One aspect of running a successful business is having contracts in place to prevent and reduce the likelihood of issues that could lead to disputes and litigation. As your LLC organization grows, at some point you may decide to hire workers. Before you start creating employment ads and screening potential employees, you need a good employment contract that clearly outlines job expectations, salary, nondisclosure and severance and termination to prevent confusion and issues with your new hires.

While there are generic employment contract templates online that you could use, consider drafting your own agreements to minimize your liability and potential legal issues that could arise. Here are a few items you should include in your employment contracts to ensure compliance with the law and your organization’s needs.

Job duties

Outline job expectations and tasks to give potential workers a clear idea of what their daily work responsibilities are. Be sure to include the basic physical functions and skills necessary to perform the job.

Salary and benefits

Provide a clear overview of the minimum amount of pay or salary that workers will receive. Include a pay frequency, base rate and brief listing of retirement, insurance and other major benefits as well as any bonus pay scale.

Termination clause

 Outline the exact termination process so there is little room for confusion or litigation from employees. Firings are rarely welcome, and not every terminated worker willingly accepts. Make sure to review all employment laws to ensure your termination process does not violate any employee rights.

A poorly written employment contract can prevent you from attracting and hiring the right talent and lead to a high turnover rate. It may put your company at risk of high employment and litigation expenses, the loss of trade secrets and sensitive company information to competitors and a poor reputation that could hamper your business’s chances of success and longevity. Take care when drafting your contracts to ensure satisfaction for your company and its employees.