How an unbalanced contract could actually hurt your company

On Behalf of | Jul 3, 2021 | Business Litigation |

When you hire new employees or promote your existing staff members, you will probably have them sign an employment contract with your company. Your contract can address everything from when you take disciplinary action to social media restrictions intended to protect your brand.

The more concessions and demands a company makes on its employees, the more important it is for the business to draft balanced contracts with adequate compensation for those employee concessions. If you have to go to court to enforce your employment contract, if it only benefits the company, it might not hold up in court.

Contracts should always be mutually beneficial

If your employee violates a non-disclosure agreement or non-compete agreement included in your employment contract, you will probably have to go to court to enforce it and hold them accountable for the breach of contract. Your employee will most likely try to fight the validity of the contract or somehow prove that their actions did not constitute a breach of it. The more uneven the terms of the contract are, the easier it may be for employees to fight its enforcement in court. Unconscionable terms in a contract can lead to the courts refusing to enforce the contract.

Making sure that you offer something noteworthy and valuable for the concessions you request of your employees, even if it’s just an extra vacation day accrued one time after signing, can help make your contracts more enforceable. Frequently reviewing your contracts for accuracy and the optimal protection of your company will reduce the likelihood of a contract not holding up in court.