Before taking on any employees, it’s essential to grasp the basics of employment law.

FREMONT, CA: Although a written employment contract is not legally required, it is nevertheless a good idea to have one so the conditions of employment are documented. If an employee's employment contract is for one month or more or longer, they are legally entitled to a written explanation of the primary terms and conditions of work. Within two calendar months of the person starting employment, the employer must deliver the written statement. The written statement must contain several specifics, such as the name of the company, the employee's name, their job title and start date, their pay and when it will be paid, their hours of work, their holiday pays eligibility, their notice period, and their place of employment.

Businesses must consider how to safeguard their interests, including their confidentiality, client relationships, employees, suppliers, and intellectual property. The employment contract should contain all pertinent clauses. Depending on the circumstances, it may, in some instances, be reasonable to include terms prohibiting employees for a set amount of time after departing from competing, soliciting business, or hiring personnel. Each case will be different, but any post-termination restriction must only go as far as is reasonably necessary to safeguard the business's legitimate interests.

For most claims of unfair dismissal, an employee must have at least two years of service. As a result, businesses have more latitude to fire problematic workers before they accumulate two years of service. Employers would typically simply need to give notice. Some claims, like whistleblower or discrimination, can be made by employees without a continuous service requirement. Therefore, it is advised to follow a process in every case of dismissal. Be aware that when determining two years of service, an employee can factor in the minimum statutory notice, which is one week for continuous employment less than two years but more than a month.

Employees have general rights against unjust dismissal after two years of employment, and employers must exercise greater caution. Employers are only permitted to fire employees for just cause, such as redundancy, poor performance, or misconduct. Additionally, the employer must adhere to a fair process. The process to be used will depend on the circumstances of the case and the grounds for the dismissal. Similarly, if an employer violates a fundamental provision of the employment contract after two years of service, such as a wage term or an implied term of trust and confidence, the employee can claim constructive unfair dismissal if they quit immediately because of the violation.

The general data protection regulations (GDPR), which went into effect on May 25, 2018, place requirements on employers. For instance, personal data processing must be done in a way that is legal, fair, and transparent. This includes the requirement that employers notify their staff in-depth about how personal data is processed.