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Labour law is one of the most controversial areas of law because it deals with one of the most fundamental social relationships, that of work. It regulates the relationship between employers and employees, unions and the state. These relationships can and regularly do generate conflict and they have a great deal of importance to almost every person in society. This is because in the capitalist economic system, the majority of people rely on paid employment to provide for themselves and those that depend upon them. Also, people generally derive a sense of dignity and self worth from their work which can also be a source of conflict because of the personal and sometimes emotional investment which people have in their work.

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A written contract will also determine who gets the ownership of the deliverables. For some types of work, the ownership is clear cut. However, for some works like logos or written articles, the client and the service provider should come into an agreement as to who eventually owns the work. As the service provider, you can choose between two options: assign or give ownership to the client, or grant a license to the client while you retain ownership of the final product.

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All commercial organizations need to protect their critical business related data so that any unauthorized person might not lay hands on such data. However, they might need to share some business related data with their service providers so that the service providers can do a part of their business on their behalf. For example, many big businesses outsource their customer care operations to a service provider. For smooth functioning of the business partnership, they may need to share information about various things with the service provider.

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Contractors do not have the same need to withhold tax, pay retirement benefits, or the same rights in relation to redundancy pay and termination procedures so it is often much more convenient for employers to choose to use these types of workers as a replacement for an employment based model. Whatever the model of employment, it is often necessary to have an employment contract in writing to stipulate the desired relationship between the parties.

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The agreement should not only explain what information is to be held in the strictest confidence but what steps will be taken if there is a breach. Not only should it cover any disciplinary actions that will be taken but it may cover provisions for legal action should the breach create a situation where litigation on behalf of the client whose information has been made public. It should also explain how the confidential information should be treated and what safeguards are in place to prevent a leak.

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The most important part of this agreement is the section wherein you and your partners describe the rights, roles and responsibilities of each of the partners. This section of the contract not only covers the role of each partner, it can be used a legal protection in the event of a lawsuit or an attempt to change the rules in mid-stream. Should there be a problem between any of the partners this document can be used by legal counsel to resolve the situation.

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