This article discusses the importance of incorporating contractual limitations periods in employment agreements to provide clarity and certainty for both employers and employees. These limitations can significantly reduce the potential exposure to claims and are legally enforceable as established in a recent case.
Key Points
- Contractual limitations periods can be included in employment applications, binding both the employer and the applicant.
- The Michigan Court of Appeals ruling in _King v. McLaren Health Corp._ upheld such limitations, affirming their enforceability.
- Employers should ensure that the terms related to limitations are clear and acknowledged during the hiring process.
- These provisions help manage risks associated with potential employee claims and can limit exposure to lengthy claim periods.
- It’s crucial for organisations to review employment documents when litigation arises to confirm the presence and applicability of any limitation periods.
Why should I read this?
If you’re an employer or HR professional, this piece is a must-read. It shines a light on the legal protections you can put in place to defend against potential claims. Trust me, having clarity in your employment agreements can save you heaps of trouble down the line. We’ve condensed the legal jargon for you so you can get straight to the good stuff—protecting your business!