An employment contract can significantly protect you and your employees. However, some factors may affect its ability to do so. You or your employees may unknowingly breach the agreement, which can lead to legal action.
So, what are these problems that can result in such a reality?
1. Vagueness
The use of vague language in an employment contract can lead to misunderstandings. No word/statement in your agreement should have two or more interpretations. Examples of vague words to avoid are undue delay, reasonable, satisfactory, substantial, prompt, material, good performance and best efforts.
What you mean when writing any of these words may differ from how your employee understands it. For example, while you may use “reasonable efforts to meet deadlines” to mean an employee seeking assistance from colleagues and working overtime, they may interpret the statement as any effort they put towards the project within their work hours.
Clear language in your employment agreement can help maintain trust between you and your employees and save you from potential conflicts.
2. Out of date
A contract’s end date passing is not the only grounds for being out of date. Other factors may make an agreement outdated. For starters, a contract whose terms and conditions do not reflect the current employment laws. You should update your agreement when laws regarding minimum wage, benefits, paid leave, working hours, overtime, rest periods or other employment factors change.
You should also update your contract when an employee’s job responsibilities change, perhaps you promote or move them to another department. Lastly, a contract that does not reflect the current company policies is out of date.
These two problems can put you at risk of getting into legal trouble. Learn more to determine if your contract offers the protection you believe it does.
