A written Employment Agreement sets expectations, protects confidential information and intellectual property, clarifies compensation and benefits, and documents terms for discipline and termination to reduce disputes.
Employment agreements are used by employers of every size and by individuals entering wage-earning or executive roles.
The hiring manager signs or countersigns to confirm role, duties, and start date. Their signature documents operational approval and often authorizes compensation and reporting structure for HR and payroll.
An HR executive or authorized designee signs for benefits, policies, and company-wide terms. Their signature ensures benefits enrollment, PTO accrual rules, and disciplinary procedures are incorporated consistently.
Describe the employee's title, primary responsibilities, reporting relationships, and expected location of work. Be specific about remote work, travel, and any mandatory on-site obligations so performance expectations are enforceable.
State base salary or wage, pay cadence, commission or bonus formulas, and any equity or deferred compensation. Specify how and when variable pay is earned and paid to avoid disputes.
List eligible benefits (health, retirement, paid time off), enrollment windows, and any employer contribution formulas. Note that statutory leaves (FMLA, ADA accommodations) operate alongside contractual benefits.
Include confidentiality obligations, invention assignment, and IP ownership language to ensure work product created during employment is owned by the employer when permitted by law.
If including non-compete, non-solicit, or non-disclosure covenants, tailor duration, geography, and scope to be reasonable under applicable state law to improve enforceability.
Define at-will or fixed-term status, notice requirements, cause definitions, post-termination obligations, and any severance or release conditions tied to payment schedules and benefits continuation.
| Field | Configuration |
|---|---|
| Signer Order | Sequence employer signers before employee when needed |
| Authentication | Use email link or SMS code; add KBA for higher risk |
| Required Fields | Mark signature, date, and initial fields as mandatory |
| Retention | Enable encrypted storage and PDF export with audit trail |
Electronic execution must show signer intent, attribution, and retain a reproducible record to meet ESIGN and UETA standards.
Date obligations begin; enter as MM/DD/YYYY
Date employee begins work and benefits eligibility
Employer completes Section 2 within three business days of hire (8 CFR §274a.2)
Typically within 30 days of start; plan rules vary
Commonly 30–90 days; check contract language
| Criteria | Employment Agreement | Independent Contractor Agreement |
|---|---|---|
| Applicable Law | employment law | contract law |
| Taxes Withheld | ||
| Benefits Provided | often | rarely |
| Control Over Work | employer control | contractor autonomy |
| 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 | Varies | Varies | Varies |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | Varies | Varies |