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Employment Agreement

Last revision Last revision 01/28/2024
Formats FormatsWord and PDF
Size Size6 to 9 pages
4.8 - 349 votes
Fill out the template

Last revisionLast revision: 01/28/2024

FormatsAvailable formats: Word and PDF

SizeSize: 6 to 9 pages

Rating: 4.8 - 349 votes

Fill out the template

An Employment Agreement (sometimes called a Work Agreement) is the document by which employers and their employees (or contractors or freelancers) can define their rights and obligations at the start of the employment relationship. This agreement can be used for employers who are individual people or employers who are a company. Employees should meet the requirements of the Fair Labor Standards Act, and are generally restricted to being above the age of 14 years old. This document is best suited to employees who are working in-office. For remote employees, a better document to use is the Remote Work Agreement.

Often times, employment relationships begin with an offer letter that defines certain terms and conditions of the work structure. An Employment Agreement, however, is a more robust and detailed document that allows the employer to go in depth about what is expected of the employee, and allows the employee to understand how things like pay raises and vacation time will be handled.

NOTE: Employment Agreements allow both employers and employees to be protected in case there is a disagreement later on about something that may have been unclear between the parties.

To get more information about the details that should be considered before creating the document, please see the guide Important Considerations for your Employment Agreement.

This document should be used to create an employer/employee relationship. To create a contractor relationship, please use the Independent Contractor Agreement. For more information about which document should be used, please see the guide What's the Difference Between an Employee and an Independent Contractor?.

Although an Employment Agreement can be as basic or as specific as required by the parties, normally an Employment Agreement will contain information such as the names and addresses of the parties, as well as things like the details and responsibilities of the employee's work. Creating an Employment Agreement before sending an Employee Offer Letter and bringing onboard an employee that will be a meaningful part of the team is a good idea, so that everyone can be clear about what the expectations are upfront.


How to use this document

Either an employee or employer can use this document when they've decided to begin a new employment relationship, no matter what the structure of that relationship will be. In this document, the form filler will define the important components of the new employment relationship. Either party can fill out the details and this agreement will cover more than just the traditional full-time, permanent employment relationship. This Employment Agreement will help outline the expectations of both parties before the work actually begins.

In this Employment Agreement, the employer will also be able to set a term for the employment relationship. In other words, the employer can decide if the agreement should go on indefinitely or whether it should end at a certain time. This Employment Agreement will also protect the employer for specific situations after the termination of the relationship, such as in case the employee received trade secrets or confidential information while working for the employer. This document contains only a standard confidentiality clause. For a more extensive confidentiality document, please see the Non-Disclosure Agreement (NDA).

When this document is complete, the employer should have their employees sign it. Then a copy can be given to the employee and a copy kept with the employer.


Applicable law

Employment and employment agreements in the United States are subject to both Federal laws and specific state laws. For example, the federal Fair Labor Standards Act (FLSA) covers wages and overtime pay for certain sectors. State laws, however, may define and restrict how employers can protect themselves if an employee tries to take their clients or use confidential information. The FLSA also sets wage, hours worked, and safety requirements for minors (individuals under age 18) working in jobs covered by the statute. The rules vary depending upon the particular age of the minor and the particular job involved. As a general rule, the FLSA sets 14 years old as the minimum age for employment, and limits the number of hours worked by minors under the age of 16.


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