Employers often don’t understand the benefits of having well drafted employment contracts for their staff and managers until they something goes horribly wrong.

Such contracts provide a layer of protection with intellectual property, confidentiality and restraints in relation to approaching your clients post-employment.

A small family business recently had a B2B sales executive resign. They were quite effective in their role, a key asset to the business and a big part of its recent success.

The employee accepted a sales position with a competitor in the same industry. The immediate effect was the progressive loss of a sizable proportion of customers. This had a large negative financial impact on the business as well as adding considerable stress to the owner and his family.

While poaching former customers by the sale representative in their new role was unfair, it was legal.

Unless their employment contract contained a restraint clause.

Unfortunately, they had a very basic contract with no restraint clause.

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There are a range of benefits from having comprehensive up to date employment contracts for your salaried staff and managers – such as a restraint clause.

Clauses in a salaried employment contract for staff level employees should:

• Clarify working hours including any additional hours (as part of salary) expectations.
• Outline behavioural/performance expectations and acceptable workplace conduct.
• Seek warranties that the employee is able to enter into the contract without legal constraints or contractual limitations from their previous employer.
• Restraint, confidentiality and intellectual property clauses.
• Acknowledge adherence to organisational policies, procedures and safe practices.
• Clarify various requirements such as maintaining a current driver’s license or certain qualifications/registrations
• Prohibit posting potentially damaging content about the business on social media
• Outline the limit on the use of IT equipment and electronic harassment.
• Indicate fitness for work requirements – Alcohol, Drugs and Medication 

This is not an exhaustive list for salaried or managerial staff.

In the above case a carefully drafted restraint clause operates at two levels: deterrence and the ability to initiate a legal response for its breach.

Hunter Employee Relations has developed comprehensive employment contracts with a range of standard terms and conditions to help protect your business.

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Kind Regards
Michael Schmidt
M 0438 129 728
[email protected]
www.hunteremployeerelations.com.au

Industrial Relations - Employment Law - Workplace Performance