Employment Agreement

An employment agreement is a legal contract between an employer and an employee, signed and entered at the start of a period of employment, which explicitly delineates the nature of their business relationship. IT service firms should use an employment agreement as a standard course of business whenever they hire a new employee, especially when confidentiality and nondisclosure agreements are required.

In addition to specifying what compensation the employee will receive in exchange for work performed, an employment agreement typically incorporates such provisions as employee benefits, expense management, conditions of termination, and severability so that employees know what they can expect upfront, as well as what is expected of them.

An employment agreement is of especial necessity when dealing with confidentiality and nondisclosure issues in order to define and declare what materials are to be restricted from generalized dissemination in order to protect non-public business information and trade secrets.

An employment agreement may also impose non-compete and non-hire provisions. A non-compete agreement prohibits an employee from engaging in any practice that would directly compete with their employer for the duration of their employment as well as for a specified time afterward. It prevents an employee from using their employer's information, data, and industry practices to benefit a competitor or launch their own business. A non-hire agreement prohibits an exiting employee from poaching a business's clients or other employees.

The ContractEdge employment agreement was developed by attorneys who specialize in Information Technology law. This employment agreement establishes the employer/employee relationship as an "employment of will," to prevent or address future wrongful termination suits, and also covers provisions of Non-Solicitation, Remedies, Non-assignment by Employee, Arbitration, Attorney's Fees, Force Majeure, and No Waiver. While laws governing the nature of employment agreements and their enforceability vary by location, IT professionals can depend on ContractEdge to provide a legally solid suite of IT contracts that are reliable, current, and valid in every state.

Additional Topics
Legal Contract
Software Development Agreement
Web Design Contracts
Hosting Contract
Service Level Agreement