Question

Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law.   Each of the owners has experience with contracts in their businesses, and appreciate the probable risks and liabilities associated with contracts.   They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear, and specific.

The GC owners know that there are various types of contract agreements relevant to their business. GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, consumers, and clients.  

To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define the rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should require bonding for all employees.

You, Winnie, and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.

The GC owners reviewed the drafts and have some questions about the contracts.

Background Facts You Need to Know: At Winnie’s and Ralph’s request, it is your responsibility to research an provide answers to the GC owners’ questions. As an example, Winnie, Ralph, the GC owners, and you have determined that GC's contract with its cleaner- employees will include the following terms and conditions:

• specific duties to be performed by cleaner-employee
• salary for cleaner-employee
• work hours
• terms of payment for overtime or holiday work, if any
• sick leave
• vacation leave
• training requirements for cleaner-employee
• length of contract
• bonding for cleaner-employee
• periodic performance evaluation and how it will be conducted
• termination of the contract, i.e., a notice of termination, etc.

(Q)- Identify five (5) contract terms and conditions - other than price - that should be included in the GC contract with its cleaning clients.

Answer 1

Dear Student,

As a role of cleaning clients employee have to perform various roles and responsibilities within and outside of company premises. So apart from above mentioned employment benefits, following terms and conditions should be included in GC Contract with its cleaning clients to avoid any future issues

1) Statement of Facts_ Practice of Integrity

Cleaning clients employee - During the term of your employment with the Company, are required to disclose all material and relevant information, which may either affect your employment with the Company currently or In the future or may be in conflict with the terms and condition of your employment with the Company, either directly or indirectly.

2) CONFIDENTIALITY

Cleaning clients employee- are expected to maintain UTMOST secrecy with regard to the secrets of the Company and shall keep any Information, Instruments, manuals, relating to the Company that may come to your professional knowledge as an employee of the Company

3) INTELLECTUAL PROPERTY RIGHTS

Cleaning clients employee - hereby expressly acknowledge and agree that any work that you may be conducting either on the premises of the Company or otherwise with regard to design, construction, process improvements, and discoveries or any other form of intellectual property whether protected under law or not, you are working on the express or implied Instructions or on behalf of the Company.

4) AUTHORIZATION

Only employee holding senior and responsible position in the Company will be authorized by a specific power of attorney to sign legal documents, representing the Company. Similarly, only such authorized employee of the Company may speak about the Company, its business plans, current projects etc. So there will not be involvement of Cleaning clients employee in such strategic authorization role

5) CONFLICT OF INTEREST

Any position with the Company calls for the whole time employment and you will devote yourself exclusively to the Company primary Interest. You will not any other work for remuneration(part time or otherwise) or work on advisory capacity or be Interested directly or indirectly ( expect as a shareholder or debenture holder)

Thank You !!