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Ongoing Employment Services Agreement

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ONGOING EMPLOYMENT SERVICES AGREEMENT

This Ongoing Employment Services Agreement (the "Agreement") is entered into between Employer Name: and Employee Name: . The parties agree as follows.

Effective Date:

1. Personal Information

2. Position and Services

Job Title:     Department:

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

3. Compensation and Benefits

Pay Frequency:     Exempt from Overtime: Yes No

4. Term, Termination and Renewal

Term: This Agreement commences on the Effective Date and continues until terminated in accordance with this Section.

Termination for Convenience: Either party may terminate this Agreement for any reason upon days' prior written notice.

Termination for Cause: Employer may terminate immediately for material breach, willful misconduct, gross negligence, or violation of law. Employee may terminate for material breach by Employer if breach is not cured within days after written notice.

5. Confidentiality, Proprietary Rights and Inventions

Employee acknowledges and agrees to hold in confidence all proprietary, confidential, or trade secret information of Employer. All inventions, discoveries, improvements, and works of authorship made or conceived by Employee during the term and related to Employer's business shall be the exclusive property of Employer, and Employee hereby assigns all right, title and interest therein to Employer to the fullest extent permitted by law.

6. Restrictive Covenants and Non-Solicitation

During employment and for a period of months following termination, Employee will not solicit Employer clients, customers or employees for purposes competitive with Employer's business, subject to applicable law and reasonable geographic and temporal limitations as set forth by the parties.

7. Compliance, Background Checks and Authorization

Employee authorizes Employer to verify Employee's background, employment history, education, and to obtain criminal and credit reports where permitted by law. Employee further authorizes previous employers and educational institutions to release information to Employer.

Consent to Background Check: I authorize background and reference checks as described above.

8. Employment History (Applicant Provided)

9. Education

10. References

11. Legal Disclosures

At-Will Employment: Unless otherwise agreed in a separate written agreement signed by both parties, Employee's employment is at-will. Either party may terminate the employment relationship at any time with or without cause and with or without notice, subject to applicable law.

Equal Opportunity: Employer is an equal opportunity employer and does not discriminate in hiring or employment on the basis of race, color, religion, sex, national origin, age, disability, veteran status or any other protected class under applicable law.

12. Applicant Certification and Authorization

I certify that all information provided in this Agreement, including personal data, employment history, education, and references, is true, complete, and accurate to the best of my knowledge. I understand that any material misrepresentation or omission may result in disciplinary action or termination of employment.

Authorization: I authorize Employer to contact previous employers, educational institutions, and references to verify the information provided. I consent to the release of such information to Employer.

Applicant Certification Acknowledgement: I certify the above statements.

13. Miscellaneous

Governing Law: This Agreement will be governed by and construed in accordance with the laws of the state mutually agreed upon by the parties, without regard to conflict of law principles.

Modification: Any modification or amendment to this Agreement must be in writing and signed by both parties.

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in full force and effect.

Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior agreements and understandings, whether written or oral.

14. Notices

Employer Name:

By:

Date:

Employee Name:

By:

Date:

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What the Ongoing Employment Services Agreement Is

An Ongoing Employment Services Agreement is a written contract that defines the ongoing relationship between a hiring organization and a service provider or employee performing ongoing work. It sets the scope of services, performance expectations, compensation terms, reporting cadence, and allocation of responsibilities for an indefinite or renewable term. These agreements establish billing cycles, confidentiality obligations, IP ownership, termination triggers, and dispute resolution processes so both parties understand long-term obligations and remedies.

Why a Clear Agreement Matters for Ongoing Services

A clear Ongoing Employment Services Agreement reduces disputes, ensures tax and labor compliance, and documents consent under the ESIGN Act (15 U.S.C. §7001) and UETA where applicable.

Why a Clear Agreement Matters for Ongoing Services

Who Typically Completes This Agreement

Organizations and individuals use this agreement to document continuous work relationships and recurring deliverables.

  • HR and People Ops teams managing contractor and contingent workforce onboarding.
  • Hiring managers who need clear scopes and performance milestones for suppliers.
  • Small businesses and startups engaging part-time or recurring services from contractors.

Parties generally include the employer or contracting company, the service provider, and any authorized signatories or payroll administrators.

Core Elements to Include in the Agreement

Well-drafted agreements combine operational detail with legal protections so ongoing relationships run smoothly and risks are allocated clearly.

Parties

Identify full legal names and entity types for each contracting party, including DBA names and the signing authority for corporate entities.

Scope of Services

Describe deliverables, schedules, performance metrics, reporting requirements, and any exclusions so expectations and billing triggers are unambiguous.

Term and Renewal

Specify the agreement start date, automatic renewal provisions, notice periods for nonrenewal, and any review cadence for terms.

Compensation

State rates, billing frequency, expense reimbursement rules, invoicing instructions, and late-payment interest or suspension rights.

Confidentiality and IP

Allocate ownership of work product, include confidentiality obligations, and define permitted uses, licenses, and assignment clauses.

Termination and Liability

Set termination for convenience and cause, notice mechanics, cure periods, liquidated damages if appropriate, and limitation-of-liability language.

Step-by-Step: Completing the Agreement

Follow these steps in sequence to prepare, review, and execute an Ongoing Employment Services Agreement correctly.

  • 01
    Draft: Populate parties, scope, compensation, and term with factual, current data.
  • 02
    Review: Have legal, tax, or HR review to confirm classification and compliance with wage laws.
  • 03
    Authorize: Obtain signatory authority approvals and confirm titles match corporate records.
  • 04
    Execute: Collect signatures, distribute copies, and store in the official records system.

How to Configure an Online Signing Workflow

Set up fields and authentication to match legal requirements and organizational controls before sending the document for signatures.

Field | Configuration Signer name | Required
Signature Method Email link or in-person signer options
Authentication Email verification, SMS code, or KBA for higher assurance
Template and Fields Use reusable templates and conditional fields for variant clauses
Notifications Auto-notify signers and administrators on completion

Where to File or Send the Completed Agreement

Deliver signed copies to all internal and external stakeholders and store a master copy in the official record repository.

  • HR Repository: Central employee or contractor records system
  • Payroll: Provide copy to payroll for tax and withholding setup
  • Legal: Store a version for contract and compliance reviews
  • Service Provider: Send the signed copy to the contractor or employee

Technical Options for Delivery and Signing

Choose a platform that supports your authentication and retention requirements.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File formats: PDF, DOCX, and fillable forms
  • Authentication options: Email, SMS, KBA, SSO

Ensure chosen tools retain audit trails, support lawful e-signatures under ESIGN/UETA, and meet any industry controls required.

Comparing eSignature Options for Ongoing Agreements

Vendor pricing and feature sets vary; signNow is listed first for comparison with common market alternatives.

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 by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Key Security and Compliance Controls to Check

Encryption: TLS 1.2/1.3 in transit
Data at Rest: AES-256 encryption
Certifications: SOC 2 Type II and ISO 27001
HIPAA: BAA available on request
Audit Trail: Timestamped signer events
21 CFR Part 11: Compliance options for regulated records

Penalties and Risks of Incorrect or Incomplete Agreements

Misclassification: Tax and wage penalties
I-9 Violations: Civil fines (8 CFR §274a.2)
Information Returns: 1099 penalties (IRC §6721)
Unpaid Wages: DOL claims and liquidated damages
Breach Costs: Contract damages and defense expenses
Privacy Violations: HIPAA fines and corrective action

Common Mistakes to Avoid

  • Using vague scope language that creates billing disputes and scope creep without measurable deliverables or milestones.
  • Failing to confirm signatory authority, resulting in contracts that counterparty later disputes for lack of authorization.
  • Not addressing worker classification, which can trigger payroll, tax, and benefits liabilities if misclassified as independent contractors.
  • Skipping authentication and audit-trail controls when e-signing consumer-facing employment documents subject to ESIGN disclosures.

Practical Tips for Accurate and Efficient Agreements

Adopt consistent templates and workflow rules to reduce error rates and shorten execution cycles.

Use Clear Scopes and Exhibits
Attach a concise statement of work or task order that defines deliverables, acceptance criteria, and a change-order process to avoid disputes.
Standardize Compensation Clauses
Include invoicing schedule, required backup, late fees, and currency. Clarify expense reimbursement limits and preapproval requirements.
Confirm Classification and Tax Forms
Decide worker classification early and collect W-9 or W-2 information to prevent backup withholding or misreporting penalties.
Preserve Audit Trails
Retain signed copies with timestamps, IP, and signer authentication to support enforceability and regulatory audits.

Real-World Examples and How Organizations Use eSign

Organizations in professional services and corporate operations use eSignature workflows to reduce turnaround time and centralize records.

Optica Ventures LLC

Optica used a streamlined e-sign process to handle recurring service agreements

  • The interface is simple and easy-to-use for teams
  • That ease of use translated into fewer follow-ups and faster contractor onboarding while keeping a clear audit trail.

Xerox (NetSuite Integration)

Xerox integrated e-sign workflows with their ERP to route ongoing service contracts

  • airSlate SignNow provided flexible formats and API connectivity
  • This reduced manual entry, ensured consistent template use, and improved signature turnaround on recurring engagements.

Key Deadlines and Timing Considerations

Observe tax and recordkeeping deadlines that affect ongoing employment relationships and documentation.

Effective Date:

Entered as MM/DD/YYYY; controls when obligations commence

Payroll Enrollment:

Complete before first payroll run to ensure correct withholdings

I-9 Retention:

Retain for 3 years after hire or 1 year after termination (8 CFR §274a.2)

W-2 Filing:

Employer to employee by Jan 31 each year

1099-NEC Reporting:

Issue to recipients and IRS by Jan 31 where applicable

Frequently Asked Questions and Troubleshooting

Answers to common legal and execution questions for Ongoing Employment Services Agreements.


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