Like many things in life, business relationships are full of uncertainty. If you hire an employee, there is always the chance that he or she will quit or go to work for a competitor business. By the same token, from an employee’s standpoint, market conditions can always change and you may be forced to terminate the worker’s employment. Further, you may have expectations for how you want the work to be performed, and an employee may come in with expectations about how they wish to be managed.
To help clear up some of this confusion, companies often enter into employment contracts with their employees. However, as a business owner, you should be aware that the state is considered “employee friendly.” As business lawyers in California know and will advise you on, there are many restrictions on what can be contained in employment contracts.