Employment Agreement – Key Employee & Executive can be defined, as a written Agreement, entered between company and executive, where an employee agrees to provide certain services to the company, in exchange of considerations offered by the company. The signed Agreement is binding on both parties and legally valid. The provisions recorded in this Contract, differentiated it from Executive Compensation Agreement. The clauses in the Agreement are also binding on both the company and employee and, they agree to function within the terms and conditions of the Agreement.
The important features of the employment contract can be summed of as follows:
• Agreement duration
• Termination date and clauses
• Agreement renewal provisions
Remuneration & Benefits
1. Annual Salary of the executive.
2. Remuneration Adjustments.
3. Compensation negotiation for variety company events.
4. Benefit package, offered to the employee including, leave, vacation, leave, medical benefits, pension, stock options, insurance, expenses, and so on.
Duties of Employee
1. Employee Designation
2. Duties of the employee
3. Provision for employee service curtailment
4. Comply with the federal, state, and local laws.
5. Employee allegiance and royalty for the company
Duties of Employer
• Responsibility of the employer to pay compensation, allowances and benefits, as per the clauses recorded in the Agreement.
• Provisions of office, stenographic and other resources to be offered to the employee.
Confidential and Non Disclosure
Clauses preventing employee, from sharing company trade, information and other secrets with rival or third parties.
Clauses, preventing employee from working directly or indirectly with another rival company, located within specific geographical location, for specific period of time.
Service terminations provisions, which may include, disagreement with board of Directors, poor work environment, breach of contract, felony charges or involvement in immoral practices.
By agreeing with the provisions in the Agreement, both company and the executive can function, within their own parameters and understand their own duties and responsibilities.
You can also download Employment Agreement – Key Employee & Executive template from Internet site and use it to enter into Agreement with the employee.