Though Minnesota business owners often need help from employees, it is unwise to simply bring in employees without having set guidelines for how the business relationship will work. Often, employers will create employment contracts to ensure that both the employer and the employee are on the same page when it comes to various expectations on both sides. While certain aspects of such an agreement may seem straightforward, it is a smart step to consider the possibility of unclear terms or loopholes.
The reason for looking at such a contract from all angles is that employment agreements have been challenged or found invalid for various reasons in the past. The terms may not comply with laws regarding such contracts, for example. It is also possible that certain conditions or expectations are too broad or unreasonable.
When considering the details of the terms, including the following information is often essential:
- Term of employment
- When employment may be terminated
- Vacation and sick leave details
- Health insurance coverage and other benefits
- Procedures for filing complaints regarding employment concerns
- Whether restrictive covenants will apply, such as confidentiality agreements, noncompete agreements, exclusive employment and others
Sometimes it may seem impossible to cover every aspect that could cause an employment issue. However, it is often worth the effort to ensure that employment contracts hold enough information to clarify expectations and keep confusion to a minimum. Minnesota employers would be wise to ensure that their contracts are legally binding, and gaining assistance throughout the drafting and enforcement process from legal professionals may be a worthwhile step to consider.