Employment Contracts
One of the most important ways a company can limit its liability is to have properly drafted and executed employment contracts in place for its workforce. Having valid and legally enforceable termination clauses contained in employment contract for staff and ensuring the contracts are validly entered into is of critical importance.
Without doing so, a company can be liable to pay employees common law severance upon termination, which for any given employee could be as high as 24 months of compensation. The enforceability of termination clauses is one of if not the most hotly contested areas of employment law, and in order for a clause to be enforceable, the language used must be carefully crafted and tailored to respond to the most current jurisprudence.
Using any old language simply will not do, and so having a lawyer who is up to date with the current state of the law when drafting your contracts makes all the difference. Having this taken care of at the beginning of the employment relationship can help save companies countless dollars in severance payouts at the end of the employment relationship.
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