# Employment Agreement Template > Professional employment contract template for small businesses. Create a clear, balanced agreement for your new hire in minutes. URL: https://gofirmhub.com/en/contracts/employment-agreement-template/ Last updated: 2026-10-08 Establish a professional relationship with your new employee using this plain-English employment agreement. Designed for small businesses to ensure clarity and fairness. ## Preview ## How to use this template 1. Fill in the placeholders with your specific job details. 2. Review the terms to ensure they match your business needs. 3. Download the document as a PDF or copy the text. 4. Sign the agreement with your new employee. ## When to use this template Use an employment agreement when you hire an employee on your payroll, full-time or part-time, open-ended or for a fixed term. It records the job title, duties, pay, working hours, paid time off and how employment can end. Employment law is stricter than contract law between businesses. Minimum wage, overtime, leave and termination rules differ by state and country and override anything in the contract that gives the employee less. Use this template as a starting point and check it against local rules. ## Check before you sign - The pay is at or above the applicable minimum wage, and the role is classified correctly for overtime. - Hours, work location and remote work arrangements match reality. - Paid time off meets or exceeds what local law requires. - For a fixed term, the end date and early termination terms are clear. - Confidentiality and intellectual property clauses are in place before the employee starts. ## Full text of the employment agreement template This is the complete template. Words in [brackets] are filled in automatically when you use the form above; where the template has options, the form shows only the one you choose. ### EMPLOYMENT AGREEMENT ### 1. Parties and Position This Employment Agreement is made between [Employer name], located at [Employer address] ("Employer"), and [Employee name], residing at [Employee address] ("Employee"). The Employer agrees to employ the Employee in the position of [Job title], starting on [Start date]. ### 2. Duties The Employee shall perform the following duties: [Main duties]. In addition to these primary responsibilities, the Employee agrees to perform other reasonable tasks related to the position. The Employee shall follow all lawful instructions provided by the Employer and adhere to all established workplace policies. ### 3. Place of Work The Employee will perform their duties at [Work location]. ### 4. Hours of Work If you choose: Full-time This is a full-time position. The Employee is expected to work [Hours per week] hours per week. If you choose: Part-time This is a part-time position. The Employee is expected to work [Hours per week] hours per week. ### 4.1 Overtime Any overtime work must be agreed upon in advance by the Employer and will be compensated as required by applicable law. ### 5. Duration of Employment If you choose: Open-ended (at-will) Employment is at-will. This means either the Employer or the Employee may terminate the employment relationship at any time, with or without cause, subject to applicable law. If you choose: Fixed term with an end date This is a fixed-term agreement. Employment will end on [End date] unless it is renewed in writing by both parties or terminated earlier according to the termination provisions of this agreement. ### 6. Compensation If you choose: Annual salary The Employer shall pay the Employee an annual salary of [Pay amount] [Currency]. If you choose: Hourly wage The Employer shall pay the Employee an hourly wage of [Pay amount] [Currency]. ### 6.1 Payment Schedule If you choose: Weekly Payment will be made on a weekly basis. If you choose: Every two weeks Payment will be made on a biweekly basis. If you choose: Twice a month Payment will be made on a semimonthly basis. If you choose: Monthly Payment will be made on a monthly basis. ### 6.2 Taxes The Employer will withhold all taxes and other deductions from the Employee's pay as required by law. ### 7. Benefits The Employee may be eligible to participate in benefit plans and policies offered by the Employer. Such benefits are subject to the terms of the respective plans as they may be amended from time to time. No specific benefits are guaranteed by this agreement. ### 8. Paid Time Off The Employee is entitled to [Paid time off] days of paid time off per year, which must be scheduled in agreement with the Employer. The Employee is also entitled to public holidays according to the Employer's policy. If applicable law provides for more generous leave entitlements, those legal requirements will apply. ### 9. Business Expenses The Employer will reimburse the Employee for reasonable, pre-approved business expenses. Reimbursement is subject to the submission of valid receipts. ### 10. Confidentiality The Employee agrees to keep all non-public business information confidential during and after their employment. This obligation does not apply to information that is required to be disclosed by law, or where disclosure is protected by law, including reporting illegal activities to government agencies or discussing wages and working conditions as permitted by law. ### 11. Intellectual Property To the extent permitted by law, all work created by the Employee within the scope of their employment belongs to the Employer. The Employee retains ownership of inventions created entirely on their own time, without using the Employer's resources, and which are unrelated to the Employer's business, provided that the law allows for such ownership. ### 12. Company Property The Employee must return all company property, including equipment, documents, and digital information, immediately upon request or upon the termination of employment. ### 13. Termination If you choose: Open-ended (at-will) While employment is at-will, the Employee is requested to provide [Requested notice when leaving] days of notice before resigning. If you choose: Fixed term with an end date This agreement may be terminated early by the Employer for serious misconduct or a material breach of contract. It may also be terminated early by mutual written agreement of both parties. ### 13.1 Final Payment Upon termination, the Employee will receive their final pay and any accrued amounts as required by applicable law. ### 14. Compliance with Law If any provision of this agreement is found to be less favorable to the Employee than the minimum requirements of applicable employment law, the legal requirement shall prevail. ### 15. Governing Law This agreement is governed by the laws of [Governing law]. ### 16. General Provisions This document constitutes the entire agreement between the parties and supersedes any prior discussions. Any amendments must be made in writing and signed by both parties. If any part of this agreement is held to be invalid or unenforceable, the remaining provisions will continue in full force. All notices required under this agreement must be provided in writing. ### Signatures Employer Signature: ____________________ Name and title: ____________________ Date: ____________________ Employee Signature: ____________________ Name and title: ____________________ Date: ____________________ ## Frequently asked questions ### What is this contract for? This agreement defines the legal relationship between an employer and an employee. It outlines the job role, pay, and expectations to prevent future misunderstandings. ### What should this agreement include? It should clearly state the job title, compensation, work hours, and the nature of the employment term. It also covers confidentiality and the ownership of work created during employment. ### Is this template legally binding? It can become a binding contract once signed by both parties. However, this is a general template and not legal advice; you should have a lawyer review it for your specific jurisdiction. ### What is the difference between at-will and fixed-term employment? At-will employment means either party can end the relationship at any time for any legal reason. A fixed-term contract has a specific end date and typically requires specific grounds for early termination. ### Can I edit the text? Yes. Once you download or copy the text, you can modify any clause to better suit your specific business requirements. ### Is my data stored? No. Your data stays in your browser and is not stored on our servers, ensuring your business information remains private. ## Other contract templates - [Non-Disclosure Agreement Template](https://gofirmhub.com/en/contracts/nda-template/): Protect confidential information when you share it, one-way or mutual. - [Independent Contractor Agreement Template](https://gofirmhub.com/en/contracts/independent-contractor-agreement/): Hire a freelancer or work as one: services, fees, ownership and termination. - [Consulting Agreement Template](https://gofirmhub.com/en/contracts/consulting-agreement-template/): Hourly, daily, fixed or retainer consulting work, with clear deliverables. - [Service Agreement Template](https://gofirmhub.com/en/contracts/service-agreement-template/): Ongoing or one-time services with payment terms and a renewal period. - [Subcontractor Agreement Template](https://gofirmhub.com/en/contracts/subcontractor-agreement-template/): Pass part of a project to a subcontractor with scope, schedule and insurance. - [Partnership Agreement Template](https://gofirmhub.com/en/contracts/partnership-agreement-template/): Start a business with a partner: contributions, profit shares, decisions and exit. - [Statement of Work Template](https://gofirmhub.com/en/contracts/statement-of-work-template/): Define one project: scope, deliverables, timeline, price and how work is accepted. - [Shareholder Agreement Template](https://gofirmhub.com/en/contracts/shareholder-agreement-template/): Agree how shareholders decide, sell shares and handle deadlock in a company. - [LLC Operating Agreement Template](https://gofirmhub.com/en/contracts/operating-agreement-template/): Set ownership, management and exit rules for a US limited liability company. - [Sales Agreement Template](https://gofirmhub.com/en/contracts/sales-agreement-template/): Sell goods to a business customer with clear price, delivery, risk and warranty terms. - [Purchase Agreement Template](https://gofirmhub.com/en/contracts/purchase-agreement-template/): Buy a specific item, such as a vehicle or equipment, with a clear handover. - [Loan Agreement Template](https://gofirmhub.com/en/contracts/loan-agreement-template/): Lend or borrow money with a clear interest rate, repayment schedule and default terms. - [Letter of Intent Template](https://gofirmhub.com/en/contracts/letter-of-intent-template/): Record the main terms of a deal before the final contract, binding only where it should be. - [Memorandum of Understanding Template](https://gofirmhub.com/en/contracts/memorandum-of-understanding-template/): Agree how two organizations will cooperate, without creating binding obligations. ## Related free tools - [Free Contract Templates for Small Businesses](https://gofirmhub.com/en/contracts/): 15 free contract templates you fill in online: NDA, contractor, SOW, sales, loan, LLC operating, shareholder… - [Partnership Agreement Template](https://gofirmhub.com/en/contracts/partnership-agreement-template/): Create a professional general partnership agreement for your small business. 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