An Employment Contract formalizes the relationship between an employer and employee. This template covers all essential terms to protect both parties and ensure clear expectations from day one.
What Is an Employment Contract?
An employment contract is a legally binding document that defines the terms of a working relationship between an employer and an employee. It specifies job responsibilities, compensation, benefits, work conditions, and the grounds for termination. A well-drafted employment contract reduces disputes and creates a clear reference point for both parties.
Key Clauses to Include
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Job Title and Duties — Clearly define the role, responsibilities, reporting structure, and performance expectations.
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Compensation — Base salary, bonuses, commission structure, pay frequency, and annual review schedule.
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Benefits — Health insurance, retirement plans, paid time off, sick leave, and any other perks.
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Work Schedule — Hours, remote work policy, overtime terms, and on-call requirements.
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Probationary Period — Duration (30-90 days), evaluation criteria, and terms during the trial period.
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Confidentiality — Protect trade secrets, customer lists, business strategies, and proprietary information.
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Termination — At-will vs. for-cause termination, notice periods, severance terms, and exit procedures.
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Dispute Resolution — Mediation or arbitration clauses to avoid costly litigation.
How to Customize This Template
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Adapt to your jurisdiction — Employment law varies significantly by state and country. Ensure your contract complies with local labor regulations.
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Define performance metrics — Include clear criteria for performance evaluations both during probation and ongoing.
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Detail benefits precisely — Don’t just say “health insurance.” Specify coverage start dates, employer contribution percentages, and eligibility requirements.
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Non-compete considerations — Many states restrict or ban non-competes for employees. California, for example, prohibits them entirely. Know your state’s rules.
How to Send for E-Signature with WPsigner
- Upload — Drag and drop this employment contract into WPsigner
- Add fields — Place signature, date, and initial fields for both employer and employee
- Send — Email a secure link to the new hire
- Track — Monitor when the contract is opened, reviewed, and signed
- Store — Signed contracts are securely stored with tamper-proof audit trails