Pros and Cons of Employment Contracts to Protect Your Florida Business
Written on October 14, 2021
Among your top priorities as a Florida business owner is protecting your company against losses from any source. Therefore, it is understandable that you would consider options to safeguard your interests in the context of the employer-employee relationship. Contracts are useful for establishing rights and responsibilities for many corporate activities, but they are not required for employment. Your main concerns as an employer are wage and hour laws, avoiding discrimination issues, and other regulatory compliance. With these structures in place, you might wonder whether a written employment contract makes sense.
Your Clearwater contracts lawyer is the best source for advice and counsel on whether employment agreements are a wise choice for meeting your business goals. Still, you might benefit from some general information on the pros and cons of employment contracts to protect your Florida business.
Pros v. Cons of Employment Contracts
Depending on your industry and business operations, you will probably consider an employment agreement for some – not all – members of your workforce. A closer look reveals:
Pros: Every company has important intellectual property and trade secrets to protect, and an employment contract is the most effective way to include restrictive covenants. From the standpoint of attracting and retaining talent, these agreements give you a competitive advantage because they give employees job security. It is also easier to enforce basic policies related to hours, attire, and workplace discrimination.
Cons: Because you will typically list exact events that trigger termination, it will be more difficult to let someone go. One way to address such a situation is to include a provision that specifically incorporates Florida employment-at-will concepts. In addition, you will need to account for promotions and raises, typically through amendments. According to the fundamentals of contract law, you will need consideration to support changes. The logistics can be inconvenient, but attention to detail is critical.
Alternatives for Protecting Your Company
The pros and cons of employment agreements are important, but there are other legal options for achieving your business objectives. These alternatives will also be useful for the members of your workforce who may not be covered by an employment contract. A Florida contract law attorney can provide additional information on:
- Preparing an offer letter for a job prospect that defines the terms of hiring, salary, and benefits;
- Drafting an employee manual that applies to all personnel, outlining policies on employment discrimination, sexual harassment, and related human resource details; and
- Severance agreements can be effective in protecting intellectual property misuse and trade secret misappropriation by an exiting employee.
A Clearwater, FL Contracts Lawyer Can Advise You on Employment Agreements
Weighing these pros and cons provides you with valuable insight, but it is smart to retain a Florida business law attorney for help with drafting, negotiating, and enforcing employment agreements. Our team at Clearwater Business Law assists clients throughout Pinellas County with a wide range of legal issues, including the contracts you deal with on a daily basis. Please call (727) 785-5100 to set up a consultation today.