Delaware employment contract template

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How Delaware employment contract Differ from Other States

  1. Delaware enforces employment-at-will but requires clear written terms to override this presumption, unlike some states with broader exceptions.

  2. Non-compete agreements in Delaware are interpreted narrowly and must protect a legitimate business interest, differing from stricter or laxer states.

  3. Delaware law requires payment of earned wages within a specific timeframe upon termination, sometimes more strictly than other states.

Frequently Asked Questions (FAQ)

  • Q: Is a written employment contract required in Delaware?

    A: No, employment contracts can be oral or written, but written contracts provide clarity and legal protection for both parties.

  • Q: Can a Delaware employment contract include a non-compete clause?

    A: Yes, but the clause must be reasonable in duration, geography, and scope and protect a legitimate business interest.

  • Q: What must a Delaware employment contract include?

    A: It should include job duties, compensation, term, termination conditions, confidentiality, dispute resolution, and any specific state legal requirements.

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Delaware Employment Contract

This Employment Contract (the "Agreement") is made and entered into as of [Date], by and between [Employer Company Legal Name], a corporation organized under the laws of Delaware, with its principal place of business at [Employer Address] (the "Employer"), and [Employee Full Name], residing at [Employee Address] (the "Employee").

1. Employment

1.1. Position: The Employer hires the Employee as [Job Title] in the [Department/Work Group]. The Employee will report to [Supervisor Name/Title].

1.2. Duties:

Option A: The Employee's duties will include, but are not limited to: [Detailed Description of Job Duties].

Option B: Refer to attached Job Description (Exhibit A).

1.3. Location:

Option A: The primary work location will be at [Work Location Address].

Option B: Remote. The employee will work remotely.

Option C: Hybrid. The employee will work both remotely and at the principal work location.

1.4. Hours:

Option A: The Employee's standard work hours are [Number] hours per week, from [Start Time] to [End Time], [Days of the Week].

Option B: Work hours will vary depending on business needs.

1.5. Type of Employment:

Option A: Full-Time

Option B: Part-Time

Option C: Temporary

Option D: Internship

1.6. FLSA Status:

Option A: Exempt

Option B: Non-Exempt

1.7. Training/Probationary Period:

Option A: The Employee will undergo a probationary period of [Number] days/months.

Option B: No probationary period.

2. Term of Employment

2.1. Fixed-Term Employment (Select ONE):

Option A: The term of employment shall commence on [Start Date] and end on [End Date]. Employee performance will be evaluated on [Date]. Renewal will be based on [Renewal Criteria].

Option B: *Remove Fixed-Term Language Entirely*

2.2. At-Will Employment (Select ONE):

Option A: Employment is at-will. This means that either the Employee or the Employer may terminate the employment relationship at any time, with or without cause or notice, subject to applicable Delaware and federal laws. This at-will relationship does not alter the employee's right to payment for wages earned up to the date of termination. The Employer complies with all Delaware and federal anti-discrimination and anti-retaliation laws.

Option B: *Remove At-Will Language Entirely*

3. Compensation and Benefits

3.1. Base Salary/Wage:

Option A: The Employee's base salary will be [Dollar Amount] per year, payable [Pay Frequency, e.g., bi-weekly].

Option B: The Employee's hourly wage will be [Dollar Amount] per hour.

3.2. Commission/Bonus:

Option A: The Employee is eligible for a commission/bonus based on [Commission/Bonus Structure Details, including formulas or targets].

Option B: The Employee is not eligible for a commission or bonus.

3.3. Overtime:

Option A: For non-exempt employees, overtime will be paid at a rate of one and one-half times the regular hourly rate for all hours worked over 40 in a workweek, in compliance with the Fair Labor Standards Act (FLSA) and Delaware law.

Option B: Overtime compensation is not applicable to exempt employees.

3.4. Deductions: All compensation is subject to standard deductions and withholdings (e.g., taxes, insurance).

3.5. Salary Review: Salary will be reviewed [Frequency, e.g., annually] on [Date/Month].

3.6. Employee Benefits (Select applicable benefits):

  • Medical Insurance
  • Dental Insurance
  • Vision Insurance
  • Life Insurance
  • Disability Insurance
  • 401(k) or other retirement plan
  • Paid Time Off (PTO): [Number] days per year.
  • Holidays: [List of Holidays]
  • Sick Leave: [Number] days per year.
  • Parental Leave
  • Employee Assistance Program (EAP)
  • Other Benefits: [Specify other benefits]

4. Company Policies

4.1. Employee Handbook: The Employee is expected to comply with all company policies as outlined in the Employee Handbook.

Option A: The Employee acknowledges receipt of the Employee Handbook.

Option B: The Employee Handbook will be provided separately.

4.2. Specific Policies (Select applicable policies):

  • Code of Conduct
  • Anti-Harassment and Anti-Discrimination Policy (prohibiting discrimination based on race, color, religion, sex, pregnancy, sexual orientation, gender identity, age, marital status, national origin, disability, genetic information, military or veteran status, and other categories protected by Delaware and federal law).
  • Employee Performance Standards
  • Appearance/Dress Code
  • Electronic Communication and Internet Use Policy
  • Remote Work Policy

5. Intellectual Property

5.1. Ownership of Inventions:

Option A: All inventions, works created, or improvements made by the Employee during employment shall be the sole property of the Employer. The Employee agrees to assign all rights to the Employer and will assist in securing patents or copyrights.

Option B: *Remove Entire Intellectual Property Provision*

5.2. Employee Disclosure: The Employee will promptly disclose all inventions and works created to the Employer.

5.3. Pre-Existing IP:

Option A: The Employee has disclosed any pre-existing intellectual property in Exhibit B.

Option B: Employee confirms that he or she has no preexisting intellectual property.

6. Confidentiality and Non-Disclosure

6.1. Definition of Confidential Information: Confidential Information includes, but is not limited to, trade secrets, customer lists, financial information, and business plans.

6.2. Employee Obligations: The Employee will hold all Confidential Information in strict confidence during and after employment.

6.3. Exceptions: The obligation of confidentiality does not apply to information that is publicly available through no fault of the Employee.

6.4. Duration: The confidentiality obligations shall continue [Number] years after termination of employment.

7. Non-Competition/Non-Solicitation/Non-Disparagement (Optional - Choose any or none)

7.1. Non-Competition:

Option A: During employment and for [Number] months/years following termination, the Employee will not engage in any business that competes with the Employer within a [Geographic Scope, e.g., 50-mile radius]. This restriction applies to [Specifically Restricted Activities].

Consideration: In exchange for this non-competition agreement, [describe consideration].

Severability: If any portion of this non-competition agreement is found to be unenforceable, the remaining portions shall remain in full force and effect and shall be reformed to be as broad as possible while still remaining enforceable.

Option B: *Remove Non-Competition Clause Entirely*

7.2. Non-Solicitation:

Option A: During employment and for [Number] months/years following termination, the Employee will not solicit any employees or customers of the Employer.

Option B: *Remove Non-Solicitation Clause Entirely*

7.3. Non-Disparagement:

Option A: The Employee agrees not to disparage the Employer, its products, or its employees, either during or after employment.

Option B: *Remove Non-Disparagement Clause Entirely*

8. Separation of Employment

8.1. Voluntary Resignation: The Employee must provide [Number] days/weeks written notice of resignation.

8.2. Employer Termination: The Employer may terminate employment for cause or without cause.

"For cause" includes [Definition of "For Cause" Termination].

8.3. Severance Pay:

Option A: Upon termination without cause, the Employee will receive severance pay of [Amount or Formula], contingent upon signing a waiver of claims.

Option B: No severance pay will be provided.

8.4. Final Paycheck: The Employee's final paycheck will be provided in accordance with Delaware law.

8.5. Return of Property: The Employee will return all company property upon termination.

9. Dispute Resolution

9.1. Choice of Method:

Option A: Litigation: Any dispute arising out of or relating to this Agreement shall be resolved in the state or federal courts located in Delaware. Each party consents to the exclusive jurisdiction and venue of such courts.

Option B: Binding Arbitration: Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association and Delaware law. The arbitration shall take place in [City, State].

Option C: Mediation: The parties agree to first attempt to resolve any dispute through mediation before resorting to litigation or arbitration.

9.2 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of law principles.

10. Workers' Compensation

The Employer maintains workers' compensation insurance as required by Delaware law. The Employee agrees to report any work-related injuries to the Employer immediately.

11. Health and Safety

The Employer is committed to providing a safe workplace and complying with the Delaware Workplace Safety Act and all applicable OSHA regulations.

12. Equal Employment Opportunity

The Employer is an equal opportunity employer and does not discriminate based on race, color, religion, sex, pregnancy, sexual orientation, gender identity, age, marital status, national origin, disability, genetic information, military or veteran status, or any other protected characteristic under applicable law.

13. Acknowledgment of Policies

The Employee acknowledges that they have read and understood all company policies.

14. Other Requirements

14.1. Background Check:

Option A: Employment is contingent upon a satisfactory background check.

Option B: No Background Check Required.

14.2. Drug Testing:

Option A: The Employee may be subject to drug testing.

Option B: No Drug Testing Required.

14.3. Eligibility to Work: The Employee must provide documentation demonstrating eligibility to work in the United States as required by law (I-9 verification).

15. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof.

16. Amendment

This Agreement may only be amended in writing, signed by both parties.

17. Assignment

This Agreement may not be assigned by the Employee without the prior written consent of the Employer.

18. Notice

All notices required or permitted under this Agreement shall be in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail, postage prepaid, certified or registered, return receipt requested, addressed to the party to be notified at the address indicated above.

19. Severability

If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

20. Waiver

No waiver of any breach of this Agreement shall be deemed a waiver of any other breach.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________

[Employer Representative Name], [Employer Representative Title]

Employer

____________________________

[Employee Full Name]

Employee

Date: [Date]

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