Benefits of Employment Contracts

Are you concerned that a former employee may use your company secrets either for personal gain or to file lawsuits against the company? Employment contracts can help protect you. Here are some of the many benefits of employment contracts.

A defense against claims of wrongful termination.
A contract clause that demonstrates the at-will nature of the employment can help.

Protection of the company’s confidential information.
Make sure you specify in the contract what constitutes confidential information.

Protection of the company against competition from its employees.
These provisions usually require geographical limitations and a specific period of time that the employee must wait before working for a competitor or soliciting your clients/customers.

Lowering the risk of expensive litigation and runaway jury verdicts.
An arbitration clause can provide for quick, less expensive, and confidential (arbitration isn’t in the public record like lawsuits) resolutions.

Source: John M. Myers, David V. Radack & Paul M. Yenerall, Eckert, Seamans, Cherin & Mellott, Pittsburgh, PA, March 17, 1998.