Free Employment Agreement Template — AI | ContractMaker.ai

What's inside

Sections, vetted by counsel

01

Position and Duties

Defines the employee's job title, reporting structure, and specific responsibilities — setting clear expectations from day one.

02

Compensation

Sets the base salary, payment schedule, bonus eligibility, and criteria for performance reviews.

03

Benefits Package

Details health insurance, PTO, holidays, retirement contributions, and any other benefits the employee is entitled to.

04

Confidentiality

Protects the employer's trade secrets, client lists, and proprietary information during and after employment.

05

Intellectual Property

Assigns ownership of all work product created during employment to the employer, including inventions and creative works.

06

Non-Solicitation and Non-Compete

Restricts the employee from poaching colleagues or clients and limits competitive activity after departure.

07

Termination and Dispute Resolution

Outlines notice requirements for termination with and without cause and sets the process for resolving disputes.

How it works

From prompt to contract in 3 steps

1

Describe the Role

Enter the job title, compensation, benefits, and any confidentiality or non-compete requirements for this specific position.

2

AI Customizes the Agreement

ContractMaker adapts the employment agreement language to your specific role and company, highlighting changes with Track Changes.

3

Review and Export

Review the draft, make final adjustments, and export as a professional Word document or PDF ready for signature.

Use This Template

About

An employment agreement is a written contract between an employer and an employee that establishes the terms and conditions of the employment relationship. It covers job title and duties, compensation and benefits, confidentiality obligations, intellectual property ownership, non-compete and non-solicitation restrictions, and termination procedures.

ContractMaker's employment agreement template is designed for small business owners, startups, and HR professionals who need to onboard employees quickly and professionally. The template covers all the essential protections: clear job expectations, compensation structure, IP assignment, confidentiality requirements, and termination procedures with proper notice provisions. AI customizes the agreement to match your specific role and company policy, generates a professional Word document with Track Changes for easy review, and lets you get a signed agreement in place before the employee's first day.

FAQ

Frequently asked questions

Is an employment agreement legally required?

In most US states, employment agreements are not legally required — employment is typically at-will. However, a written agreement is strongly recommended because it protects both parties by documenting compensation, duties, and termination terms.

What is at-will employment?

At-will employment means either party can end the employment relationship at any time, for any reason not prohibited by law, with or without notice. Most US states default to at-will employment unless the agreement specifies otherwise.

Are non-compete clauses enforceable?

Enforceability of non-compete clauses varies significantly by state. California, for example, generally prohibits them. Other states require them to be limited in scope, duration, and geography. Consult an attorney to ensure compliance with your state's laws.

Can I use this template for part-time employees?

Yes. This template can be adapted for part-time, full-time, or fixed-term employment. Simply adjust the hours, compensation, and benefit provisions to reflect the part-time arrangement.

Should employees sign before their start date?

Yes. Both parties should sign the employment agreement before the employee begins work. This ensures the terms are agreed upon and avoids disputes about what was promised during the hiring process.