Having enforceable employment contracts is one of the most important aspects of your employment relationship with any employee. Company exposure to liability is high without proper employment contracts, and employees may be found to be entitled to additional damages if dismissed.
Continual updates to employment agreements and handbooks to reflect the business realities of the employment relationship are highly effective, but they must be executed carefully and with full regard of the rights of your employees.
Effective employment relationships give companies room to grow along with the talent that they recruit along the way. This requires establishment of expectations between employer and employee. Such expectations will leave room for the employment relationship to evolve whilst ensuring that it does so in a direction that is mutually beneficial.
Smart companies make sure they have contracts that minimize their liability in case they decide to terminate an employee. This is an ongoing process as laws and business realities are constantly changing.