Employee contracts

Discussion in 'Legal Issues' started by ccxll4e, Jan 11, 2011.

  1. #1
    I'm in the beginning stages of building a site which will require a decent number of employees all contributing to the site. I know that I will have to create some sort of contract. And so far all I can think of putting into that contract is the relinquishment of any "intellectual property" meaning anything the employees put into the site then legally belongs to the site.

    What are some other things I'll need to include in order to legally secure the info on the website? And if something were to happen, what should I put in the contracts to make it so I don't have to work to hard to win the case.

    Any info will be greatly appreciated.
     
    ccxll4e, Jan 11, 2011 IP
  2. AstarothSolutions

    AstarothSolutions Peon

    Messages:
    2,680
    Likes Received:
    77
    Best Answers:
    0
    Trophy Points:
    0
    #2
    You dont say where you are based so makes giving legal advice much more difficult

    The first thing you want to do is work out if they are actually "employees" or actually contractors that you want. In most countries your legal responsibilities are massively higher for employees than contractors (eg in the UK you would have to have insurance for them, pay taxes and potentially provide a pension). On the flip side the rates for contractors are much higher "per hour" than employees

    That said, what they are legally is separate consideration to what your contract states they are; ie you can employ them as contractors in the terms of the contract but if the tax man decides they are actually employees and your just trying to avoid your obligations then youd still have to deal with them on that basis despite the contract.

    On the topic of IP, you'd need to have clauses that they transfer ownership of what they create whilst employed by you in the context of their job.
     
    AstarothSolutions, Jan 12, 2011 IP
  3. fren

    fren Well-Known Member

    Messages:
    1,234
    Likes Received:
    4
    Best Answers:
    0
    Trophy Points:
    100
    #3

    If you're just starting out, I suggest you go without contracts. Choose freelancers, like I always do. I have hired lots of freelancers in the past few years. They gave me less headaches. Go to Elance.com.

    But that's just me.
     
    fren, Jan 12, 2011 IP
  4. AstarothSolutions

    AstarothSolutions Peon

    Messages:
    2,680
    Likes Received:
    77
    Best Answers:
    0
    Trophy Points:
    0
    #4
    Even with a freelancer you should have a contract in place. If you use one of the site like Guru then the contract exists because you are both in contract with the site itself and their contracts cover a lot of the basics.

    If you decide to deal directly with a freelancer then make sure you either have a contract or know the risks eg in the USA if you hire someone to create a graphic for you then you automatically own the copyright to that graphic. In the UK you wouldnt and without a contract or document to say copyright ownership is transferred you don't own it so couldn't "give it" to your client etc
     
    AstarothSolutions, Jan 13, 2011 IP
  5. Business Attorney

    Business Attorney Active Member

    Messages:
    621
    Likes Received:
    33
    Best Answers:
    0
    Trophy Points:
    70
    #5
    In fact, with freelancers in some ways it is even more important to have contracts than with employees.

    In the United States, if an employee creates content for you, you own the copyright so there is no need to have the employee transfer that intellectual property to you.

    If you use a non-employee, the creator of the work owns the copyright UNLESS you have a written contract that provides that the work is a "work made for hire." So, without an appropriate written contract, the freelancer owns the copyright.
     
    Business Attorney, Jan 13, 2011 IP
  6. johngordon

    johngordon Greenhorn

    Messages:
    66
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    18
    #6
    There are standard contracts easily available on the internet by which creators of intellectual property transfer all their rights to that property to payors, like yourself. They usually contain alot of legalese but that can be necessary. A maximum of two letter pages of contract provisions will be fully adequate to protect you.
     
    johngordon, Jan 14, 2011 IP
  7. browntwn

    browntwn Illustrious Member

    Messages:
    8,347
    Likes Received:
    848
    Best Answers:
    7
    Trophy Points:
    435
    #7
    Thanks for adding your two cents to the thread. LOL

    Page length is almost as important as the actual content of the contract.
     
    browntwn, Jan 14, 2011 IP
  8. johngordon

    johngordon Greenhorn

    Messages:
    66
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    18
    #8
    Yes, absolutely hilarious. LOL

    You could use something like this, found on the web:

    COMPANY ABC owns all rights of Employee/Contractor’s material
    a) All results and proceeds of every kind of the services heretofore and hereafter to be rendered by Employee/Contractor in connection with the job, including without limitation all ideas, suggestions, designs, logos, themes, plots, stories, characterizations, dialogue, titles and other material, whether in writing or not in writing, at any time heretofore or hereafter created or contributed by Employee/Contractor which in any way relate to the job (collectively, "Material"), are and shall be deemed to be works made for hire for COMPANY ABC. Accordingly, COMPANY ABC shall be considered the author and, at all stages of completion, the sole and exclusive owner of the Material and all right, title and interest therein (the "Rights").

    b) The Rights shall include without limitation all copyrights, neighboring rights, trademarks and any and all other ownership and exploitation rights in the Material now or hereafter recognized in any and all territories and jurisdictions including, by way of illustration, production, reproduction, distribution, adaptation, performance, fixation, rental and lending rights, exhibition, broadcast and all other rights of communication to the public, and the right to exploit the Material throughout the universe in perpetuity in all media, markets and languages and in any manner now known or hereafter devised. If under any applicable law the fact that the Material is a work made for hire is not effective to place authorship and ownership of the Material and all rights therein in COMPANY ABC, then to the fullest extent allowable and for the full term of protection otherwise accorded to Employee/Contractor under such applicable law, Employee/Contractor hereby assigns and transfers to COMPANY ABC the Rights and, in connection therewith, any and all right, title and interest of Employee/Contractor in any works now or hereafter created containing the Material.

    c) Employee/Contractor hereby grants COMPANY ABC the right to change, add to, take from, translate, reformat or reprocess the Material in any manner and COMPANY ABC may in its sole discretion determine. To the fullest extent allowable under any applicable law, Employee/Contractor hereby irrevocably waives or assigns to COMPANY ABC Employee/Contractor’s so-called “moral rights" or “droit moral”. Employee/Contractor expressly acknowledges that many parties will contribute to works that will embody all or part of the Material. Accordingly, if under any applicable law the above waiver or assignment by Employee/Contractor of "moral rights" or "droit moral" is not effective, then Employee/Contractor agrees to exercise such rights in a manner which recognizes the contribution of and will not have a material adverse effect upon such other parties.
     
    johngordon, Jan 14, 2011 IP
  9. browntwn

    browntwn Illustrious Member

    Messages:
    8,347
    Likes Received:
    848
    Best Answers:
    7
    Trophy Points:
    435
    #9
    You sure got it all covered. ;)
     
    browntwn, Jan 14, 2011 IP