General Instructions & Checklists
Employment Agreement Long Form
Instructions & Checklist
Agreement – Long Form
package contains: (1) General Instructions and Checklist for the
Employment Agreement; (2) Information about the Employment Agreement;
(3) Step-by-Step Instructions and (4) the Employment Agreement.
Employer must sign the Employment Agreement.
Employee must sign the Employment Agreement.
Employment Agreement should be signed no later then when the
Employer should allow the Employee a few days to review the
the Employer and the Employee each retain an original signed
Employment Agreement. Therefore, two original copies of the
Employment Agreement should be executed (i.e. signed).
form should not be used if the Employee is covered by a collective
bargaining agreement or union contract, if the Employee is considered
a consultant, or if the Employee is considered an independent
vary from time to time and from state to state. These forms are not
intended to be and are not a substitute for legal advice. These forms
should only be a starting point for you and should not be used or
signed before first consulting with an attorney to ensure that it
addresses your particular situation. An attorney should be consulted
before negotiating any document with another party.
purchase and use of these forms is subject to the “Disclaimers
and Terms Use” found at findlegalforms.com.
Agreement – Long Form
Employment Agreement is an agreement between an employer and an
employee which defines the terms and conditions of the employment
relationship. While an Employment Agreement can be verbal, it is
always preferable to memorialize the relationship and expectations of
the parties in writing.
What to look for in an Employment Agreement:
well drafted Employment Agreement should accomplish the following:
the parties (employee and employer);
the term of the agreement (one year, two years, etc.) as well as
including a specific start date;
bonuses and benefits should be included
the employee’s responsibilities;
the employer’s responsibilities;
what benefits the employee will receive;
limitations on the employee’s ability to compete when the
employee leaves the company;
the trade secrets and proprietary information of the company;
the ownership of the employee’s work product;
forth methods to resolve disputes; and
that the employment is “at will” and can be terminated
by either party at any time
Employment Agreement provides additional protection for both the
employer and the employee. For the employer, the contract provides
more control over the employee. Having the parameters of the job set
out from the beginning will also keep the employee focused on what is
expected of them. In the event it becomes necessary to terminate an
employee, having the procedures set forth in the agreement will make
the process smoother for all parties involved.
Employment Agreement will protect the business if the employee will
be privy to confidential information about the company. The agreement
can also include a provision where the employee cannot directly
compete against the company for a period of time (please note, that
such non-competition provision may not be enforceable in all states).
At Will vs. Just Cause Employment
have two possible methods of dealing with the termination of an
employee, either “at-will” or “just cause.”
Employment “at-will” means that the employer and employee
have an arrangement where either party can terminate the agreement at
any time, with or without cause. If an employer opts for this
method, it is important that this type of relationship is the same
one described in the Employment Agreement and also the Employee
Handbook. Failure to establish this policy in writing will create
confusion at the very least, and at is worst, if a dispute arises
with an employee, the employer will find themselves at the mercy of
the court system.
employer should be aware if they adopt an at-will employment
relationship that there are many exceptions to this rule based on
public policy. Examples of this would be terminating an employee for
filing a worker’s compensation claim, for filing a safety
complaint with OSHA, or for serving on a jury.
other hand, “just cause” employment offers the employee a
greater degree of job protection, assuring that as long as the
employee performs adequately and is economically feasible for the
employer. “Just Cause” employment means that an employee
may only be terminated for a legally sufficient reason, such as
misconduct or negligence.
standard provision of an Employment Agreement is a confidentiality
clause. This language protects the employer from an employee sharing
confidential information about the employer’s business with any
outsider. This usually includes how the employer’s business is
conducted, plans, machinery used, and financial data. Normally the
confidentiality provision will last even after the termination of the
of a non-competition clause, the employee agrees that for a period of
time after their employment ends, he/she will not take a job with a
competitor business. A standard clause should be for a reasonable
amount of time, and cover a reasonable geographic area. Courts tend
to interpret these clauses strictly, so the employee should be very
clear as to what they are agreeing to. Again, please note that
non-competition clauses are not enforceable in every state.
clause states that whatever the employee creates during the course
(during standard work hours and consistent with the employer’s
business) of their employment will remain the property of the
company. Usually employees agree to assign their inventions to their
employer and agree to keep the information confidential. This type of
provision is commonly included in Employment Agreements for employees
that are likely to engage in creative activities.
states will enforce this type of Employment Agreement; however, most
states will also require that for the agreement to be enforceable the
employee must have received “consideration” for signing
the document. This means that the employee must have received some
gain from signing the agreement. Because of this, it is best if the
employee signs the Employment Agreement at the beginning of his/her
employment, then it becomes a condition of his/her employment and the
gain the employee receives (the job) is obvious.
relationships are governed by both federal and state law. Many of
the state laws differ dramatically (e.g. some states have imposed
limitations on non-compete clauses and invention assignment
provisions); therefore employers and employees should become familiar
with the laws of their specific state and the federal government
before entering into an employment arrangement. Furthermore, before
using the form you should always consult with your attorney to ensure
that it addresses you specific situation.
document should not be used with employees that are covered by a
collective bargaining agreement or union contract until carefully
reviewed by the employer’s counsel.
Agreement – Long Form
following instructions will walk you through each provision to help
you fully understand the terms of your agreement.
Fill in the month, day and year that the agreement is being entered
into. Fill in the name of each party (the company name and the name
of the Employee).
Fill in a detailed job description for the Employee, as well as the
duties that the Employee will be expected to perform. It is a good
idea to be as thorough as possible in your description to avoid
potential problems later.
is an “at-will” agreement. This means that either the
Employer or Employee can terminate the employment relationship at any
time, with or without cause. It is important for the Employer to be
very clear in their intentions creating this type of employment and
include the same language in the Employee Handbook. Also be aware
that there are several exceptions to this type of employment
relationship which are: breach of implied contract on the part of the
Employer, violations of public policy and breach of the implied
covenant of good faith and fair dealing. States vary as to their
interpretation of “at-will” employment so it is
recommended to check the particular employment laws in your state.
2: Employee Compensation/Benefits.
Fill in the amount that the Employer will pay the Employee either
annually or monthly (circle which applies) and the amount of
compensation. Indicate whether the Employee will receive vacation or
paid time off (circle which applies), and indicate how many hours
will be accrued each month. This information should also be reflected
in the Employee Handbook.
any and all benefits that will be provided to the Employee such as
health and life insurance, dental and vision benefits, gym
memberships, etc. If there are no benefits offered indicate so.
This provision states that the Employer will reimburse the Employee
for any reasonable benefits incurred by the Employee. This could
include items such as automobile and meal allowances. It is a good
idea to have this included in your Employee Handbook so all parties
are clear on what is reimbursable and to what degree.
4: Conflicting Employment.
conflict of interest clause such as this is common to Employment
Agreements. This assures the Employer
the Employee’s skills, information and contacts will not be
used to generate profit for another company in the same or similar
clause provides a definition for confidential information and
prohibits the Employee from disclosing that information. This is a
standard provision in an Employment Agreement. Review the provision
and if you feel that more protection is necessary, it is possible to
enter into a stand alone Non-Disclosure Agreement.
6: Non-Compete Agreement.
Generally speaking, non-compete clauses are a way for employers to
try to limit their Employees and former Employees from working for a
competitor, and/or sharing trade secrets. While fairly common, there
are some states that have imposed substantial restrictions on their
enforceability. Always check your state rules.
7: Non-Solicitation of Employees
clause prevents former employees from recruiting any of the
Employer’s existing employees, causing them to work for another
company. Although some states limit non-solicitation clauses,
generally courts will enforce these clauses if they are reasonable
and not too broad in their scope. Fill in the amount of time that
you would like the clause to be in effect, bearing in mind that the
time frame should be reasonable for both parties.
The first paragraph provides that the Employee agrees to notify the
Employer of any invention or discovery made while working for the
Employer. It is standard practice that the Employer retains full
ownership of all inventions or innovations particularly if the
Employee’s work is creative in nature.
This clause addresses what is often called pre-invention assignments.
The employee is agreeing to assign an invention or innovation that
may be created during their employment. Some states have laws
limiting the scope of these pre-invention assignments. The laws
prevent an employer from claiming ownership for an invention that was
created by an employee outside the scope of their employment.
9: Other Rules and Policies.
Employee agrees to abide by all rules and policies of the Employer.
The Employer should go over all
rules and policies with the Employee prior to signing this agreement.
this is an “at-will” agreement, employment can be
terminated by either party at any time. Keep in mind that there are
exceptions and limitations to this rule (see Section 1).
11: Return of Property.
Upon the termination of the business relationship the Employee will
be required to return all business materials belonging to the
Company. This may seem obvious, but without this provision, it is
possible for the Company to lose valuable inventory.
12: Continuing Obligations.
the employment relationship is terminated, the provisions of sections
5, 6, 7 and 8 will continue.
13: Binding Effect.
The terms of this agreement will bind the parties, heirs, legal
representatives, successors and assigns.
14: Cumulative Rights.
clause states that all the provisions work together as a cohesive
agreement. One provision cannot be separated from the other.
to enforce a particular provision of an agreement could be
interpreted as waiver by conduct. In other words, failure to enforce
a provision could be interpreted as giving up the right to enforce
the provision in the future. This provision protects against this,
stating that failure to enforce a provision does not prevent a party
from enforcing the provision in the future.
This severability clause serves to preserve the agreement should a
portion of it ever be invalidated by the court. Without this clause,
a finding that one provision is unenforceable would invalidate the
17: Entire Agreement.
agreement is considered the complete agreement between the parties.
Any prior agreements are invalid. If either party chooses to modify
this agreement in any way, the modification must be put in writing.
Any notice to either party must be in writing and mailed to the
addresses that you will fill in here. When sending legal notice to
the other party, always keep a copy of what is being sent.
19: Governing Law.
This is the state whose laws you wish to be used to interpret the
agreement. Generally, this will be the state where you are doing
business or employed.
Each party should sign and date two original agreements. Each party
should retain an original for their reference.
Inc. (“FLF”) is not a law firm and does not provide
legal advice. The use of these materials is not a substitute
for legal advice. Only an attorney can provide legal advice. An
attorney should be consulted for all serious legal matters. No
Attorney-Client relationship is created by use of these materials.
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