An Employment Agreement establishes the terms of employment between an employer and an individual employee. It sets out the representations made by the parties, their liabilities under the contract, and the duration of the employment. Both parties undertake to comply with relevant laws and regulations, as well as company policies and procedures. Some of these obligations, such as confidentiality and non-compete provisions may survive the termination of the contract.
The core features of a contract of employment for a new employee include:
The employer's name and address
The employee's job title and brief job description
An employee, being taken into a new business, will also have to comply with a company's various policies and rules. These will include the obligation to comply with:
All reasonable and lawful directions given by the Company
All relevant anti-bribery laws and notify CEO of any potential breach
Any rules and procedures in the Staff Handbook including the data protection policy
Any IT policy in place when using Company computer, software, and data
The IP provisions of the Agreement for limited compensation
Company rules and requests during period of Garden Leave
An employee might also be obligated to:
Ensue non-disclosure of the Company’s confidential information
To delete the Company’s confidential information upon request
To hold on trust for the Company all IP rights not automatically vested in Company
To assist the Company enforce and defend its IP rights
To inform the Company of Employment IPs upon their creation
To offer the Company right of refusal to acquire Employment IPs
To waive all moral rights to any copyright forming part of Employment IPs
During the course of employment, an employee will often be under a special duty to further the interests of the Company. In doing so, the employee might also be obligated to partake in certain activities, such as travel, and refrain from certain activities, such as engaging in other businesses.
The employee also has certain obligations to inform the Company if they are no longer entitled to work in the UK; notify the Company of their absence from work, and; disclose any family matters which may reasonably interfere with their employment.
Upon termination of an employment contract, an employee may still carry obligations under that agreement. This will include:
Returning all property of the Company
To evidence deletion of all copies and records of the Company’s confidential information
To enter into reasonable post-termination restrictive covenants for a specified term
To inform third parties of terms of post-termination restrictions
An obligation not to represent any association with the Company
Similarly, the employer will also be affected by rights and obligations under the employment contract and statutory controls.
Under the employment contract, the company will typically have a right to:
Terminate the contract during probationary period with notice or payment in lieu of notice
Reserve their ownership of all documents, hardware and software provided for the Employee’s use as well as all IP rights, employment inventions, and materials therein
Use the Employee’s name to advance Company’s IP interests
Terminate the contract with no notice nor payment for breach or incapacity
Process the Employee’s personal data for agreed purposes
Transfer the Employee to another employer
Monitor the Employee’s use of Company’s electronic communication systems
Deduct from Employee’s salary any sums owed to Company
Suspend Employee while investigating disciplinary matter
Under the employment contract, the company will also be under obligations to the employee, many of which are required by law. The company has a duty to set up a pension scheme, observe Health and Safety Regulations, abide by the Equality Act 2010, pay the employee the agreed amount and inform the Employee of the outcome of any probationary periods.
Benefits of creating your Employment Contract template with Legislate
Legislate offers basic employment contract templates which are easy-to-understand yet contain all the key elements to protect your business. Legislate offers an end-to-end contracting experience which means that employment offer letters, employment contracts and staff handbooks can be created from the Legislate platform and offers a unified contracting experience for the employer and employees.
Legislate’s patented knowledge graph approach (United States patent 11,087,219) understands and reads your contracts in a new and novel way. It allows obligations and restrictions under a contract to be automatically retrieved and visible to ensure that both parties know exactly what their contracts mean. Furthermore, our approach makes managing your staff and employees painless, such as through the possibility of notifying employers when pay rises for each employee might be expected.
Legislate’s employment contracts:
Are lawyer reviewed and written in plain English
Show clearly the obligations and rights of the Employer and Employee
Can be easily tailored to part time or full time Employees