Employment Agreements

You may want some high-level employees to sign a formal Employment Agreement; some employees may even ask for one. A well-drafted Employment Agreement addresses the following key issues:

• The job position
• Whether the position can be changed by the employer
• The length of the agreement
• The salary, bonus, and benefits
• Whether the employee gets stock or stock options in the company (Note: The employee should typically earn these over time.)
• When the employee can be terminated for good cause
• What "good cause" means
• When the employee can be terminated without good cause and what severance payment will be due
• The employee's job responsibilities
• The employee's confidentiality obligations
• Where and how disputes will be handled

Click here to view a sample Employment Agreement.