The agreements your employees sign should be clear. No clause or statement should be open to more than one interpretation. Ambiguity causes a significant percentage of contract disputes that can negatively impact a business.
Here is what to know:
Examples of ambiguity in employment contracts
Using phrases that are not clear is a good example of ambiguity in employment contracts. These include reasonable efforts, as soon as possible, confidential information, best efforts, undue delay and material breach, among others.
For instance, expressing that employees should submit work without undue delay or notify a supervisor of an absence as soon as possible. An employee should know exactly when they need to submit work and how long they have to notify the company of an absence immediately after they know they won’t be able to attend their shift.
What are its effects?
Ambiguity can lead to misunderstandings between you and your employees, which can potentially result in legal disputes.
For example, if your employee continually fails to complete tasks within the timeframe you expect, you may believe they are breaching the contract. However, they may believe they are completing tasks within a reasonable frame if that’s what is stated in the contract.
An employee may also share information they don’t believe is confidential if the employment contract is unclear on what constitutes confidential information. Accusing such an employee of breaching the agreement can lead to misunderstandings and potential legal action.
Additionally, ambiguity in an employment contract can lead to decreased trust. Your employees may lose trust in you when they realize they are unsure of the terms of the agreements they signed.
It’s crucial to be clear when drafting your contracts. Legal guidance can help you create ambiguous-free agreements and know how to handle misunderstandings if they arise.