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Key facts regarding employee contracts

Workers are a key element for many different businesses. However, sometimes, working with employees can lead to litigation issues.

One way to avoid employment wage issues is through proper knowledge. In that vein, it is important to be aware of a few key facts.

Employee contracts

Contracts help set parameters and expectations for certain aspects of the employer-employee relationship, which can cut down on issues in the future, such as wage and hour claims. All employment contracts must meet certain stipulations in accordance with California's employment contract laws blank. This helps ensure the contracts cover all necessary elements and provide information to help put (and keep) both parties on the same page.

Not for all

Employee contracts can be quite beneficial. They aid in creating job security for employees and a stable labor force for employers. It also helps to eliminate confusion on the amount of time, work and energy an employer expects from an employee. This can aid in stabilizing productivity, and, sometimes, increasing it. However, employee contracts are not beneficial for every situation. In cases where the amount of work is not always stable, an employee contract can hold an employer to the commitment terms of the agreement, which may not be financially feasible.

Labor codes

There are a few labor codes that are vital for business owners to understand. Labor code section 2924 details the right of both employer and employee to terminate an employee contract due to a willful breach of duties. The Business and Professions code section 16000 states the terms by which a former employee may or may not engage in business within the same industry. These are a few key codes to know and understand; however, these do not encompass all applicable laws. 

Understanding these facts can aid in the proper implementation of employee contracts for your business. It may also be beneficial to consult with a professional and review all employment laws in full.

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