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👔 Employment & HR

Free Employment Contract Template

Download a free employment contract template. Define compensation, benefits, duties, and termination terms — ready for electronic signature.

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Full Template Text

Copy the usable agreement below, replace every [BRACKET] placeholder, then customize for your situation.

Employment Contract
EMPLOYMENT AGREEMENT This Employment Agreement (the "Agreement") is entered into as of [Effective Date] (the "Effective Date"), BETWEEN: [Employer Name], with a principal place of business at [Employer Address] (the "Employer"); AND [Employee Name], with a principal place of business at [Employee Address] (the "Employee"). The Employer and the Employee may be referred to individually as a "Party" and collectively as the "Parties." 1. JOB TITLE, DUTIES, AND REPORTING STRUCTURE The Employee is hired as [Job Title], reporting to [Reports To]. Primary duties include [Primary Duties], plus other reasonable assignments. The Employee will devote full business time and attention to the Employer's business. 2. COMPENSATION AND BENEFITS Base compensation: [Base Salary or Wage], paid [Pay Frequency]. Benefits: [Benefits Summary], subject to plan terms and eligibility. Withholding and payroll taxes apply as required by law. 3. WORK SCHEDULE AND LOCATION Schedule: [Work Schedule]. Primary location: [Work Location]. Remote/hybrid terms: [Remote Work Policy]. Overtime eligibility follows applicable law and Employer policy. 4. PROBATIONARY PERIOD The first [Probationary Period Length] is probationary. During probation, either Party may terminate employment with [Probation Termination Notice] notice, to the extent permitted by law. 5. CONFIDENTIALITY AND TRADE SECRETS The Employee will protect confidential information and trade secrets during and after employment, using reasonable care. Confidential information excludes public information not due to Employee breach. 6. NON-COMPETE AND NON-SOLICITATION For [Non-Compete Duration] after employment, the Employee will not engage in [Restricted Activities] within [Geographic Scope] and will not solicit Employer employees or customers, to the extent permitted by law in [Governing Law / Jurisdiction]. 7. TERMINATION AND SEVERANCE After probation, termination requires [Termination Notice Period] notice or pay in lieu where permitted. Cause termination is immediate for material misconduct. Severance, if any: [Severance Terms]. Final pay and benefits follow applicable law. 8. DISPUTE RESOLUTION AND ARBITRATION Employment disputes will be resolved by binding arbitration in [Arbitration Location] under [Arbitration Rules], except claims that cannot be arbitrated as a matter of law. Each Party bears its own attorneys' fees unless awarded by the arbitrator. 9. GOVERNING LAW This Agreement is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have exclusive jurisdiction over disputes arising out of or relating to this Agreement, unless the Parties agree in writing to mediation before litigation. 10. GENERAL (a) Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning its subject matter and supersedes prior or contemporaneous agreements on that subject. (b) Amendments. Modifications must be in writing and signed by both Parties. (c) Severability. If any provision is held unenforceable, the remaining provisions remain in effect. (d) Assignment. Neither Party may assign this Agreement without the other Party's prior written consent, except to a successor in connection with a merger, acquisition, or sale of substantially all assets. (e) Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, including electronic signatures, each of which will be deemed an original. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. EMPLOYER Name: [Employer Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________ EMPLOYEE Name: [Employee Name] Signature: _______________________________ Name of Signatory: _______________________ Title: ___________________________________ Date: ____________________________________

This is a starting template, not legal advice. Have a qualified attorney review it for your jurisdiction and use case before signing.

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

  1. Job Title and Duties — Clearly define the role, responsibilities, reporting structure, and performance expectations.

  2. Compensation — Base salary, bonuses, commission structure, pay frequency, and annual review schedule.

  3. Benefits — Health insurance, retirement plans, paid time off, sick leave, and any other perks.

  4. Work Schedule — Hours, remote work policy, overtime terms, and on-call requirements.

  5. Probationary Period — Duration (30-90 days), evaluation criteria, and terms during the trial period.

  6. Confidentiality — Protect trade secrets, customer lists, business strategies, and proprietary information.

  7. Termination — At-will vs. for-cause termination, notice periods, severance terms, and exit procedures.

  8. Dispute Resolution — Mediation or arbitration clauses to avoid costly litigation.

How to Customize This Template

  1. Adapt to your jurisdiction — Employment law varies significantly by state and country. Ensure your contract complies with local labor regulations.

  2. Define performance metrics — Include clear criteria for performance evaluations both during probation and ongoing.

  3. Detail benefits precisely — Don’t just say “health insurance.” Specify coverage start dates, employer contribution percentages, and eligibility requirements.

  4. 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

  1. Upload — Drag and drop this employment contract into WPsigner
  2. Add fields — Place signature, date, and initial fields for both employer and employee
  3. Send — Email a secure link to the new hire
  4. Track — Monitor when the contract is opened, reviewed, and signed
  5. Store — Signed contracts are securely stored with tamper-proof audit trails

Frequently Asked Questions

What is an employment contract?

An employment contract is a legally binding agreement between an employer and employee that defines the terms of the employment relationship. It covers job duties, compensation, benefits, work schedule, confidentiality obligations, termination conditions, and other terms governing the working relationship.

Is an employment contract required by law?

In most US states, employment is "at-will" and a formal contract is not legally required. However, written contracts are strongly recommended because they clarify expectations, protect confidential information, define severance terms, and reduce legal disputes. In many other countries, written employment contracts are legally mandatory.

What is a probationary period?

A probationary period is a trial period (typically 30-90 days) at the beginning of employment during which either party can terminate the relationship with minimal notice. During probation, the employer evaluates the employees performance, and the employee assesses whether the role is a good fit.

Can an employment contract be signed electronically?

Yes. Electronically signed employment contracts are legally valid under the ESIGN Act and UETA in the US, and eIDAS in the EU. WPsigner is ideal for HR departments that onboard employees remotely, providing compliant e-signatures with audit trails.

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