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Employment Agreement

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Employment Agreement between Physician and Professional Corporation

Employment Agreement made on the date, between

, a professional corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as the Employer, and , of , hereinafter called Employee.

Whereas, Employee is a physician duly licensed in ; and

Whereas, Employer desires to employ Employee and Employee desires to accept employment to practice medicine as an employee of Employer; and

Whereas, the board of directors of Employer has offered Employee employment for the compensation and other benefits and subject to the terms and conditions set forth in this Agreement, and Employee is willing to accept employment on such terms;

Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Employment and Duties

A. Scope of Duties.

Employer employs Employee, and Employee accepts employment, to render medical and surgical services. Employer shall have the power to determine the specific duties to be performed by Employee, and the means and manner by which those duties shall be performed. Employer shall have the power to determine the assignment of patients to Employee, and Employee must perform services for all clients assigned to Employee. The power to supervise the duties to be performed, the manner of performing such duties, and the terms for performance of such duties shall be exercised by the Board of Directors of Employer. Hours of employment shall be determined by Employer within reasonable standards for the profession. In addition, Employee shall, if elected, serve as a director and/or officer of Employer at no additional compensation other than that expressly provided for in this Agreement.

B. Exclusive Service.

Employee shall devote his/her full working time and attention to the practice of medicine for Employer. During the term of this Agreement, Employee shall not, without the written consent of Employer, directly or indirectly render services of a professional nature to or for any person or firm for compensation, or engage in any practice that competes with the interest of Employer. However, the expenditure of reasonable amounts of time for (list activities, e.g., teaching) shall not be deemed a breach of this Agreement, provided the Board of Directors determines that the rendering of such services by Employee does not materially interfere with the services required to be rendered to Employer under this Agreement.

C. Professional standards.

Employee shall perform his/her duties under this Agreement in accordance with the rules of ethics of the medical profession.

2. Records and Files

All case records, charts, and personal files concerning patients of Employer shall be and remain the property of Employer. On termination of Employee's employment, Employee shall not be entitled to keep or reproduce Employer's records or charts related to any patient unless the patient shall specifically request that his or her records be transmitted to Employee.

3. Fees

All fees and compensation received or realized as a result of the rendition of professional medical services by Employee shall belong to and be paid and delivered to Employer.

4. Term

The term of this Agreement shall begin on , and shall continue until terminated as provided below in this Agreement.

5. Compensation

A. Base Salary.

In consideration of all services rendered under this Agreement, from and after the date of this Agreement, Employee shall receive a base salary of $ per year, payable in 12 equal monthly installments on the day of each month. The base salary may be changed by mutual agreement of the parties at any time.

B. Bonus.

In addition to the base salary referred to above, Employer shall, during the term of this Agreement, pay Employee a bonus on the last day of each fiscal year of the corporation. Such bonus shall be calculated according to the negotiated terms and conditions specified in Exhibit A attached to and incorporated in this Agreement.

C. Fringe Benefits.

As further consideration, Employer shall, within a reasonable time after the execution of this Agreement, provide for Employee the following benefits on such terms as the parties shall agree upon, and any additional benefits that may from time to time be made available to physicians employed by Employer:

6. Expenses

During the term of this Agreement, Employer shall pay all reasonable business expenses of Employee in accordance with the general policy of Employer, including, but not limited to, medical supplies, professional license fees, and dues to medical societies.

Additionally, Employer shall either advance sums to Employee to be used for, or reimburse Employee for the following:

A. Educational expenses incurred to maintain or improve Employee's professional skills, and for Employee's actual expenses for travel, room, and meals for attending professional conventions; and

B. Professional and entertainment and promotional expenses.

Employee agrees to submit to Employer such documentation as may be necessary to substantiate such expenses.

7. Malpractice Insurance

Employer shall purchase and maintain at its expense such comprehensive professional liability insurance coverage as it shall deem appropriate, covering the acts or omissions of Employee in the normal course of his employment.

8. Office Facilities

Employer shall operate and maintain facilities, and shall provide at its own cost, equipment, drugs, and supplies, suitable to Employee's position and adequate for the performance of Employee's duties. Further, Employer shall supply and pay for nurses, technicians, and other personnel reasonably needed by Employee in connection with his employment under this Agreement.

9. Vacation

Employee shall be entitled to a paid annual vacation of [e.g., (number) weeks] . Vacation time may not be accumulated without Employer's consent, and must be taken in the year earned. Employee's vacation will be scheduled at times most convenient to Employer's medical practice as determined by its Board of Directors. In addition, Employee shall be allowed weeks each year to attend medical meetings or seminars; provided, however, that the attendance at such meetings or seminars shall be planned for minimum interference with the business of Employer.

10. Illness and Disability

A. Employee shall be entitled, without any adjustment in Employee's compensation, to days' sick leave in each fiscal year of employment if Employee is unable to perform Employee's services by reason of illness or accident not resulting in Employee becoming totally disabled. Unused sick leave may not be carried over from one fiscal year to another.

B. If Employee is unable to perform his services by reason of total disability, Employee's salary shall be reduced in accordance with the following schedule during the continuance of such disability:

1. For consecutive months, Employee shall receive % of his monthly salary.

2. For the next consecutive months of disability, Employee shall receive % of his monthly salary.

3. Subsequently, Employee shall receive no disability payments.

4. In determining periods of disability, any new period of disability shall be deemed to be a continuation of the prior period of disability if Employee has not returned to work for at least (e.g., one month) between such periods of disability. If Employee becomes disabled, and the disability ceases before termination of Employee's employment, Employee's salary shall be reinstated on the date disability ends.

11. Death Benefits

If Employee dies during the term of this Agreement, Employer shall, within days after Employee's death, pay $ to Employee's spouse, if surviving, or to Employee's estate, if Employee is not survived by a spouse.

12. Termination

This contract shall be terminated immediately:

A. If Employee becomes disqualified to practice medicine in ;

B. If Employee accepts other employment that places restrictions or limitations on his continued rendering of professional medical services;

C. On the death of Employee;

D. If Employer and Employee mutually so agree in writing;

E. If Employee becomes disabled and the disability continues for a period of consecutive months or more; or

F. If, in the opinion of Employer, Employee fails or refuses to perform faithfully or diligently the duties of his/ her employment or any of Employee's obligations under this Agreement.

On termination for any reason, Employee shall be entitled to termination pay of $ or the salary due Employee to the date of such termination, whichever amount is greater. Payment of said amount shall be full compensation for all claims under this Agreement.

13. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

14. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

15. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

16. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

17. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

18. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

19. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.

By:

 

 

 

Attach Exhibit A

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What an Employment Agreement Covers

An Employment Agreement is a written contract that defines the legal relationship between an employer and an employee, describing duties, compensation, benefits, term, confidentiality, intellectual property assignment, restrictive covenants, and termination conditions. It documents mutual obligations, performance expectations, and remedial rights, and can be tailored for exempt or nonexempt roles, full-time or contractor status. In the United States, electronic execution is generally valid under the ESIGN Act (15 U.S.C. ch. 96) and state UETA adoptions, but certain provisions may require additional formalities depending on jurisdiction and subject matter.

Why a Clear Employment Agreement Matters

A clear Employment Agreement reduces hiring disputes by establishing compensation, duties, and termination rules and documents confidentiality and IP assignments. Properly executed electronic agreements meet legal standards under the ESIGN Act and state UETA/ESRA frameworks, supporting enforceability across most U.S. jurisdictions.

Why a Clear Employment Agreement Matters

Who Typically Uses Employment Agreements

HR teams, hiring managers, in-house counsel, and small-business owners commonly use Employment Agreements to document expectations, compliance, and compensation terms during hiring and onboarding.

  • HR and talent acquisition: create consistent offer terms and onboarding checklists for new hires.
  • Hiring managers: set role duties, performance metrics, and probationary review schedules in writing.
  • Legal teams and external counsel: review enforceability, noncompete scope, and IP assignment language.

Use tailored Employment Agreements for clarity; maintain copies for HR records and ensure compliance with jurisdictional rules and statutory retention periods.

Primary Roles Involved

Jane Doe, HR Manager

Responsible for issuing the Employment Agreement, coordinating offer details, and ensuring HR systems reflect the terms. Reviews compensation and benefits entries, confirms start date, and stores signed copies in personnel files in compliance with retention policies and internal audit requirements.

John Smith, General Counsel

Provides legal review of restrictive covenants, confidentiality provisions, and termination clauses to reduce litigation risk. Advises on enforceability across states, negotiates revisions, and documents authorized signatories. Ensures the agreement aligns with federal statutes such as ESIGN and state-specific rules.

Essential Fields and Metadata

Employee Name: Full legal name as on ID
Position Title: Official job title used for payroll
Start Date: Use MM/DD/YYYY format for clarity
Compensation: Salary, bonuses, equity details
At-Will Status: State whether employment is at-will
Confidentiality Scope: Define confidential information categories

Step-by-Step: Completing the Agreement

Follow these steps to complete an Employment Agreement accurately and prepare the document for electronic execution and storage.

  • 01
    Prepare Parties: List full legal names and business entity details
  • 02
    Set Term: Specify start date and duration or 'at-will' status
  • 03
    Detail Compensation: State salary, pay schedule, bonuses, and benefits
  • 04
    Sign and Store: Obtain signatures, date, and save executed copies securely

Configuring an Online Signing Workflow

Configure online workflow settings before sending the Employment Agreement to ensure correct signer order, authentication, and data capture for compliance and recordkeeping.

Form Field and Automation Setting How to configure each field and behavior.
Auto-fill Date Insert current date automatically when signer executes.
Signer Order Require sequential signing by specified parties.
Authentication Use email link, SMS code, or stronger KBA as needed.
Reminder Schedule Set automatic reminders and expiration windows for pending signatures.

Where the Agreement Typically Flows

Typical routing for an Employment Agreement moves from HR to hiring manager, then to legal and payroll, with final storage in personnel records.

  • Upload Document: Attach finalized agreement in PDF or DOCX format.
  • Assign Signers: Add signers and define signing order.
  • Select Authentication: Choose email, SMS, or ID verification method.
  • Finalize: Record audit trail and distribute executed copies.

Platform and Integration Considerations

For digital execution, confirm platform supports secure e-signatures, audit trails, conditional fields, and integrations with HR or document systems.

  • Integrations: Salesforce, NetSuite, Google Workspace supported.
  • Security: AES-256 at rest; TLS 1.2/1.3 in transit.
  • Authentication: Support for SMS codes and SSO.

Common Deadlines and Timeframes

Key timeframes related to Employment Agreements include offer acceptance windows, start-date coordination, benefits enrollment, background checks, and mandatory retention steps.

Offer Acceptance Deadline:

Typically three to seven business days unless specified otherwise.

Background Check Completion:

Complete prior to start date when required by role.

Benefits Enrollment Window:

Employee must enroll within plan-specific period, often 30 days.

Probationary Review:

Schedule performance review after a common sixty to ninety day period.

Record Retention Start:

Retention begins on effective date or hire date per policy.

Common Preparation Mistakes

  • Using informal language for essential terms creates ambiguity and increases dispute risk when enforcement or statutory interpretation is required.
  • Omitting compensation specifics, bonus formulas, or pay schedule leads to payroll errors and potential claims for unpaid wages.
  • Failing to identify the governing state or applicable law can result in conflicting interpretations and venue disputes during litigation.
  • Not confirming signature authority for company signatories risks invalidated agreements if signers lack proper delegated authority.

Potential Legal and Compliance Risks

Invalid Signature: Agreement may be unenforceable.
Tax Reporting Errors: Backup withholding or penalties.
I-9 Violations: Penalties ranging $281–$2,789.
Breach Claims: Wrongful termination or contract disputes.
Noncompete Risk: State law may limit enforceability.
Confidentiality Loss: Exposure of trade secrets risk.

Core Clauses to Include

A professional Employment Agreement clearly defines parties, duties, compensation, confidentiality, restrictive covenants, and termination mechanics to reduce disputes and provide compliance clarity.

Parties

Identify the employer legal entity and the employee by full legal name, include business address and the employee's address, and specify whether the role is exempt, nonexempt, or independent contractor for classification accuracy.

Term

State the effective date, initial term, renewal terms if any, and trial or probationary periods. Clarify whether employment is at-will or subject to a fixed-term contract and include notice requirements.

Duties

Describe primary duties, reporting relationships, work location expectations, remote work provisions, and performance metrics. Avoid vague descriptions; incorporate an exhibit if detailed job responsibilities or deliverables are required.

Compensation

Specify salary or hourly rate, pay frequency, bonus eligibility, equity grants with vesting schedules, reimbursement policies, and withholding requirements. Tie bonus formulas to measurable targets to avoid interpretive disputes.

Confidentiality

Define confidential information, duration of confidentiality obligations, permitted disclosures, and exceptions. Include post-termination return or destruction of company materials and specify remedies for unauthorized disclosure or trade secret misappropriation.

Termination

Outline termination for cause, without cause, resignation procedures, notice periods, severance triggers, return of company property, and survival clauses for confidentiality, IP assignment, and non-solicitation provisions.

File Formats and Supporting Documents

Supporting documents and available file formats help ensure Employment Agreements are editable, auditable, and preserved in compliant archival formats for internal and regulatory needs.

PDF Export

Export executed copies to PDF/A for secure archival. PDFs preserve layout and signatures, produce a timestamped audit trail, and are widely accepted for legal and HR recordkeeping.

DOCX Editable

Keep an editable DOCX master for template updates and version control. Use tracked changes during negotiations and convert finalized documents to locked PDF for execution and storage.

Supporting Docs

Attach offer letters, background-check authorizations, I-9 documentation, and benefits enrollment forms as exhibits. Maintain originals or certified copies where required for payroll and compliance audits.

Notarization

Notarization is rarely required for employment contracts, but certain states or specific acknowledgements may benefit from notarized signatures or RON, particularly for immigration or credentialing attachments.

Illustrative Use Cases

Practical scenarios illustrate how Employment Agreements address hiring, confidentiality, and post-termination restrictions across typical business contexts.

Small Business Hiring

A small technology firm used a concise Employment Agreement to document role expectations, IP assignment, and a clear compensation schedule when hiring its first developer.

  • Quick signature via e-sign shortened onboarding.
  • Because the agreement included an explicit IP assignment and confidentiality clause, the company avoided ownership disputes when the developer created core product code, and the documented vesting schedule clarified equity rights during later funding negotiations.

Enterprise Onboarding

A national retailer standardized Employment Agreements for seasonal hires, adding consistent termination language, overtime eligibility, and a benefits enrollment timeline across multiple state locations.

  • Centralized routing and audit trails ensured compliance.
  • Audit trails and conditional fields reduced misclassification errors and accelerated seasonal staffing; clear offer deadlines and automatic reminders reduced open positions, while centralized record retention supported state-specific wage and hour audits.

eSignature Vendor Pricing Snapshot

Compare common eSignature plan features and starting prices for Employment Agreement workflows; signNow is listed first as the vendor column.

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 Plan-dependent Plan-dependent Plan-dependent Plan-dependent
Bulk Send Yes (Business Premium) Plan-dependent Plan-dependent Plan-dependent Plan-dependent
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

FAQs and Troubleshooting

Answers to common questions about execution, enforceability, e-signatures, amendment, storage, and signature authority for Employment Agreements.


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