Here is the Free Employment Agreement Template to help you prepare your Employment Agreement. You can also explore our posts on Employee Non-compete Agreement Templates.
When companies hire employees, they sign legal contracts and agreements with the employees for certain reasons. These agreements not only benefit the company but also secure job opportunities. Moreover, it helps in future promotion possibilities of the employee too. The employment agreement especially for the executive staff members is known as the executive employment agreement.
Brief Description of Executive Employment Agreement:
It is mandatory for so many reasons that when a company or employer hires new employees. They sign a legal contract with them either for short-term or long-term employment duration. This agreement saves a lot of trouble on both ends. On one hand, the employer benefits from the agreement as with this agreement, the employee can’t leave the company before the agreement expires. In certain situations, he also can’t ask to raise the salary before it’s the time specified in the agreement.
On the other hand, this agreement also benefits the employees as they have job security with the contract. Most employees hire employees for 5 years and if after that, employees and employer agrees, they renew the agreement or the employee joins another company.
Before the agreement expires, the employer can’t fire or terminate the employment of the employee without any valid reason. So most of the time, employees prefer to work with the agreement so they don’t need to worry about the corporate laydowns or downsizing in the company.
Uses of Employment Agreement Templates:
There are two types of employees in a company; replaceable and irreplaceable. We also know the irreplaceable employees as the executive staff members that are very important to the company and the employer doesn’t want or afford to lose them. When these executive members are hired in the company as top-level executives, a special and different kind of employment agreement is created to cope with their demands and requirements.
Usually, in this executive employment agreement, the most important thing is the job responsibilities that the employee will handle and the pay scale that he will get in return. These agreements also include additional benefits for the executive members along with their career path, including periodic promotions and salary increases. When these things are predefined in the agreement, there are fewer chances of having any dispute from the employer or employee as they already know what they are supposed to do and what others expect from them.
Key Elements to add to the Executive Employment Agreement:
- Name of the employer/company
- Name of the employee who is joining the company
- Position on which the employee is appointed
- Terms and conditions of the agreement
- Mutually agreed clauses of the agreement
- Pay scale of the employee
- Percentage increase in the salary per annum
- Additional benefits i.e. insurance, medical, dental, traveling
- Promotion process for the employee
- Validation of the employment (if applicable)
- Termination of the agreement
- Results of violation of the agreement
- Additional details (if any)
- Signature of employer and employee
Free Employment Agreement Templates (for an Executive Position)
Download the Free Employment Agreement Template (for an Executive Position) that can easily help you to prepare your Employment Agreement effectively.