How to Write and Use Employment Contracts - And Save Your Organization Money in the Process

Today's employers need flexibility. At the same time employees need to know where they stand.  The clearer the rights and expectations of the parties are from the outset, the fewer the problems that will arise.  In fact, there is no better way to save time, trouble and money, avoid law suits, reduce termination costs and protect company assets or property when an employee leaves, than through the effective use of employment contracts. 

You Will Learn:

• How to use contracts for maximum certainty and flexibility
• What forms a contract can take and why you need proper procedures to create them
• Why you must be sure to represent the job accurately - and avoid potential exposure for negligent misstatement
• Why contracts can be set aside and how to avoid the pitfalls
• How to improve the chances that restrictive clauses are enforceable
• How and when contracts should be updated
• How to create an independent contractual relationship - tests, how-to's and what to avoid
• Components of the contract - basics, restrictions and special issues

The Program Will Cover:
       

Introduction: Why Use Employment Contracts

• Setting expectations
• Limiting liability
• For whom do you use them?
• The relationship between employment contracts and statute law

Forms Contracts Can Take

• Applications for employment
• Employment letters
• Conditional offers
• Formal contracts
• Separate agreements

How to Use Them

• When to propose them
• Allowing time for review
• When to get them signed
• Negotiating terms
• Keeping notes and records
• Extra-contractual representations

Amendments During Employment

• Consideration
• Promotions
• Notice
• Employee relations Issue 

Creating An Independent Contractual Relationship
                                                                         

• The difference between a contractor and an employee
• The advantages and disadvantages of the relationship
• The hallmarks of an independent contractual relationship
• Ownership of inventions and intellectual property
• Termination and other special issues for contractors 

The Components of the Contract - Part 1: The Basics
 

• Contracts for a defined term or task
• Duties and expectations
• Wages and benefits
• Termination of employment
• Defining just cause
• Defining the separation package
• How to vary from "reasonable notice"
• Resignation and retirement 

The Components of the Contract - Part 2: Restrictions

• Confidentiality
  Defining the confidential information

• Defining the obligations

• Creating exceptions

• Prohibiting competition after termination

• Consideration

• Defining the prohibited activity

• Geographic scope

• Duration

• Remedy

• Procedural issues

• Prohibiting solicitation of employees and customers

• Ownership of inventions and intellectual property

The Components of the Contract - Part 3: Special Issues

• Inability to work
• Privacy issues
• Changes of control and the senior executive
• Retention bonuses
• Varying from Employment Standards
• Where you can vary
• When you need the approval of the Director of Employment Standards and how to get it
• The relationship between employment contracts and releases 

Critique of Sample Contracts and Clauses