The Benefits and Drawbacks of Using an Employment Agreement Template

When starting a business or even shrinking a business during tough economic times, a simple employment agreement template can be extremely useful. There are many advantages and disadvantages to consider when deciding whether or not such an arrangement is right for the organisation and how to enforce one.Feel free to find more information at San Diego Employment Law Association.

The opportunity to clearly delineate the roles and obligations of both the company and the employee in a single document is the first advantage to recognise. With the aid of a form template, this method can be as easy as filling in some blanks and signing. If the basic agreement does not cover them, a good form would have some blank lines where you can write information about the job position.

Another advantage of using a simple employment agreement template is the apparent reduction in legal liability that a corporation can obtain. If you have specific conditions written in a signed contract with all sides, it removes a lot of the uncertainty and costs associated with attorneys and courts if you are ever sued by a current or former employee (or, worse yet, the employee’s union). Many courts would enforce the agreement’s terms as long as it complies with the law and the employee was qualified at the time of signing. This will save you a lot of money in the long run!

On the other hand, using a pre-written design has the disadvantage of not being able to manage more complicated jobs or various forms of contract projects with many comprehensive deliverables. Obviously, for topics like foreign joint ventures, multi-level sales agent partnerships, and insurance services, a simple form contract is unlikely to cover all the bases. There are settlements in which the attorney’s fees are justified.

Another drawback of using an employment agreement template is the possibility of inflexibility in your business. Changes in employment law, in particular, can invalidate or render an existing agreement obsolete. If the law changes and you use the same job design for hundreds of workers, you can need to go back and make them sign new contracts. This isn’t necessarily in the company’s best interests, but it’s a small price to pay for the substantial legal security provided by even the most basic contracts.
If you want to hire workers in a way that is versatile, ethical, and legal, you can start by using an employment agreement template.