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Employment Agreement Between Law Firm and Attorney

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Employment Agreement Between Law Firm and Attorney

This Employment Agreement (the Agreement) is made and entered into as of the day of , 20, by and between , a professional association (hereinafter referred to as Employer or P.A.) and (Employee) (hereinafter referred to as Employee).

WITNESSETH

Whereas, Employer is organized under the laws of the state of to render professional services through those of its employees who are duly licensed to practice law in the State of and certain other states; and

Whereas, Employee is an attorney duly licensed and authorized to practice law in the State of ; and

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

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

Now, therefore, in consideration of the mutual promises and agreements contained in this Agreement, it is mutually agreed as follows:

1. Employment and Duties

A. Scope of duties. Employer hereby employs Employee, and Employee accepts such employment, to render legal services to clients of Employer. Employer shall have the power to determine the specific duties to be performed by Employee, and the means and the manner by which those duties shall be performed. Employer shall have the power to determine the assignment of clients to Employee, and Employee must perform services for such clients assigned him. 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 within the profession, except that Employee shall not be compelled to work longer than a normal work week.

B. Director and Officer. Employee shall, if elected, serve as a director and or officer of Employer at no additional compensation other than as expressly provided in this Agreement.

C. Exclusive service. Employee shall devote his full working time and attention to the practice of law 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.

D. Professional standards. Employee shall perform his duties under this Agreement in accordance with the rules of ethics of the Bar Association.

2. Term

The term of this Agreement shall begin on the above-stated effective date and shall continue until terminated as provided in this Agreement.

3. Compensation

A. Basic Salary. For all services rendered by Employee under this Agreement, Employer shall pay Employee a basic salary of $ per year, payable monthly in twelve equal installments beginning on the effective date of this Agreement and payable on the first day of each month during the term of this Agreement. The basic salary may be changed by mutual agreement of the parties at any time.

B. Bonus. In addition to the compensation referred to above, Employer shall, for the term of this Agreement, pay Employee a bonus on the last day of each fiscal year of the P.A., under the negotiated terms and conditions specified in Exhibit A attached to this Agreement and, by this reference, made a part of this Agreement as fully and to the same effect as if set forth in this Agreement in its entirety.

C. Fringe Benefits. As further consideration for the performance by Employee under and pursuant to this Agreement, Employer shall, within a reasonable time after the effective date of this Agreement, provide for Employee the following further benefits and any additional benefits that may from time to time be made available to attorneys employed by Employer:

1. A qualified employees= pension or profit-sharing plan, or a combination of both;

2. An employees= group life insurance plan;

3. An accident and health plan for the payment of Employee=s medical care expenses; and

4. A disability plan.

4. 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, bar dues, tuition and travel expenses for continuing legal education, and dues to such professional associations as approved by Employer. Employee agrees to submit to Employer such documentation as may be necessary to substantiate such expenses.

5. 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.

6. Office Facilities

Employer shall operate and maintain facilities, and shall provide at its expense, equipment and supplies, suitable to Employee=s position and adequate for the performance of his duties under and pursuant to this Agreement. Further, Employer shall supply and pay for such assistant(s) reasonably needed by Employee in connection with his employment under and pursuant to this Agreement.

7. Records and Files

All records and personal files concerning clients of Employer shall belong to and remain the property of Employer. On termination of his employment, Employee shall not be entitled to keep or reproduce Employer=s records related to any client unless the client shall specifically request that his or her records be transmitted to Employee.

8. Fees

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

9. Vacation

Employee shall be entitled to a paid annual vacation of weeks ( working days) during each year during the continuance of this Agreement. Without Employer=s consent, vacation time may not be accumulated, but must be taken in the year earned. Employee=s vacation will be scheduled at those times most convenient to Employer=s law practice as determined by its Board of Directors. In addition, Employee shall be allowed days each year to attend professional meetings or seminars; provided, that 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 to days of sick leave in each fiscal year of Employer if Employee is unable to work by reason of illness or accident not resulting in Employee becoming Atotally disabled,@ without any adjustment in the compensation due to Employee under this Agreement. Unused sick leave may not be carried over from one fiscal year to another.

B. If Employee is unable to perform services under this Agreement 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 months Employee shall receive percent of his monthly salary;

2. For the next months of disability, Employee shall receive percent of his monthly salary;

3. For the next consecutive months of disability, Employee shall receive percent of his monthly salary.

4. Thereafter, Employee shall receive no disability payments.

C. 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 weeks between such periods of disability. If Employee becomes disabled, but the disability ceases before termination of his employment with Employer, Employee=s salary shall be reinstated on the date disability ends.

11. Termination

A. This Agreement shall be terminated immediately:

1. If employee becomes disqualified to practice law in the State of ;

2. On the death of Employee;

3. If Employer and Employee shall mutually agree in writing to such termination;

12. Governing Law

It is agreed that this Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

13. 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.

14. 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 evidenced in writing signed by each party or an authorized representative of each party.

15. Assignments 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.

16. Binding Effect

This Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties.

17. 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 thereafter 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.

18. Effect of Partial Invalidity

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. In the event that any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the deletion of the invalid provision.

IN WITNESS WHEREOF, the parties have each caused this Agreement to be signed as of the day and year first noted above.

_______________________________________

Employer

By:

_______________________________________

Employee

Enter text✕

What the Employment Agreement Between Law Firm and Attorney Is

An Employment Agreement Between Law Firm and Attorney is a written contract that sets the terms under which an attorney is hired by a law firm. It typically defines duties, compensation, billing and collection arrangements, partnership eligibility or equity pathways, confidentiality and client ownership, conflict clearance, restrictions on outside practice, and termination rights. The agreement allocates responsibility for expenses and malpractice insurance, may require bar-license verification and continuing legal education expectations, and serves as the primary record of the employment relationship and enforceable obligations between the lawyer and the firm.

Why a Clear Employment Agreement Matters for Firms and Attorneys

A precise written agreement reduces disputes, clarifies billing and compensation expectations, preserves client ownership rules, and documents confidentiality and conflict obligations. It protects firm interests and attorney rights by defining termination, noncompete or non-solicitation limits, and disciplinary procedures while enabling enforceability under contract law.

Why a Clear Employment Agreement Matters for Firms and Attorneys

Who Commonly Uses This Agreement and Why

Typical users include law firm partners, managing partners, hiring committees, in-house HR or practice managers, and incoming attorneys.

  • Managing partners and firm leadership drafting or approving employment terms for new hires
  • Associate and lateral attorneys reviewing compensation, billable expectations, and conflict rules
  • Human resources or practice managers maintaining consistent onboarding and documentation

The agreement benefits both sides by documenting expectations and providing an auditable record that supports compliance with professional responsibility and employment laws.

Core Provisions to Include in the Agreement

A complete employment agreement groups core legal and operational terms so both parties understand duties, money, and exit mechanics.

Duties

Describe the attorney's role, practice areas, expected caseload and client development responsibilities, including any supervisory or managerial duties and reporting relationships.

Compensation

Specify salary, draw arrangements, bonus or origination credit formulas, timing of payment, reimbursement policies, and how collections affect compensation.

Billing & Collections

Set the firm’s billing rates policy, timekeeping rules, trust account handling, client fee splitting, and process for allocating collected fees or write-offs.

Confidentiality

Define obligations to protect client confidences and firm information, handling of client files on separation, and return of firm property on termination.

Restrictive Covenants

If included, state non-solicitation, non-competition or conflict-of-interest limits with precise geographic, temporal, and scope language to improve enforceability.

Termination

Describe notice periods, cause definitions, severance or payout calculations, post-termination obligations, and dispute resolution mechanisms such as arbitration.

Step-by-Step: Complete the Agreement Before Hiring

Follow these essential steps to prepare, review, and execute the employment agreement correctly.

  • 01
    Draft: Populate standard terms and customize key clauses.
  • 02
    Review: Have firm counsel and the attorney review terms.
  • 03
    Sign: Execute with authorized signatories and date.
  • 04
    File: Store executed copy in HR and personnel file.

Configure an Online Workflow for Agreement Execution

Set up a clear e-signature workflow to collect signatures, evidence consent, and retain the final record.

Field Configuration
Signer Order Firm signatory then attorney
Authentication Email for guest signer; consider SMS code
Attachments Include bar license and W-9 if requested
Retention Store signed PDF and audit trail securely

Where the Signed Agreement Goes After Execution

After signing, route the executed agreement to specific recipients and record systems for compliance and payroll setup.

  • HR File: Retain final PDF in the personnel folder.
  • Payroll: Send compensation data to payroll team.
  • Practice Group: Notify practice manager of new hire.
  • Legal Counsel: Keep a copy for firm counsel review.

Technical Considerations for Electronic Signing

Confirm signer access, authentication level, and document format before sending for signature.

  • File Formats: PDF or DOCX preferred
  • Authentication: Email or SMS code
  • Audit Trail: Timestamp and IP logged

Ensure the chosen e-signature provider supports ESIGN/UETA compliance, secure storage, and an exportable audit trail for later verification.

Typical Timeframes and Deadlines to Track

Track critical dates to ensure benefits, payroll, and compliance processes align with the agreement.

Start Date:

Date employment begins; use MM/DD/YYYY.

Probation Period End:

Deadline for evaluation or conversion to regular status.

Notice Period:

Time required for resignation or termination notice.

Benefit Eligibility:

Date when health and retirement benefits commence.

Document Update:

Review or amend agreement at key milestones.

Key Milestones from Offer to Filing

A sequential milestone view helps coordinate onboarding tasks and record retention steps.

01

Offer Issued

Firm delivers offer letter and draft agreement for review.

02

Agreement Signed

Both parties sign and date the employment agreement.

03

Payroll Setup

HR enters compensation and benefits data into payroll system.

04

Records Filed

Executed agreement stored in HR and practice group files.

Common Preparation Mistakes to Avoid

  • Leaving compensation formulas vague, causing later disputes over bonuses or draws
  • Failing to specify client ownership rules; leads to contested collections and ethical questions
  • Omitting signatures or dates for all parties, which can void key obligations
  • Using overly broad noncompete language that courts may find unenforceable

Consequences of an Incorrect or Incomplete Agreement

Professional Discipline: Bar complaints or disciplinary action risk
Payroll Penalties: Incorrect withholding or reporting fines
Contract Disputes: Lengthy litigation or arbitration costs
Client Loss: Disputes over client ownership and fees
Confidentiality Breach: Malpractice or privacy exposure
Unenforceable Covenants: Court may refuse to enforce broad restrictions

Security and Compliance Elements to Include or Verify

Encryption: AES-256 at rest; TLS 1.2/1.3 in transit
Audit Trail: Timestamp, IP, and signer actions recorded
HIPAA: BAA required if PHI is present
ESIGN/UETA: Platform should support ESIGN and UETA compliance
Access Controls: Role-based permissions and SSO options
Retention: Secure storage with exportable records

Vendor Pricing and Feature Snapshot for eSignature

Compare starting price, trial availability, bulk send capability, audit trail, HIPAA compliance, and envelope limits across vendors.

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 Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

How Firms Use Electronic Agreements in Practice

Real organizations report faster execution and simpler remote onboarding when using digital execution workflows for employment and engagement documents.

Optica Ventures LLC — Brian Fitzgibbons, COO

Optica streamlined signature collection across client and internal agreements.

  • "The interface is simple and easy-to-use for our team"
  • Executed agreements were stored centrally, reducing follow-up time and improving record availability for audits and onboarding compliance.

Martin Properties — Tim Martin, Founder

The team moved from paper to digital signature workflows for contract and hiring packets.

  • "I can process and execute all of these documents online"
  • Digital records helped coordinate remote signers, maintain audit trails, and ensure consistent execution across offices.

Practical Tips for Accurate and Efficient Agreement Execution

Adopt consistent templates and a documented e‑sign workflow to reduce errors and speed onboarding.

Standardize Templates
Maintain firm-approved templates and clause libraries to ensure consistency and reduce review time.
Verify Identity
Confirm bar admission and use appropriate signer authentication for higher-risk roles.
Limit Restrictive Language
Draft narrowly tailored post-employment restrictions to improve enforceability and reduce litigation risk.
Keep Audit Records
Preserve signed PDFs and audit trails for the full retention period required by law.

Frequently Asked Questions About Employment Agreements and Electronic Signing

Answers to common legal, procedural, and technical questions about executing and managing the agreement electronically.


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