The false economy of do-it-yourself employment agreements
In the last few weeks, I have come across several great examples of how it can be a false economy for employers to prepare their own employment agreements for their businesses.
Example 1:
In the first example, an employer prepared an employment agreement with a redundancy compensation provision that was not capped. This became problematic, and very costly when it became necessary for the business to make an employee redundant who had been with the company for an extended period.
Example 2:
In the next example, the employer had used a standard, boiler-plate restraint of trade provision in every employee’s employment agreement. Unfortunately, this particular provision was not appropriate for the employee in question and when the employee resigned from their employment the employer discovered that the restraint was unenforceable.
Example 3:
In the last example, the employment agreement prepared by the employer contained a very complex disciplinary process. The employer carried out a disciplinary process with one of its employees and while the process was generally fair and reasonable, it was not in accordance with the process set out in the employment agreement and this created unnecessary legal risk for the employer and leverage for the employee.
Please contact Abdinor Employment Law to discuss your circumstances and whether your employment agreements are fit for purpose or are exposing your business to unnecessary legal risk.
