Skip to primary navigation Skip to main content Skip to primary sidebar Document Genius Business Employment Contract Make hiring easier and protect your business with our customizable employment contract template. Clearly outline roles, pay, and workplace expectations so you can hire with confidence. Download as PDF and Word E-sign included Written by Josh Sainsbury Written by Josh Sainsbury Josh Sainsbury is a business content editor specializing in legal writing, with a degree in magazine journalism from Southampton Solent University and extensive experience creating clear, accessible resources for legal and business audiences. Full Bio | Attorney-Reviewed by Nicole Rhim, J.D. Attorney-Reviewed by Nicole Rhim, J.D. Nicole Rhim is an attorney and legal writer with degrees from the University of Iowa and Tulane Law School and experience at an AM-100 firm, in government, and at a Fortune 500 company focusing on healthcare and privacy. Full Bio Answer a Few Questions Share the essential details—job role, salary, benefits, and start date—to get started. Customize Your Contract Our smart tool crafts a tailored, professional contract based on your input. Download and Finalize Instantly save your contract and share it with your employees for review and signatures. Table of Contents What Is an Employment Contract? What to Include in an Employment Contract How to Write an Employment Contract Employment Contracts vs. Independent Contractor Agreements Frequently Asked Questions Employment Contracts By State District of Columbia What Is an Employment Contract? An employment contract is a written agreement between an employer and an employee. It sets out the main terms of employment, including the employee’s role, pay, and how the relationship can end. This contract helps prevent misunderstandings, keeps you compliant with labor laws, and clearly states expectations from day one. Who Needs an Employment Contract? Use an employment contract if you’re: A small business hiring its first employee An established company growing your team Taking on part-time, full-time, or temporary workers Looking to set clear policies for benefits, conduct, and termination It’s also helpful for employees, so they know exactly what’s expected and what they’re entitled to. Need an employment contract in Spanish? Use our contrato de trabajo . What to Include in an Employment Contract Your employment contract should clearly outline: Employee details: Name, contact info, and sometimes tax ID. Position & duties: Job title, work location, and daily tasks. Compensation: How much and how often they’ll be paid, plus overtime, bonuses, or commissions. Hours & schedule: Expected work hours and any flexibility. Benefits: Health insurance, PTO, parental leave, or other perks. Probation period: If applicable, set how long and how performance will be reviewed. Confidentiality & IP: Rules on protecting business data or who owns work created. Termination: Notice requirements and reasons employment may end.

Governing law: The state laws that will apply if disputes arise. Some states restrict non-compete clauses or require specific notice periods. Always check local laws before adding these terms. How to Write an Employment Contract Writing an employment contract doesn’t have to be complicated. With Document Genius, you can create a clear, customized agreement that fits your business and keeps everyone on the same page. Here’s how to draft one step by step. 1. Start with the Basics List the employer’s and employee’s names, the job title, and the start date. If it’s a short-term job, include when it’s expected to end. 2. Explain the Role Describe what the employee will do, who they’ll report to, and where they’ll work. Be specific about daily duties so everyone knows what’s expected. 3. Set Pay and Hours Write down how much and how often the employee will be paid. Include if it’s hourly or salaried, how overtime works, and any bonuses or commissions. 4. Outline Benefits and Time Off Detail health insurance, PTO, sick leave, and any other benefits. If there are rules around unpaid leave, add those here too. 5. Add Confidentiality or Non-Compete Clauses If your employee will handle sensitive information or could later work for a competitor, include clauses to protect your business. 6. Cover Termination Rules Explain how either side can end the job, how much notice is needed, and if severance pay is part of the deal. 7. Add Governing Law and Dispute Terms Note which state laws apply and how disputes will be settled, whether by arbitration, mediation, or another method. Employment Contracts vs. Independent Contractor Agreements It’s important to know the difference so you pick the right document and stay compliant. An employment contract is used when you hire someone as an employee. This means: You control their schedule and daily work. You provide tools and equipment. You handle payroll taxes and often offer benefits like health insurance or PTO. An independent contractor agreement is for hiring freelancers or consultants who: Set their own hours and decide how to complete the work. Use their own tools and cover their own expenses. Pay their own taxes and generally don’t get benefits. Tip: Misclassifying someone can lead to tax penalties and legal issues. If you’re unsure, check IRS guidelines or talk to a professional. Yes. Once both the employer and employee sign the contract, it becomes legally binding. That means if either party breaks the agreement, such as by failing to pay wages or violating non-compete terms, the other can take legal action. A clear, signed contract protects both sides. Usually, both the employer and employee must agree in writing to any changes. For example, if you're adjusting pay, hours, or job duties, it's safest to draft a short contract amendment that both parties sign. Some states also have laws requiring advance notice for changes that impact pay or working conditions. If either party breaches the contract, such as the employer failing to pay the agreed wages or the employee violating a confidentiality clause, the non-breaching party may seek damages or other legal remedies. Additionally, contracts often include steps for dispute resolution, such as mediation or arbitration, to address these issues. Employee Termination Letter Ensure compliance, save time, and handle terminations professionally and efficiently. Employment Verification Letter Confirm an employee’s work status, role, and employment details with a professional letter template. Job Offer Letter Use to formally confirm a job offer by outlining the role, pay, start date, benefits, and key employment terms in writing. Notice of Contract Termination Letter Use to formally end an agreement by putting the termination in writing, setting a clear effective date, and reducing the risk of disputes or unexpected obligations. One place to build, sign, and manage documents. Personal & Family Do Not Sell My Personal Information