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Do you need to offer your employees contracts?

On Behalf of | May 28, 2022 | Business Law

You’re about to launch your small business, and you’re hiring your employees for the day of the opening. It’s a comprehensive process, and you certainly want to make sure you have the best possible employees on the job so that your new business makes a good impression. 

What you’re wondering is if you need to give these employees contracts. You and your business partner certainly set up a partnership agreement when you decided to start the business, but do you need any official paperwork for your employees?

Texas has at-will employment

Like most other states, Texas uses at-will employment laws. This means that you do not need an employment contract for any of your workers. They can simply be employed at will for as long as you and they would like, and you both have the right to terminate this relationship at any time. Contracts are not necessary.

So why would you use a contract? Many employees like them because it gives them more protection than they would have under at-will employment laws themselves. For instance, a contract could say that they can only be fired for cause, so you have to have a reason to do so.

A contract could also help you because it defines the role that the employee has at the business. It means that the employee can’t simply quit without warning, which can help with turnover. It at least gives you time to find new employees because you can stipulate that anyone who is breaking their contract has to give advance warning.

However, all of this is up to you, and you can choose to use contracts or not as you would like. Just make sure you know exactly what legal steps you have to take when onboarding these new employees. 

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