VIEWS: 316 PAGES: 10 CATEGORY: Hiring Employees POSTED ON: 7/16/2012
This is an agreement between a company and an employee whereby the company hires the employee for a particular duration. The agreement sets out the duties and responsibilities of the employee in return for the specified compensation. In addition, the agreement provides the termination procedure whereby the company may terminate the employee prior to the expiration of the term in certain situations, including for cause. This agreement should be used by small businesses or other entities that want to hire an employee for a specific period of time while reserving the right to terminate the employee for cause.
This is an agreement between a company and an employee whereby the company hires the employee for a particular duration. The agreement sets out the duties and responsibilities of the employee in return for the specified compensation. In addition, the agreement provides the termination procedure whereby the company may terminate the employee prior to the expiration of the term in certain situations, including for cause. This agreement should be used by small businesses or other entities that want to hire an employee for a specific period of time while reserving the right to terminate the employee for cause. TIME EMPLOYMENT AGREEMENT THIS EMPLOYMENT AGREEMENT (the “Agreement”) made as of the ___ day of ______________, 20___ [Instruction: Insert Date] (the “Effective Date”) by and between ___________________ [Instruction: Insert Name of Employer] having its principal place of business at _______________________ [Instruction: Insert Address] (the “Employer”), and ____________________ [Instruction: Insert Name of Employee], ______________ [Instruction: Insert Address] (the “Employee”). WHEREAS the Employer desires to obtain the benefit of the services of the Employee; and the Employee desires to render such services on the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the promises and other good and valuable consideration set forth, the parties agree as follows: 1. EMPLOYMENT A. The Employee shall be employed in the capacity of: _____________________________ [Instruction: Insert Name of Position]. The essential job functions and duties of this position are as follows: i. _____________________________ [Instruction: Insert job functions/duties] ii. _____________________________ [Instruction: Insert job functions/duties] iii. _____________________________ [Instruction: Insert job functions/duties] B. Employee shall also perform such other duties in the ordinary course of business as performed by other persons in similar such positions, as well as such other reasonable duties as may be assigned from time to time by the Employer. C. The Employee, throughout the term of his/her appointment, shall devote his/her full time and attention to the business and affairs of the Employer and shall not, without the consent in writing of the Employer, undertake any other business or occupation or become a director, officer, employee or agent of any other company, firm or individual. D. The Employee shall devote the Employee’s full time and attention to the affairs of the Employer and shall honestly, diligently and faithfully serve the Employer and use the Employee’s best efforts to promote the interests of the Employer. 2. TERM AND TERMINATION A. The term (“Term”) of this agreement shall commence upon the Effective Date and shall terminate on ____________________ [Instruction: Insert Date], subject to the rights of the parties hereto to terminate this Agreement at an earlier date in accordance with the provisions of this paragraph. B. The first ______ (__)[Instruction: Insert Duration] months of the Term, shall be a probationary period, during which period the Employer shall be entitled to assess the Employee’s performance and the Employee’s compatibility with the general operation of the Employer’s business. If the Employer is not satisfied in any way with the Employee’s performance or compatibility, in the Employer’s sole discretion, the Employer may terminate this Agreement without any further obligation to the Employee. C. Notwithstanding anything to the contrary contained herein, the parties understand and agree that employment pursuant to this Agreement may be terminated in the following manner in the specified circumstances: i. by the Employee, at any time, for any reason, on the giving of ________ (___)[Instruction: Insert Duration] [Instruction: Choose One: days’//weeks’//months’] written notice to the Employer. The Employer may waive notice, in whole or in part and if it does so, the Employee’s entitlement to remuneration and benefits pursuant to this Agreement will cease on the date that Employer waives such notice. ii. by the Employer, in its absolute discretion, without any notice or pay in lieu thereof, for cause. For the purposes of this Agreement, cause includes the following: (a) any material breach of the provisions of this Agreement; (b) any conduct of the Employee which as judged in the sole discretion of the Employer, tends to bring the Employee or the Employer into disrepute; (c) conviction of the Employee of a criminal offence punishable by indictment, where such cause is not prohibited by law; and (d) any and all omissions, commissions or other conduct which would constitute cause at law, in addition to the specified causes. Failure by the Employer to rely on the provision of this paragraph in any given instance or instances, shall not constitute a precedent or be deemed a waiver. iii. by the Employer in its absolute discretion and for any reason on giving the Employee __________ (__) [Instruction: Insert Duration] [Instruction: Choose One: days’//weeks’//months’] advance notice in writing or on paying the Employee the equivalent pay in lieu of notice. The payments contemplated in this paragraph include all pay under the Employment Standards Act of the laws of the applicable jurisdiction. In the event the minimum statutory requirements as at the date of termination provide for any greater right or benefit than that provided in this Agreement, such statutory requirements will replace the payments contemplated under this Agreement. The Employee agrees to accept the notice of pay in lieu of notice as set out in this paragraph in full or final settlement of all amounts owing to him/her by the Employer on termination, including any payment in lieu of notice of termination, entitlement of the Employee under any applicable statute and any rights which the Employee may have at common law, and the Employee hereby waives any claim to any other payment or benefits from the Employer. D. The parties understand and agree that the giving of notice or the payment of pay in lieu of notice by the Employer to the Employee on termination of the Employee’s employment shall not prevent the Employer from alleging cause of termination. E. Notwithstanding any other provision of this Agreement, where during the term of this Agreement the Employee by reason of the Employee’s mental or physical condition (an “Incapacity”) is unable, in the sole opinion of the Employer, acting reasonably, to perform the Employee’s duties hereunder and such Incapacity shall continue for a period of more than three (3) consecutive or non-consecutive months within any twelve (12) month period, the Employer shall thereafter have the right, on not less than fourteen (14) days written notice to the Employee, to terminate this Agreement and the Employee’s employment. In such case the Employee shall have no claim for wages or damages against the Employer, except for the payment of the Employee’s full salary through the date of termination. F. On termination of employment the Employee shall immediately resign all offices held with the Employer and except as otherwise provided in this Agreement, the Employee shall not be entitled to receive any payment or compensation for loss of office or otherwise by reason of the resignation. If the Employee fails to resign as mentioned the Employer is irrevocably authorized to appoint some person in the Employee’s name and on the Employee’s behalf to sign any documents or do any things necessary or requisite to give effect to it. 3. COMPENSATION A. As full compensation for all services provided for herein, the Employer shall pay the Employee a salary, at an annual rate of _____________ Dollars ($______) [Instruction: Insert Salary] (the “Salary”) to be paid in regular installments in accordance with the Employer’s usual payment practices, but not less frequently than monthly; B. Such payments shall be subject to such deductions by the Employer as the Employer is from time to time required to make pursuant to law, government regulation or order or by Agreement with, or consent of, the Employee. 4. BENEFITS A. It is understood and agreed that the Employee will incur expenses in connection with his/her duties under this Agreement. The Employer will reimburse the Employee for any expenses provided that the Employee provides to the Employer an itemized written account and receipts acceptable to the Employer within sixty (60) days after they have been incurred. B. The Employee shall be reimbursed for mileage in connection with the use of the Employee’s automobile in the performance of the Employee’s duties hereunder at the rate of _______ cents ($0.____) [Instruction: Insert Amount] per kilometer/mile. No mileage shall be paid for trips from the Employee’s residence to the Business. C. The Employee shall be entitled to vacation time in the amount of _______ (___) [Instruction: Insert Vacation Amount] days per annum, during which time the Employee’s compensation shall be paid in full. Vacation time may be taken only upon it being earned and shall not be taken in advance. The vacation shall be taken at the time or times as the [Instruction: Choose One: Employer//Employee] may determine, but in no event shall vacation be permitted during the Employer’s “high season”. The Employee shall be allowed to carry forward up to one week of unused vacation into the next calendar year but not further. D. After ninety (90) days of employment, Employee shall become eligible for insurance benefits under Employer’s health care provider, as set forth in Exhibit “A”, attached hereto and incorporated herein (the “Employee Benefits”). The Employer reserves the right to unilaterally revise the terms of the Employee Benefits or to eliminate any Employee Benefits altogether. Employee Benefits will be provided in accordance with the formal plan documents or policies and any issues with respect to entitlement or payment of benefits under any of the Employee Benefits will be governed by the terms of such documents or policies establishing the benefit in issue. 5. EMPLOYER’S PROPERTY The Employee acknowledges that all items of any and every nature or kind created or used by the Employee pursuant to the Employee’s employment under this Agreement, or furnished by the Employer to the Employee, and all credit cards, books, records, reports, files, diskettes, manuals, literature, confidential information or other materials shall remain and be considered the exclusive property of the Employer at all times and shall be surrendered to the Employer, in good condition, promptly at the request of the Employer, or in the absence of a request, on the termination of the Employee’s employment with the Employer. 6. NON-COMPETITION A. For a period of __________ (___) [Instruction: Insert Duration] years from the date of termination of the Employee’s employment, however caused, The Employee agrees that the Employee will not, for any reason, directly or indirectly, either as an individual or as a partner or joint venturer or as an employee, principal, consultant, agent, shareholder, officer, director, or salesperson for any person, firm, association, organization, syndicate, company or corporation, or in any other manner: i. carry on, be engaged in, concerned with, interested in, advise, lend money to, guarantee the debts or obligations of, permit the Employee’s name (or any part thereof) to be used or employed by any person, business, firm, association, syndicate, company, organization or corporation concerned with or engaged or interested in a business which is the same as, or competitive with, the business of the Employer including, without limitation, any business relating to _____________ [Instruction: Insert Type of Business] which is located within a __________ (____) [Instruction: Insert Distance] mile radius of Employer; or ii. solicit or accept business with respect to services competitive with those of the Employer from any of the Employer’s customers, wherever situated. Notwithstanding the foregoing, the Employee may, for investment purposes, purchase and trade shares of a public company that is in competition with the business of the Employer provided that: (a) the public company is traded on a recognized stock exchange; and (b) Employee shall not participate in the management or operation of the public company or in any advisory capacity. B. The Employee further agrees that, during employment pursuant to this Agreement and for a period of ______ (___) [Instruction: Insert Duration] years following termination of employment, however caused, the Employee will not hire or take away or cause to be hired or taken away any employee of the Employer. 7. CONFIDENTIAL INFORMATION A. The Employee acknowledges that the Employee will acquire information about certain matters and things which are confidential (“Confidential Information”) to the Employer, and which information is the exclusive property of the Employer, including but not limited to: i. names and addresses of present customers of the Employer, as well as prospective customers or customer leads; ii. pricing, marketing and sales policies, techniques and concepts; iii. trade secrets; and iv. other confidential information concerning the Business operations or financing of the Business and the Employer. B. The Employee acknowledges that the Confidential Information could be used to the detriment of the Employer. Accordingly, the Employee undertakes not to disclose same to any third party during the term of the Employee’s employment or thereafter, however caused, except with the written permission of the Employer. The Employee also agrees that the unauthorized disclosure of the Confidential Information shall justify the immediate termination of this Agreement by the Employer. C. The Employee acknowledges that in addition to any and all rights of the Employer, the Employer shall be entitled to injunctive relief in order to protect the Employer’s rights in and to the Confidential Information.. 8. MISCELLANEOUS A. The rights which accrue to the Employer under this Agreement shall inure to the benefit of and shall be binding upon the Employer’s successors or assigns. The rights of the Employee under this Agreement are not assignable or transferable in any manner. B. Any notice required or permitted to be given to the Employee shall be sufficiently given if delivered to the Employee personally or if mailed by registered mail to the Employee’s address last known to the Employer, or if delivered to the Employee via facsimile. Any notice required or permitted to be given to the Employer shall be sufficiently given if mailed by registered mail to the Employer’s main office at its address last known to the Employee, or if delivered to the Employer via facsimile. C. The Employee acknowledges that the Employee has read and understands the Agreement. The Employee specifically acknowledges that the Employer has advised the Employee to seek independent legal advice prior to executing this Agreement. D. In the event that any provision or part of this Agreement shall be deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect. E. This Agreement constitutes the entire agreement between the parties hereto with respect to the specific subject matter hereof and supersedes all prior agreements or understandings of any kind with respect to the specific subject matter hereof. F. Any modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void. G. The headings used in this Agreement are for convenience only and are not to be construed in any way as additions to or limitations of the covenants and agreements contained in it. H. This Agreement shall be governed in accordance with the laws of the State of _____________, [Instruction: Insert State], applicable to agreements to be wholly performed therein, with jurisdiction exclusive to the Federal and State courts located in the County of _____________ [Instruction: Insert County], State of ______________ [Instruction: Insert State]. IN WITNESS WHEREOF the parties have duly executed this Agreement as of the date first written above. EMPLOYER: ________________________________ [Instruction: sign] By: ___________________________ [Instruction: Insert Name of Signatory] Title: ___________________________ [Instruction: Insert Title of Signatory] EMPLOYEE: ________________________________ [Instruction: sign] By: ___________________________ [Instruction: Insert Name of Signatory] SSN: ___________________________ [Instruction: Insert Social Security Number] Exhibit “A” Employee Benefits ___________________________ [Instruction: Insert Insurance Benefits information]
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