Establishing secure connection…Loading editor…Preparing document…

Employment Long Term Services Agreement

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

EMPLOYMENT LONG TERM SERVICES AGREEMENT

This Employment Long Term Services Agreement (the "Agreement") is entered into as of Effective Date: between Employer Name: with principal business address: and Employee Name: residing at: .

RECITALS

WHEREAS, Employer desires to retain Employee to perform the services described herein on a long term basis; and WHEREAS, Employee desires to perform such services subject to the terms and conditions set forth in this Agreement. The parties agree as follows.

1. TERM

The term of this Agreement shall commence on Start Date: and, unless earlier terminated in accordance with Section 10, shall continue for a period of (the "Initial Term"). Thereafter the Agreement shall .

2. POSITION, DUTIES AND LOCATION

3. COMPENSATION

Employer shall pay Employee a base salary of $ per year, payable in accordance with Employer's regular payroll schedule: . Any variable compensation, bonus targets, commission structure, and applicable performance metrics are described in the Compensation Addendum below or as otherwise agreed in writing.

4. BENEFITS AND EXPENSES

Employee will be eligible to participate in Employer's benefit programs subject to the terms of those plans and applicable eligibility rules. Benefits may include:

Health Insurance    Dental Insurance    Retirement Plan    Paid Time Off

5. EMPLOYMENT STATUS; AT-WILL

Employment is at-will unless a separate written agreement signed by Employer's authorized representative states otherwise. Either Employer or Employee may terminate the employment relationship at any time, with or without cause and with or without notice, subject to any express termination provisions set forth in Section 10.

6. CONFIDENTIALITY; PROPRIETARY RIGHTS

Employee will have access to confidential and proprietary information of Employer. Employee shall not disclose, use, or permit the use of such information except as reasonably necessary to perform duties under this Agreement. Upon termination, Employee shall promptly return all Employer property and Confidential Information. For purposes of this Agreement, "Confidential Information" includes trade secrets, client lists, pricing, technical data, business plans, and other non-public information.

7. INTELLECTUAL PROPERTY

Employee agrees that all work product, inventions, discoveries, developments, designs, improvements, and other intellectual property created, conceived, developed or reduced to practice by Employee during the Term and within the scope of employment shall be the exclusive property of Employer. Employee hereby assigns and agrees to assign to Employer all rights, title and interest in such intellectual property and agrees to execute documents necessary to effectuate such assignment.

8. NON-COMPETE AND NON-SOLICITATION

During the Term and for a period of following termination, Employee will not directly or indirectly compete with Employer's business or solicit Employer's employees or clients within the geographic area where Employer conducts business, except as limited by applicable law. The parties acknowledge that the restrictions are reasonable and necessary to protect Employer's legitimate business interests.

9. TERMINATION

Either party may terminate this Agreement as provided herein. Termination for Cause may occur immediately upon written notice where Cause is defined as material breach, willful misconduct, fraud, or gross negligence. Termination without Cause requires prior written notice, unless otherwise agreed. Employer's obligations upon termination are limited to compensation and benefits earned through the effective date of termination, subject to any severance provisions described in this Agreement.

10. BACKGROUND AND REFERENCES; AUTHORIZATION

Employee authorizes Employer to conduct employment-related background checks, reference checks, and verification of academic and employment history. Employee hereby certifies that all information provided to Employer is true, complete and correct. Employee consents to Employer's contacting prior employers, educational institutions, and listed references.

I consent to background checks and contact of prior employers and references.

11. REPRESENTATIONS; WARRANTIES; INDEMNIFICATION

Employee represents and warrants that Employee is not subject to any agreement, obligation, order or restriction that would prevent or impair performance under this Agreement. Employee shall indemnify and hold Employer harmless from any claims arising from Employee's breach of this Agreement, negligence, or willful misconduct.

12. EQUAL OPPORTUNITY STATEMENT

Employer is an equal opportunity employer. Employer does not unlawfully discriminate on the basis of race, color, religion, sex, national origin, age, disability, genetic information or any other protected characteristic under applicable law.

13. MISCELLANEOUS

Governing Law: This Agreement will be governed by and construed in accordance with the laws of the state identified below without regard to conflict of law principles. Any dispute arising under this Agreement shall be resolved first by good faith negotiation and, if unresolved, by binding arbitration or in a court of competent jurisdiction as elected by Employer, consistent with applicable law. If any provision is held invalid, the remaining provisions shall remain in full force and effect. This Agreement, together with any written addenda, constitutes the entire agreement between the parties and supersedes prior negotiations or agreements.

PERSONAL INFORMATION

EMPLOYMENT HISTORY

Dates Employed: From to

Dates Employed: From to

EDUCATION

REFERENCES

APPLICANT CERTIFICATION & AUTHORIZATION

I certify that all information provided in this Agreement and any attachments is true, correct and complete to the best of my knowledge. I understand that misrepresentations or omissions may result in revocation of any offer or termination of employment. I authorize Employer to verify any information provided and to obtain consumer and/or investigative background reports where permitted by law.

I certify the above statements and authorize background checks and reference verification.

By signing below, the parties acknowledge that they have read, understood, and agree to be bound by the terms of this Agreement.

Employer:

By:

Date:

Employee:

By:

Date:

Enter text✕

What an Employment Long Term Services Agreement Is

An Employment Long Term Services Agreement (Employment LTSA) is a written contract that defines an extended working relationship between an employer and a service provider or employee for ongoing professional services. It spells out the scope of work, duration, payment terms, performance standards, reporting, confidentiality, IP and termination rights. The agreement often includes milestones, renewal terms, dispute resolution clauses, tax and benefits treatment, and requirements for background checks or regulatory compliance when applicable. It creates enforceable obligations and manages expectations over the long term for both parties.

Why a Clear LTSA Matters

A formal Employment LTSA reduces ambiguity about duties, payment, and risk allocation for long-term engagements. It helps ensure regulatory compliance, supports payroll and tax classification accuracy, and provides a contractual basis for remedies if obligations are unmet.

Why a Clear LTSA Matters

Who Typically Prepares or Signs an LTSA

Several organizational roles commonly draft, review, or sign Employment LTSAs depending on scale and risk profile.

  • Human resources and talent acquisition teams that manage employment terms and benefits enrollment.
  • Procurement and vendor managers who oversee long-term service contractors and performance metrics.
  • Legal or contracts departments that negotiate liability, IP, and termination provisions.

Smaller employers may rely on outside counsel or standardized templates; large organizations usually use centralized contract workflows and version control.

Core Elements to Include in a Professional LTSA

A complete Employment LTSA organizes operational, financial, legal, and compliance terms so responsibilities are clear and enforceable over time.

Scope of Services

Describe services in specific, measurable terms, including deliverables, reporting cadence, acceptance criteria, and any exclusions from scope.

Term and Renewal

Define initial term, automatic renewal conditions or renewal notice periods, and how extensions are agreed and documented.

Compensation

State rates, invoicing schedule, reimbursable expenses, payment mechanisms, late fees, and any bonus or holdback arrangements.

Performance Standards

Include SLAs, KPIs, remedies for missed targets, audit rights, and escalation procedures for chronic nonperformance.

Confidentiality / IP

Specify ownership of work product, license terms, confidentiality obligations, and how proprietary information is handled after termination.

Termination & Liability

Set termination for convenience and cause, notice periods, severance or transition support, limitation of liability, and indemnities.

Step-by-Step: How to Complete an Employment LTSA

Follow these practical steps to prepare, review, and finalize the agreement efficiently.

  • 01
    Draft core terms: Define services, term, and pay.
  • 02
    Legal review: Confirm liabilities, IP, and compliance.
  • 03
    Internal approvals: Obtain signatures from authorized signatories.
  • 04
    Execute and archive: Sign, date, and store with retention rules.

Configuring a Digital Workflow for the LTSA

Set up fields and rules in your eSignature platform to enforce approval order and reduce manual follow-up.

Field Configuration
Signature Authentication Email link plus SMS code or two-factor authentication.
Conditional Fields Show payment or benefits fields only when applicable.
Reminder Schedule Auto-reminders at 3 and 7 days before due.
Archive Settings Auto-save signed PDF to secure repository.

How Electronic Execution and Routing Works

Digital signing follows a simple send-review-sign-store pattern that preserves an audit trail for enforcement and audits.

  • Prepare Document: Upload final PDF and map fields.
  • Assign Roles: Designate signers and approvers.
  • Send to Signers: Deliver via email or secure link.
  • Store Signed Copy: Save PDF with certificate of completion.

Technical Considerations for Sharing and Signing

Choose a platform and settings that meet your security and integration needs before sending the LTSA.

  • File Formats: PDF, DOCX supported for upload and export.
  • Authentication Options: Email, SMS, KBA, or advanced signer verification.
  • Integrations: Connectors for HRIS, CRM, and cloud storage.

Ensure the chosen platform supports audit trails, role-based access, and the retention and export formats your compliance team requires.

Common Timeframes and Notice Deadlines to Track

Track dates in the agreement and related employment records to meet notice, payroll, and renewal obligations.

Effective Date Entry:

Set MM/DD/YYYY when obligations begin.

Commencement of Work:

Match first invoice or payroll cycle.

Renewal Notice:

Typical 30–90 day notice before renewal.

Payment Schedule:

Monthly, biweekly, or per-deliverable dates.

Record Retention:

Follow retention schedule for audits.

Common Preparation Errors to Avoid

  • Using vague scope language that leaves deliverables and responsibilities open to dispute.
  • Failing to confirm signatory authority, which can render the agreement unenforceable.
  • Mixing employee and contractor terms without addressing tax withholding and I-9 obligations.
  • Neglecting data protection or industry-specific addenda such as HIPAA clauses for healthcare.

Key Legal Risks and Potential Penalties

Breach Liability: Damages and specific performance risk.
Tax Withholding: Misclassification may trigger IRS penalties.
I-9 Violations: Fines range per DHS guidance (8 CFR §274a.2).
HIPAA Exposure: Civil penalties for PHI mishandling.
Contract Disputes: Arbitration or litigation costs and delays.
Indemnity Limits: Uncapped indemnities increase financial exposure.

How an Employment LTSA Differs from Other Documents

Quick comparison to help choose the right contract type for a long-term engagement versus common alternatives.

Criteria Employment LTSA Comparable Document
Typical use ongoing services short-term projects
Duration months to years single project term
Worker classification employee or long-term contractor contractor
Termination flexibility often negotiated notice project completion

eSignature Vendor Pricing Snapshot for Employment LTSAs

Compare common vendor starting prices and compliance features for electronic execution of long-term employment agreements. signNow appears first per vendor ordering rules.

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 trial, no card Varies Varies Varies Varies
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 Electronic Execution

Organizations across industries use e-signature platforms to manage long-running service relationships and related paperwork.

Optica Ventures LLC

A midmarket operations team centralized contract execution to reduce turnaround and tracking.

  • Signatures were completed remotely across stakeholders.
  • Brian Fitzgibbons, COO, noted the interface is simple and easy-to-use for teams and customers, improving document handling and traceability.

Tech Data

An enterprise procurement group standardized long-term supplier agreements and templates for consistency.

  • Bulk sending reduced manual distribution.
  • Bob Dutkowsky, CEO, reported improved internal and external customer service while increasing speed to revenue through standardized electronic workflows.

Essential Fields and Security Metadata to Capture

Employer EIN: Use official EIN for tax records.
Service Description: Concise, measurable deliverables.
Term Length: Exact duration and renewal terms.
Compensation Details: Rates, invoicing, and currency.
Tax Classification: Employee vs contractor designation.
Signatures and Dates: Signed name, title, timestamp.

Frequently Asked Questions About Employment LTSAs

Answers to common legal and execution questions when preparing or signing long-term employment service agreements.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users