May 05, 2020
In practice, we often see the occurrence that employers treat an employment contract as a template that needs to be signed in order to fill out a certain form and so that the worker can start working. Later, it often turns out that, deficiencies in the employment contract cause problems, as well as complex and long-lasting labor disputes. In this text we will not explain which provisions the employment contract must have in accordance with the Labor Law, but we give a summary of some very important clauses that are often ignored:
- Detailed and functional job description
In many employment contracts we often see that the workplace is concisely defined with just a few words, for example “salesman” or “warehouseman” and similar, without more detailed description of the actual jobs that the worker should perform. This is fertile ground for disputes over what actually enters the job description of the workplace, which causes frustrations on both the employer’s side and the worker’s side. If the employer doesn’t have the so-called establishment plan or other form of job catalog in which each job is described in detail, it is recommended to describe as detailed and precise as possible which jobs are included in the job description of a workplace, and always use formulations such as “and all other jobs that are necessary or usually related to that ”.
- Confidentiality and data protection
The value and sensitivity of data and information has increased significantly in the age of digitization and information technology, and with the entry into force of regulations such as the GDPR, any employer can face very high fines for any unauthorized disclosure of classified and unauthorized data by his employee. In addition to the data protection measures that must be applied by each employer (for example, security software, password setting, encryption, etc. data protection methods), it is recommended that the employment contract specifies all data protection rules that the employee must follow, or refers to the relevant internal acts. Also, prescribing pre-determined sanctions (for example, contractual penalties) for violations of this type can have significant preventive effects.
- Prohibition of client poaching
Many companies started by having an employee build a certain network of business contacts after a certain amount of time spent with the old employer, after which he resigns, opens his own company and takes with him certain number of customers, clients or contacts from the previous job. In practice, we see relatively small number of clauses that protect employers from such actions by their employees. Such protection can be achieved, for example, by a contractual non compete clause for a certain time, during which period the employee cannot engage in the activity of the employer, but there are a number of other provisions and measures that employers can use for this purpose.
- Regulation of salaries through the working rules or internal acts
Namely, salaries do not have to be explicitly agreed in the employment contract, but it is possible to agree in a special contractual provision that the employee’s salary will be determined in accordance with the working rules or other internal act of the employer (for example, rulebook on salaries). In this way, the employer can achieve a higher level of control over the business costs of, especially in times of sudden crises. Such provisions should be very clear and agreed in detail in order to maintain a certain level of equality in employment, as well as to provide for mechanisms for the protection of workers.
- Reimbursement of investment costs in education
To most, if not every employer, the goal is to have the most competent and educated worker. In order to achieve this goal, it is necessary to invest certain funds in further education of employees during employment. In such situation, the employer must contractually secure the funds paid for the purpose of education or training of the employee, otherwise the employer risks that the employee after obtaining a higher degree of educational or professional qualifications simply moves to another job with a new employer. Such protective contractual provisions must also be contracted very precisely and carefully, always making sure that the worker’s rights to movement and freedom of work are not too restricted.
Other
Labor law is a very complex area of law that contains a number of regulations that need to be analyzed. In addition to all the above, in the case of drawing up and contracting an employment contract, it is always necessary to check what the existing and potentially future legal restrictions are. Also, for the purpose of a precise analysis of the legality of each contractual provision, it would be advisable to consult a lawyer specialized in labor law.
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The information in this article does not constitute legal advice in relation to a particular legal issue, but general legal information published for information purposes
