Among various dos and donts, young entrepreneurs have to give proper documentation a priority. It is indispensable for start-ups as it lays down the strategic objectives of the company that lead to the final company vision. Documentation also helps in controlling the work environment. Start-ups are generally vulnerable to employment disputes due to lack of employment documentation. Employment documentation is basically those agreements, contracts and policies that govern the employment conditions of an employee.
A major issue faced by Start-ups is retaining employees- which is indirectly associated with lack of employment documentation and related records. It is a common practice of startups to take employment related documentation casually that results in redundant disputes regarding the job profile of the employee, duration of employment, remuneration, leave policy, termination policy etc.
One common pattern seen in startups is that the employees tend to leave their jobs without proper notice or approval from the founders/ managers since there exists no contract that binds them to follow a formal procedure. Startups suffer a great deal of loss due to this.
To avoid such disputes arising out of employment, a Startup must sign an employment agreement which shall comprehensively stipulate various terms and conditions of employment especially confidentiality clause, provisions related to ownership of Intellectual Property, rights and liabilities of parties in case of a dispute, nature of work, leave policy, procedure of termination etc.
Other than prevention of disputes, proper documentation also gives a professional outlook to a startup which shall facilitate in securing confidence of investors, employees and the target market. Documentation may involve a lot of paperwork initially but its importance in the long run is unmatched.
However, it has been observed that the actual cause for lack of proper documentation in Startups is finding the perfect lawyer since documentation is complicated which cannot be completed without guidance from an expert startup lawyer! In order to make legal simple for young entrepreneurs, MyAdvo provides an unlimited access to more than 1000 startup expert lawyers across India to help startups make an informed decision in choosing the right lawyer for their startup at a reasonable cost.