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What purpose does an employment contract serve?

by | Jun 24, 2022 | Business Law

Your employees make it possible for your business to run smoothly in California. While you may like to believe they always have the best interest of the company in mind, it is necessary for you to protect your organization.

Implementing an employment contract is an excellent way to provide clarity to your employees. Keeping it updated over the years can also protect your company from the risks that result from relying on other people to perform.


One benefit of an employment contract is that you can add context to your employees’ job descriptions. Inside the agreement, you can talk about each person’s duties and the conditions they need to meet before they will receive payment. You can discuss disciplinary proceedings, as well as your reasons for considering termination. suggests also including in your employment contracts the following:

  • Confidentiality statement
  • Benefits information
  • Duration of employment
  • Work schedule
  • Job responsibilities


A huge benefit of employment contracts is the clarity they can provide for your employees. They will appreciate having a tangible document to reference for common questions about their job or the conditions of their employment. If well-written and regularly updated, you can also feel confident about the agreement’s ability to support your company’s reputation and credibility if a legal incident ever occurs.

Employment contracts can take a while to write. You will have more than one to adequately address the various roles throughout your organization. A regular assessment of each contract can maintain its function and applicability throughout the years. Given the gravity of such an agreement, your decision to collaborate with your legal team is important to help you avoid any missteps along the way.