Can this agreement be e-signed?

Yes. Electronic signatures are enforceable under the ESIGN Act and UETA where adopted, provided parties consent and the record is retained in a reproducible format.

Is notarization required?

Not usually for employment agreements. Notarization is only necessary when a specific jurisdiction or clause requires an acknowledgment or when a document serves a separate recorded purpose.

What if names do not match IDs?

Correct name mismatches before signing; discrepancies can cause payroll, tax, and identity verification problems and may affect enforceability.

How should I store signed copies?

Store executed originals in the employee personnel file and retain secure electronic copies with an audit trail for the applicable retention period.

Can I change terms after signing?

Post-signature modifications require mutual agreement and should be documented in a written amendment signed by all parties to avoid disputes.

What authentication level is recommended?

For most employment agreements, email plus an audit trail is sufficient; consider stronger authentication for high-risk roles or when required by policy.

Electronic Signature
Templates
HR
Employment Principal Agreement

Employment Principal Agreement

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

EMPLOYMENT PRINCIPAL AGREEMENT

This Employment Principal Agreement is entered into effective as of (the Effective Date) by and between the Employer and the Employee identified below.

Parties

Employer Name Employer Address Employer Contact Person and Title Employee Full Name Employee Address

Phone

Email

Position and Term

Job Title Department Reporting Manager

Start Date: Employment Type: Full-time Part-time Contract/Temporary

Compensation (Base Salary)

Pay Frequency: Bi-weekly Monthly Salaried

Probationary Period

Duties and Responsibilities

Employee shall faithfully perform the duties and responsibilities customary to the position and such additional duties as Employer may reasonably assign from time to time. Employee agrees to comply with Employer policies and procedures as amended. Employee's primary duties include:

Compensation, Benefits and Taxes

Employee shall be paid as set forth above. Employer shall withhold applicable taxes and make deductions required by law. Employer-provided benefits are described in Employer plans and policies; eligibility and continuation of such benefits are governed by those plans.

Bonus or Commission Opportunities (if any)

Employment History

Provide your two most recent employers.

Employer 1 - Company Name

Title

Dates Employed

Responsibilities Reason for Leaving

Employer 2 - Company Name

Title

Dates Employed

Responsibilities Reason for Leaving

Education

Highest Degree Institution Graduation Date Additional Certifications or Training

References

Please provide three professional references.

Reference 1 - Name

Phone

Email

Relationship Reference 2 - Name

Phone

Email

Relationship Reference 3 - Name

Phone

Email

Relationship

Legal Disclosures

At-Will Employment: Employment is at-will and may be terminated by either party at any time, with or without cause or advance notice, unless a written agreement signed by both Employer and Employee provides otherwise.

Equal Employment Opportunity: Employer is an equal opportunity employer. Employment decisions shall be made without regard to protected characteristics under applicable law.

Background and Reference Checks: Employee authorizes Employer to verify all information provided, to contact previous employers and professional references, and to obtain criminal, credit, education and other records as permitted by law. Consent: I consent

Confidentiality, Inventions and Return of Property

Employee shall not disclose Confidential Information of Employer during and after employment. Employee assigns to Employer any inventions, discoveries, works of authorship and other intellectual property created in the scope of employment or using Employer resources. Upon termination Employee will return all Employer property.

Restrictive Covenants (If Applicable)

Non-Solicitation: For a period of following termination, Employee shall not solicit Employer customers or employees as described in the written policy. Geographic scope:

Non-Competition (if applicable) shall be limited to duration, scope and geography consistent with applicable law. If none selected, no separate non-compete applies.

Termination and Severance

Employment may be terminated in accordance with the At-Will statement above. If a severance arrangement applies it must be documented in a separate writing signed by Employer's authorized representative.

Dispute Resolution and Governing Law

Any dispute arising under this Agreement shall be resolved first by good faith negotiation. If unresolved, disputes shall be resolved by binding arbitration under the rules chosen by the parties. This Agreement shall be governed by the laws of the state specified below.

Governing Law (State)

Notices

Notices under this Agreement shall be sent to the addresses provided above or such other address as either party designates in writing.

Applicant Certification and Authorization

I certify that all information provided in this Agreement and accompanying documents is true and complete to the best of my knowledge. I understand that falsification, misrepresentation or omission of fact may result in denial of employment or termination. I authorize Employer to contact any references and prior employers and to obtain consumer reports and other background information as permitted by law.

Acknowledgment: I certify and authorize as stated above.

Miscellaneous

Entire Agreement: This Agreement, together with any written attachments executed by the parties, constitutes the entire agreement between the parties and supersedes prior agreements. Amendment: This Agreement may be amended only by a writing signed by both parties. Assignment: Employer may assign this Agreement; Employee may not assign without Employer's prior written consent.

Employer Name:

By:

Date:

Employee Name:

Signature:

Date:

What an Employment Principal Agreement Covers

An Employment Principal Agreement is a written contract that defines the relationship between a principal (typically an employer or engaging party) and an employee, agent, or contractor. It sets out duties, scope of authority, compensation, benefits, confidentiality, intellectual property assignment, duration, and termination terms. The agreement also clarifies reporting lines, performance expectations, and any post-termination restrictions such as noncompete or nondisclosure clauses. Where permitted, electronic execution under ESIGN and state e-signature laws makes signing and recordkeeping possible without paper documents.

Why a Clear Employment Principal Agreement Matters

A clear agreement reduces ambiguity about roles, pay, and termination, lowers dispute risk, and documents consent to key employment terms. It supports consistent onboarding, helps meet regulatory recordkeeping obligations, and provides an evidentiary baseline for internal audits or legal review.

Who Typically Prepares and Uses This Agreement

Organizations use this agreement when appointing employees, agents, or principals who will act on their behalf.

HR managers and talent acquisition teams responsible for onboarding and role documentation.
Small business owners and startup founders formalizing working arrangements and compensation.
In-house or outside legal counsel reviewing enforceability and compliance with state law.

Use it to document authority, assign responsibilities, and protect confidential information across employment relationships.

Representative Signers and Their Roles

Hiring Manager

A hiring manager completes operational fields, confirms job duties, and ensures the agreement matches the position description; they also confirm start dates and reporting lines for payroll and HR systems.

Corporate Counsel

Legal counsel reviews restrictive covenants, IP assignment language, and governing law provisions, and advises on state-specific enforceability and any required consumer or employee disclosures under federal or state statutes.

Core Sections to Include in a Professional Agreement

A robust Employment Principal Agreement organizes essential terms so each party understands rights and obligations. The following components form the agreement's backbone and support enforceability.

Parties

Identify the principal and the employee or agent using full legal entity and personal names, including business d/b/a as needed and registered entity type where applicable.

Term

Specify the effective date, fixed term or at-will status, and any conditions that trigger the start or early termination of the agreement.

Duties

Describe primary duties, scope of authority, reporting obligations, and performance metrics so responsibilities are clear and measurable.

Compensation

Detail base pay, bonuses, benefits, reimbursement policies, and payroll timing; include any equity grants and vesting schedules if applicable.

Confidentiality

Include nondisclosure obligations, permitted disclosures, duration of confidentiality, and remedies for breach to protect trade secrets and proprietary data.

Termination

State notice periods, severance or final pay rules, cause definitions, and post-termination obligations such as return of property and continued nondisclosure.

Step-by-Step: How to Complete the Agreement

Follow these sequential steps to draft, review, and finalize an Employment Principal Agreement to ensure accuracy and compliance.

01

Prepare Draft: Populate parties, duties, compensation, and term fields clearly.
02

Internal Review: Have HR and legal review restrictive covenants and compensation terms.
03

Signatures: Collect signature, printed name, title, and date from all parties.
04

Distribute Copies: Provide fully executed copies to payroll, personnel file, and the employee.

Configuring an Online Signing Workflow

When completing the agreement digitally, set up fields and authentication to match your compliance needs and internal routing.

Field	Configuration
Signature Fields	Place signature, initials, and date fields for each signer.
Authentication Level	Choose email link, SMS code, or two-factor for stronger identity proofing.
Signing Order	Set sequential or parallel routing depending on approval chain.
Reminders & Deadlines	Enable automatic reminders and expiration to speed completion.

Typical Digital Execution Flow

Digital execution follows a predictable flow that captures audit data and preserves record integrity for future reference.

Upload Document: Add the agreement file in PDF or DOCX format.
Place Fields: Add signature, initials, and data fields for each party.
Send to Signers: Deliver via email link or secure portal with authentication.
Complete & Archive: Signed copies and audit trail are stored for retrieval.

Technical Considerations for eSigning and Storage

Verify platform support for required file types, authentication, and retention before e-signing employment agreements.

Document Formats: PDF, DOCX, and HTML supported.
Authentication: Email, SMS, or stronger options available.
Integrations: Connects with common HR and storage systems.

Key Deadlines and Time-Sensitive Steps

Certain compliance tasks tied to employment require prompt action; meet these timelines whenever the agreement creates onboarding obligations.

I-9 Completion Window:

Complete Form I-9 within 3 business days of hire.

Payroll Setup:

Provide employee to payroll before first pay period.

Benefits Enrollment:

Adhere to insurer deadlines for effective coverage dates.

Notice Periods:

Respect any contractual notice windows for termination.

Record Delivery:

Provide executed copy to employee promptly upon signing.

Milestone Timeline from Draft to Archive

Use this milestone view to track drafting, approval, signing, and storage stages for an Employment Principal Agreement.

01

Drafting

Create initial agreement and populate material terms.

02

Internal Approval

Legal and HR review and mark revisions.

03

Execution

Collect all signatures and confirm dates.

04

Archival

Store executed copy in personnel file and digital archive.

Comparing eSignature Options for This Agreement

Basic pricing and feature availability for common eSignature vendors; signNow is listed first per platform 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	7-day free trial	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
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Essential Data Elements to Capture

Full Legal Name: Employee or agent legal name

Employer Name: Principal or company legal name

Job Title: Official position title

Compensation: Pay and benefits summary

Effective Date: Agreement start date

Signatures: Signed and dated by all parties

Consequences of Incomplete or Incorrect Agreements

Unenforceable Terms: Risk of invalid restrictive covenants

Misclassification: Worker misclassification may trigger penalties

Privacy Violations: Improper PHI handling may violate HIPAA

Tax Penalties: Incorrect reporting can create IRS exposure

I-9 Violations: Incomplete I-9s can incur fines

Litigation Exposure: Ambiguous terms increase litigation risk

Common Preparation and Execution Errors

Using informal names or nicknames instead of legal entity and personal names, which can impede enforcement.
Failing to specify the effective date in MM/DD/YYYY format, creating ambiguity about obligations and deadlines.
Neglecting to attach required exhibits such as job descriptions, compensation schedules, or IP assignment addenda.
Overly broad restrictive covenants that exceed state enforceability norms and invite judicial narrowing or invalidation.

Practical Tips for Accurate, Efficient Completion

Follow these best practices to reduce review cycles and strengthen enforceability while keeping records consistent across HR systems.

Use precise party identification

Always use the exact legal names of individuals and entities and confirm employer EIN or business registration to avoid payroll and tax mismatches.

Limit restrictive language appropriately

Tailor noncompete and nonsolicitation clauses to role, geography, and duration consistent with state law to improve enforceability.

Keep supporting exhibits attached

Include job description, compensation schedules, and IP assignment exhibits referenced in the main agreement to avoid later disputes.

Standardize templates and approvals

Use approved templates and an internal approval workflow to reduce attorney hours and ensure consistent terms across hires.

How Organizations Apply Employment Principal Agreements

Below are practical examples showing typical uses and outcomes when the agreement is tailored to context and completed correctly.

Tech Startup Onboarding

A startup used a standardized agreement to onboard engineering hires quickly

It included IP assignment and equity vesting
The template reduced legal review time and ensured consistent equity terms across hires, improving retention and avoiding future ownership disputes.

Healthcare Provider Role

A clinic added HIPAA language and confidentiality provisions to clinician agreements

It required a BAA and restricted PHI access
This ensured regulatory compliance and clearer disciplinary remedies for data handling violations.

Frequently Asked Questions and Troubleshooting

Answers to common questions about completing, signing, and retaining Employment Principal Agreements, and how to address typical errors.

Need help? Contact support

Can this agreement be e-signed?
Yes. Electronic signatures are enforceable under the ESIGN Act and UETA where adopted, provided parties consent and the record is retained in a reproducible format.
Is notarization required?
Not usually for employment agreements. Notarization is only necessary when a specific jurisdiction or clause requires an acknowledgment or when a document serves a separate recorded purpose.
What if names do not match IDs?
Correct name mismatches before signing; discrepancies can cause payroll, tax, and identity verification problems and may affect enforceability.
How should I store signed copies?
Store executed originals in the employee personnel file and retain secure electronic copies with an audit trail for the applicable retention period.
Can I change terms after signing?
Post-signature modifications require mutual agreement and should be documented in a written amendment signed by all parties to avoid disputes.
What authentication level is recommended?
For most employment agreements, email plus an audit trail is sufficient; consider stronger authentication for high-risk roles or when required by policy.

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