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What is "At-Will Employment"? |
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| Q | I have a small company and am planning on hiring some employees. How can I make sure that I am able to terminate them if they do not work out or I no longer need them? |
| A |
Make clear to your employees that their relationship is an "at will employment" relationship. That means that either the employer or the employee can terminate the relationship at any time for any reason, or for no reason. (However, various laws may restrict your ability to fire someone for wrongful reasons, such as reasons related to race or sex.) When you first hire an employee, make sure that he or she signs an offer letter indicating that he understands and agrees to the fact that he is an at will employee. That lessens the risk of a problem later on. If you have an employee handbook, make sure the employee handbook spells out the at will nature of the relationship. Visit
the Agreements & Forms Center |
| Form: | Offer Letter to Prospective Employee (Form 6.3) |
| Explanation: | This is a sample letter offering a job to an employee, to be signed and returned by the employee. It is intended to establish the "at-will" nature of the employee’s employment with the company. |
[PAGE BREAK]
[Date]
____________________
____________________
____________________
Re: Terms of Employment
Dear :
We are pleased to inform you that after careful consideration, (the "Company") has decided to make you this offer of employment. This letter sets forth the terms of the offer which, if you accept, will govern your employment.
Position; Duties. Your position will be , reporting to the of the Company. Your duties and responsibilities, will be as designated by the Company, with an initial focus on (i) and (ii) .
Full Time Employment. The employment term will begin on , .
Compensation. Your compensation will be $ a year, paid twice monthly consistent with the Company’s payroll practices. Your package will include participation in the health and other benefit plans of the Company pursuant to their terms as may be amended by the Company from time to time[; until the Company’s health plan is adopted, your reasonable COBRA payments will be reimbursed (subject to a maximum of $200 per month)]. You will be entitled to week’s paid vacation (equivalent of business days) for each year of full employment.
Stock Options. You will be granted options to acquire shares of the Company’s Common Stock, vesting over a [four (4)] year term with one (1) year cliff vesting for 1/4th of the options. The options will be granted at a strike price of $ per share. The terms and conditions of your stock options are contained in a Stock Option Agreement of even date herewith and must be executed by you and returned to us immediately to be effective.
Employment at Will. Our employment relationship is terminable at will, which means that either you or the Company may terminate your employment at any time, and for any reason or for no reason.
Confidentiality and Invention Assignment Agreement. You will be subject to the Company’s Confidentiality and Invention Assignment Agreement, which is enclosed with this letter and must be signed and returned by you before any employment relationship will be effective.
Certain Acts. During employment with the Company, you will not do anything to compete with the Company’s present or contemplated business, nor will you plan or organize any competitive business activity. You will not enter into any agreement, which conflicts with your duties or obligations to the Company. You will not during your employment or within one (1) year after it ends, without the Company's express written consent, directly or indirectly solicit or encourage any employee, agent, independent contractor, supplier, customer, consultant or any other person or company to terminate or alter a relationship with the Company.
No Inconsistent Obligations. You represent that you are aware of no obligations legal or otherwise, inconsistent with the terms of this Agreement or with your undertaking employment with the Company. You will not disclose to the Company, or use, or induce the Company to use, any proprietary information or trade secrets of others. You represent and warrant that you have returned all proprietary and confidential information belonging to all prior employers.
Miscellaneous. Upon your acceptance, this letter will contain
This is only a
partial view of this document.
The remainder is included in the purchasable version of this form