December 2023 – Jonathan Harris & Michael Agiotis
Dentists and Employment Contracts – Tips and Traps
We regularly assist dentists to buy and sell their dental practices. All too often we find that their employment contracts do not adequately protect the business.
Outdated Employment Contracts
As laws and industry standards change, continued reliance on outdated employment contracts can pose significant risks for employers.
We find that dentists too often use outdated employment contracts when employing new staff or when buying a practice. Don’t assume they are still acceptable so get them checked.
Restraint Clauses
Restraint of trade clauses are frequently used by business owners to protect their business and goodwill. These clauses are especially important when dealing with key employees, such as associate dentists and other senior staff.
Unfortunately, many such contracts contain poorly-drafted restraint clauses that won’t protect you if, for example, an employee leaves and opens up their own practice nearby. We see clauses that are unenforceable in court, either because they are unreasonable or because they simply don’t provide protection against the real risks of someone poaching your patients.
If you are buying or selling your dental practice, or just reviewing your current employment agreements, it is a good idea to sort these issues out now.