The Employment Agreement: Elements, boilerplate template, and optional clauses
What is an Employment Agreement?
An employment agreement is a legal contract between an employer and an employee that outlines the terms and conditions of the employment relationship. It typically includes details such as the job duties and responsibilities, compensation and benefits, working hours, termination conditions, and any other relevant provisions. The agreement serves as a written record of the expectations and obligations of both parties and helps ensure clarity and consistency in the employment relationship.
An employee contract and an employment agreement are generally the same thing. Both refer to a legal agreement between an employer and an employee that outlines the terms and conditions of the employment relationship, such as job duties, compensation, benefits, and termination provisions.
What elements might a typical employment agreement include?
- Parties: The agreement should identify the employer and employee by their full legal names.
- Employment terms: The agreement should specify the date of employment, the duration of the employment term, and the type of employment (full-time, part-time, temporary, etc.).
- Job description: The agreement should include a detailed job description outlining the employee’s duties and responsibilities.
- Compensation: The agreement should specify the employee’s salary or hourly wage, as well as any bonuses, commissions, or other forms of compensation.
- Benefits: The agreement should outline the employee’s benefits package, including health insurance, retirement plans, paid time off, etc.
- Confidentiality and non-disclosure: The agreement should contain a confidentiality and non-disclosure clause, prohibiting the employee from sharing any confidential or proprietary information of the employer.
- Non-compete and non-solicitation: The agreement may also include non-compete and non-solicitation clauses, which restrict the employee from competing against the employer or soliciting the employer’s clients or customers for a certain period of time after leaving employment.
- Termination: The agreement should specify the circumstances under which either party may terminate the employment relationship, including notice periods, severance pay, etc.
- Governing law and jurisdiction: The agreement should specify the governing law and jurisdiction that will apply in the event of any disputes between the parties.
- Signatures: The agreement should be signed by both parties to indicate their acceptance and agreement to the terms and conditions outlined in the document.
The following boilerplate template can be used on SimpleSignRequest.com
This Employment Agreement (“Agreement”) is made on [Date] between [Employer_Name], a [Type of entity] (“Employer”) and [Employee_Name], (“Employee”).
Position and Duties
Employer agrees to employ Employee as [Position] and Employee agrees to perform the duties and responsibilities of such position to the best of their ability.
Employer agrees to pay Employee [Amount] per [Hour/Week/Month/Year], payable on [Pay schedule]. Employee_compensation will be subject to [Applicable deductions].
Term and Termination
The employment relationship between Employer and Employee will commence on [Start Date] and will continue until terminated by either party. Either party may terminate this Agreement at any time, with or without cause, by providing [Notice period] written notice to the other party.
Confidentiality and Non-Disclosure
Employee acknowledges that they will have access to confidential information of Employer and agrees to keep such information confidential and not to disclose it to any third party without the prior written consent of Employer.
Non-Competition and Non-Solicitation
Employee agrees that during the term of their employment with Employer and for a period of [Time period] following termination, they will not engage in any business activities that compete with Employer or solicit any of Employer_clients, customers or employees.
Employee agrees that any inventions, discoveries, ideas, or other intellectual property that they create or conceive during their employment with Employer will be the property of Employer.
This Agreement will be governed by and construed in accordance with the laws of [Applicable jurisdiction].
This Agreement represents the entire understanding between the parties and supersedes all prior negotiations and agreements between them.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Employer_Name] By: [Employer_Signature]
[Employee_Name] By: [Employee_Signature]
In addition to the above elements, other clauses might be found in a typical employment agreement:
- Intellectual Property: This clause specifies who owns any intellectual property created during the course of the employee’s employment.
- Indemnification: This clause requires the employee to indemnify the employer in the event of any claims or lawsuits arising from the employee’s conduct or performance of their duties.
- Arbitration: This clause requires the parties to resolve any disputes through binding arbitration rather than through the courts.
- Assignment: This clause prohibits the employee from assigning or transferring their rights or obligations under the agreement without the employer’s consent.
- Severability: This clause provides that if any provision of the agreement is found to be unenforceable, the rest of the agreement remains in effect.
- Entire Agreement: This clause specifies that the agreement represents the entire understanding between the parties and supersedes any prior agreements or understandings.
- Modification: This clause specifies that the agreement can only be modified in writing and signed by both parties.
- Immigration Compliance: This clause requires the employee to comply with all applicable immigration laws and regulations.
- Governing Law and Venue: This clause specifies the governing law and venue for any disputes arising under the agreement.
It’s important to note that the specific terms and clauses included in an employment agreement will depend on the nature of the employment relationship and the specific needs and requirements of the employer and employee.