It’s obvious if you work for a large or midsized company that you’ll have an Employment Contract but what about Founders of Start-ups, Small Business Owners, and Family-Owned Companies? Do you need Employment Contracts? You may not think so, but you do.
Why? Because Employment Contracts are essential written Agreements that protect and define responsibilities and duties, structure compensation including bonus and exit, and describe the conditions of continuing employment at the company. They are also important tools for protecting intellectual property, confidential information and trade secrets.
Founders of start-ups, whether forming a Corporation, an LLC, or a Partnership, should have Employment Contracts to protect their position in the company and safeguard against current and future investors’ attempts to interfere or restructure the Founder’s management or equity.
Here are the 10 basic provisions that are included in standard Employment
Contracts:
- Job title and duties
- Compensation
- Employment date
- Working hours
- Place of work
- Benefits
- Sick leave and vacation
- Intellectual property ownership/confidential information
- Restrictive clauses/non-compete
- Termination
However, Entrepreneurs, Founders and Family Businesses require more individualized, customized and industry-specific provisions. The time to create an Employment Contract is NOW. Whether it’s before you hire key employees, bring in investors, or join the family business, it is never too late to protect the company’s interest and your own by insisting that Employment Contracts are in place.
I have negotiated and prepared many Employment Contracts and it’s simple to get started. I can help you protect yourself, your company, your intellectual property, and your employees. Don’t hesitate to call me!