Your dental practice is more than just bricks and mortar; it’s a business built on skilled staff, patient relationships, and confidential information. Protecting these valuable assets requires robust contracts of employment. A well-drafted contract not only clarifies expectations for both employer and employee but also safeguards your practice from potential risks. This blog post outlines the dos and don’ts of employment contracts, ensuring you’re legally compliant and protecting your business interests.
Why are Employment Contracts so Important?
Employment contracts are the foundation of the employer-employee relationship. They set out the terms and conditions of employment, including:
- Job Description and Responsibilities: Clearly defining the employee’s role and responsibilities.
- Salary and Benefits: Specifying compensation, bonuses, and any benefits offered.
- Working Hours and Leave: Outlining working hours, holiday entitlement, and sick leave policy.
- Confidentiality and Intellectual Property: Protecting sensitive information and ownership of intellectual property.
- Restrictive Covenants: Limiting certain actions by the employee after they leave the practice (more on this below).
- Disciplinary and Grievance Procedures: Establishing clear processes for handling performance issues and employee complaints.
- Termination of Employment: Defining notice periods and grounds for termination.
The Dos: Essential Elements of a Strong Contract
- Do be Specific: Avoid vague language. Clearly define roles, responsibilities, and expectations. The more specific the contract, the less room there is for misunderstanding or dispute.
- Do Include Restrictive Covenants (where appropriate): These clauses can protect your practice by limiting what an employee can do after they leave. Common examples include:
- Non-Compete Clause: Restricting the employee from working for a competitor within a specific geographic area for a certain period.
- Non-Solicitation Clause: Preventing the employee from soliciting patients or staff to join a competing practice.
- Non-Disclosure Clause: Protecting confidential information, such as patient lists, treatment plans, and business strategies. It’s crucial to note that restrictive covenants must be reasonable in scope and duration to be enforceable.
- Do Address Intellectual Property: Clearly state that any intellectual property created by the employee during their employment belongs to the practice.
- Do Include a Confidentiality Clause: Protect patient data and business-sensitive information.
- Do Regularly Review and Update Contracts: Employment law changes, and your practice’s needs may evolve. Regularly review and update your contracts to ensure they remain relevant and compliant.
- Do Seek Legal Advice: Employment law is complex. Consult with a solicitor specializing in employment law to ensure your contracts are legally sound and protect your interests.
The Don’ts: Common Pitfalls to Avoid
- Don’t Use Generic Templates Without Customization: A template contract may not address the specific needs of your practice. Customization is essential.
- Don’t Use Overly Restrictive Covenants: Courts are reluctant to enforce overly broad or unreasonable restrictive covenants. They must be proportionate to the legitimate business interests you are trying to protect.
- Don’t Forget About Implied Terms: Even if something isn’t explicitly stated in the contract, certain terms may be implied by law. It’s important to be aware of these implied terms.
- Don’t Discriminate: Ensure your contracts comply with equality legislation and do not discriminate against employees based on protected characteristics.
- Don’t Breach Employment Law: Stay up-to-date with changes in employment law and ensure your contracts and practices are compliant.
- Don’t Neglect Communication: Clearly explain the terms of the contract to the employee before they sign. Ensure they understand their rights and obligations.
Protecting Your Investment:
Your staff are a vital part of your practice. Investing in well-drafted employment contracts is an investment in protecting your business. It provides clarity, minimizes risk, and sets the stage for a positive and productive working relationship.
Need Help?
At Jacobs Legal, we have extensive experience in advising dental practices on employment law matters. We can help you draft and review employment contracts that protect your interests and comply with the law. Contact us today for a consultation