Parties
Identify full legal names and entity type for each party, including employer legal entity and the individual or contractor, to avoid ambiguity in enforcement and payroll reporting.
A written hire agreement reduces ambiguity about duties, pay, and termination and provides evidence of consent and negotiated terms. It helps manage compliance with payroll, benefits, and confidentiality requirements while creating a record suitable for audits or dispute resolution.
Multiple internal stakeholders often contribute content; final signature authority and storage responsibility should be clarified in company policy.
The HR Manager typically ensures the document aligns with company policy, confirms benefits and payroll setup, and retains the executed agreement in HR records for compliance and audit purposes.
An authorized company officer or delegated hiring manager signs for the employer to bind the organization, often following a delegated signing authority policy and review by legal when nonstandard terms are present.
Identify full legal names and entity type for each party, including employer legal entity and the individual or contractor, to avoid ambiguity in enforcement and payroll reporting.
Describe the role, duties, and deliverables in sufficient detail, including expected hours or milestones, so performance expectations are objectively verifiable.
Specify salary, wages, bonuses, payment schedule, overtime rules if applicable, and any expense reimbursement policy to ensure correct tax and payroll treatment.
State the effective date, term (fixed or at-will), notice requirements, severance terms if any, and grounds for termination to clarify rights on exit.
Include confidentiality obligations and clear assignment of work product or IP ownership where applicable, plus any post-employment restrictions or trade secret protections.
Add clauses for background checks, drug testing, immigration eligibility (I-9 compliance), governing law, dispute resolution, and required disclosures under federal or state law.
| Field | Configuration |
|---|---|
| Signature Field | Required; signer must sign and date |
| Authentication | Email link plus optional SMS or ID verification |
| Sequence | Specify signing order: candidate then employer |
| Audit Trail | Enable full event log, timestamps, and IP capture |
Ensure chosen vendor provides the compliance features required by your industry and retains records in a tamper-evident format for audits.
Keep I-9 for 3 years after hire or 1 year after termination, whichever is later (8 CFR §274a.2).
Issue W-2 and 1099-NEC to recipients by Jan 31 each year per IRS timelines.
New hire benefit enrollment periods vary; confirm carrier deadlines on offer.
Set up payroll before first pay period to ensure correct withholding and taxes.
Document any trial period start and end dates in the agreement to govern evaluation timelines.
| Criteria | Employment Agreement | Independent Contractor Agreement |
|---|---|---|
| At-will employment | often yes | not applicable |
| Tax withholding | employer withholds | contractor handles taxes |
| Benefits eligibility | typically yes | typically no |
| Control over work | employer-directed | 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 | Paid plans only | Paid plans only | Limited free tier | Limited free tier |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies by plan | Varies by plan | Varies by plan |
Tim Martin found online execution allowed fully remote hires for property management roles without losing compliance
Kodi-Marie Evans uses electronic signatures to integrate hires with NetSuite and HR systems