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: Pennsylvania Employment Agreement with Executive Director of a Nonprofit Corporation including a Confidentiality Clause Introduction: A Pennsylvania Employment Agreement with an Executive Director of a Nonprofit Corporation is a legally binding document that outlines the terms and conditions of employment for the executive director in a nonprofit organization. This agreement ensures clarity for both parties, protects the organization's interests, and establishes confidentiality parameters. Let's explore the key components of such an agreement, including different types that may exist. 1. General Overview: The Pennsylvania Employment Agreement with an Executive Director of a Nonprofit Corporation establishes a formal relationship between the nonprofit organization and the executive director. It covers various aspects of employment, responsibilities, compensation, and benefits. The agreement aims to maintain transparency and provides a solid foundation for a successful working relationship between the parties involved. 2. Confidentiality Clause: The Confidentiality Clause is an integral part of this agreement. It safeguards sensitive information pertaining to the nonprofit organization, its donors, clients, business operations, financial details, intellectual property, and any other proprietary information. The executive director is legally bound by this clause to maintain strict confidentiality and refrain from disclosing any confidential information during and after their employment. 3. Termination Clause: This clause outlines the conditions under which either party can terminate the employment agreement, including voluntary resignation, contractual breach, poor performance, or other justifiable reasons. It may also include a notice period that allows both parties time to adapt to the impending termination. 4. Compensation and Benefits: This section of the agreement specifies the executive director's salary, bonuses, non-monetary compensations, incentive plans, and benefits such as health insurance, retirement plans, and vacation leave. It should clearly outline the payment structure, date of salary review, and any provisions for expense reimbursement. 5. Duties and Responsibilities: The agreement should define the executive director's roles, responsibilities, and expectations. It may include overseeing day-to-day operations, strategic planning, financial management, board liaison, program development, staff supervision, public relations, reporting, and fundraising activities. Explicitly stating these duties helps ensure mutual understanding and a smooth workflow. 6. Intellectual Property: This clause establishes the organization's ownership rights over any intellectual property created or developed by the executive director during their employment. It confirms that such intellectual property is the property of the nonprofit corporation, ensuring exclusive rights to its use for the organization's purposes. Different Types of Pennsylvania Employment Agreement with Executive Director of a Nonprofit Corporation including a Confidentiality Clause: 1. Full-Time Employment Agreement: This agreement is suitable for an executive director who is committed to working full-time for the nonprofit organization. It outlines standard employment terms, including working hours, benefits, and compensation. 2. Part-Time Employment Agreement: In some cases, an executive director may work part-time for a nonprofit organization. This agreement would specify the number of hours to be worked, compensation adjustments, pro rata benefits, and other relevant terms. 3. Fixed-Term Employment Agreement: This agreement is applicable when an executive director is hired for a specific project or a predetermined period. It states the duration of employment, renewal terms, and any project-specific details. 4. At-Will Employment Agreement: This type of agreement allows either party to terminate the employment contract without reason or notice, providing flexibility in certain situations. Both parties willingly agree to this arrangement, promoting a conditional employment relationship. Conclusion: A comprehensive Pennsylvania Employment Agreement with an Executive Director of a Nonprofit Corporation, which includes a Confidentiality Clause, is crucial for establishing a clear understanding between the nonprofit organization and the executive director. By incorporating necessary provisions and addressing specific terms and conditions, such agreement ensures a mutually beneficial professional relationship while protecting the organization's confidentiality and interests.
