The main advantage of having employment contract is to reduce the risk of future claims by employees. Employment contract sets a definite term of employment which guarantees employees a job as long as they do not violate the terms of the contract, and restrict the ability of employers to fire employees. A confidentiality clause in the employment contract will ensure and protect sensitive and confidential information. Such an employment contract can also set the standard of expected service in it. And it will specify exactly what offenses can result in termination of the employee and duties of both the employer and the employee in order to avoid later confusions. Mentioning dispute resolution procedures in the employment contract will benefit both the parties. The contract also sets the responsibilities and obligation for the involved parties, making sure that both the parties are treated fairly in case a scenario written on the contract ensues.
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