As a small business owner, you may think you can save yourself some trouble by skipping contracts and agreements and just hiring any employees you need with a handshake. However, there are several ways in which employee contracts could potentially save your business.

  • Provide grounds for firing a terrible employee – If your gut feeling about an interviewee isn’t spot on, you will want to be able to fire them before they can do lasting harm to your business. Unfortunately, there are some pretty strict regulations regarding firing people. That is unless you clearly outline in your employee contracts grounds for termination. Rather than going through written warnings that force you to keep a bad employee on the payroll, your agreement may help you make room on the staff for a replacement sooner rather than later.
  • Prevent lawsuits – A disgruntled employee may try to sue a former employer over being fired, payment disagreements, or even false claims. The contract helps protect your business (assuming you don’t actually do something illegal like discriminate against someone).
  • Protect your IP – Sometimes, a disgruntled employee will take everything they learned and try to use it against you by setting up a competing business. The contract can protect your IP, so they can’t use similar processes against you.

Small Business Legal Assistance in San Diego

Pokala Law APC is proud to help small businesses in the San Diego area with business formation, contracts and agreements, IP protection, and other vital legal services. Call 1.844.695.1487 to schedule an appointment today, or you can request an appointment via our website.