A crucial part of every business are the employees. We help our clients decide when it is the time to seek out employment agreements, independent contractor agreements, or create employee handbooks, as well as prepare the necessary documents.
When a startup goes out to raise money, if you want to have job security, then you should put in formal provisions in an employment agreement between all parties involved seeking support.
A common misconception is the difference between an employee and independent contractor. Often startups independently determine that they want to treat people as indepedent contractors or employees; but, it is really a question for the IRS or the state to determine. We assist our clients in determining the proper type of contractual protection.
An employee handbook sets forth the policies of the business. Since it is given to all new employees upon starting employment, it is an important tool for establishing good communication between the company and the employee. There are many reasons for a company to have an employee
handbook, including the following:
Efficient Communication. An employee handbook will reduce the time that management spends answering questions from employees, since many of the answers relating to company policies will be setforth in the employee handbook.
Prevention of Misunderstandings. An employee handbook which clearly sets forth company policies will enable employees to know their rights and responsibilities, and will prevent confusion and inadvertent violation of company policies.
Consistent Treatment. Since an employee handbook sets forth the policies and procedures of the company, there is less likelihood that the company will treat different employees differently. This will avoid claims of discrimination or unfair treatment.
Avoidance of Liability. The courts have held that a written policy against discrimination and sexual harassment, which includes a complaint procedure, will help a company avoid liability.