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Employment agreement template and sample (free, Word)

A full employment contract for a new hire: role and duties, hours, salary and bonus, paid time off and benefits, probation, confidentiality, and how employment ends, either at will for US employers or with notice periods everywhere else.

No sign-up. Your answers stay in your browser. Who it is for: Small businesses and founders hiring their first employees, and HR teams that want one consistent contract without an HR system.

Updated · Word (.docx) · Free to use and adapt

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What is in the employment agreement

  • Company, employee, job title, manager and start date, with an optional fixed-term end date
  • Duties, and remote or office work
  • Weekly hours, with overtime or salaried wording
  • Annual salary, pay frequency, optional bonus and expenses
  • Paid time off and an optional list of benefits
  • Optional probation period
  • Confidentiality, protected disclosures and, for US employers, the NLRA wording and Defend Trade Secrets Act notice
  • Optional ownership of work product, with the usual carve-out for personal projects
  • Optional non-solicitation, and no non-compete
  • At-will employment or notice periods, return of property and final pay
  • Policies, entire agreement, governing law and signatures
First page of the free employment agreement template for Word

Read the full template

This is the complete wording. [Labels] are filled in from your answers, and highlighted text only appears when it applies; hover over it to see when.

EMPLOYMENT AGREEMENT

This Employment Agreement (the "Agreement") is made on [Effective date] between [Company name], [Company address] (the "Company"), and [Employee name], [Employee address] (the "Employee").

Position and start date

The Company employs the Employee as [Job title], reporting to [Manager title]. Employment starts on [Start date] and ends on [End date], unless it is ended earlier under this Agreement or both parties agree in writing to extend it and continues until it is ended under this Agreement.

Duties and place of work

The Employee's main duties are: [Duties description]. The Employee will also carry out other reasonable duties that fit their role and skills.

The Employee will work remotely, from a location agreed with the Company, and will travel to meetings when reasonably asked.The Employee will work at [Office location].

Hours

The Employee's normal working hours are [Hours per week] hours per week. The Employee will be paid for overtime as the law requires. Overtime must be approved in advance by their manager.The role may sometimes need additional hours, which are covered by the salary below.

Pay

The Company will pay the Employee a salary of [Base salary] per year, paid [Pay frequency], less the taxes and deductions the law requires. The Company will review the salary at least once a year.

The Employee may also earn a bonus on these terms: [Bonus description]. Unless those terms say otherwise, the bonus is discretionary and is only paid if the Employee is still employed on the payment date.

The Company will reimburse reasonable business expenses that the Employee incurs in doing their job, in line with the Company's expenses policy.

Benefits and time off

The Employee is entitled to [Pto days] days of paid time off each year, in addition to public holidays, taken at times agreed with their manager.

Included if: Has benefits

The Employee may also join the following benefits, subject to the rules of each plan:

Repeated for each benefit

  • [Item]

Included if: Has probation

Probation

The first [Probation months] months of employment are a probationary period, during which the Company will review the Employee's performance and give feedback. During probation, either party may end employment by giving one week's written notice, or any longer notice the law requires. The Company may extend probation once, by up to the same length, by telling the Employee in writing before it ends.

Confidential information

During and after employment, the Employee will keep the Company's confidential information secret and use it only to do their job. Confidential information includes business plans, finances, customer and supplier details, pricing, product plans, know-how and anything marked or reasonably understood to be confidential. It does not include information that is already public through no fault of the Employee, or general skills and experience the Employee gains at work.

Nothing in this Agreement prevents the Employee from reporting a possible violation of law to a government agency or regulator, taking part in an investigation, giving truthful evidence, or disclosing information where the law protects the right to do so, including information about harassment, discrimination or other unlawful conduct at work. This includes discussing wages, hours and other terms and conditions of employment, as protected by the National Labor Relations Act.

Notice under the Defend Trade Secrets Act (18 U.S.C. § 1833(b)): an individual will not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (a) in confidence to a federal, state or local government official, directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or (b) in a complaint or other document filed in a lawsuit or other proceeding, if the filing is made under seal. An individual who files a lawsuit for retaliation for reporting a suspected violation of law may disclose the trade secret to their attorney and use it in the court proceeding, if they file any document containing the trade secret under seal and do not disclose it except under a court order.

Included if: Include ip assignment

Work product and inventions

Everything the Employee creates in the course of their employment, including documents, designs, software, inventions and ideas (the "Work Product"), belongs to the Company. The Employee assigns to the Company all intellectual property rights in the Work Product and will sign any documents reasonably needed to confirm this, at the Company's expense.

This does not apply to anything the Employee develops entirely on their own time, without using the Company's equipment, supplies, facilities or confidential information, unless it relates to the Company's business or results from work the Employee did for the Company.

Included if: Include non solicit

Non-solicitation

For [Non solicit months] months after employment ends, the Employee will not ask or encourage any customer they dealt with in their last 12 months of employment to move business away from the Company, or ask any employee they worked with to leave the Company. General job advertisements are allowed. This Agreement does not contain a non-compete: the Employee is free to work for any business after they leave.

Ending employment

Employment is at will. This means that either the Employee or the Company may end it at any time, for any lawful reason or no reason, with or without notice. The Company asks the Employee to give [Notice weeks] weeks' notice of resignation where possible. Only a written agreement signed by the Employee and an authorized officer of the Company can change the at-will relationship.After any probationary period, either party may end employment by giving the other [Notice weeks] weeks' written notice, or any longer notice the law requires. The Company may pay salary instead of all or part of the notice period. The Company may end employment immediately, without notice, for gross misconduct or a serious breach of this Agreement.

On leaving, the Employee will return all Company property, including laptops, phones, keys, access cards and documents, and will not keep any copies of Company files. The Company will pay any salary and accrued, unused paid time off due up to the last day of employment, as the law requires.

Policies

The Employee will follow the Company's policies, as updated from time to time. The policies are not part of this Agreement. If a policy conflicts with this Agreement, this Agreement applies.

General

This Agreement, together with any offer letter, is the entire agreement about the Employee's employment and replaces any earlier promises about it. Any change must be in writing and signed by both parties. If any part of this Agreement cannot be enforced, the rest remains in effect. This Agreement is governed by the laws of [Governing law].

Signatures

[Company name]

By: ____________________________

Name and title: [Company signatory] Date: ______________

Employee: ____________________________ [Employee name] Date: ______________

The questions you answer

Clausery turns the template into a short questionnaire. Optional parts only appear when they apply.

QuestionTypeAsked when
Effective dateDateAlways
Company nameShort textAlways
Company addressLong textAlways
Employee nameShort textAlways
Employee addressLong textAlways
Job titleShort textAlways
Manager titleShort textAlways
Start dateDateAlways
Is fixed termYes / noAlways
End dateDateIf “Is fixed term” is yes
Duties descriptionLong textAlways
Is remoteYes / noAlways
Office locationShort textIf “Is remote” is no
Hours per weekNumberAlways
Is overtime eligibleYes / noAlways
Base salaryMoneyAlways
Pay frequencyShort textAlways
Has bonusYes / noAlways
Bonus descriptionLong textIf “Has bonus” is yes
Pto daysNumberAlways
Has benefitsYes / noAlways
Benefits
For each item: Item
Repeating groupIf “Has benefits” is yes
Has probationYes / noAlways
Probation monthsNumberIf “Has probation” is yes
Is at willYes / noAlways
Is us employerYes / noAlways
Include ip assignmentYes / noAlways
Include non solicitYes / noAlways
Non solicit monthsNumberIf “Include non solicit” is yes
Notice weeksNumberAlways
Governing lawShort textAlways
Company signatoryShort textAlways

How to use it

  1. Open it

    Click Fill it in now. The template opens in Clausery with its questionnaire ready.

  2. Answer the questions

    Work through the sections. Drafts save as you type, on your device.

  3. Download the document

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Prefer to start from your own wording? Download the Word file, edit it, keep the {tags}, and upload it to Clausery. See the template syntax.

Questions

Is an offer letter the same as an employment contract?

No. An offer letter sets out the headline terms of a job offer. An employment contract sets out the full terms, such as confidentiality, who owns the work and how employment ends. Many employers send both: the offer letter first, then this agreement to sign before the start date.

Do I need a written employment contract?

It depends where you are. In the UK, employees must get a written statement of their main terms by their first day. Most US states have no such rule and most US employment is at will, but a written agreement still prevents arguments about pay, time off and who owns the work.

What does at-will employment mean?

In most US states, either side can end employment at any time for any lawful reason unless a contract says otherwise. Tick the at-will box for a US hire. Leave it off to use notice periods instead, which is the norm in the UK, Canada, Australia and most other countries.

Does it include a non-compete?

No. Non-competes are banned or restricted in several states and countries, so the template offers an optional non-solicitation clause instead: it stops a former employee poaching customers and staff but lets them work elsewhere.

Is it really free?

Yes. The download is free, and filling it in with the Clausery app is free too, with unlimited documents. Library templates never count towards a plan limit, and no account or card is needed.

Is my information uploaded anywhere?

No. Clausery runs entirely in your browser. Your answers and the finished document are created and stored on your own device.

Is this legal advice?

No. These are general samples. Laws differ between countries and states, so have the wording reviewed for your situation before you rely on it.

Clauses in this template, explained

Guide: How to write a job offer letter (with a free template)

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This template is a general sample and not legal advice. Laws vary by jurisdiction; have it reviewed before use.