To attract top tier talent, it is very important for veterinary practices to present prospective associates with fair and balanced employment agreements. Indeed, well-crafted and effective employment agreements balance the practice’s need to protect its business while also providing clear and definite terms and conditions of employment for the associate. Therefore, veterinary practices should craft comprehensive employment agreements that address the pertinent terms and conditions of the associate’s employment.
Terms and Conditions to Consider
There are many terms and conditions for veterinary practices to consider for inclusion in associate employment agreements, including the following:
- Employment Duties and Responsibilities: Associate employment agreements should clearly set forth the required professional veterinary services, including any administrative services expected to be performed by the associate.
- Schedule: The number of hours per week that the associate will be required to work is a term that is subject to negotiation between the practice and the associate. In negotiating this term, it is important that the practice retain the discretion to alter the associate’s schedule depending on the practice’s business needs.
- Compensation: Base salary, production bonuses, benefits, paid time off, the payment of license fees, and relocation expenses (if any) are among the terms and conditions that are subject to negotiation and should be memorialized in associate employment agreements.
- Term and Termination of the Agreement: An important consideration subject to negotiation is the term or length of the associate employment agreement as well as the different bases for termination of the agreement. Associate employment agreements should give the practice the contractual right to terminate the agreement immediately “for cause.” Generally, “for cause” occurrences include the associate’s conviction of a felony; acts of dishonesty; the associate’s breach of any terms and conditions of the agreement; or the suspension, limitation, revocation or non-renewal of the associate’s license to practice veterinary medicine. Associate employment agreements should also provide either party with the ability to terminate the agreement “without cause” by providing advanced written notice. This is an important term for veterinary practices due to continuity of patient care concerns.
- Restrictive Covenants: While the viability of restrictive covenants is rapidly evolving, it still makes sense to include restrictive covenants, such as non-compete provisions, non-solicitation provisions, and non-disclosure of confidential information provisions in associate employment agreements. These covenants provide a measure of protection for practices since they impose contractual obligations on associates following the separation of their employment.
- Arbitration: Arbitration is a private dispute resolution forum for parties. It is an alternative to the litigation of disputes in court. From an employer’s perspective, the benefits of arbitration include that the dispute is not in a public forum, the claims are not heard by a jury, and the process is generally more streamlined.
- Professional Liability Insurance: Whether the practice or associate is required to obtain and maintain professional liability insurance covering claims for the associate’s negligence or failure to perform the required services is subject to negotiation and should be memorialized in the associate employment agreement. In addition, associate employment agreements should address whether the practice or the associate is responsible for “tail” coverage.
In summary, it is important to memorialize the terms and conditions of employment for associates in well-crafted and effective agreements. The associate employment agreement should be comprehensive and address the terms and conditions set forth above. Therefore, it is prudent for veterinary practices to consult with legal counsel regarding the negotiation of the terms and conditions of employment agreements for associate veterinarians.