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4 types of employment contracts your business may need

Whether you have just started your own business or hope to expand on your growing enterprise, you likely understand that in order to achieve your goals, you may need to create business relationships. These relationships may come in the simple form of hiring employees to help carry out duties or to more complex connections through partnerships. No matter what steps you may take to form new ties, having agreements in place can prove beneficial.

In order to ensure that you choose the right type of agreement and contract for your endeavors, you may want to find out more information on the various types of documents you can create. Additionally, understanding what terms to include in your contracts may also help your cause.

Types of contracts

A variety of contract types exist, and each area of your business from commerce to employment may need some sort of terms of service. For employers, some common types of agreements include:

  • Employment contract - This type of agreement tends to encompass the expectations you have for any prospective employees. Additionally, this document also allows the employees to understand the company and various aspects of their duties. For instance, job responsibility and payment details can go into this type of agreement.
  • Non-compete agreement - A non-compete agreement can come in handy if you work in an industry with numerous direct competitors. This contract restricts employees from working with a direct competitor within a certain area and for a certain time period after they leave your company.
  • Non-disclosure agreement - If you have trade secrets or other information that plays a vital role in keeping your production or other business operations moving in an effective manner that differs from competitors, you undoubtedly want that information to remain confidential. A non-disclosure agreement creates a contract that limits the details employees can discuss outside of the company.
  • Sales representative agreement - This document can detail information regarding commission and other incentives associated with an employee who operates in sales.

Depending on your specific business operations, you may choose to create other types of agreement contracts as well. Assessing your needs may help you determine what contracts may best suit your situation.

Creating agreements

The language, scope and other aspects of your agreements can impact their enforceability and validity, and you undoubtedly want to ensure that your contracts cover your needs while remaining reasonable. Therefore, you may wish to enlist the help of an experienced California attorney while creating your employment agreements as this legal professional can provide useful advice on covering your bases.

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