Employee contracts are like this odd gray vortex in the HR world. There are pros and cons to using them in the workplace, but whether or not you do depends on several factors.

So to help you decide what’s appropriate for your specific situation, let’s discuss both sides of the equation today.

Advantages

Employee contracts have a lot to offer to both restaurant owners and their employees. For example, they can be used to:

• Clarify roles and accountabilities.
• Attract ideal employees with additional incentives since each contract can be customized.
• Retain your “star” employees by placing restrictions on how/when they may leave the organization.
• Allow for better planning of staffing by knowing when/if an employee will be able to leave the company.
• Protect sensitive or confidential information (Note: A non-compete agreement offers the same advantage.)

Disadvantages

As with anything else, there are disadvantages you should consider.

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Carrie Luxem

Restaurant HR Group