options
- Shareholder agreements
- Bonus payments
Employees also seek advice regarding their obligations and restrictions on activities should they choose to leave an employment relationship, pursuant to their contracts.