The relationship of an employer and an employee exists when, pursuant to an agreement of the parties, one person, the employee, agrees to work under the direction and control of another, the employer, for compensation. The agreement of the parties is a contract, and it is therefore subject to all the principles applicable to contracts. The contract may be implied. Most employment contracts are implied oral agreements. In this type of arrangement, the employer is accepting the services of the employee that a reasonable person would recognize as being such that compensation would be given to the employee.
The contract will often be an express written contract. In other words, the duties of the employee will be specifically set forth in writing in the contract. The attached form is a sample agreement between a nonprofit corporation and an executive director.
Title: Understanding Arkansas Employment Agreement with Executive Director of a Nonprofit Corporation, Including a Confidentiality Clause Introduction: An Arkansas Employment Agreement with an Executive Director of a Nonprofit Corporation is a legally binding document that outlines the terms and conditions of employment for executive-level positions within a nonprofit organization. This comprehensive agreement focuses on the roles and responsibilities of the executive director, compensation packages, employee benefits, termination procedures, and also incorporates a confidentiality clause to safeguard sensitive information. Types of Arkansas Employment Agreement with Executive Directors: 1. Standard Arkansas Employment Agreement for Executive Directors: This agreement sets out the general terms and conditions applicable to executive directors of nonprofit organizations in Arkansas. It covers areas like compensation, employment duration, job responsibilities, performance expectations, and early termination provisions. 2. Arkansas Employment Agreement for Executive Directors in Specific Sectors: Certain nonprofit sectors, such as healthcare, education, or social services, may have unique requirements or regulations. Agreements tailored to such sectors may include additional clauses specific to compliance, certifications, or qualifications mandated by industry regulators or funding bodies. 3. Arkansas Employment Agreement for Temporary Executive Directors: In some cases, nonprofit organizations may require an executive director on a temporary or interim basis. These agreements typically outline the duration, scope of responsibilities, and the overall purpose of the temporary appointment. Components of an Arkansas Employment Agreement with Executive Director of a Nonprofit Corporation: 1. Identification of the Parties: This section clearly identifies the nonprofit corporation and the executive director, including their legal names, addresses, and contact information. 2. Job Description and Scope of Responsibilities: The agreement specifies the executive director's role and expected responsibilities, including strategic planning, fundraising, financial management, staff supervision, and board liaison. 3. Compensation and Benefits: Details regarding the executive director's salary, bonuses, incentives, retirement plans, health insurance, vacation time, and other benefits are outlined in this section. 4. Terms of Employment: The agreement sets the duration of employment, including a start date and whether the position is full-time or part-time. It may also include provisions for contract renewal or extension. 5. Termination Procedures: Termination clauses cover scenarios such as resignation, retirement, death, or termination for cause. It outlines the notice period required and the severance package, if any. 6. Non-Disclosure and Confidentiality Clause: The inclusion of a confidentiality clause is paramount to protect the nonprofit organization's proprietary information, trade secrets, donor lists, and intellectual property. It prohibits the executive director from disclosing or misusing confidential information during and after employment. 7. Intellectual Property: This section defines the ownership and usage rights of any intellectual property developed by the executive director during their employment. It clarifies the organization's rights and the director's responsibilities relating to copyrights, patents, and trademarks. 8. Governing Law and Jurisdiction: To ensure legal compliance, the agreement references Arkansas state laws as the governing law and specifies the appropriate jurisdiction to resolve any potential disputes. Conclusion: An Arkansas Employment Agreement with an Executive Director of a Nonprofit Corporation, supplemented by a comprehensive confidentiality clause, provides a clear and transparent framework for both the executive director and the nonprofit organization. By addressing the parties' rights, responsibilities, compensation, and confidentiality concerns, this legal document fosters a harmonious employer-employee relationship and protects the nonprofit's invaluable assets.
