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: Ohio Employment Agreement with Executive Director of a Nonprofit Corporation — Exploring Types and Key Clauses Introduction: An Ohio Employment Agreement with an Executive Director of a Nonprofit Corporation is a legally binding document that outlines the terms and conditions of the employment relationship between a nonprofit organization and its executive director. This agreement aims to protect the interests of both parties by clearly defining rights, responsibilities, and obligations. A Confidentiality Clause is often included to ensure the protection of sensitive information. In Ohio, there are various types of employment agreements with executive directors in the nonprofit sector, each tailored to specific organizational needs. Key Elements of an Ohio Employment Agreement with Executive Director: 1. Job Duties and Responsibilities: This section describes the executive director's roles, responsibilities, and supervisory authority within the nonprofit corporation, outlining the expectations and performance criteria. 2. Compensation and Benefits: This clause details the executive director's salary, bonuses, and benefits package, including health insurance, retirement plans, vacation time, and any other relevant perks. 3. Termination and Severance: Specifies conditions for termination of the agreement, including notice periods, grounds for termination, and potential severance packages for the executive director. 4. Conflict of Interest: Addresses any potential conflicts of interest that the executive director may encounter during their employment and provides guidelines for disclosure and resolution. 5. Non-Disclosure and Confidentiality: The Confidentiality Clause ensures that the executive director maintains confidentiality regarding proprietary, sensitive, and non-public information they have access to during their tenure. It may include provisions regarding the protection of data, trade secrets, financial records, donor information, and organizational strategies. Different Types of Ohio Employment Agreements for Executive Directors in Nonprofit Corporations: 1. Full-Time Employment Agreement: This type of agreement is structured for executive directors working on a full-time basis, outlining the responsibilities, benefits, and compensation associated with their role. 2. Part-Time Employment Agreement: Designed for executive directors with reduced work hours, this agreement establishes the expectations, compensation, and benefits for part-time employment. 3. Fixed-Term Employment Agreement: In some cases, nonprofit corporations may appoint an executive director for a fixed term, typically for a project or a specific duration. This agreement specifies the terms, responsibilities, and compensation for the agreed-upon period. 4. Performance-Based Employment Agreement: This type of agreement is focused on linking a portion of the executive director's compensation to predefined performance targets, metrics, or goals. It provides incentives for achieving measurable objectives. Conclusion: Ohio Employment Agreements with Executive Directors of Nonprofit Corporations play a crucial role in establishing transparent, professional relationships. Including a Confidentiality Clause is essential to safeguard sensitive information. Nonprofit organizations may utilize various types of agreements, such as full-time, part-time, fixed-term, or performance-based, depending on the specific needs of the organization and the executive director's role. Structuring a comprehensive and well-defined employment agreement is key to ensuring a mutually beneficial relationship between the nonprofit organization and its executive director.
