This Agreement of Fixed Salary is made between an employer and an employee, and
sets forth the terms and conditions of the employment specifically providing for a fixed
yearly salary payable to the employee. This document contains the material terms of
the employment agreement including the duties and responsibilities of the employee,
compensation to be paid on a fixed yearly salary and numerous other standard clauses
found in employment agreements. It can be fully customized to ensure the specific
terms of the parties' agreement are addressed.
AGREEMENT OF FIXED SALARY
This agreement (hereinafter the “Agreement”) is made the ______ day of _______, 20__,
between ________________ (hereinafter called “Employer”) with its principal place of business
at ___________ and _______________ (hereinafter called “Employee”).
WHEREAS, Employee and Employer desire and agree to enter into an employment
relationship by means of this Agreement.
NOW, THEREFORE in consideration of the promises and mutual covenants herein
contained, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, it is mutually covenanted and agreed by and between the parties as
follows:
[Comment and Instruction: Use of abbreviated names of companies and employees rather
than generic names is recommended. For example, identifying “Software Development
Company” and “Elizabeth Jones” rather than “Employer” and “Employee” makes for
easier reading. It also avoids a potential problem of inadvertently inserting the wrong
designation in the wrong place.]
1. RECITALS
WHEREAS:
A. The Employee has been employed with the Employer in the capacity of
_______________ since the date of ____________;
B. This Agreement formalizes the employment arrangement as between the
Employee and the Employer and defines, with greater certainty, the terms of the
employment relationship;
C. It is intended that this Agreement replace in total any previous agreements as
between the Employer and the Employee concerning the employment of the Employee
with the Employer.
2. RECITALS TRUE
The recitals contained in Article 1 (“Recitals”) are true in substance and fact and form an
integral part of this Agreement as if those recitals were hereinafter recited again, in full.
3. STATUS
It is hereby understood and agreed between the parties that there exists an employer-
employee relationship between the Employer and Employee and the provisions of this
Agreement shall be construed within the context of such relationship.
4. TERMS OF EMPLOYMENT
The Employer shall employ the Employee as _________________ for a term of
________________ (____) months from the date hereof. The term of this employment will be
automatically renewed for successive _________ (___) year terms (subject to the termination
provisions hereof) and upon such other terms and conditions as may be agreed between the
Employer and Employee.
5. DUTIES AND RESPONSIBILITIES
A. The Employee shall perform those duties typically performed by a
_____________________ and such other duties as may be assigned to the Employee
from time to time by the Employer. All duties to be performed by the Employee shall be
performed in compliance with such policy, mission statements, outlines and directives as
may be delivered, in writing, to the Employee from time to time by the Employer.
B. The Employee shall, during the term of this Agreement and any renewals hereof,
if any, devote his/her full working time and attention to the diligent and faithful
performance of his/her duties hereunder and shall not engage in any other employment
while employed by the Employer. The Employee will at all times use his best efforts to
promote the interests of the Employer. The Employee shall report to the Employer.
C. The work and services to be performed by the Employee hereunder are to be done
and performed at or from the head office of the Employer or at various other sites or in
such other places as the Employer may from time to time require.
D. The Employee shall devote substantially all of his or her normal business time to
the performance of the duties called for in this Agreement.
6. COMPENSATION
In consideration of the Employee performing his/her duties in accordance with this
Agreement:
A. The Employee will be remunerated on the basis of a fixed yearly salary of
_______________________ ($___________) Dollars ( the “Base Salary”);
[Comment and Instruction: Additional language explaining base salary can also be
added: “Payable in equal semi-monthly installments on the fifteenth (15) and final
days of each month during the period of employment, prorated for any partial
employment period”.]
B. In addition to the Base Salary, the Employee shall be entitled to a yearly bonus
equal to _____________ (____%) percent of the net after-tax profits earned by the
Employer for the preceding twelve (12) month term. The first twelve (12) month term
shall commence the date of execution of this Agreement. The bonus shall be due and
payable to the Employee within thirty (30) days of the end of the preceding twelve (12)
month term.
[Comment: The following is alternative language for bonu