Parties
Identify employer legal entity and employee full legal name, including whether the worker is an employee or independent contractor.
Clear, written employment terms reduce disputes, ensure compliance with wage and hour rules, and document mutual expectations about pay, duties, and termination. They also provide evidence of agreed policies for benefits, nondisclosure, and post-termination obligations.
Employers and HR teams usually draft and distribute employment terms; candidates or new hires review and sign prior to starting work.
Legal counsel, payroll, or benefits specialists may review terms for regulated roles or where tax and benefits implications are material.
Identify employer legal entity and employee full legal name, including whether the worker is an employee or independent contractor.
Describe job title, primary responsibilities, reporting line, and any performance or deliverable expectations.
State base salary or rate, pay frequency, overtime eligibility, commission structure, and any bonus conditions.
Summarize benefit eligibility, health plan enrollment windows, paid time off accrual, and any probationary waiting periods.
Nondisclosure and proprietary information clauses, plus any IP assignment required for work product ownership.
Notice requirements, at-will statement if applicable, severance conditions, and post-employment restrictions like noncompete or nonsolicit where enforced.
| Field | Configuration |
|---|---|
| Signing Order | Sequential: employer then employee |
| Authentication | Email + SMS code for signer verification |
| Templates | Use template for consistent terms across hires |
| Storage | Archive signed PDF in HR system with retention tag |
Confirm platform capabilities and integrations before sending terms for signature to maintain auditability and secure storage.
Ensure the chosen provider supports compliance needs (audit trails, encryption, BAA if required) and can deposit completed records into your retention system.
Specify an acceptance deadline (commonly 7 days) to limit open offers
Employee's agreed first day of work as MM/DD/YYYY
Complete within 3 business days of hire (8 CFR §274a.2)
Typically within 30 days of start date; confirm plan rules
Provide payroll details before first payroll run to prevent delays
Optica used a standardized employment terms template to onboard hires quickly and consistently.
A health-care employer embedded HIPAA confidentiality clauses within employment terms.
| 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 | 7-day free trial | Varies | Varies | Varies | Varies |
| Bulk Send | Yes (Premium) | Varies | Varies | Varies | Varies |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes (BAA) | Yes | Yes | Varies | Varies |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies | Varies | Varies |