A small business owner would be wise to take every step necessary to protect the legal and financial interests of his or her Oregon company. One way to do this is with strong contracts that outline the role, rights and responsibilities of employees. A thoughtful and carefully drafted contract can go a long way in avoiding costly and stressful legal disputes.
One way that employers can benefit from employment contracts is by including non-solicitation terms. This can prevent an employee leaving on negative terms from poaching good employees on his or her way out. It is also possible that these terms can keep an employee who is planning on leaving the company from taking or transferring client lists and other important information.
An Oregon business owner can also protect his or her interests by including terms in employment contracts that state that any disputes will first go through arbitration. This can help an employer avoid the costs that come with unnecessary litigation. It is also prudent to include noncompete terms, if possible. This can keep the physical assets and intellectual property of a company where it belongs, and it may also prevent a former employee from working for direct competitors or starting a competing company.
Contracts are a powerful tool for business owners, but only when they are used in the right way. When drafting employment agreements, it is smart to ensure they adhere to state laws and will be enforceable in the event of a dispute. An assessment of the business’ operations and employment practices can allow an owner to understand what should be in his or her employee contracts.