Does issuing business cards constitute employment?
I just started a new company and intended on hiring someone (an acquaintance) as a director. I ordered business cards for him, but we did not actually formalize his employment. There was no contract offered, not even verbally, and there was no salary discussed or paid. (Yes, I know the business cards were premature, but I was ordering everyone's at the same time.) A week after I gave the cards to him the relationship took a dive of a cliff and I immediately told him we wouldn't be working together on the project. As I said, we hadn't discussed contract terms, salaries, and I did not promise him any kind of payment yet. The only specific thing I did was give him business cards (with no title, btw) and I'm now concerned that may constitute formal employment and this will not be the clean break I hoped for.
Answer
In the first place, a director of a corporation isn't usually an employee. Is your business a corporation, or intended to become one? What kind of business entity do the cards suggest? Secondly, did you tell the dude he's no longer with the company? An employer can always fire an employee, at any time and for no reason (or for a good reason, but not for a bad reason (such as whistleblowing). After a person is let go, it's a good idea to notify others that the dismissed former employee may have interacted with in his capacity as an employee, letting them know that he's no longer employed and has no more authority to act on behalf of the company.
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