Setting up your business involves ensuring that any legal requirements are adhered to before you launch your very first product. Irrespective of the type of business you’re going to be launching, implementing the right contractual agreements is a good starting point.
One of the more effective ways to ensure that the legal aspects of your company are handled correctly is by using the contract lawyers Melbourne professionals employ. If you’re not sure if you need any contacts in your type of business, keep reading.
Protect Your Business With the Right Contracts
If you’re dealing with customers, have employees, or liase with vendors and suppliers, chances are you’ll need at least one of the contracts mentioned in this post. Review the list of contracts shared by our legal experts to get an idea of what you’ll need.
1. Employee Agreements
Whether you have two employees or twenty, it’s essential to have the right employee agreements in place. These agreements may differ, depending on the industry or sector your business falls under. However, the general guidelines are the same.
An employee agreement should clearly lay out all the rights and responsibilities of a salaried employee. This will ensure that there are no discrepancies over hours worked, days off, leave due, and any other payroll-related matters. It’s also essential to give each employee a signed copy of this agreement. This will give you a better legal standpoint in the event of a dispute.
2. Service Contracts
Typically, service contracts provide a legal layout of all the functions and services provided by your company. It should also highlight the services and functions your business has with other companies it’s aligned with.
These may differ, depending on the type of product or service you’re offering, but often include the following:
- Computer service contracts (with IT companies who handle all your IT service issues)
- Editor and freelance writer contracts (this can include NDA agreements to secure privacy related to content you use on your website, blogs, or social media platforms)
- Graphic design contracts
- Accounting service contracts (used when you outsource your accounting functions)
3. Non-Disclosure Agreements
Many businesses in highly competitive industries often have their employees sign non-disclosure agreements. This means that employees may not divulge trade or product secrets learned in your business.
Experts agree that NDA agreements are essential to protect your customer data and product design processes. Keep your proprietary information safe by creating thorough contracts detailing what information may not be disclosed.
4. Provisional Patent Application
No matter what business you’re in, chances are there are a bunch of competitors who would like to have access to your product designs and potential creations. It’s not unheard of for unscrupulous competitors to offer employees large payoffs to leak these product designs, especially if the patent hasn’t been registered.
To avoid this, ensure that you complete the necessary provisional filing document. This will keep your designs safe until you receive the official patent filing date. Your business will also then be able to use the “patent pending” notice on the products if you start advertising before the patent is approved.
5. Release of Liability Agreements
Another essential document to consider adding to your arsenal of protection includes a release of liability agreement. This document serves to release your document of any potential injuries incurred on your premises.
It’s important to note that this agreement will also cover your business of damage or injury claims from anyone working on your premises. A good example of this is the repairmen who service equipment such as your HVAC or fire alarms.
6. Independent Contractor Agreement
This type of contract exists between your business and short-term employees such as the ones you hire to relieve a permanent employee who is on leave. Additionally, you may find it necessary to hire day workers to assist with simple duties around the business.
Having these contracts in place will ensure that these employees understand what’s expected of them and what the remuneration will be. Contracts will keep you safe from these employees wanting to claim benefits they’re not entitled to.
7. Non-Compete Agreement
Competitive businesses need to have their employees sign non-compete agreements. These types of agreements will prevent former employees or even partners from starting new businesses with the information, training, and designs they have had access to while working for you.
Keep in mind that it’s very easy for employees within the business to gather crucial information such as customer information, pre-patented designs, marketing activities, or even specific software programs. Since not all employees are honest or have your company’s best interests at heart, this agreement is a must-have.
Final Thoughts
No matter how big or small your company is, having the right contracts will protect you and your business from liability. Enlist skilled professionals to help you implement the necessary contracts so that you can focus on running your business and banking your first profits!
Be sure to check out our latest updates for more insights and tips!
