What is this document?
An Employment Agreement is used to establish the relationship between an employer and an existing or new employee. It includes the obligations of both parties.
When would I use this document?
This document could be used either for a new employee or to change the terms of an existing employer/employee relationship.
Who signs this document?
Employment Agreements are signed by the new or existing employee and an individual with authority to bind the employer to the agreement. The Employment Agreement should be signed after the employee has had a chance to look it over, and before the employee begins work.
More details about this document
Employment Agreements can range in length and complexity depending on the context it is drafted for. An employee will sign an Employment Agreement when starting a new position with an employer, and then periodically when the terms of their employment relationship evolve over time (eg. changes in position, compensation, vacation benefits, stock options, etc.). Employment Agreements often refer to company policies or benefits plans.
What are the core elements of this document?
The core elements include: parties, duties and responsibilities, reporting line (who employee reports to), compensation and benefits, reimbursements and allowances, work hours/schedule, annual leave allowed, benefits, performance reviews, settlement of disagreements, termination clause, non-solicitation and non-competition clauses, limitation of employee activities, and intellectual property and confidentiality clauses.Some examples of additional clauses include ownership of intellectual property, non-disparagement, terms of departure, limitation of liability, employee stock option plan, return of employer property and indemnification of the employee.
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