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By Type (4)
 At-Will Employment Contract – Has no fixed duration and can be terminated by either party at any time, for any lawful reason or for no reason at all.
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 Fixed-Term Employment Contract – Hires an employee for a fixed period and only terminates under the agreed contract terms.
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 Independent Contractor Agreement – Lays out the conditions under which a business or self-employed worker provides services to a client.
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 Subcontractor Agreement – Forms a working arrangement between a contractor and a subcontractor hired to complete part of a larger project.
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Addendums / Supplemental Forms (4)
 Employment Contract Addendum – Adds additional terms to an existing employment contract without changing its core provisions.
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 Employment Contract Amendment – Allows the parties to update or delete specific information in an employment contract.
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 Non-Compete Agreement – Prevents workers from competing within the same industry after their employment or contract ends.
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 Non-Disclosure Agreement – Restricts an employee or contractor from sharing a company’s proprietary information with third parties.
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What’s Covered in the Contract
- Payment (salary, commissions, bonuses)
- Employee rules and responsibilities
- Length of employment (the “term”)
- Dispute resolution
- Benefits (e.g., insurance, PTO, holidays)
- Grounds for termination
- Non-disclosure/confidentiality
When to Sign an Employment Contract
An employment contract should be signed before the employee begins work. Having the agreement in place from the start ensures both parties clearly understand the job responsibilities, compensation, benefits, and other terms of employment.
Note on “At-Will” Employees
In the United States, most employees are considered at-will, meaning either the employer or the employee may end the working relationship at any time and for almost any reason.
An employment relationship becomes contract-based (instead of at-will) when the agreement guarantees employment for a set period or limits termination to specific reasons, such as a breach of confidentiality.
Employment Contract vs Offer Letter
An employment contract and an offer letter are two distinct documents, each serving a different role during the hiring process:
Employment Contract
- Signed after an employee officially accepts a position
- Sets detailed terms of employment, including each party’s rights and obligations
- Legally binding
Offer Letter
- Provided to candidates before a position is accepted
- Summarizes basic job offer details such as title, pay, hours, start date, and benefits
- Usually not legally binding
Sample
Employer: [EMPLOYER NAME], having its principal place of business at [EMPLOYER ADDRESS] (“Employer”), AND
Employee: [EMPLOYEE NAME], with a mailing address of [EMPLOYEE ADDRESS] (“Employee”).
IN CONSIDERATION of promises and other good and valuable consideration, the parties agree to the following:
1. EMPLOYEE DUTIES. The Employee agrees to perform all duties in the best interests of the Employer. The Employee will follow all Employer policies, procedures, rules, and reulatiand will comply with all applicable local, state, and federal laws while employed.
2. RESPONSIBILITIES. The Employee shall be given the job title of [POSITION] (“Position”), which is a ☐ full-time ☐ part-time position that shall involve: [DESCRIBE DUTIES].
3. EMPLOYEE BENEFITS. During employment, the Employee shall be eligible to participate in benefits established by the Employer. These benefits include: [DESCRIBE BENEFITS].
The aforementioned benefits may be changed at any time by the Employer.
4. EMPLOYMENT PERIOD. The Employer agrees to hire the Employee: (check one)
☐ – At-Will, whieither party may terminate this Agreement at any timeher party.
☐ – For a Specified Time Period, beginning on [DATE] and ending on [DATE].
5. TERMINATION. Either party shall have the right to terminate this Agreement by providing at least [#] days’ written notice to the other.
6. PAY. As compensation for the services provided, the Employee shall be paid $[PAY] ☐ per hour ☐ salary on an annual basis (“Compensation”). The Compensation is a gross amount subject to all local, state, federal, and other taxes and deductions as prescribed by law. Payment shall be distributed on a [FREQUENCY] basis.
6. OUT-OF-POCKET EXPENSES. The Employer agrees to reimburse the Employee for any that are incurred, including: [LIST EXPENSES].
7. TRIAL PERIOD. Other than certain benefits prescribed by law, the Employee will not be eligible for benefits, vacation time, or personal leave until after the first [#] days of employment (“Trial Period”).
8. VACATION TIME. After the Tri complete, the Employee is entitled to [#] days off per year. The Employee must give notice before scheduling their vacation. Any unused vacation time shall be: [DESCRIBE (E.G., CONVERTED TO CASH, FORFEITED].
9. PERSONAL LEAVE. After the Trial Period, the Employee shall be eligible for [#] days of ☐ paid ☐ unpaid time off per year for personal or medical issues. Any unused personal leave shall be: [DESCRIBE (E.G., CONVERTED TO CASH, FORFEITED].
If, for any reason, the Employee depletes their allotted number of days of personal leave in a given year, the Employee ☐ MAY ☐ MAY NOT be able to use any remaining vacation time.
10. FEDERAL HOLIDAYS. The Employee shall be entitled to [#] federal holidays per calendar year, as designated by the Employer and subject to change annually. If the Employee requests a federal holiday off, the Employer may decide whether the absence is permitted and whether it will be charged to personal leave or vacation time.
11. DISABILITY. If the Employee cannot perform their duties due to physical or mental disability, the Employer may terminate this Agreement by giving the Employee [#] days’ written notice.
12. CONFIDENTIALITY. The Employee agrees to the Employer’s proprietary information Employer strictly confidential, including but not limited to business plans, products, services, processes, trade secrets, intellectual property, customer data, pricing, and financial information. Any direct or indirect disclosure of confidential information may result in litigation, equitable relief, and recovery of losses, damages, and attorney’s fees.
This obligation shall continue for [#] months after employment ends, subject to the maximum period allowed by applicable law.
13. NON-COMPETE CLAUSE. After this Agreement ends, there shall be: (check one)
☐ – NO NON-COMPETE requirement.
☐ – A non-compete in effect for [#] months, during which time the Employee agrees not to engage in or accept employment with any business that competes with the Employer within [RESTRICTED AREA].
14. COMPLIANCE. The Employee agrees to follow this Agreement, Employer policies, and all applicable laws.
15. AMENDMENTS. This Agreement may be modified or amended if any such amendment is attached and authorized by all parties.
16. SEVERABILITY. If any part of this Agreement is found unenforceable or invalid, the remaining provisions shall remain binding. Any affected provision will still be enforced to the maximum extent permitted by law.
17. WAIVER OF CONTRACTUAL RIGHT. If the Employer or Employee fails to enforce a provision or section of this Agreement, it shall not be determined as a waiver or limitation. Either party shall retain the right to enforce and compel the compliance of this Agreement to its fullest extent.
18. GOVERNING LAW. This Agreement shall be governed under the laws of the State of [STATE].
19. ENTIRE AGREEMENT. This Agreement, along with any attachments or addendums, represents the entire agreement between the parties. Therefore, this Agreement supersedes any prior agreements, promises, conditions, or understandings between the Employer and Employee.
20. SIGNATURES. IN WITNESS WHEREOF, this Agreement was signed by the parties under the hands of their duly authorized officers and made effective as of the undersigned date.
Employer Signature: ____________________ Date: [MM/DD/YYYY]
Print Name: [PRINTED NAME]
Employee Signature: ____________________ Date: [MM/DD/YYYY]
Print Name: [PRINTED NAME]