In veterinary employment contracts, the consequences of violations often occur in 2 places: the “indemnification clause”, which comes into effect when an employee violates a non-competition clause or a non-solicitation clause, and the “recovery of the signing bonus” provision, which is triggered when an employee dismisses earlier than provided for in the contract. These 2 terms are perfect examples of the legal difference between penalties and damages – a distinction that the courts take very seriously. The contract should also address the process when the practice is sold to an external buyer. Ideally, the contract would be acceptable to the buyer. Making the contract appraisable means that the new owner of the firm must accept the terms already agreed upon in order to acquire the firm. It protects the employee from deviations in his responsibilities, payment or schedule due to the preferences of the new owner. Regardless of how the employer handles leave, both parties must have a clear understanding of expectations. Most employment contracts indicate the number of vacation days to which the employee is entitled. It is recommended to use “days” instead of “weeks” because equine veterinary practices can mean four days in some settings and seven days in another.
To minimize misunderstandings, it is best to be very clear. If the PTO has accumulated, the employment contract may specify the mode of provisioning, or that could be left for an employee manual. When third-party consent to veterinary contracts is required, there are a number of important considerations. The first is the time to obtain that consent; Contracts may specify when consent must be obtained. The period may be several weeks prior to the expected closing of the transaction so that the remaining party can decide whether or not to give consent. After all, awarding contracts in a share purchase transaction is relatively simple. The only document required is the purchase contract; However, any change in control may require the notification or consent of third parties to each of the accepted contracts. Some practices choose to use an employee handbook to describe benefits so that the necessary changes can be made without the need to sign new contracts. For this reason, in general, any wording of the employment contract is vague. For example, “The employee has the option of accepting health insurance if such a plan is offered by the employer, and the employer pays a percentage of the costs associated with that plan.” An employee handbook is also the appropriate place to establish practice guidelines for bereavement leave, jury service or military service.
Ultimately, a central consideration for veterinary prescriptions adopted is whether the transaction is structured as an asset purchase or as a stock purchase. In an asset purchase transaction, the transfer of contracts takes place by way of assignment and the requirement for consent may arise if the contract contains an anti-assignment provision. The conditions for dismissal for good cause are standard and generally include, if the employee is disqualified for the practice of veterinary medicine, does not fulfill the obligations of his employment and the provisions of the agreement or refuses to faithfully or carefully fulfill the obligations of his employment and the provisions of the agreement, or dies. Although we are based in Dallas, Texas, we handle veterinary transactions throughout the state of Texas, Colorado, Arizona, Utah and (depending on the issue) many other states. Some lawyers (and some owners of individual veterinary practices) use lump-sum compensation clauses because they tend to instill fear in the employee. However, the courts also recognize that there is a risk to the practice if the shareholder leaves his own company or joins another practice in a certain proximity. The company may be harmed because the practice`s customers can follow the employee to their new location. While this legal language sounds harsh or all-encompassing, it simply describes the relationship between employer and employee. The narrow definition of the tasks to be performed by an employee or the hours worked has significant drawbacks, as needs in the veterinary sector can change due to unforeseen circumstances such as injury or illness. Nevertheless, some agreements explicitly mention a list of laundry tasks; then the last task is to “perform all other tasks that may be assigned by the employer”. Now consider this contractual non-compete clause: “If the employee provides veterinary services within 5 miles of the employer`s clinic within 2 years of termination, the employee will pay the employer $200,000.
Is this a fair determination, an appropriate financial figure? Or is it simply a heavy hammer to beat the employee in the event of an alleged violation? Veterinary contracts are a ubiquitous and mandatory part of any job search for veterinarians. .