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Typically, people employed by a pole-based business are either employees or independent contractors. (Read about the difference here).
Contractors typically have a formal or informal contract specifying the work do be done, the rate at which they are being paid, and any other details about the work and payment structure between themselves and the company they are working with.
Employees, however (at least in the United States), don’t always have contracts for full or parttime employment. Most employers may provide some level of training or orientation to new hires as well as critical documentation for their new employee to sign such as for tax or human resource purposes depending on the size and type of company.
Is a formal employment contract needed for a pole-based business? Not always, but it can help make everyone’s life easier!
Here are 3 reasons why having an employee contract is relevant for your pole-based business.
Set clear understanding of what work is to be done.
Maybe you think that hiring a pole instructor for your studio requires them to post on their social media about their classes. But if you didn’t make that explicitly clear, then that isn’t part of their agreed-to responsibilities. Maybe you think that tidying up after class is also part of the job, but one person’s “tidy” could be someone else’s “hot mess.” Maybe you expect your new social media manager to be available over the weekends but if you didn’t set working hours, then they aren’t going to be available 24/7. Outline all the responsibilities of the job, including working hours, in the contract and be as detailed as possible to avoid confusion.
Explain the benefits of working together.
If you are in a metro area, there might be tons of studios that an instructor could teach at, not to mention having their own virtual classes. Does working with you offer additional benefits other than compensation? The same could be said about performers or any other type of employee. Why would they work with you and not someone else or for themselves. Be clear! If you have bonuses or other ways for them to make more money, that could be a big deciding factor to work together.
Reduce the risk of legal action.
The only people that win in legal actions are lawyers. If you have a contract that clearly stipulates conditions of employment AND how to settle disputes, it is less likely that you will go to court over an issue because you have clearly laid out the terms of employment and disputes handling in advance. Be sure to check the employment laws in your municipality—some places are more employee-friendly while others defer to the employer.
Consider adding a time-limit to your contracts so you can update and amend the details of the employment on a regular basis or as your business changes or as your employee changes positions.
Generally, it’s always better to have a contract than not have a contract. Being clear in your expectations helps protect you and your business while creating clear lines of communication with your employees.
Need a sample employee contract? Click here!
Need a sample independent contractor contract? Click here!