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Are you ready to create a more detailed employment contract?

On Behalf of | May 27, 2021 | Business Law

As your Minnesota business grows, the types of protection it needs will change. You may have created a simple employment contract when you started bringing on workers to help with day-to-day activities, but now that you have expanded and need a bigger workforce, you likely need an employment contract that addresses the arrangement in greater detail.

Fortunately, you can update your employment contracts and implement them as you see fit. Of course, it is important to ensure that a new agreement will not conflict with any contracts existing employees may have already signed. When creating a new agreement, it is wise to discuss these matters with knowledgeable professionals.

What should you include?

When you drafted your first employment contract, you may have taken a bare-bones approach. The employees you brought in may have been individuals you already knew who wanted to help out with the business — possibly family members or friends — and you did not think that a full-fledged legal agreement was necessary. However, even with friends and family, having legally binding documents in place is wise. Nonetheless, if you are ready to create a more detailed document, some information to provide in that document includes:

  • The names of the parties involved, including your name or the doing-business-as name and the employee’s name
  • Possibly the address of your business if such information is necessary
  • The date on which the employment contract goes into effect
  • Whether the employee will work in a part-time or full-time capacity
  • Whether the compensation will be hourly or salaried and how much that compensation will be
  • The responsibilities and duties expected of the employee
  • The employee’s expected work schedule, such as days of the week and hours
  • The benefits you as the employer will provide to the employee
  • Description of how you will notify the employee of employment-related matters and how the employee can notify you as the employer of employment-related matters
  • How the company handles employment-related disputes
  • A statement indicating that the contract is applicable under Minnesota employment laws

Of course, depending on the nature of your business and the relationship with the employee, you may need more specific terms in your agreement. Fortunately, you can tailor these types of employment documents to suit your particular circumstances as long as the terms remain compliant with necessary laws. Not complying with the law could result in a court deeming the contract invalid should a dispute arise.