business law 147

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You have looked at potential contracts your company will need. It’s now time to focus on the employment contracts. There are two important contracts related to employees. One is an employment contract (some may not sign on). The other is an employee handbook. There is usually a contract that follows the handbook where the employee acknowledges that they received one, read it, and will follow it. The handbook itself is not the contract, but it is a set of “rules” you have agreed to follow.

Therefore, the handbook is just as important as the initial employment contract.

Explore employment contracts.

Do research in the library database, internet search, and ask some friends. Try to dig deeper and determine if you will need employee contracts. Find out what the benefits and detriments are to having one verses not having one.

Research what the common language is. Which clauses are usually involved? Are there any covenants not to compete?

Do you agree with the advice on Nolo? http://www.nolo.com/legal-encyclopedia/written-employment-contracts-pros-cons-30193.html

What are the precautions business owners should take when getting legal advice from the internet?

Research employee handbooks.

Review The SBA’s Employee Guidelines

Review several employee handbooks.

Here is an example: http://www.valvesoftware.com/company/Valve_Handbook_LowRes.pdf

  1. Design and draft an employment contract to use in your new company.
  2. Design and draft an Employee Handbook.

Submit to Moodle.

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