I prefer not to have written contracts when I hire new employees. Is a verbal agreement enough?
Some employers prefer not to have written employment contracts as they feel that having something in writing can create unwanted legal obligations for them. Verbal agreements are legally binding, and once the individual has begun working for you they will be considered an employee of your company and will be accorded all of the legal rights that go with this. The issue with having a verbal agreement is that nothing is documented to prove exactly what the terms of the agreement were. In case of a dispute, it becomes the employer’s word against the employee’s and historically where the truth is unclear, the courts tend to side with the employee. For this reason, we do believe that it generally is in the employer’s best interest to have an agreement in writing. It does not have to be a lengthy contract, a simple letter clearly confirming the conditions of employment will do.
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