Why You Need a Contract
There is a growing need for staff augmentation and although the process is a lot easier than hiring new staff, there are still a lot of things you need to take care of. First of all, you have to deal with the legal aspect of it, so no conflicts arise later on.
When you are signing the staff augmentation contract, you must find a lawyer or mediator you can trust. The person has to be someone who understands the brand’s vision and will be able to articulate the terms and conditions in your favour.
The contract is very useful for keeping the nature and details of any project confidential. You can also safeguard intellectual property, propriety technology, and personal interests safe. This will be an additional expense, but it will be beneficial in the long run. Many organizations pay the price to keep their secrets safe from the eyes of a competitor.
A non-disclosure clause should be included in the staff augmentation agreement even if your project is not confidential. This protects the company and also helps build trust between the permanent and temporary employees.
Significance of the Service Agreement
If you are playing it safe, then you can add many clauses to the service agreement to financially protect your business. You prevent the IT experts you are hiring from working for a competitor for the duration of the contract through the non-compete clause. The contract can also stipulate that they do not work with a similar business even after the employment ends.
This is not an uncommon request and many businesses make sure the staff augmentation service knows it. It prevents them from even unintentionally sharing information with another company. However, you have to clearly define which competitors you are referring to by specifying the geographic location and the niche. You also need to add a timeframe to mark the duration of the clause validity.
It is important that your contract is not only enforceable but also reasonable in its terms. If you choose to file a case against the staff augmentation service provider then your complaint must be logical. You cannot ask them to not work with any tech company for a long period and a judge will not help you in that case either. The dedicated software developers should be allowed to work after the project ends as long as the hiring company is not your direct competitor.
It is unethical to use a non-compete clause to bar any person from seeking employment once they have completed their work.
How an Agreement Protects Your Business When its Breached
The purpose of the staff augmentation agreement is to minimize the vulnerabilities a business is exposed to. It gets trickier as the size of the project team increases. You can specify the use of devices and make sure the contract states which aspects of their job are confidential so they do not unknowingly talk about them.