Employment Contract Form

Author: Beth C. Rogers, Law Offices of Beth C. Rogers, LLC

When to Use This Form

For many employers, an employment contract is not necessary for every employee. Most employers typically only require high-level professional employees to sign a written employment contract. However, certain industries require all employees to enter into employment contracts.

Below is a model form that should be further tailored to fit the employer's specific needs


Employment Contract Form

Employment Contract/Agreement Between

[Enter Employee Name]

And

[Enter Employer Name]

This Employment Contract is made and entered into this [Enter Day] day of [Enter Month], 20[Enter Year], by and between [Enter Employer Name] ("Employer" or "Company"), and [Enter Employee Name] ("Employee"). This contract incorporates and replaces all prior negotiations, agreements, contracts and/or amendments thereto.

WHEREAS the Employer and the Employee wish to enter into an employment contract governing the terms and conditions of employment;

THIS AGREEMENT is made in consideration of the premises and mutual covenants and agreements hereinafter contained, and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged by the Employer and the Employee), the Employer and the Employee hereby agree as follows:

  1. Employment
  2. The Employer hereby agrees to employ the Employee as its [Enter Title] and the Employee hereby accepts such employment in accordance with the terms of this Agreement and the terms of employment applicable to all employees of the Employer.

  3. Term
  4. The employment of the Employee shall commence on [Enter Date] and it shall continue in effect until [Enter Date]. [Thereafter, the agreement shall be renewed only by a new mutual agreement between the Employer and the Employee.]

  5. Duties of Employee
  6. The duties of the Employee shall include the performance of all of the duties typical of the position held by Employee and such other duties and projects as may be assigned to Employee, if any. Employee shall devote his or her entire productive time, ability and attention to the business of the Employer and shall perform all duties in a professional, ethical and business-like manner. Employee will not, during the term of this Agreement, directly or indirectly engage in any other business, either as an employee, employer, consultant, principal, officer, director, advisor, or in any other capacity, either with or without compensation, without prior written consent of the Employer. [Employee shall maintain all appropriate professional licenses, including [__]].In addition to the duties described herein, Employee is also authorized and directed to do the following: [list any other specific duties and authorizations].

  7. Compensation
  8. Employee will be paid compensation during this Agreement as follows: A base salary of [$$]per year, payable in [weekly/bi-weekly/monthly] installments. [List bonus or incentive salary, if applicable].

  9. Benefits
    1. A. Holidays
      B. Vacation
      C. Sick Leave
      D. Medical and Dental Insurance
      E. Life Insurance
      F. Pension and Profit Sharing Plans
      G. Automobile
      H. Expense Reimbursement

    [For each of the above,list details of benefit, such as entitlement to participate and number of days, if applicable.]

    The above benefits may be amended from time to time and without notice.

  10. Termination

    This employment contract may be terminated by:

      A. Mutual agreement of the parties.
      B. Termination by Employer-Discharge for cause. In the event Employee commits a material breach of the obligations and duties of Employee under this Agreement or commits any acts of conduct violation, such conduct shall be considered cause for immediate dismissal. Employer may terminate this Agreement, during its term, only for "cause," which for purposes herein shall mean Employee's (i) material and continuing failure to perform his or her essential duties hereunder; or (ii) dishonesty; or (iii) gross misconduct or gross dereliction of duty; or (iv) fraud, misrepresentation or other acts of moral turpitude or criminal conduct; or (v) a material breach of any term of this Agreement.
      C. Termination by Employee. Employee may terminate this agreement upon any material breach by Employer which is not cured within [__] days of written notice by Employee. For purposes of this agreement, a material breach is a breach of any provision in this agreement, and especially paragraphs 2, 7, 8 and 9.
      D. Death of Employee.

  11. Nonsolicitation Covenant. Employee agrees that during his or her employment with the Employer and for a period of [__] year(s) after his or her employment is terminated by the Employer or by the Employee for any reason, with or without cause:

    A. Nonsolicitation of Customers. Employee will not, directly or indirectly, solicit any business relationship with regard to [Enter Employer Name]'s services from any person who was a customer of the Employer at the time of the Employee's termination of employment or within one year prior thereto and for whom the Employee rendered services or with whom the Employee became acquainted with as a result of the Employee's duties with the Employer.
    B. Nonsolicitation of Employees. Employee will not, directly or indirectly, hire, recruit or solicit any other employee, agent or other representative of the Employer, or otherwise induce such employee to leave the employment of Employer, to become an employee of or otherwise be associated with him or her or any company or business with which the Employee is or may become associated.

  12. Confidentiality Agreement
  13. Employee hereby acknowledges that the Employer has made, or may make, available to Employee the Employer's Confidential information, including but not limited to: [List materials related to operation of Employer that are not generally known to the public, such asthe names and job duties of the Employer's employees, vendors and/or any other business associates; the Employer's marketing plans, product plans and service plans; the Employer's client lists and other client information; the Employer's potential client lists and potential client information; the Employer's supplier list and other supplier information; pricing data, techniques and materials related to the operation of the Employer such as handbooks, policies and personnel files; proprietary information such as trade secrets, patents and copyrighted materials; and any other information provided by the Employer that is not generally known to the public] (collectively, the "Confidential Information").

    Employee acknowledges that this information has independent economic value, actual or potential, that is not generally known to the public or to others who could obtain economic value from their disclosure or use, and that this information is subject to the Employer maintaining its secrecy and confidentiality.

    The Employee expressly agrees not to disclose or use at any time, either during or after his or her employment with [Enter Employer Name], any of the Employer's confidential information provided to the Employee under its employ or of which the Employee becomes aware of in connection with his or her employment, except as specifically authorized by the owner of the Employer in writing. Employee agrees to hold all confidential information, data and materials secret and not to use or divulge the same or any part thereof, directly or indirectly, to anyone. Employee agrees not to disclose any confidential information, purposefully or inadvertently through casual conversation, to any unauthorized person inside or outside the Employer.

    Employee further agrees not to remove any "confidential information" from [Enter Employer Name]'s premises without prior permission from the president/owner of [Enter Employer Name].

    Employee further agrees that immediately upon request from Employer, Employee shall return to Employer all Confidential Material or proprietary property or documents.

  14. Noncompete Covenant
  15. Employee agrees that during his or her employment with the Employer and for a period of [__]year(s) after his or her employment is terminated by the Employer or by the Employee for any reason, with or without cause, Employee will not, within [__] miles of [__], directly or indirectly engage in or own or control any interest in (except as a passive investor in publicly held companies and except for investments held at the date hereof) or act as an officer, director, or employee of or consultant or adviser to, any firm, corporation, or institution directly or indirectly in competition with or engaged in a business substantially similar to that of [Enter Employer Name], including any services that the Employer is engaging in, or is developing, at the time Employee's employment terminates.

  16. Restrictions Are Reasonable
  17. The Employee acknowledges that the restrictions imposed by this Agreement are fully understood and will not preclude the Employee from becoming gainfully employed following a termination of his or her employment with the Employer. The Employer and the Employee recognize that the foregoing restrictive covenants in paragraphs 7, 8 and 9 above, are reasonable and are properly required for the adequate protection of the business of the Employer.

  18. Payment of Fees and Expenses in the Event of Breach
  19. The Employee shall reimburse the Employer for all costs, expenses or damages that it incurs as a result of any violation by the Employee of any provision of this Agreement. This obligation shall include court costs, litigation expenses and reasonable attorneys' fees.

  20. Counterparts
  21. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute a single integrated document.

  22. Severable Provisions
  23. The provisions of this Agreement are severable, and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions and any partially unenforceable provisions to the extent enforceable shall nevertheless be binding and enforceable.

  24. Modifications.
  25. This Agreement may be modified only by a contract in writing executed by the party to this Agreement against whom enforcement of such modification is sought.

  26. Entire Agreement
  27. This Agreement contains the entire agreement between the parties with respect to the subject matter of the Agreement, is intended as a final expression of such parties' agreement with respect to such terms as are included in this Agreement, and supersedes all negotiations, stipulations, understanding, agreements, representations and warranties, if any, with respect to such subject matter, which precede or accompany the execution of this Agreement.

  28. Jurisdiction and Venue
  29. This Agreement is to be construed pursuant to Laws of the State/Commonwealth of [__]. Jurisdiction and venue for any claim arising out of this Agreement shall be made in [__].

  30. Acknowledgments

Employee represents that he or she has carefully read and fully understands all the provisions of this Agreement, that he or she is entering into this Agreement voluntarily, and that he or she has had the opportunity to consult with his or her attorney before executing it.

BY:

 

 

BY:

 

 

Employee

Print Name: _______________

 

 

 

Title

Print Name: _______________

Employer

 

 

 

 

 

 

Date

 

 

Date

Warnings

The specific terms or articles required in an employment contract vary by state and by type of employment.

The restrictive covenants contained herein (nondisclosure, nonsolicitation and noncompete provisions) can also be executed as separate and individual agreements to be signed by new hires in conjunction with the employment contract. Either way, these restrictions must be carefully drafted in order to be enforceable. Only reasonable restrictions will be enforceable.

Additional Resources

Recruiting and Hiring > Terms of Employment