An employee contract template can be used to formalize your employment agreement with a new employee. Employee contracts contain details like hours of work, the rate of pay, the employee's responsibilities, etc. In the event of a dispute or disagreement about the terms of employment, both parties can refer to the contract.
Below you will find an employee contract template with a free download that you can use to create your own contract.
Employee Contract Template:
This contract, dated on the ____ day of ______________ in the year 20____, is made between [company name] and [employee name] of [city, state]. This document constitutes an employment agreement between these two parties and is governed by the laws of [state or district].
WHEREAS the Employer desires to retain the services of the Employee, and the Employee desires to render such services, these terms and conditions are set forth.
IN CONSIDERATION of this mutual understanding, the parties agree to the following terms and conditions:
The Employee agrees that he or she will faithfully and to the best of their ability to carry out the duties and responsibilities communicated to them by the Employer. The Employee shall comply with all company policies, rules and procedures at all times.
As a [job title], it is the duty of the Employee to perform all essential job functions and duties. From time to time, the Employer may also add other duties within the reasonable scope of the Employee’s work.
As compensation for the services provided, the Employee shall be paid a wage of $___________ [per hour/per annum] and will be subject to a(n) [quarterly/annual] performance review. All payments shall be subject to mandatory employment deductions (State & Federal Taxes, Social Security, Medicare).
The Employee has the right to participate in any benefits plans offered by the Employer. The employer currently offers [list benefits, if any]. Access to these benefits will only be possible after the probationary period has passed.
It is understood that the first [time frame] of employment constitutes a probationary period. During this time, the Employee is not eligible for paid time off or other benefits. During this time, the Employer also exercises the right to terminate employment at any time without advanced notice.
Paid Time Off
Following the probationary period, the Employee shall be eligible for the following paid time off: • [length of time for vacation] • [length of time for sick/personal days] • Bereavement leave may be granted if necessary.
The employer reserves the right to modify any paid time off policies.
It is the intention of both parties to form a long and mutually profitable relationship. However, this relationship may be terminated by either party at any time provided [length of time] written notice is delivered to the other party.
The Employee agrees to return any Employer property upon termination.
Non-Competition and Confidentiality
As an Employee, you will have access to confidential information that is the property of the Employer. You are not permitted to disclose this information outside of the Company.
During your time of Employment with the Employer, you may not engage in any work for another Employer that is related to or in competition with the Company. You will fully disclose to your Employer any other Employment relationships that you have and you will be permitted to seek other employment provided that (a.) it does not detract from your ability to fulfill your duties, and (b.) you are not assisting another organization in competing with the employer.
It is further acknowledged that upon termination of your employment, you will not solicit business from any of the Employer’s clients for a period of at least [time frame].
This contract represents the entire agreement between the two parties and supersedes any previous written or oral agreement. This agreement may be modified at any time, provided the written consent of both the Employer and the Employee.
The Employee agree that he or she is fully authorized to work in [country name] and can provide proof of this with legal documentation. This documentation will be obtained by the Employer for legal records.
The parties agree that if any portion of this contract is found to be void or unenforceable, it shall be struck from the record and the remaining provisions will retain their full force and effect.
This contract shall be governed, interpreted, and construed in accordance with the laws of [state, province or territory].
In witness and agreement whereof, the Employer has executed this contract with due process through the authorization of official company agents and with the consent of the Employee, given here in writing.
Company Official Signature
Employee Contract Common Questions:
Do I need a different employee contract template for a UK business?
If your business is located in the United Kingdom, you can edit the location details in our small business employee contract template. However, you should always check with a lawyer to make sure your contract complies with local laws, no matter where you are located.
What is contained in an employee promotion contract template?
A new salary employee contract template that is being used as a result of the employee being promoted should still have all of the information that is found in a regular employer/employee contract template (salary details, legal jurisdiction, signatures, etc.).
Can I use a free employee contract agreement template for freelancers?
Freelancers are not employees, so you cannot sign an employment agreement with them unless you intend to hire them. Instead, you can use an independent contractor agreement.
What to Include In an New Employee Contract Template:
- Terms of employment.
- Non-compete clause.
- Compensation information.
Employment contracts are a standard for businesses in almost every industry. As an employer, the employment contract helps you to communicate your expectations very clearly to new employees. It also provides you with legal protection and a document to reference in the event that an employee brings a dispute against your business.
For employees, contracts help to clarify the details of their employment and have a point of reference for the terms of that employment. They can also turn to the contract for support if they ever feel that their job has gone beyond what was originally agreed upon.
Make sure that you have your employment contracts reviewed by a legal professional so that they are in compliance with local laws and industry regulations.