Formalizing Your Employment Agreements to Mitigate Exposure Risk

Sometimes the unexpected comes and it hits you right between the eyes. One day your enjoying producing for the company that you have worked for nearly 20 years, the next day your out on the street without any job prospects. In May of 2009, I found myself without a job, in the middle of a declining economy, having to find a new job. No problem right? After a few month of searching, it was not just looking for a particular job in my career niche, it was looking for any job. I had to feed a family of four, and each day without a job, heightened the tension at home. Can you relate to some of this pain?

If you are that person that has worked in the traditional workplace with your own brick and mortar business, or you were working for someone who owned one, you need to consider what some of the economist are saying about the hesitance of traditional business owners in hiring new employees. You might have to reconsider where you are going to find your next job. Many of the unemployed are considering the Home Based Business industry. There are many good reasons for working out of your home. Four key reasons are:

Whether you believe the economy is stabilizing or not, employers will continue to have cold feet about the economy. They will be concerned about overall costs and they will be very conservative in hiring additional employees. It was hard enough to let go of those hard working employees when the economy started to decline. It will not be as easy to find a traditional job as it once was because of cautious employers. A second good reason for considering home based business is the freedom you and your family will experience.

What was that word Mel Gibson screamed out as he was fighting for a most important cause, 'FREEDOM', that is what you will have plenty of. Freedom to spend quality time with your family. Freedom to work when you want to work and how long you want to work. Vacation time is not restricted. You are freed up to be involved in events that are of very high priority to you and your family such as, your involvement in the church, community, politics, school, sports, and it goes on and on. A third reason is the cost factor. Without a job and the necessity of keeping a tight budget, a home based business can be very affordable.

Lower start-up costs. You are already at home, so you will not have to find a rental office or lease. If you are the sole employee, there will not be the cost of paying employees. Your clothing allowance will be minimal. Transportation costs will be cut down because you will not have the daily commute costs. You can also eat your wife's leftovers for lunch, I am assuming that is a positive thing! And if you get the right online home business, inventory costs can be minimal. A fourth reason for a home based business is some of the tax advantages one can have.

There are many tax breaks you can take advantage of as an owner of a home business. There will be many business deductions that would not be available to you in a traditional business. You need to check the tax laws for the proper deductions or have your tax accountant do that for you.

You might be the type of person that says, the traditional workplace is the only place for me. I wish you the best, but after months of searching and still with no job, you might need to consider moving in another direction job wise. Would you consider the possibility of looking into a home based business? There are many advantages!

The Employment Agreement is an important document that sets out the terms and conditions agreed to between the employer and the employee. It implies that the employer shall gainfully employ the employee in a capacity as specified in the terms and conditions of the Employment Agreement.
The Employment Agreement shall detail the date from which employment shall begin. It will also state the rights and duties of the employee as well as any extra duties as may be required from time to time. The work timings of the employee shall clearly state a start time right until he or she is finished for the day as well as require that the employee stays on late, if so necessitated by work requirements.
The employee shall receive all the necessary information pertaining to standards of performing the work, rules, policies and other regulations as may be in force as well as all manuals describing the working environment. Usually the employee is given an Employee Handbook to educate him or her about the company’s policies and goals as well as what is required of the employee. These aforementioned rules, regulations, standards for performing tasks, policies and manuals may be continuously upgraded and the employee is bound to adhere to such amendments and changes.
The employee will begin work from a specified date and shall continue working with the employer until such time as his or her services are terminated or until a date specified as being the termination date. Either party may discontinue with the agreement for any reason or a notice period for ending the agreement may be specified in the document.
Compensation paid to the employee by the employer shall be clearly specified as a fixed amount per annum paid an amount as specified in the Employment Agreement, to be paid either every week, month, or every two weeks as well as all “fringe benefits” that the employee is entitled to receive in the course of their employment.
Termination of the Employment Agreement may be due to a variety of reasons. Some of these could be:
– Death of the Employee
– Non performance or unsatisfactory discharge of duties assigned to the employee in spite of notice and warnings to that effect
– The employer’s economic plight may warrant termination of the agreement due to circumstances beyond the control of the employer
After the employee leaves the employment of the employer, the arrangement may lay down restrictions that prevent the employee from engaging in like or any other viable business that may be in direct competition as that of the employer.
All disputes arising from the execution of the Employment Agreement will be subject to binding arbitration of the two parties in most cases. Individual parties to the Employment Agreement shall appoint one arbitrator for themselves and the arbitrators so selected will choose another arbitrator and all arbitration will be administrated following the rules of the American Arbitration Association which may be in force and effect at that point of time.
Prior notice is required should the Employment Agreement be assigned and should such assignment be effected it would require mutual consent and approval of every such assignment.
The Employment Agreement constitutes the entire understanding of all terms and conditions between employer and employee unless it needs to be amended, in which case, a separate written agreement shall be signed between the two parties.
The Employment Agreement shall bear the signature of the employer and the employee. It shall also bear the date on which it was signed.