Why should I use a written employment contract?

An employment contract 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 contract provides a stable reference for all parties to evaluate each other's compliance with the contract. 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 contract that all parties can refer back to in the future.

What is "at-will employment"?

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.

What is covered in an employment contract?

Although some employment contracts require more detail than others, a properly drafted agreement will cover the following details: The full names of the employer and employee The full term of the employment, whether it be for a fixed term or indefinitely A general description of the employee's duties under the agreement The employee's right to perform services for other employers during the agreement's term A description of the employee's salary structure A list of additional benefits offered to the employee Ownership of any intellectual property generated by the employee A description of any applicable dispute resolution structure A full description of any non-compete requirement A confidentiality requirement preventing unwanted disclosure of the employer's confidential information A non-solicitation provision preventing the employee from adversely interfering with any of the employer's business

What duties does the employee have?

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.

What compensation structure should the agreement have?

Some employment arrangements require more consideration than others. With this in mind, our template provides 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. It is 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.

Employment Contract

Our template allows you to create an employment contract that adapts to your needs.

Establish the goals, expectations, and financial benefits that make up the relationship between the employee and employer. Our step-by-step form makes it easy to hire new employees.

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Employment Contract

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Our employment contract

Allows for a detailed description of the length and type of employment
Provides an overview of any applicable payment structure and related benefits
Outlines each party's duties and obligations during the term of the contract

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Enter Each Party's Information

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."

Provide a Full Description of the Job

Our guided questions make the process of drafting your employment contract easy. Some of the details you can enter include the term of employment, a full job description, and how the employee will be compensated, among others. Keep in mind that you do not need to add every individual service the employee will be responsible for since the employer may assign new duties that are reasonable and within the scope of the agreement.

Review and Execute the Contract

The employer and employee should add their signatures at the end of the contract along with the date on which the agreement was signed. You may use electronic signatures if it is more convenient for you. Lastly, the employer should provide a copy of the signed contract to the employee and store their own copy in a secure location.

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