Time and Cause Employment Agreement

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Time and Cause Employment Agreement Powered By Docstoc
					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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Description: 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.