Are electronic signatures lawful?

Yes. Electronic signatures are legally enforceable in interstate commerce under the ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA; ensure intent, consent, attribution, and retention to meet legal tests.

When is notarization required?

Notarization is rarely required for employment agreements. If the agreement includes powers of attorney, real estate conveyances, or state-law-specific formalities, notarization or witnesses may be necessary.

How should I store signed agreements?

Retain signed originals and exportable audit trails in secure storage with access controls; follow IRS retention standards and industry-specific rules like HIPAA (45 CFR §164.530(j)).

What if a signer disputes an e-signature?

Preserve the audit trail (timestamps, IP, authentication) and any consent disclosures; these items support attribution and intent under ESIGN/UETA in enforcement proceedings.

Can I change terms after signing?

Material changes require a written amendment signed by both parties; document the effective date of the amendment and maintain version control for audit purposes.

How to revoke or cancel an agreement?

Revocation or termination follows the contract terms; parties may agree to rescind by signed amendment. For unilateral rescission check the agreement’s termination provisions and applicable state employment laws.

Electronic Signature
Templates
HR
Employee Company Agreement

Employee Company Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE COMPANY AGREEMENT

This Employee Company Agreement (Agreement) is entered into between Company Name: and Employee Name: with an effective date of .

Personal Information

Full Legal Name Current Address Phone Number Email Address

Position and Terms

Job Title Department Reporting Manager

Intended Start Date: Salary/Rate:

Employment Classification (select all that apply)

Full-time Part-time Exempt Non-exempt Temporary/Seasonal

Compensation, Benefits and Leave

Employee will be paid in accordance with Company payroll policies. Employee's compensation, bonus eligibility, benefits enrollment, leave accruals and eligibility for any deferred compensation are subject to the terms of the Company's benefit plans and policies as in effect from time to time.

Summary of Benefits and Special Terms (if any)

Employment History

Prior Employer 1

Company Name Title/Role

From: To:

Primary Responsibilities Reason for Leaving

Prior Employer 2

Company Name Title/Role

From: To:

Primary Responsibilities Reason for Leaving

Education

Highest Degree or Certification Institution Graduation Date

References

Reference 1 — Name Phone Email Relationship Reference 2 — Name Phone Email Relationship Reference 3 — Name Phone Email Relationship

Legal Disclosures and Company Policies

At-Will Employment: Employment with the Company is at-will. Either Employee or Company may terminate the employment relationship at any time, with or without cause or advance notice, unless a written agreement signed by both parties provides otherwise.

Equal Opportunity: The Company is an equal opportunity employer. Employment decisions are made without regard to legally protected characteristics. Employee acknowledges receipt of the Company's equal opportunity policy and agrees to comply with Company policies.

Confidentiality and Nondisclosure

Employee acknowledges that during employment Employee will receive confidential, proprietary and trade-secret information (Confidential Information). Employee agrees both during and after employment to hold in confidence and not use or disclose Confidential Information except as necessary in the performance of Employee's duties or as required by law. Employee shall return all Company property and Confidential Information upon termination.

I acknowledge and agree to the Confidentiality terms

Employee acknowledges and will comply with the Confidentiality and Nondisclosure provisions above.

Intellectual Property and Inventions

Employee agrees to assign to Company all rights, title and interest in inventions, discoveries, works of authorship and improvements conceived or reduced to practice by Employee during the period of employment that relate to the Company's business or result from use of Company resources. Employee will execute documents and take actions necessary to effectuate assignment.

I acknowledge and agree to Intellectual Property assignment

Employee acknowledges and agrees to the Intellectual Property and Inventions provisions above.

Non-Competition and Non-Solicitation

To the extent enforceable under applicable law, Employee agrees that for a period of following termination, Employee will not directly engage in substantially similar employment with a competing business within . Employee further agrees not to solicit Company clients or employees for a period of .

Acknowledge Non-Compete/Non-Solicit

Employee acknowledges and accepts the Non-Competition and Non-Solicitation provisions above, subject to enforceability in the applicable jurisdiction.

Termination and Severability

Termination: Employee may be terminated for cause based on misconduct, material breach of policy, fraud, dishonesty, or other grounds set forth in Company policy. Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Arbitration

Except where prohibited by law, any dispute arising out of or relating to this Agreement or the employment relationship will be resolved by final and binding arbitration administered in accordance with the agreement of the parties, and not by a court proceeding. Employee and Company expressly waive any right to bring or participate in class or collective proceedings.

Governing Law: This Agreement shall be governed by the laws of the state of , without regard to choice of law principles.

Background Checks and Authorizations

Employee authorizes the Company to obtain consumer reports and background checks (including criminal, credit if relevant, employment verification and education verification) as required for the position. Employee further authorizes prior employers and references to provide information to the Company.

I consent to background checks and authorize prior employers and references to provide information as described above.

Applicant Certification and Acknowledgment

I certify that all information provided in connection with my application and this Agreement is true and complete to the best of my knowledge. I understand that any misrepresentation or material omission may result in termination of employment or withdrawal of any offer. I authorize the Company to contact the references and prior employers listed above for any lawful employment-related purpose.

I certify that the information provided is true and I authorize the Company to verify such information.

Employee Name:

By:

Date:

Employer Name:

By:

Date:

What an Employee Company Agreement covers

An Employee Company Agreement is a written contract between an employer and an employee that defines core employment terms including duties, compensation, benefits, confidentiality, intellectual property assignment, noncompete or non-solicit provisions when permitted, term and termination conditions, and dispute resolution. It records the mutual expectations and can incorporate policies, offer letters, and exhibits such as job descriptions or equity schedules. When executed correctly it becomes an enforceable record of the parties’ rights and obligations and supports payroll, tax, and compliance workflows.

Why a clear agreement matters for employers and employees

A written Employee Company Agreement reduces ambiguity about role, pay, confidentiality, and intellectual property rights; it helps prevent disputes and supports regulatory compliance for payroll, tax, and employment law.

Who typically prepares and signs this agreement

The agreement is used by companies of all sizes and by workers across employment types; the right signer varies by role and authority.

Human resources managers and general counsel who draft and approve standardized employment terms for new hires and transfers.
Small business owners and founders who need a concise employment contract for key staff and contractors.
Independent contractors or consultants when companies require written engagement terms and IP assignment clauses.

Confirm signatory authority and retain executed copies in the employee file to support payroll records, tax reporting, and potential audits.

Core sections to include in a professional agreement

A complete Employee Company Agreement organizes rights and duties into discrete, enforceable sections that address both operational and legal risk.

Parties

Identify the employer legal entity and the employee or contractor by full legal name, business type, and principal address to avoid ambiguity in enforcement or tax reporting.

Term and Duties

Describe employment status (at-will or fixed term), essential duties, reporting lines, and any probationary period; link to job description as an exhibit when appropriate.

Compensation & Benefits

Specify salary, pay frequency, bonus criteria, equity grants, benefits eligibility, expense reimbursement policy, and applicable tax withholding instructions.

Confidentiality & IP

Define proprietary information, confidentiality obligations, and intellectual property assignment language that transfers work product to the employer when created within scope of employment.

Termination & Remedies

State termination notice, severance (if any), post-termination obligations, and remedies for breach including injunctive relief and recovery of damages or costs.

Governing Law & Dispute Resolution

Choose the governing state law and dispute process (court or arbitration), and include venue and waiver of jury trial clauses where lawful and appropriate.

Step-by-step: completing the agreement

Follow these sequential steps to prepare, review, and execute the agreement with minimal friction.

01

Prepare: Populate all fields with legal names.
02

Review: Have HR or counsel review clauses affecting wages and IP.
03

Authorize: Confirm company signatory has authority to bind the employer.
04

Sign: Execute with dated signatures from both parties.

Configuring a digital signing workflow

Set up signing workflows that capture intent, authenticate signers, and preserve an audit trail to support enforceability.

Field	Configuration
Signature Order	Sequential or parallel signing to control execution order
Authentication	Email link plus optional SMS code or KBA for higher assurance
Reminders	Automated email reminders and expiry settings to speed completion
Retention	Automatic archival and export to HR systems for recordkeeping

Where to send completed agreements and routing options

Decide routing and storage to ensure signed copies reach payroll, HR, and the employee without delay.

HR Records: Store executed copy in the employee’s personnel file.
Payroll: Send copy to payroll for withholding setup.
Employee: Deliver final PDF to employee email address on file.
Legal: Retain a certified audit trail for dispute defense.

Technical formats and integration considerations

Choose platforms that support PDF and DOCX import/export, audit trails, and secure storage for signed agreements.

File types: PDF, DOCX supported
Integrations: HRIS, payroll, and cloud storage
Authentication: Email, SMS, or stronger methods

Confirm the eSignature provider can deliver audit logs (IP, timestamp), meet any industry compliance needs, and export signed documents to your records systems.

Timing, statutory retention, and notice requirements to watch

Track effective dates, notice periods, and regulatory retention periods to remain compliant with employment and tax obligations.

Effective Date:

Date when terms and duties commence (MM/DD/YYYY).

Notice Period:

Contractual notice for termination as specified in the agreement.

I-9 Retention:

Keep I-9 for three years after hire or one year after termination, whichever is later (8 CFR §274a.2).

Payroll Records:

Retain wage and time records for at least three years (29 CFR §516.5).

Tax Reporting:

W-2 and related withholding documentation must align with payroll deadlines (see IRS filing requirements).

Key risks and potential penalties for errors

I-9 Violations: I-9 paperwork fines: $281–$2,789 per violation (8 CFR §274a.2).

Tax Reporting Penalties: Incorrect information returns may trigger IRC §6721 penalties for late or incorrect filings.

Wage & Hour Claims: Inaccurate pay terms can lead to FLSA claims and back pay liabilities.

IP Disputes: Poorly drafted IP assignment clauses risk employer ownership of work product.

Misclassification: Worker classification errors can create tax and benefit liabilities.

Signature Challenges: Missing proof of intent or retention can undermine enforceability under ESIGN/UETA.

Common preparation mistakes to avoid

Using informal or inconsistent names across documents that create identity and tax-reporting mismatches.
Leaving compensation or bonus formulas vague, which leads to disputes and inaccurate payroll processing.
Failing to confirm the signatory’s authority for the employer entity before execution.
Neglecting retention policies and audit trails that are needed to defend agreements in litigation.

eSignature pricing and capability comparison for executing agreements

Vendor pricing and core capabilities affect cost and compliance when managing high-volume employment paperwork; signNow is listed first per vendor-comparison convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of executing employee agreements digitally

These examples illustrate how organizations use signed electronic agreements to streamline workflows and maintain compliance.

Martin Properties

Tim Martin used online execution to process rental and employment documents quickly and securely.

The system supported mobile signing on-site.
The firm reported consistent security controls and accessible records for audits, enabling faster onboarding and fewer in-person meetings.

Fertility Centers of Illinois

John Butler adopted digital workflows for clinical and administrative agreements to meet compliance needs.

Integration with backend systems helped sync records.
The organization kept detailed audit trails and simplified consent collection while preserving regulatory protections.

Typical signatories and authorized approvers

HR Director

HR directors or managers commonly execute employment agreements on behalf of the employer after receiving delegated signing authority, ensuring consistent application of company policies and benefits.

Company Officer

An officer or authorized executive signs where the agreement creates binding obligations for the company, particularly for C-level hires, equity grants, or executive compensation packages.

Frequently asked questions about Employee Company Agreements

Answers to common legal and practical questions about drafting, signing, and enforcing employment agreements.

Need help? Contact support

Are electronic signatures lawful?
Yes. Electronic signatures are legally enforceable in interstate commerce under the ESIGN Act (15 U.S.C. ch. 96) and in most states under UETA; ensure intent, consent, attribution, and retention to meet legal tests.
When is notarization required?
Notarization is rarely required for employment agreements. If the agreement includes powers of attorney, real estate conveyances, or state-law-specific formalities, notarization or witnesses may be necessary.
How should I store signed agreements?
Retain signed originals and exportable audit trails in secure storage with access controls; follow IRS retention standards and industry-specific rules like HIPAA (45 CFR §164.530(j)).
What if a signer disputes an e-signature?
Preserve the audit trail (timestamps, IP, authentication) and any consent disclosures; these items support attribution and intent under ESIGN/UETA in enforcement proceedings.
Can I change terms after signing?
Material changes require a written amendment signed by both parties; document the effective date of the amendment and maintain version control for audit purposes.
How to revoke or cancel an agreement?
Revocation or termination follows the contract terms; parties may agree to rescind by signed amendment. For unilateral rescission check the agreement’s termination provisions and applicable state employment laws.

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