Article Abstract:
Restraint clauses are often included in employment contracts to ensure that companies do not lose business to employees who leave. Enforcing such clauses, however, may be difficult. For instance, clauses with certain loopholes, such as incorrect parameters or unreasonable prohibitions, will be considered void and, therefore, unenforceable. For enforceable clauses, companies may choose from two strategies, prevention and compensation. For better protection from loss, business executives need expert advise in the creation of workable restraint clauses.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The laws governing changes in employment contracts are the same laws governing all types of contracts. An employer cannot make a change in an employee's contract without the employee's unequivocal, unconditional approval. Employees can indicate their acceptance through a written or oral agreement, or they can indicate their approval implicitly through their actions. Employees have a right to terminate a contract or claim unfair dismissal, but they must act quickly to retain that right.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Commercial contracts are unlike other contracts in that they are not subject to the 'caveat emptor' rule included in all British legal systems, that holds all parties to a contract responsible for knowing all the contract's terms. In commercial contracts, such as employment contracts, those who include exclusion clauses in a contract are required to inform the other party of those clauses. Failure to do so can make enforcing the contract's terms very difficult.
User Contributions:
Comment about this article or add new information about this topic: