7 Crucial Contracts Start-Ups Should Have to Avoid Potential Disputes

Creating a start-up in Australia is not only exciting but also gives you the opportunity to contribute to the local economy. Whether you’re going to be providing a service or selling a product, it’s essential to keep in mind that there’s always the risk of having to deal with a dispute.

In business, disputes often happen because one of the parties doesn’t agree with or hasn’t adhered to an agreement. These issues can be complex to sort out and may often require contract dispute lawyers to facilitate a resolution. This post takes a look at the various contracts you need to implement in your business to reduce the likelihood of dealing with a contractual issue.

Every Business Should be Protected by Contracts

Every business owner knows that litigation and contractual issues can seriously get in the way of running their business and generating their proposed profits. This makes it essential to have the right contract lawyer on your team. You should also have essential contracts in place to protect your business and your reputation.

1.  Employee Contracts

Whether your new business has five or twenty employees, your contract lawyer will recommend that you have contracts in place. These agreements are necessary to specify all the rights and obligations of all the full-time or salaried employees working for your company.

You’ll be better prepared if any future litigation arises from employee discrepancies over overtime worked, employee infringements, or any other payroll-related matters.

It’s necessary for all people working for you to have a signed copy of their code of conduct.

This is a guideline that must clearly explain to each employee what’s expected of them. There should also be a clear organogram explaining the reporting structure within your company. If there’s a problem, they should know who to report it to.

2. Service Contracts

The next series of contracts to have in place are service contracts, which serve to outline exactly what functions your company will provide. It should also outline the functions your business expects from other companies.

These types of arrangements will also cover specialised or creative contracts that include the following:

• Accounting services contracts
• Computer service contracts
• Editor and freelance writer contracts
• Graphic design contracts

3. Independent Contractor Agreement

For the most part,  Independent Contractor Agreements are essential when you make use of short-term employees. Often, a small business owner might think it’s not necessary to have contracts in place for these employees because they don’t work for the business permanently.

However, to ensure maximum protection for your company and the employee in question, it’s necessary to have signed agreements in place for every consultant, freelancer, and short-term employee you use in your business.

4. Non-Compete Agreement

Many business owners are including non-compete agreements in the contracts they have in place with their employees. Doing this will prevent partners, former employees, or even current employees from starting a new business and competing against you.

Not having this in place puts you at great risk when employees have access to designs, undocumented and unpatented projects, or even software applications that may be in the pipeline.

5. Release of Liability Agreements

The release of liability document will release your company from any liability for any potential injuries incurred on your business premises. These documents will also cover your company from injury or damage claims sustained by any person participating in an activity on your premises.

This also includes events that might be sponsored by your company. The onus is then on you to ensure the safety of anyone making use of your services. Having these contracts in place will keep you and your business protected when you’re dealing with contractors such as painters and repairmen.

6. Provisional Patent Application

If creating products or designing new concepts is a key part of your business, then this next contract is essential. Unprotected companies could see their top ideas being stolen if designs or creations aren’t protected.

The easiest way to ensure your invention or product isn’t stolen before your patent is secured is to complete a provisional filing document. This would then allow you and your designers to use the “Patent Pending” notice while you wait for an official patent filing date.

7. Non-Disclosure Agreement

You might think you have nothing that any other company would like to steal from your business. However, with so many companies competing with each other to be the best at what they do, they might poach your employees by offering them bigger salaries or more benefits.

When employees leave, they could take your company’s trade secrets with them. It’s important to get current employees to sign a non-disclosure agreement. This will keep your proprietary information safe.

Final Thoughts

There’s very little way to guarantee that you’ll never encounter a legal issue in your business. However, having the right contracts and agreements in place will ensure that your contractual dispute lawyer has the right information at hand to give your business the best possible representation when it’s needed!