Having an enforceable employment contract in place helps create certainty for both the employee and employer, by clearly specifying the terms and conditions governing the employment relationship. One of the advantages of having a formal employment agreement in place is the ability to limit employee entitlements to further severance at the time of termination. A well-drafted and enforceable termination clause can mitigate employer liability, save the employer money, and help prevent any future legal headaches down the road.
Other clauses such as non-competition or non-solicitation clauses, help protect an employer’s business both during and after the employment relationship, as do clauses relating to confidentiality and acceptable use of technology.