Free Template

Employment Contract

Create a comprehensive employment agreement with compensation, benefits, termination, and non-compete clauses — tailored to your jurisdiction and ready to sign.

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What is this contract?

An employment contract is a legally binding agreement between an employer and an employee that defines the terms of the working relationship — compensation, benefits, job responsibilities, termination conditions, and restrictive covenants like non-compete and non-solicitation clauses.

Without a written employment agreement, both parties are exposed to uncertainty about expectations, obligations, and rights. Disputes over compensation, intellectual property ownership, and termination become significantly harder to resolve without documented terms.

Contract.diy generates employment contracts that adapt to your jurisdiction and employment type — whether full-time, part-time, or fixed-term. The agreement includes locally compliant clauses for probation periods, notice requirements, and restrictive covenants.

Key clauses included

Every generated agreement includes these professionally drafted clauses.

Position and Duties

Defines the job title, reporting structure, primary responsibilities, and performance expectations for the role.

Compensation and Benefits

Covers base salary, bonus structure, equity or stock options, health insurance, retirement contributions, and paid time off.

Work Schedule and Location

Specifies working hours, remote work policies, office location, and overtime eligibility under applicable labor law.

Probationary Period

Sets the initial evaluation period, performance criteria, and conditions for confirmation or early termination.

Intellectual Property Assignment

Assigns ownership of inventions, code, designs, and other work product created during employment to the company.

Confidentiality

Requires the employee to protect trade secrets, proprietary information, and business data during and after employment.

Non-Compete and Non-Solicitation

Restricts the employee from competing with or soliciting clients and staff from the company for a defined period post-employment.

Termination and Severance

Defines grounds for termination (with and without cause), required notice periods, severance terms, and post-termination obligations.

When should you use this template?

When hiring a full-time employee for any role — executive, technical, or operational
For part-time or fixed-term employment arrangements that require formal documentation
When the role involves access to trade secrets, proprietary systems, or confidential data
Before hiring employees who will create intellectual property (engineers, designers, writers)
When offering equity, stock options, or performance-based compensation that needs clear terms
For international hires where local employment law requires specific contract provisions

Jurisdiction-aware generation

Employment law varies dramatically by jurisdiction. At-will employment (common in the US) does not apply in most other countries. Notice periods, severance requirements, non-compete enforceability, probation limits, and employee protections differ across states and nations. Our generator applies jurisdiction-specific defaults — including mandatory clauses required by local labor law.

View all supported jurisdictions

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Frequently asked questions

What is an employment contract?

An employment contract is a legally binding agreement between an employer and employee that defines the terms of employment — including job duties, compensation, benefits, termination conditions, and any restrictive covenants like non-compete agreements.

Do I need a written employment contract?

While not legally required in all jurisdictions (particularly at-will states in the US), a written contract protects both parties. It documents agreed terms, reduces disputes, and is required by law in many countries outside the US.

Are non-compete clauses enforceable?

Enforceability varies significantly by jurisdiction. Some states (like California) largely prohibit non-competes, while others enforce them if reasonable in scope, duration, and geography. The generator applies jurisdiction-specific rules to ensure your clause is as enforceable as local law allows.

What is a probationary period?

A probationary period is an initial employment phase (typically 30 to 90 days) during which either party can end the relationship with minimal notice. It allows the employer to evaluate performance and fit before confirming permanent employment.

Can I use this for international employees?

Yes. Select the employee's jurisdiction during generation and the contract will include locally required provisions — notice periods, statutory benefits, termination protections, and mandatory disclosures required by local labor law.

Related resources

Contract type guide

Learn about jurisdiction requirements, mandatory clauses, and compliance considerations.

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Explore industry-specific templates for every contract type — from NDAs to partnerships.

Related glossary terms

employment agreement non compete intellectual property at will employment

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contract.diy is a document preparation service, not a law firm. Generated contracts are templates for informational purposes and do not constitute legal advice. We recommend having any contract reviewed by a qualified attorney before signing.