Employment contracts can protect your company and also give clarification of your expectations to the people you hire. Keeping these documents updated will preserve their function.
Knowing which circumstances may create the need for an update can help you stay on top of fine-tuning your contracts.
Changes to your company’s operations may influence the agreements you have with your employees. For example, if you acquire another company or another company acquires yours, you may need to make substantial changes to employment contracts all across the organization.
Other scenarios that could call for updates include changing business demands and restructuring. Prior to changing an employment contract because of company-related developments, notify your employees and keep them informed throughout the process.
Sometimes changes take place in a worker’s position within your company. Any significant development will require an update to protect yourself and give clarification to your employee. According to Business News Daily, an employment contract will discuss compensation, benefits, job responsibilities and term length. Changes to any of these areas will require an immediate update. Some examples of when you would need to make updates include the following:
- An employee switches roles
- An employee receives a promotion
- An employee moves locations
- An employee starts working more or fewer hours
Periodically look over your contracts to verify their continued performance. If you notice anything amiss, address it in a timely manner to prevent creating unnecessary risks for your organization. Your diligence in updating contracts as needed can help you create sustainable relationships with your employees.