[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"page-\u002Fcategories\u002Fhuman-resources\u002Femployment-agreement":3},{"type":4,"data":5},"product",{"product_name":6,"slug":7,"category_slug":8,"order_type":9,"product_version_slug":10,"preview":11,"is_previewable":12,"related_products":13,"related_articles":39,"breadcrumbs":72,"productName":6,"productDescription":-1,"productVersionSlug":10,"localeId":-1,"landerSlug":7,"categorySlug":8,"_cmsSource":78,"hero":79,"quickLinks":84,"page_body":97,"meta_information":227,"sidebar_ad":231,"disclaimer":82,"stateSlug":81},"Employment Agreement","employment-agreement","human-resources","Document","ea-7032","<center><p class='title center'><strong>Employment Agreement<\u002Fstrong><\u002Fp><\u002Fcenter><br \u002F><br \u002F><p>This EMPLOYMENT AGREEMENT (hereinafter referred to as the <strong>"Agreement"<\u002Fstrong>) is effective as of <span style='background: #BBBBBB;'>_____________<\u002Fspan> by and between <span style='background: #BBBBBB;'>_____________<\u002Fspan>, an individual (hereinafter <strong>"Employee"<\u002Fstrong>) and <span style='background: #BBBBBB;'>_____________<\u002Fspan> (hereinafter <strong>"Employer"<\u002Fstrong>) (collectively the <strong>"Parties"<\u002Fstrong> and each a <strong>"Party"<\u002Fstrong>).<\u002Fp><p>WHEREAS, Employer hereby employs Employee, and Employee hereby accepts such employment, upon the terms and subject to the conditions set forth in this Agreement; and<\u002Fp><p>WHEREAS, each Party is duly authorized and capable of entering into this Agreement;<\u002Fp><p>NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties, and obligations set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:<\u002Fp><ol>      <li><strong>Term.<\u002Fstrong> The term of employment under this Agreement shall begin as of <span style='background: #BBBBBB;'>_____________<\u002Fspan> and shall continue for a period of <span style='background: #BBBBBB;'>_____________<\u002Fspan> (hereinafter the <strong>"Term"<\u002Fstrong>). As such, Employee is NOT an employee-at-will and may only be terminated as specified in the paragraph below titled Termination.<\u002Fli>    <li><strong>Compensation<\u002Fstrong><\u002Fli>  <ol>        <li><i>Pay Period.<\u002Fi> Employee will be paid <span style='background: #BBBBBB;'>_____________<\u002Fspan>. The pay period may be adjusted from time to time by Employer, in its sole discretion.<\u002Fli>        <\u002Fol>  <li><strong>Employee Benefits.<\u002Fstrong> Employee shall be entitled to such fringe benefits as may be provided from time to time by Employer to other employees occupying similar positions. This Agreement is for the sole benefit of Employee and Employer, and is not intended to create an employee benefit plan or to modify the terms of existing plans. Any employee benefit plan contemplated by this Agreement shall be governed solely by the terms of the underlying plan documents and by applicable law. Nothing in this Agreement shall impair Employer's right to amend, modify, replace, or terminate any and all such plans in its sole discretion, as provided by law, or to terminate this Agreement in accordance with its terms.   <\u002Fli><li><strong>Duties.<\u002Fstrong> Employee is being hired by Employer as a(n) <span style='background: #BBBBBB;'>_____________<\u002Fspan>. In addition to any job duties specified in this Agreement, if any, Employee shall have such job duties as may from time to time be reasonably assigned to Employee by Employer. Employee acknowledges that by virtue of Employee's position and responsibilities, Employee will have fiduciary duties to Employer and a duty of loyalty to Employer and will, at all times, act in a manner consistent with these duties and abide by Employer's reasonable rules, regulations, instructions, and directions.<\u002Fli>            <li><strong>Extent of Services.<\u002Fstrong> During this Agreement, Employee shall devote his or her time, energy, and attention to the benefit and business of Employer as may be reasonably necessary in performing Employee's duties pursuant to this Agreement. With the exception of passive investments and ownership interests that require little to no time and attention, Employee is prohibited from engaging directly or indirectly in any other business activity outside of Employee's duties to Employer regardless of whether or not an activity is pursued for gain or profit. Nothing in this Agreement shall be construed as limiting Employee's right to invest his or her money in real estate, stocks, or other such investments requiring limited maintenance and that do not take any significant amount of Employee's time, energy, and attention away from Employee's duties to Employer.<\u002Fli>      <li><strong>Termination<\u002Fstrong><\u002Fli><ol>      <li><i>No At-Will Employment.<\u002Fi> Employee is NOT an employee-at-will, and this Agreement may only be terminated as follows: (i) for just cause, including, without limitation, breaching a provision of this Agreement; (ii) upon the death of Employee; (iii) upon Employer dissolving, becoming insolvent, filing bankruptcy, or ceasing all business operations; (iv) sale of the business of either Party; or (v) by mutual written agreement of the Parties.<\u002Fli>    <li><i>Notice Required.<\u002Fi> Where this Agreement is terminated due to Employee breaching a provision of this Agreement or other just cause, Employer may terminate this Agreement at any time, with or without notice, as permitted by applicable law. If any minimum notice required by law under the circumstances is greater than the notice required under this paragraph, notice will be provided in accordance with such applicable law.<\u002Fli>      <li><i>Exit Interview.<\u002Fi> If Employer so chooses, Employee will be required to conduct an exit interview and\u002For write an exit memorandum upon termination of this Agreement.<\u002Fli><\u002Fol><li><strong>Work Product.<\u002Fstrong> To the extent not contrary to applicable state law, Employee acknowledges and agrees that any and all inventions; discoveries; improvements; trademarks; copyrightable work, including any social media contacts obtained for or on behalf of Employer; or other intellectual property created, produced, designed, or developed, in whole or in part, individually or jointly with others, during this Agreement, which are directly or indirectly within the scope of Employer's past, current, or planned future operations, are Employer's exclusive property, and shall be immediately disclosed and assigned to Employer. Employee further agrees to any and all such applicable items of "work made for hire" for Employer within the definition of Section 101 of Title 17 of the United States Code, or any successor provision, and any corresponding state law provisions. Employee's above obligations to Employer shall be continuous and ongoing and shall survive the termination of this Agreement.<\u002Fli><li><strong>Return of Employer Property.<\u002Fstrong> Upon termination of this Agreement, for any reason, or at any other time that Employer may so request, Employee shall immediately deliver to Employer all company and\u002For client property and\u002For information, including, but not limited to, all equipment, telephones, credit cards, keys, software, manuals, passwords, financial and tax documents, memoranda, letters, files, records, papers, notes, lists, computer programs, reports, books, and all other documents (and all copies thereof) in Employee's possession, custody, and\u002For control.<\u002Fli>        <li><strong>No Conflict.<\u002Fstrong> Employee represents and warrants that the execution of this Agreement by Employee and the performance of Employee's obligations hereunder will not conflict with, result in the breach of any provision of or the termination of, or constitute a default under any agreement to which Employee is a party or by which Employee is or may be bound. If, at any time, Employee discovers he or she has or may have any outside business relationships or activities that conflict with Employer's best interests, then Employee shall immediately disclose the conflict or potential conflict to Employer.<\u002Fli><li><strong>Equitable Relief and Remedies.<\u002Fstrong> Employee acknowledges that any breach of this Agreement will cause substantial and irreparable harm to Employer for which money damages would be an inadequate remedy. Accordingly, Employer shall in any such event be entitled to seek injunctive and other forms of equitable relief to prevent such breach, and the prevailing Party shall be entitled to recover from the other the prevailing Party's losses, damages, and costs, including, without limitation, reasonable attorney's fees and costs, incurred in connection with enforcing this Agreement, in addition to any other rights or remedies available at law, in equity, or by statute.<\u002Fli><li><strong>Non-Exclusivity of Remedies.<\u002Fstrong> The enumeration herein of specific remedies shall not be exclusive of any other remedies. Any delay or failure by Employer to exercise any right, power, remedy, or privilege herein contained, or now or hereafter existing under any applicable statute or law, shall not be construed to be a waiver of such right, power, remedy, or privilege. Employer's waiver of a breach of any provision of this Agreement by Employee shall not be considered as a waiver of rights with respect to any subsequent breach by Employee.<\u002Fli><li><strong>Severability.<\u002Fstrong> The Parties have attempted to limit the non-disclosure, non-competition, and non-solicitation provisions so that they apply only to the extent reasonably necessary to protect legitimate business and property interests. If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, that provision shall be considered removed from this Agreement, and the remaining provisions shall continue to be valid and enforceable according to the intentions of the Parties. However, if a court or arbitration panel finds that any provision of this Agreement is invalid or unenforceable as currently written, but that by rewriting or limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as is necessary to further the intent of the Parties to the maximum extent permitted by law.<\u002Fli><li><strong>Binding Effect; Assignment.<\u002Fstrong> The rights and obligations of Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Employer. This Agreement is a personal employment contract and the rights, obligations, and interests of Employee hereunder may not be sold, assigned, transferred, pledged, or hypothecated.<\u002Fli><li><strong>Entire Agreement.<\u002Fstrong> This Agreement contains the entire agreement and supersedes all prior agreements and understandings, oral or written, with respect to the subject matter hereof. This Agreement may be changed only by an agreement in writing signed by the Party against whom any waiver, change, amendment, modification, or discharge is sought.<\u002Fli><li><strong>Time of Essence.<\u002Fstrong> Time is of the essence in this Agreement.<\u002Fli><li><strong>Headings.<\u002Fstrong> Headings for the paragraphs herein are for convenience only and shall not be construed in interpreting this Agreement.<\u002Fli><li><strong>Governing Law and Venue.<\u002Fstrong> To the extent not inconsistent with applicable law, Employee acknowledges and agrees that this Agreement shall be governed by and construed in accordance with the laws of  the State of <span style='background: #BBBBBB;'>_____________<\u002Fspan>.<\u002Fli><li><strong>Counterparts; Electronic Signature.<\u002Fstrong> This Agreement may be executed in counterparts, including by fax, email, or other facsimile, each an original but all considered part of one Agreement. Electronic signatures placed upon counterparts of this Agreement by a Party or their approved agent shall be considered valid representations of that Party's signature.<\u002Fli><li><strong>Notice.<\u002Fstrong> Any notice required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by certified or registered mail, first class, return receipt requested, to the Parties at the following addresses or any other address so specified in writing by a Party:  <br \u002F>  <br \u002F>  EMPLOYER ADDRESS  <br>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>  <br \u002F>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>  <br \u002F>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>, <span style='background: #BBBBBB;'>_____________<\u002Fspan> <span style='background: #BBBBBB;'>_____________<\u002Fspan>  <br \u002F>  <br \u002F>  EMPLOYEE ADDRESS  <br>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>  <br \u002F>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>  <br \u002F>  <span style='background: #BBBBBB;'>_____________<\u002Fspan>, <span style='background: #BBBBBB;'>_____________<\u002Fspan> <span style='background: #BBBBBB;'>_____________<\u002Fspan><\u002Fli><li><strong>Acknowledgments.<\u002Fstrong> Employee acknowledges, understands, and accepts:<\u002Fli><ol>  <li>Employee's obligations under this Agreement;<\u002Fli>  <li>that Employee freely enters into this Agreement;<\u002Fli>  <li>that Employee has the right to seek independent advice at Employee's expense or to propose modifications prior to signing the Agreement and has negotiated proposed modifications to the extent Employee deems necessary;<\u002Fli>    <li>that the covenants made by and duties imposed upon Employee hereby, including any and all covenants regarding confidentiality, non-competition, non-solicitation, and ownership of intellectual property, are fair, reasonable, and minimally necessary to protect the legitimate business interests of Employer, and such covenants and duties will not place an undue burden upon Employee in the event of termination of Employee's contract with Employer and the strict enforcement of the covenants contained herein;<\u002Fli>    <li>that the above restrictions are not intended to deprive Employee of an opportunity to earn a living in the same profession as that of Employer. Rather, Employee agrees to abide by the above restrictions in recognition of Employer's legitimate and reasonable objective to protect its business interests and client relationships;<\u002Fli>    <li><strong>that Employee has been provided with good and valuable consideration in return for the execution of this Agreement; and<\u002Fli>    <li>THAT EMPLOYEE HAS READ ALL OF THE TERMS AND CONDITIONS OF THIS AGREEMENT.<\u002Fstrong><\u002Fli><\u002Fol><\u002Fol><p><strong>INTENDING TO BE LEGALLY BOUND HEREBY, EMPLOYEE AND EMPLOYER EXECUTED THIS AGREEMENT AS OF THE DATE(S) SET FORTH BELOW.<\u002Fstrong><\u002Fp><p>EMPLOYEE<\u002Fp><p>Signed: ___________________________             Date: ______________________<\u002Fp><p>Name: ___________________________<\u002Fp><p>Title: ___________________________<\u002Fp><p>EMPLOYER<\u002Fp><p>Signed: ___________________________             Date: ______________________<\u002Fp><p>Name: ___________________________<\u002Fp><p>Title: ___________________________<\u002Fp>  <div class='-page-break'><\u002Fdiv><center><p class='title center'><strong>Instructions for Your Employment Agreement<\u002Fstrong><\u002Fp><\u002Fcenter><br \u002F><br \u002F><p>A well-drafted employment agreement should protect the interests of both the Employer and Employee and be flexible enough to handle a variety of common potential disputes that may develop in the future. Below you will find information about important terms and considerations for this agreement.<\u002Fp><p><strong>Party Information<\u002Fstrong><\u002Fp><p>When identifying the parties, be sure to use the full legal names of the Employee and Employer. Note that the Employer can be either an individual or business entity. If the Employer is a business, be sure to include the type of business entity in the name of the Employer; for instance "eDemand, LLC."<\u002Fp><p><strong>Employment Term<\u002Fstrong><\u002Fp><p>Choosing whether you want the agreement to continue indefinitely or for a fixed term will determine the type of employment involved. For instance, choosing an indefinite term will create an at-will employment contract. This allows either party to terminate the employment relationship at any time, with or without cause. At-will employment is the most common type of employment throughout the United States.<\u002Fp><p>However, if the parties desire a more definite employment time frame, you can select employment for a fixed term. This means that the employment can only be terminated while the agreement is in effect for just cause, such as violating a term of the agreement.<\u002Fp><p><strong>Job Description<\u002Fstrong><\u002Fp><p>Add the job description by detailing the relevant services that the Employee will perform. There is no need to include <em>every<\u002Fem> individual service the Employee will be responsible for because the agreement allows the Employer to assign new duties that are reasonable within the scope of the agreement. Simply including the general job duties will suffice.<\u002Fp><p>You will also be able to select whether or not the Employee is allowed to engage in outside employment for other businesses while performing the services under this agreement. This term is usually negotiated upfront with the Employee to ensure all parties are on the same page.<\u002Fp><p><strong>Compensation and Benefits<\u002Fstrong><\u002Fp><p>You have complete flexibility in tailoring how the Employee is paid, including by hourly wage, salary, salary plus commission, solely on commission, or your own custom pay structure.<\u002Fp><p>You also have the option to list any benefits the Employee will receive. This part is optional since you can always agree on benefits at a later time with the Employee or in a different agreement.<\u002Fp><p>It is not necessary to include <em>all<\u002Fem> the Employer's rules and information regarding each benefit you include. Instead, you may simply name the benefit and briefly describe any major characteristics associated. Further details of each benefit are normally elaborated in the Employer's official policy documentation and may be subject to change.<\u002Fp><p><strong>Ownership of Intellectual Property<\u002Fstrong><\u002Fp><p>Under the terms of the agreement, the Employer will retain all work produced under the agreement. This is legally known as "works made for hire."<\u002Fp><p>However, if the works or services provided are generic in nature, you may want to reword this provision so that the Employee will retain ownership and the Employer will only be granted a non-exclusive limited right to use any intellectual property produced by the Employer.<\u002Fp>  <p><strong>Dispute Resolution<\u002Fstrong><\u002Fp>  <p>It is usually recommended that you include an arbitration provision. This requires disputes to be settled through binding arbitration and avoids the time and expense of going through the formal court system.<\u002Fp>  <p>Next, you will indicate which state's laws will govern the agreement. Usually, the Employer lists its principal place of business as the governing state. Other options include using the Employer's state of incorporation or the state where the two parties are conducting any business together.<\u002Fp>  <p><strong>Non-Compete<\u002Fstrong><\u002Fp>  <p>Choosing to include a non-compete clause will prohibit the Employee from engaging in similar work as he or she performed for the Employer. If the Employee works in an occupation that has many clients at once (e.g. financial advisers or attorneys) or holds a relatively narrow expertise, courts may not enforce such a provision if it is seen as an overly burdensome restriction on the Employee's ability to find work.<\u002Fp>  <p>No matter what the Employee's occupation is, however, it is important that the non-compete clause is tailored to be as narrowly restrictive as possible. If the Employer operates in a rapidly changing industry, such as in the IT industry, then it will be hard to justify a non-compete term lasting longer than six months or a year. In most cases, if you insert a non-compete term longer than two years, then you will be running a higher risk of a court someday shortening it down or invalidating it altogether.<\u002Fp>  <p><strong>Confidentiality and Non-Solicitation<\u002Fstrong><\u002Fp>  <p>Confidentiality provisions will prevent unwanted disclosure of the Employer's confidential information and trade secrets by the Employee. You can choose to limit the non-disclosure requirement to a fixed period of time after the parties' relationship ends or only while the agreement is in effect. If these options will serve to protect the Employer's interests, then it may be a good idea to limit the term. However, if the Employee will be learning confidential information and trade secrets that will hurt the Employer's business if exposed, then it is likely a good idea to prohibit their disclosure indefinitely.<\u002Fp>  <p>A non-solicitation provision prevents the Employee from adversely interfering with any of the Employer's business relationships; for instance, by trying to lure away the Employer's own employees or business contacts. The term of the non-solicitation should be limited as much as possible to not be overly burdensome on the Employee while still protecting the Employer's interests. Courts generally accept anything between one month and two years depending upon what is reasonable under the circumstances.<\u002Fp>  <p>It is usually a good idea to include these provisions unless you want to outline them in a separate agreement. However, these provisions will likely need to be negotiated between the parties upfront.<\u002Fp><p><strong>Termination<\u002Fstrong><\u002Fp><p>Next, specify how much advance notice is required when a party decides to end the contract. In many industries it is customary to require at least two weeks' notice of termination. However, it is completely acceptable to not require any notice.<\u002Fp><p>Note that if a party is terminating the agreement due to a violation of the agreement by the other party, then the agreement states that no notice will be required to terminate it.<\u002Fp><p><strong>Additional Terms<\u002Fstrong><\u002Fp><p>You can add additional terms and conditions as desired. You have complete flexibility to tailor the document to reflect the specific situation and true intent of the parties, but be sure to preview the agreement first so that you know what has already been included for you.<\u002Fp><p>As an example, you might require the Employer to pay a cancellation fee (or "kill" fee) to the Employee if the Employer decides to end the contract early. However, if the term length is indefinite, then you will not be able to require a cancellation fee.<\u002Fp><p><strong>How to Execute Your Agreement<\u002Fstrong><\u002Fp><ul>  <li>Have each party to the agreement sign and date the signature lines where indicated. Electronic signatures are allowed by the terms of the agreement. The parties can also sign copies sent to each other by email, fax, or other electronic means. 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fill=\"#009EFF\"\u002F>\r\n\u003C\u002Fsvg>\r\n","illustrated-steps",{"hideOnMobile":116,"hideOnDesktop":116},{"id":145,"headline":91,"description":146,"body":147,"buttonText":81,"buttonLink":81,"blockName":81,"blockType":148,"visibility":149},"6a15a21af13133005943e7b3","Our customizable employment agreement template details all of the significant matters related to the employment relationship. This help guide will detail information about important terms and considerations for this agreement.","\u003Cp>\u003Cspan style=\"font-weight: 400;\">A well-drafted employment agreement should protect the interests of both the employer and employee and be flexible enough to handle a variety of common potential disputes that may develop in the future. This help guide will provide a general overview of the most important parts of an employment agreement. \u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>The Parties\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">When identifying the parties, it’s important to use the full legal names of the employer and the employee. If the employer is a business entity, such as a corporation or an LLC, be sure to include the entity designator along with the name of the employer. For example, if one of the parties is a limited liability company called \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">eDemand\u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\">, then “eDemand LLC” should be entered.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Employment Term\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">The term of employment entered in the employment agreement may be \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">fixed \u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\">or \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">indefinite\u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\">. An indefinite term will allow either party to terminate the employment relationship at any time, with or without cause. This is known as at-will employment, which is the most popular employment relationship in the United States.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">On the other hand, under a fixed-term employment contract, the employee may only be terminated for cause while the agreement is in effect. Here, “just cause” means violating the agreement.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Job Description\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Our employment agreement allows you to provide a general description of the employee’s duties. Since the agreement allows the employer to assign new duties within the scope of the agreement, the employment agreement does not need to add \u003C\u002Fspan>\u003Ci>\u003Cspan style=\"font-weight: 400;\">every\u003C\u002Fspan>\u003C\u002Fi>\u003Cspan style=\"font-weight: 400;\"> individual service the employee will be responsible for. Simply including the general job duties will suffice.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">You will also be able to decide whether or not the employee is allowed to engage in other employment arrangements with third parties while performing the services under this agreement. The term during which this limitation applies is usually negotiated upfront with the employee to ensure all parties are on the same page.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Compensation and Benefits\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">You have complete flexibility in tailoring how the employee is paid, including by hourly wage, salary, salary plus commission, solely on commission, or any other legal payment structure.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Also, it’s important to add any benefits being offered to the employee. When describing each benefit, it is sufficient to name the benefit and include a brief description of the key aspects. You can skip this part if you plan on providing this information to the employee separately. \u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Ownership of Intellectual Property\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">The employer will own all rights to any intellectual property produced by the employee under the agreement. This intellectual property is considered “works made for hire,” meaning that the employer has ownership so long as the work is completed by the employee while carrying out his or her duties on behalf of the employer. The employee will retain rights to any intellectual property produced outside of employment.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Dispute Resolution\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">It is usually a good idea to require that disputes be settled through binding arbitration. This is when an impartial arbitrator issues a legally enforceable ruling on the dispute in the same way that a judge would. However, by using the arbitration system, the parties can usually reach a resolution much more quickly and at a fraction of the cost compared to going through court. \u003C\u002Fspan>\u003Cspan style=\"font-weight: 400;\">Also, select the state law that will govern any disputes. This is normally the state where the employee works.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Non-Compete\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">You can choose to include a\u003C\u002Fspan>\u003Ca href=\"https:\u002F\u002Fwww.legalnature.com\u002Fcategories\u002Fhuman-resources\u002Fnon-compete-agreement\">\u003Cspan style=\"font-weight: 400;\"> \u003C\u002Fspan>\u003Cspan style=\"font-weight: 400;\">non-compete clause\u003C\u002Fspan>\u003C\u002Fa>\u003Cspan style=\"font-weight: 400;\"> to prohibit the employee from working for a competitor of the employer during employment and for a fixed amount of time after employment ends. \u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">That said, it’s important to point out that this clause may be deemed unenforceable by a court of law if it is overly restrictive on the employee’s ability to find work in their chosen industry. Therefore, you should limit the term of the non-compete clause to as little time as necessary to protect the employer’s legitimate interests. Normally, six months to two years is considered reasonable, depending on how fast-paced the employee’s industry is.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Confidentiality and Non-Solicitation\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Confidentiality provisions will prevent unwanted disclosure of the employer's confidential information and trade secrets by the employee. You can choose to limit the non-disclosure requirement to a fixed period of time after the parties' relationship ends or only while the agreement is in effect. However, if the employee will be learning confidential information and trade secrets that will hurt the employer's business if exposed, then it is likely a good idea to prohibit their disclosure indefinitely.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">A non-solicitation provision prevents the employee from adversely interfering with any of the employer's business relationships; for instance, by trying to lure away the employer's own employees or business contacts. The term of the non-solicitation should be limited as much as possible to not be overly burdensome on the employee while still protecting the employer's interests. Courts generally accept anything between one month and two years depending upon what is reasonable under the circumstances.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">It is usually a good idea to include these provisions unless you want to outline them in a separate\u003C\u002Fspan>\u003Ca href=\"https:\u002F\u002Fwww.legalnature.com\u002Fcategories\u002Fhuman-resources\u002Fconfidentiality-agreement\">\u003Cspan style=\"font-weight: 400;\"> \u003C\u002Fspan>\u003Cspan style=\"font-weight: 400;\">confidentiality agreement\u003C\u002Fspan>\u003C\u002Fa>\u003Cspan style=\"font-weight: 400;\">. In any case, these provisions will likely need to be negotiated between the parties upfront.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Termination\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Next, specify how much advance notice is required when a party decides to end the contract. In many industries it is customary to require at least two weeks' notice of termination. However, it is completely acceptable to not require any notice.\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fspan>\u003C\u002Fp>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Note that no notice is required to terminate the agreement when it is being terminated due to a violation of the agreement by the other party.\u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>Additional Terms\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Our employment agreement allows you to add your own custom terms and conditions. This is a great way to provide additional clarity regarding any details related to the agreement’s terms. This way, the parties will enjoy the reassurance that any promises made between the parties are recorded in the agreement. \u003C\u002Fspan>\u003C\u002Fp>\n\u003Ch4>\u003Cb>How to Execute Your Agreement\u003C\u002Fb>\u003C\u002Fh4>\n\u003Cp>\u003Cspan style=\"font-weight: 400;\">Once all required details have been entered, all parties should sign and date the agreement and store a copy of the fully executed agreement in a secure location. Make an electronic copy as an additional backup if possible.\u003C\u002Fspan>\u003Cb>\u003C\u002Fb>\u003C\u002Fp>","help-guide",{"hideOnMobile":116,"hideOnDesktop":116},{"id":151,"style":152,"size":153,"blockName":81,"blockType":154,"visibility":155},"6a15a21af13133005943e7b4","line","md","separator",{"hideOnMobile":116,"hideOnDesktop":116},{"id":157,"headline":158,"description":159,"blockName":81,"documents":160,"blockType":175,"visibility":176},"6a15a21af13133005943e7b8","Related documents","View additional documents that our customers are creating. Whether you are a small business or a large corporation, we have you covered.",[161,165,170],{"id":162,"name":163,"description":164,"link":35,"ctaText":81},"6a15a21af13133005943e7b5","Job Offer Letter","Notify a potential employee about a job offer and specify all the relevant details of employment.",{"id":166,"name":167,"description":168,"link":169,"ctaText":81},"6a15a21af13133005943e7b6","Employee Handbook","Guide employees on their employer's policies and procedures concerning the important aspects of employment.","\u002Fcategories\u002Fhuman-resources\u002Femployee-handbook",{"id":171,"name":172,"description":173,"link":174,"ctaText":81},"6a15a21af13133005943e7b7","Employee NDA","The best way to safeguard the company's confidential information and trade secrets from theft or unauthorized disclosure.","\u002Fcategories\u002Fhuman-resources\u002Femployee-non-disclosure-agreement","related-documents",{"hideOnMobile":116,"hideOnDesktop":116},{"id":178,"heading":179,"background":180,"blockName":81,"items":181,"blockType":202,"visibility":203},"6a15a21af13133005943e7be","Frequently Asked Questions","light-blue",[182,186,190,194,198],{"id":183,"question":184,"answer":81,"legacyHtml":185},"6a15a21af13133005943e7b9","Why should I use a written employment contract?","\u003Cp>An employment agreement contains many rights and obligations for both the employer and employee; as a result, having a clear idea of each party's expectations is crucial to the success of any agreement. The existence of a written agreement provides a stable reference for all parties to evaluate each other's compliance with the agreement. This would be very difficult to do with a verbal agreement since no record of each party's responsibilities would exist. As a result, it is always recommended to have a written employment agreement that all parties can refer back to in the future. \u003C\u002Fp>",{"id":187,"question":188,"answer":81,"legacyHtml":189},"6a15a21af13133005943e7ba","What is \"at-will employment\"?","\u003Cp>In simple terms, an at-will employee can be terminated at any time, for almost any reason, with or without notice. This arrangement could be very attractive for an employer that wants to have the flexibility to adapt their workforce to the changing needs of the business. That said, the employer's right to fire an at-will employee is not unlimited. This is due to the fact that most states have certain laws that consider some forms of termination as illegal, regardless of whether or not the employment is at-will. \u003C\u002Fp>",{"id":191,"question":192,"answer":81,"legacyHtml":193},"6a15a21af13133005943e7bb","What is covered in an employment agreement? ","\u003Cp>Although some employment agreements require more detail than others, a properly drafted agreement will cover the following details: \u003Cbr \u002F>\u003Cbr \u002F>\u003Cbr \u002F>\u003C\u002Fp>\n\u003Cul>\n\u003Cli>The full names of the employer and employee\u003C\u002Fli>\n\u003Cli>The full term of the employment, whether it be for a fixed term or indefinitely \u003C\u002Fli>\n\u003Cli>A general description of the employee's duties under the agreement \u003C\u002Fli>\n\u003Cli>The employee's right to perform services for other employers during the agreement's term \u003C\u002Fli>\n\u003Cli>A description of the employee's salary structure \u003C\u002Fli>\n\u003Cli>A list of additional benefits offered to the employee\u003C\u002Fli>\n\u003Cli>Ownership of any intellectual property generated by the employee \u003C\u002Fli>\n\u003Cli>A description of any applicable dispute resolution structure \u003C\u002Fli>\n\u003Cli>A full description of any non-compete requirement\u003C\u002Fli>\n\u003Cli>A confidentiality requirement preventing unwanted disclosure of the employer's confidential information\u003C\u002Fli>\n\u003Cli>A non-solicitation provision preventing the employee from adversely interfering with any of the employer's business\u003C\u002Fli>\n\u003C\u002Ful>",{"id":195,"question":196,"answer":81,"legacyHtml":197},"6a15a21af13133005943e7bc","What duties does the employee have?","\u003Cp>The term \"duties\" refers to the set of tasks and expectations that make up the responsibilities of the vacant position. It is very important that the soon-to-be employee has a clear idea of all the duties related to the position in order to avoid any potential conflicts with the employer. Given its importance, this part of the agreement should be reviewed multiple times in order to make sure it is well drafted and is not missing any important details. \u003C\u002Fp>",{"id":199,"question":200,"answer":81,"legacyHtml":201},"6a15a21af13133005943e7bd","Should I use an employment agreement or a service contract? ","\u003Cp>Unlike an employment agreement, a service contract is used to acquire services from contractors, not employees. Given its limited use, a service contract will have a limited term, usually determined by how long it takes to render the service. Simply put, if you need to hire an employee, then an employment agreement is the right document to use. Otherwise, if what you need is a service from a contractor, then a service contract is the way to go. \u003C\u002Fp>","faqs",{"hideOnMobile":116,"hideOnDesktop":116},{"id":205,"style":152,"size":153,"blockName":81,"blockType":154,"visibility":206},"6a15a21af13133005943e7bf",{"hideOnMobile":116,"hideOnDesktop":116},{"id":208,"style":152,"size":153,"blockName":81,"blockType":154,"visibility":209},"6a15a21af13133005943e7c0",{"hideOnMobile":116,"hideOnDesktop":116},{"id":211,"headline":212,"text":213,"image":214,"ctaText":81,"blockName":81,"blockType":225,"visibility":226},"6a15a21af13133005943e7c1","Start Your Employment Agreement","Complete your document in minutes with LegalNature's intuitive, step-by-step guidance.",{"id":215,"alt":81,"updatedAt":216,"createdAt":217,"url":218,"thumbnailURL":81,"filename":219,"mimeType":220,"filesize":221,"width":222,"height":223,"focalX":224,"focalY":224},210,"2026-07-24T10:46:14.235Z","2026-07-24T10:46:14.133Z","https:\u002F\u002Fs3.us-east-2.amazonaws.com\u002Fshared-cms-main-media.legalnature.com\u002Fgeneral-doc-image.jpg","general-doc-image.jpg","image\u002Fjpeg",369412,894,594,50,"get-started",{"hideOnMobile":116,"hideOnDesktop":116},{"title":228,"description":229,"keyword":82,"og_image":230},"Employment Agreement Template | Create & Print | LegalNature","Create an employment agreement using our template to customize the contract to your needs. Our step-by-step form makes it easy to hire new employees.","https:\u002F\u002Fs3.us-east-2.amazonaws.com\u002Fshared-cms-main-media.legalnature.com\u002FLd4kbTw6QPeclwmWr2M5.jpg",{"headline":81,"image":81,"imageUrl":81,"steps":232},[]]