Common mistakes businesses make when drafting employment agreements

On Behalf of | Aug 22, 2022 | Business Law

Your employees are an essential part of your business. In addition to their daily duties, they also have information critical to keeping your competitive edge.

Negotiating an employment agreement can be a delicate process. You want the person you hire to enjoy their work and workplace, but you do not want to risk them disclosing company information.

Here are some of the most common mistakes employers make when they create an employment agreement.

Too restrictive

You want an agreement that protects your interests. Still, for an employment contract to protect you, it needs to be enforceable. One of the top reasons an employment agreement becomes unenforceable is that it creates too many restrictions on the employee.

Before considering restrictions, it is essential to consider what protection you need. While it may seem like a good idea to include a non-compete that restricts the employee from working with any competitor within the state, courts may see that as too vague.

Ultimately, the employee will leave and need options when it is time to find a new job. Also, you may need to justify why the restrictions you have in place make sense for your specific business.

Too vague

Another common mistake is creating an agreement that does not include specific details. It can be tempting to think that a vague contract will work in your favor since the ambiguous terms could have many different meanings, but that is usually not the case.

Often, vague terms are interpreted in favor of the person subject to the contract, not the person who drafted it.

Not consulting with a professional

You may have friends and family who drafted their own employment agreements without issue. However, when you do not work with a professional, it can be difficult to avoid some of the common mistakes.

Employment agreements tend to have several complex and critical elements. Talking to a skilled professional about the agreements you need for your employees is important.