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Why Employment Contracts Matter

Last updated August 26, 2025

Written by Sandra Reder

Founder and President

Vertical Bridge HR

As summer winds down, it’s a great time to make sure your employee contracts are in good shape before the Fall hiring season kicks off. A well-prepared contract won’t just check a box, the contract provides clear expectations to protect both you as a business and your team, ensuring everyone starts off on the same page.

Contracts shouldn’t be looked at as just paperwork, but rather a clear communication tool that guides both the employer (that’s you) and the employee throughout the working relationship. 

A strong employment agreement sets the foundation for trust and clarity. Amongst other things it ensures your team knows:

  • Their role and responsibilities along with how you support their career growth through performance management and training
  • Vacation entitlement helping to remove any ambiguity between verbal promises and written policy for each employee
  • Overtime expectations this will help you avoid costly misunderstandings down the road
  • Alignment with your employee HR manual providing emphasis on the policies that support your workplace culture

Without these, and other important details spelled out, small misunderstandings can quickly turn into complex HR issues. In the past three months, we’ve supported clients who’ve run into challenging and costly situations simply because formal employment contracts weren’t in place.

Our team can support with contract audits, drafting support, and guidance every step of the way, creating strong, clear, and compliant workplaces. 

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