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Contracts

Many SME’s are breaking the Law!

Over the course of April & May I have attended several networking events in order to meet fellow small business owners. It still astonishes me that many of my fellow entrepreneurs though skills and capable in their chosen field are oblivious of the risks they are putting their business in by employing staff and neglecting to furnish them with a written statement of terms and conditions. The majority of responses are merely “We are so small we only have 3 employees so we don’t need contracts”.

The Truth about Restrictive Covenants

Most permanent employment contracts issued will incorporate restrictions. These restrictions are often specific clauses covering your period of employment and after. The restrictions are in place to safeguard your employer from the risk of you using knowledge and information gained during your employment for the benefit of a future employer or yourself should you set up a Company providing the same product or service.
 
A colleague of mine recently received a threatening letter from her previous employer drawing her attention to these very restrictions.