Unit 15 Preview and Introduction


This unit will cover the following topics:

  • Recitals
  • Term and Termination
  • Compensation
  • Perks
  • Scope of Employment
  • Non-compete and Non-solicitation
  • Liability Protection
  • Confidentiality Provisions
  • Golden Parachutes



Most states are at-will employment states. This means that a company can terminate an employee for no reason. An employment contract can be the exception to at-will employment. Employment contracts provide protection for an employee from at-will dismissal but it depends on how the at-will aspect is framed. However, such contracts also cover many other aspects of the employment relationship.

This Unit will cover numerous (but not all) provisions that you’ll find in employment contracts.  Most, if not all, of the provisions within an employment contract are negotiable. For drafting tips together with a checklist, see Peter M. Panken and Jeffery D. Williams, Drafting Executive Employment Agreements That Work for Employers: An Annotated Model Agreement, ALI-ABA Business Law Course Materials Journal.


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To the extent possible under law, Samantha Prince has waived all copyright and related or neighboring rights to Entrepreneurship Law: Company Creation, except where otherwise noted.