Four reasons why you would benefit from an employment agreement

Four reasons why you would benefit from an employment agreement

What is an employment agreement?

An employment agreement that sets out an employee’s conditions, rights, responsibilities and duties. There are several different types of employment agreements, some examples include:

  • Agency worker contracts 
  • Apprenticeship contracts 
  • Admin employee contracts 
  • Managers contracts 

This blog demonstrates how essential it is that your business enlists one of our specialist contract solicitors to write a secure contract between you and your employee/worker. By use of four key themes; ensuring clarity, a personal and unique relationship, security and privacy protection, it exemplifies the consideration of these in the drafting process, as well as the necessity of these as an end result. While securing your relationship in case of litigation down the line, a clear and secure employment agreement will maintain and prioritise your ethos through the process.

See: https://www.adambernards.co.uk/legal-contracts/employment-contracts/

 

  1. Clarity/Transparency
a hand holding up a transparent glass ball to a sunrise

Allowing Adam Bernard to draft your employment agreement will ensure that your contract has clear definitions, from roles and responsibilities to requirements for the offer. Let’s say you are hiring a team of employees or workers, ensuring a high level of transparency and clarity in the skills and roles you will require to counter any ambiguity surrounding the job offer. In this way, you could anticipate a high retention rate due to ensuring clarity from the beginning. This will also include compensation or benefits clauses, from the annual salary, health benefits or company stock options.

Employee classification is hugely important, especially to avoid litigation further down the line. Case in point, Uber v Aslam 2021 cautions against a lack of clarity in classifying your employee.

 

Uber v Aslam 2021: Worker or Employee?

Uber v Aslam reconciled a misclassification of the drivers who used the Uber application. The judges analysed the meaning of the intent of existing legislation in differentiating between a worker and employee define which status Uber drivers work under. The Court upheld that Uber drivers were workers and therefore entitled to minimum wage, statutory annual leave and protection from detriment under the Employment Rights Act (ERA) 1996. Where Uber v Aslam was a product of ambiguity, the Supreme Court turned to the nature of subordination and dependency to define the relationship. In this way, stressing the relevance of not only a contract, but a good one, your employment relationship must be clearly defined and must boast enough transparency between your worker or employee to avoid litigation and any problems later one. 

See: https://www.gov.uk/employment-status

See: https://www.supremecourt.uk/cases/docs/uksc-2019-0029-judgment.pdf

 

2. Personal

two women where they appear to be in a meeting signing a contract.

While finding the first employee agreement template on a search engine might appear attractive and cheap, allowing a contract solicitor who understands all different custom variables of a business relationship to tailor your agreement specifically to your company is invaluable. These variables can include an understanding of definitions, which characterised the Uber v Aslam case, or which expectations are important to you.

With the contract solicitors at Adam Bernard you will have the opportunity to collaborate and have your requirements heard.

 

3. Security

Two hands shaking above a table where a contract lies.

A contract gives both you and your employees rights and responsibilities, but equally includes clauses to categorically assert that your business will be secure in case of a breach of contract from the other party. Our contract solicitors experience allows enough foresight to be applied to your contract to prevent situations a non-legal eye might not predict, or realise the severity of.

For example, the termination and severance clause should balance enough foresight and clarity to ensure that any financial loss to the business, caused by examples such as an employee or a worker’s persistent lateness or breach of confidentiality is dealt with accordingly (on the personal level in this scenario).

4. Privacy Protection

a stack of folders locked with a key.

This lies mainly in the confidentiality and privacy clause which will enshrine an acknowledgement of sensitive, and thus confidential information and the employer’s ability to reserve it. It will oblige the employee to not disclose any information they will be exposed to in the course of their employment and will often have a continued effect even if the employment agreement comes to an end. Undeniably, this is a key feature of business relationships in the employment of workers, employees or contractors.

 

Non-compete and non-disclosure agreements

Some employee agreements will require a non-compete or non-disclosure clause, and in other cases, will require a separate contract to consolidate confidentiality features. These are normally used in senior employee agreements where the employee is exposed to more confidential company information. Also, depending what industry you are in, a non-compete clause might be necessary. These can be also known as non-solicitation clauses, which typically are used to protect your companies trade secrets and confidential information to restrict the worker from exploiting these in contact with direct competitors in your field. Fundamentally, these clauses are used to protect your information, clients and prevent a loss of competitive advantage.

See: https://www.adambernards.co.uk/legal-contracts/employment-contracts/non-disclosure-agreements-ndas/

 

How can Adam Bernard help you?

Adam Bernard will ensure that you walk out with a bespoke contract to suit your business requirements and interests at accessible prices. These four key themes will culminate to offer you a competitive advantage, efficiency and enough foresight to protect your business.

We offer a free 15 minute consultation and operate strictly on a fixed fee basis.

Contact an adviser:

Sara Hussain

Commercial Contract Specialist

Where can you find us?

Adam Bernard Solicitor’s office is located near Upton Park Station, adjacent to the famous West Ham Stadium, with excellent access to the underground and bus routes. If you are driving then there is free parking available at the front and the rear of our office building.

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