Can an employment contract be signed electronically?

Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided the four-part validity test is met: intent, consent, attribution, and record retention.

Do I need a notary or witness for an employment contract?

Generally no. Employment contracts rarely require notarization or witnesses; check state rules if the agreement includes deeds, real property, or power-of-attorney elements that trigger notarization.

How do I change terms after signing?

Amendments should be in writing, signed by both parties, and reference the original agreement. Oral changes risk enforceability—document all material modifications.

What if the employee works in a different state?

Apply the governing law clause and check state-specific rules for restrictive covenants, wage notices, and payroll taxes; consult counsel for multi-state compliance.

Are non-compete clauses enforceable everywhere?

No. States like California limit non-competes; others permit them with reasonableness standards. Tailor restrictive covenants to state law to improve enforceability.

How long should I retain the signed contract?

Retain the contract for the term of employment and at least three years after termination to satisfy IRS recordkeeping (IRC §6501(a)); extend retention if industry rules or state law require longer periods.

Electronic Signature
Templates
HR
Permanent Employment Contract

Permanent Employment Contract

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

PERMANENT EMPLOYMENT CONTRACT

This Employment Contract (the "Agreement") is entered into as of by and between:

Parties

Employer Name Employer Address Employer Representative & Title Employee Full Legal Name Employee Address

Personal Information

Telephone Email

Position Information

Job Title: Department:

Reporting Manager

Employment Start Date: Employment Type: Full-time Part-time Exempt Non-exempt

Base Salary / Compensation

Pay Frequency: Weekly Bi-weekly Monthly Other:

Employment History

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:

References

Reference 1 Reference 2 Reference 3

Key Terms and Conditions

1. Employment. Employer hereby employs Employee and Employee accepts employment on the terms and conditions set forth in this Agreement. Employee's duties and responsibilities shall include those set forth in the job description provided by Employer and such other duties as Employer may assign. Employee agrees to devote full working time and best efforts to the performance of assigned duties.

2. Term. This Agreement commences on the Employment Start Date and continues until terminated in accordance with Section 9. This Agreement creates a permanent employment relationship subject to termination as provided herein.

3. Compensation and Benefits. Employer will pay Employee the Base Salary described above, subject to payroll deductions required by law. Employee may be eligible for benefits consistent with Employer's policies, which may be amended from time to time. Eligibility and continuation of benefits are governed by plan documents and Employer policies.

4. Probationary Period. Employee will serve a probationary period of during which Employer may evaluate Employee's performance. Employer retains the right to terminate employment at any time during the probationary period for any lawful reason.

5. Hours of Work and Overtime. Employee's normal work schedule shall be as determined by Employer. Non-exempt employees must record hours worked and are eligible for overtime pay in accordance with applicable wage and hour laws. Exempt employees are not eligible for overtime compensation except as required by law.

6. Confidentiality and Proprietary Rights. Employee acknowledges that during the course of employment Employee will receive confidential and proprietary information. Employee agrees that at all times during and after employment Employee shall hold all such confidential information in confidence and shall not disclose or use such information except as required to perform Employee's duties. Employee assigns to Employer all right, title and interest in inventions, discoveries, developments, or improvements related to Employer's business made during employment. Employee shall execute any documents necessary to effectuate such assignment.

7. Restrictive Covenants. To protect Employer's legitimate business interests, Employee agrees that during employment and for a period of following termination, Employee will not directly solicit Employer's customers or engage in substantially similar employment within of Employer's principal place of business. These restrictions shall be enforceable to the maximum extent permitted by law and may be modified by a court if found unreasonable.

8. Conflicts of Interest. Employee shall disclose any outside employment or business interests that may conflict with Employee's obligations under this Agreement. Employee shall not engage in activities that create a conflict of interest without prior written consent of Employer.

9. Termination. Employment may be terminated by either party at any time. Employer may terminate Employee immediately for Cause. For purposes of this Agreement, "Cause" includes willful misconduct, material breach of this Agreement, fraud, theft, or violation of material Employer policies. If Employer terminates Employee without Cause, Employer may be required to provide notice or severance only as otherwise specified in a separate written policy or agreement.

10. Return of Property. Upon termination, Employee shall return all Employer property, records, and confidential information in Employee's possession.

11. Dispute Resolution; Governing Law. Except as otherwise required by law, disputes arising under this Agreement shall be resolved by binding arbitration in the state where Employer's principal place of business is located. This Agreement shall be governed by the laws of that state without regard to choice-of-law principles.

12. Notices. All notices required or permitted by this Agreement shall be in writing and delivered to the addresses set forth above or such other address as a party may designate in writing.

13. Entire Agreement; Amendment. This Agreement constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements, written or oral. Any amendment must be in writing and signed by both parties.

14. Severability; Waiver. If any provision of this Agreement is held unenforceable, the remaining provisions shall remain in full force and effect. Waiver of any breach shall not constitute a waiver of any subsequent breach.

Legal Disclosures

At-Will Employment. Except as otherwise expressly provided in a written, signed agreement, employment with Employer is at-will and may be terminated by either party at any time, with or without cause or notice.

Equal Employment Opportunity. Employer is an equal opportunity employer. Employment decisions are made without regard to race, color, religion, sex, national origin, age, disability, or other protected characteristics as required by law.

Background Check and Authorization

Employee hereby authorizes Employer to verify Employee's employment history, educational records, criminal history, and references as necessary to evaluate Employee's qualifications. Employee acknowledges that any false statements or material omissions made in connection with Employee's application or this Agreement may constitute grounds for termination.

Background Check Consent I authorize the background checks described above and certify the information I have provided is true and complete.

Applicant Certification

I certify that all information provided in connection with my application and this Agreement is true, accurate and complete to the best of my knowledge. I understand that misrepresentation or omission of facts may result in denial of employment or termination.

Employee Initials

Notices Address

Employer Notice Address Employee Notice Address

Employer Printed Name:

By:

Date:

Title:

Employee Printed Name:

By:

Date:

Employee ID (if applicable):

What a Permanent Employment Contract Is and When It Applies

A Permanent Employment Contract is a written agreement between an employer and an employee that sets out ongoing employment terms, including duties, compensation, benefits, work schedule, confidentiality, termination conditions, and applicable governing law. It creates enforceable rights and obligations for both parties for an indefinite or open-ended employment relationship rather than a fixed-term engagement. Employers commonly use this contract to clarify expectations, protect intellectual property, and set non-compete or non-solicitation limits where permitted. The agreement should be signed and retained by both parties and updated when material terms change.

Why a Clear Permanent Employment Contract Matters

A precise contract reduces ambiguity about roles, pay, benefits, and termination rules, lowering dispute risk and supporting compliance with federal and state employment laws such as wage and hour statutes and nondiscrimination rules.

Who Typically Prepares and Signs This Agreement

Employers, HR teams, hiring managers, and new employees are the primary participants when preparing and executing a Permanent Employment Contract.

Legal counsel is often involved for roles with specialized responsibilities, equity, or where state-specific contract language (non-compete, garden leave) may be required.

Core Clauses to Include in a Professional Permanent Employment Contract

A comprehensive contract balances employer protections with employee rights. Include clear, enforceable clauses and avoid vague language that can lead to disagreements or legal exposure.

Position and Duties

Define job title, primary responsibilities, reporting relationship, and any duties that may be expected outside the core role.

Compensation

State base salary or hourly rate, payment frequency, eligible bonuses, commission structures, and payroll tax treatment.

Benefits and Time Off

Summarize health insurance eligibility, retirement plan access, paid time off accrual, and other employer-provided benefits.

Confidentiality and IP

Include confidentiality obligations, invention assignment, and ownership of work product to protect company IP.

Termination and Severance

Specify at-will or cause-based termination, notice requirements, final pay timing, and any severance or COBRA details.

Governing Law

Identify the state law governing disputes and whether arbitration or venue clauses will apply.

Step-by-Step: Completing a Permanent Employment Contract

Follow these steps in order to create a clean, enforceable contract and minimize later disputes.

01

Draft Terms: Assemble role, compensation, benefits, and key clauses in a single document for review.
02

Legal Review: Have counsel review for compliance with wage laws, non-compete rules, and state-specific requirements.
03

Employee Review: Provide the employee time to read, ask questions, and propose negotiated changes.
04

Execute and Store: Both parties sign, date, and retain copies in HR records; update payroll and benefits systems.

Typical Workflow for Issuing and Approving the Contract

A standard workflow ensures accountability and efficient recordkeeping from offer to active employment.

Create Offer: Hiring manager prepares terms and sends to HR for template application.
Internal Approval: HR and legal clear the terms; budget or compensation committees sign off if required.
Send to Candidate: Provide contract to candidate with clear instructions and deadline for response.
Finalize and File: After signatures, update HRIS, payroll, and benefits enrollment; store executed copy.

Digital Workflow Settings to Use for Permanent Employment Contracts

Configure e-signing workflows to collect signatures, dates, and required attestations in order.

Field	Configuration
Signer Order	Employer HR first \| Employee second
Required Fields	Full name \| Signature \| Date \| Job code
Authentication	Email + SMS code for employee; optional ID check for executive roles
Retention	Store signed PDF and audit trail in secure HR folder

Technical Options for Sharing and Signing the Contract

Choose a secure e-signature platform that supports legal evidence and file export in standard formats.

Document Formats: PDF, DOCX supported
Integrations: HRIS, payroll, and cloud storage connectors
Security: TLS in transit and AES-256 at rest

Ensure the chosen platform provides an audit trail with timestamps, signer attribution, and a tamper-evident signed file to support enforceability.

Essential Security and Compliance Elements for Employment Contracts

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Authentication: Multi-factor options for high-risk roles

Audit Trail: IP, timestamp, and signer events

BAA Availability: Required for HIPAA-covered contexts

Records Export: Signed PDF/A and CSV logs

Certifications: SOC 2 Type II; ISO 27001

Key Risks and Legal Consequences of a Defective Contract

Wage Claims: Back pay and penalties under state wage laws

Tax Issues: Incorrect worker classification risks IRS audit

Discrimination Suits: Ambiguous policies can expose employer to liability

IP Loss: Missing assignment clauses may forfeit rights

Unenforceable Restrictions: Overbroad non-competes can be voided by courts

Recordkeeping Violations: Fines for failing to retain required documents

Common Pitfalls When Preparing a Permanent Employment Contract

Using vague terms like "reasonable" without objective metrics, which creates enforcement problems.
Failing to state pay frequency or overtime eligibility, causing wage disputes and claims.
Applying a one-size-fits-all non-compete without checking state enforceability, risking invalidation.
Not updating governing law or work location for remote employees, producing jurisdictional confusion.

eSignature Vendor Comparison for Executing Permanent Employment Contracts

Compare basic pricing and core capabilities relevant to signing employment contracts; signNow is listed first per comparison requirements.

	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	No cap	No cap	No cap

Frequently Asked Questions About Permanent Employment Contracts

Answers to common questions about validity, modifications, e-signatures, and post-signature handling.

Need help? Contact support

Can an employment contract be signed electronically?
Yes. Electronic signatures are legally valid under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA in most states, provided the four-part validity test is met: intent, consent, attribution, and record retention.
Do I need a notary or witness for an employment contract?
Generally no. Employment contracts rarely require notarization or witnesses; check state rules if the agreement includes deeds, real property, or power-of-attorney elements that trigger notarization.
How do I change terms after signing?
Amendments should be in writing, signed by both parties, and reference the original agreement. Oral changes risk enforceability—document all material modifications.
What if the employee works in a different state?
Apply the governing law clause and check state-specific rules for restrictive covenants, wage notices, and payroll taxes; consult counsel for multi-state compliance.
Are non-compete clauses enforceable everywhere?
No. States like California limit non-competes; others permit them with reasonableness standards. Tailor restrictive covenants to state law to improve enforceability.
How long should I retain the signed contract?
Retain the contract for the term of employment and at least three years after termination to satisfy IRS recordkeeping (IRC §6501(a)); extend retention if industry rules or state law require longer periods.

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