Your family business is how you earn a living and must be protected. Unfortunately, many small business owners risk everything they have because they do not have contracts to safeguard their interests. This is understandable; many family business owners have their hands full running the day-to-day operations.
However, with the help of a skilled attorney, your business can be protected with contracts for you and your family. If you have questions about business contracts for your organization, the Ohio business law attorney at The Law Office of John C. Grundy can help.
Which Contracts Are Essential For A Family Business?
Many contracts are essential for family businesses to have. Contracts are vital because they set expectations and boundaries for all family members in the organization. Some of the most important agreements you should have to protect your small business are:
Employee Contract
Whether they are family or not, every employee in the small business should have an employee contract. The contract should state the following:
- Wages or salary
- Paid time off
- Sick leave
- Working hours
- Holidays
- Benefits
The employee contract may also need a confidentiality clause that ensures your company’s intellectual property rights are respected. The employee contract also should have a policy manual that delves into what employees should and should not do in their work.
For example, the policy manual may include policies about Internet use at work, dress code, using personal cell phones for business work, and more. The employee discipline process also should be highlighted, and note that workers who do not follow the manual’s rules can be disciplined or fired.
It can be tempting not to have employee contracts in a family business; they are family. However, employee contracts protect the business and employees in case anything goes wrong.
Contract For Services
If your family business offers services, you should have a contract detailing the services. For instance, the contract for services should include:
- The names of the organizations involved in the contract
- The contact information for the client
- The services the family business provides to the client
- Details of the services included in the fee paid
- Details of anything that is not included in the service
- What could arise that could lead to additional charges
Stating everything clearly in a contract for services means everyone understands what is being provided and what is not. Everyone’s expectations will be set and ensure good communication from the start.
Employment Offer Letter
Your family business also is protected from misunderstandings and legal liability with proper employment offer letters that include:
- The job offer
- Job responsibilities
- Salary and benefits
- Statement that the job is ‘at will’ employment and the employer can fire the person for any reason
- The employment offer letter is the whole agreement and it only can be changed in writing
- Disputes between the company and employee will be handled through arbitration
Speak To An Ohio Business Law Attorney Today
Are you planning to start or expand a family business? First, you should ensure that you have the proper contracts to protect your interests. Our Ohio business law attorney at The Law Office of John C. Grundy can help, so contact us today for a consultation.