Employment Contracts in Dental Practice Acquisitions Legal Safeguards for Buyers
Jan 17 2024 0

Employment Contracts in Dental Practice Acquisitions: Legal Safeguards for Buyers

If you are looking for the perfect dental practice in California to purchase this is a big decision with many moving parts that must be considered. When you find a practice that checks all of your boxes, putting an acceptable offer on the table may be an easy decision. 

One aspect of the sale can include the staff that you will have on hand to help you with operations. This could mean keeping current staff members that are already with the practice, including the selling dentist themself for some time, or bringing on new support staff hires.

Hiring will involve employment contracts. Dental contracts can be complicated and it is important to protect your legal interests. Clear expectations must be established and key elements must be included in an employment contract. For help with a dental employment contract in California, you are welcome to connect with a Los Angeles dental practice purchase agreement attorney at the Leiva Law Firm.

Hiring Staff for a Dental Practice and Employment Contracts

Employment Contracts in Dental Practice Acquisitions Legal Safeguards for BuyersInvesting in your own dental practice can help you become your own boss and when successful, provide you with substantial income opportunities. As a part of your plan for running your practice, you will have to determine who you will employ. 

The Selling Dentist

A selling dentist may want to have a part of a sale agreement including a short-term employment contract to continue practicing. Or, a buyer may prefer this option as a requirement to purchase a practice. There are several benefits of keeping an experienced selling dentist on the payroll. First, the selling dentist can guide and mentor the new dentist on running the business side of the practice. The assistance and support of the selling dentist can help a buyer free up the time necessary to work on possible expansion of a practice as well as consolidation of all aspects of the management of the practice. Last, keeping the selling dentist also can more easily help patients become accustomed to the transition and their future working with a new dental provider.

While there are many benefits to keeping a selling dentist on for some amount of time, it also has to be practical. Can a buyer afford to pay for the employment of the selling dentist? If so, for how long will it be possible?

Existing Support Staff

It is likely that there will be some number of support staff that are already employed by the selling dentist. Keeping the existing team together can also help a sale go more smoothly. Existing staff members already know the practice, the patients, and how to operate with little training. Existing staff may fit seamlessly into the running of a practice under new ownership. 

Though, depending on how a new owner wants to run the practice, changes to procedures and operations could be necessary. It is possible that not all of the staff who may come with the practice will be a good fit for the direction the new dentist is taking the practice. Here, when new hires are necessary, it will be important to have time for defining what type of people are desired and then finding replacements.

When all pieces of a new dentist’s team are in place, in addition to ensuring that employment contracts are solid having an employee handbook is another part of protecting the buying dentist’s best interests. An employee handbook can define what is expected of all employees and protect a practice from future employment-related legal problems.

Speak to an Attorney at the Leiva Law

Employment contracts must be clear and complete with respect to the obligations, rights, and relationship between employees and their employers. For help with a dental employment contract in California, please call the Leiva Law Firm at (818) 519-4465 to schedule a free consultation.

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