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Should you have employees sign a contract?

On Behalf of | Jan 3, 2022 | Employment Contracts, Employment Law |

Employment contracts can offer protection for you and your employees. Still, you may be on the fence about whether your employees really need a contract.

According to FindLaw, there are no requirements under the law that you provide your employees with an employment contract, but you may want to do so if there are certain aspects of employment. For example, a contract can be good if you work with confidential information or you offer a high compensation package. It is also nice if you have had issues in the past with employees following company policies.


An employment contract clearly lays out your expectations for the employee. It will detail the job duties and perimeters of the job. The contract makes certain aspects of employment, such as holidays, special pay situations and grounds for termination clear. The contract also gives you a chance to outline the dispute resolution process and provide employees with specific information about how to handle various situations.

You can also add in clauses, such as confidentiality clauses, to help protect trade secrets or other inside information.

One caution

While the state generally acts under at-will employment, meaning you or the employee can terminate the employment agreement at any time and for any reason, a contract changes things. You no longer have an at-will relationship because the contract outlines how employment will end.

The most important thing about employment contracts to remember is that you must adhere to them once you and the employee sign them. You are bound under the terms in the same way it binds your employee. If you think things may change in the future, it can be costly to change the terms of the contract.