As a lawyer who spent four years as a paralegal, I have seen too many companies get fined simply because they used an outdated employment agreement. The basic truth is this: the contract you used for an in-office worker in 2019 is a giant legal risk for a remote worker in 2026.
When your team works from anywhere whether across state lines in the US or across borders globally your employment agreement must do heavy lifting. It must manage data protection (GDPR), wage regulations (FLSA), and foundational work rights at dozens of various nations.
This manual divides the essential components of a contemporary, legal remote contract. We will look at the legal traps, the essential clauses, and the simple ways to protect your business and treat your remote team fairly.
1. Why Your Current Remote Contract Fails in 2026
Remote working was transitioned quickly, and the legal regulations failed to keep pace. One of the risky mistakes that many companies did is that they merely included a remote-work provision into their existing, local contract.
This fails for three main reasons:
The Problem of Permanent Establishment (PE)
When an employee works full-time from their home in a foreign country, they might create a “Permanent Establishment” for your company in that country. This means your business might owe corporate taxes in that employee’s home country, even if you do not have an office there. A contract must clearly state that the employee is not authorized to bind the company in new contracts, which helps reduce this risk.
The Problem of Tax and Payroll
You cannot just pay someone as a US employee if they live in the UK or Canada. You must register to pay taxes in their country. Failing to do this can lead to massive fines, back taxes, and major headaches. A modern agreement clearly spells out who is responsible for local income taxes and whether you are using a local entity, a PEO (Professional Employer Organization), or an EOR (Employer of Record) to handle payroll.
The Problem of Local Labor Law
Most countries have laws that protect employees regardless of what your contract says. For instance, in many European countries, you cannot fire someone “at will.” You need a legal reason. If your US-style contract says you can fire someone without cause, but local law says you cannot, the local law wins every time.
2. The Core Legal Difference: Employee vs. Contractor Status
Before writing any contract, you must settle the biggest risk area: misclassification. Hiring a foreign worker as a contractor is much easier than hiring them as an employee, but if you treat a contractor like an employee, legal trouble follows.
The Test of Control
The law focuses on control. You need to ask simple questions:
| If the Answer is YES, They are Likely an EMPLOYEE | If the Answer is YES, They are Likely a CONTRACTOR |
| Do you control when and where they work? | Do they set their own hours and work schedule? |
| Do you provide the computer, software, and tools? | Do they use their own tools and equipment? |
| Is their work critical to your company’s core function? | Is the work project-based, with a defined end date? |
| Do they work only for your company? | Do they work for several other clients? |
From my experience, I have seen the IRS and US Department of Labor use these same simple tests. When you tell a contractor when to appear at meetings, how to perform their work, and they cannot perform it anywhere, they are an employee. That fact should be echoed in what you have written in your contract or you will be compelled to pay back wages, overtime, benefits and penalties.
3. GDPR Compliance: Protecting Data When Teams Work Anywhere
The European Union has a stricter regulation on the management of personal data, the General Data Protection Regulation (GDPR). In case your company works with data of EU citizens, your remote employment contracts have to take this issue into consideration, despite the fact that the employee is not located in the EU.
Who is the Processor?
Your remote employees are processing data customer lists, payment details, internal records. The contract needs to define the employee’s role clearly.
- Device Policy (BYOD vs. Company Gear): In case the employee works with his/her personal laptop (Bring Your Own Device or BYOD), security requirements must be strictly outlined in the contract: the use of VPN, password managers, and disk encryption is mandatory. In case the company offers the gear, it should be stated in the contract that the company has the right to wipe off or retrieve the device at the moment of termination.
- Data Security Training: The contract must state that the employee agrees to mandatory, regular data security and GDPR training.
- Data Transfer Mechanisms: When US companies transfer EU data, they need a legal basis. While complex, your contract should state that the employee is aware of and agrees to follow all official transfer mechanisms, like Standard Contractual Clauses (SCCs), to keep the data safe and legal.
My advice: Include a full, separate exhibit in the agreement that covers IT Security and Confidentiality. This is non-negotiable for global agreements.
4. Key US Labor Laws Remote Teams Must Follow
Hiring one employee in a different US state creates an immediate legal headache. Hiring across multiple states? You need clear clauses for US federal and state laws.
The Fair Labor Standards Act (FLSA)
The FLSA controls minimum wage and overtime rules for most US employees. The biggest mistake for remote teams is how they classify workers:
- Exempt Employees (Salaried): This category of employee receives a salary and does not receive overtime (e.g. executives, professionals).
- Non-Exempt Employees (Hourly): These individuals are to be compensated per hour after 40 hours per week (time-and-a-half).
In the case of remote teams, non-exempt status is a bit challenging since employees have to keep proper track of their time, and the employer has to track the same. Status of the worker has to be clearly stated in your contract and time tracking of all the non-exempt remote workers must be recorded properly.
State-Specific Laws
Every US state has its own unique rules. Your contract cannot just ignore them.
- Paid Sick Leave: There are states (such as California, New York and more) that have mandatory paid sick leave.
- Final Paycheck Rules: Final paycheck is allowed in some states to be given at the time of the termination.
- Required Disclosures: Many states mandate that you give employees certain documents or notices in writing. The employment contract serves as the perfect place to state that the company has provided all mandatory state-specific disclosures as required by law.
5. 7 Essential Clauses for Your Global Remote Agreement Template
This is the structure that gives your contract its legal strength. These seven clauses are the absolute minimum you need.
Clause 1: Defined Work Location and Change Policy
This is vital for tax, payroll, and insurance purposes.
- Must state: The specific city, state, and country where the employee is based.
- Must require: The employee must give written notice and get prior company approval before moving. Moving even 50 miles in the US can change tax rules and trigger new state compliance requirements.
Clause 2: Compensation, Benefits, and Tax Responsibility
Avoid confusing the employee over what they are earning and the tax.
- Compensation: Specify pay, currency (USD, EUR, and so on) and pay frequency.
- Tax: When using an EOR, it is taken care of by the EOR. When a contractor is being employed, this agreement should mention that all the local income taxes, self-employment taxes, and the social security are to be paid only by the contractor. This covers you in the liability in the future.
Clause 3: Equipment, IT Security, and Data Access
You need to manage the location in which company data resides.
- Equipment: Indicate whether the company will offer the computer, monitor, and phone, or place a stipend on the employee to get a BYOD setup.
- Security: Stated that the employee has to install and use the necessary software (VPN, antivirus, monitoring tools) that the company needs and that he or she has to report about the security problem as soon as possible.
Clause 4: Working Hours and Time Zone Overlap
Working remotely usually creates the gray area between work and personal time. Your contract should have limits, particularly in the case of teams that have a large number of time zones.
- Standard Hours: Establish the primary working period (e.g. Monday through Friday, 9:00AM-5:00PM in the time zone of the employee).
- Overlap: In case the employee has to be available to meet the main office, specify the required overlap (e.g., “The employee will be required to be available between 10:00 AM and 2:00 PM Pacific Time to hold team calls).
Clause 5: Confidentiality and Intellectual Property (IP) Assignment
That is the way to protect your business ideas and trade secrets. This provision should be ironclad.
- IP Assignment: The agreement should expressly articulate that all products of work produced by the employee in his or her period of employment (code, designs, reports, documents, etc.) automatically vest in the company at the time of their creation.
- Survival: Indicate that the confidentiality provision continues to exist after termination of employment. They have a legal obligation to keep your secrets even after the employee is gone.
Clause 6: Termination, Notice Periods, and Severance
It is at this point that the local law has a likely chance of overruling your contract.
- At-Will Caveat (US only): In the US, state that the employment is at-will (that is, either party may terminate the relationship at any time and for any legal reason).
- Non-US Employees: In the agreement, the minimum notice periods to be followed by the employee in his country of residence or PEO agreement must be mentioned. Do not use “at-will.” State certain, legally accepted causes of dismissal (cause).
Clause 7: Governing Law and Dispute Resolution
This determines whose rulebook you will follow when a fight happens.
6. The Importance of Jurisdiction and Governing Law
Many people mix up “Governing Law” and “Jurisdiction,” but they are different. Getting this wrong can force you to fly to a foreign country for a minor lawsuit.
- Governing Law: This is the law that is employed to explain the contract. Example: This agreement is subject to the Delaware law.
- Jurisdiction (Venue): This is where any dispute shall be resolved in physical location (court). E.g. “The disputes that may emerge due to this contract shall be resolved in none other different state and federal courts within the county of King in Washington.
The reality check: Although you may attempt to select your home state law (e.g., Delaware) as the Governing Law, most courts, particularly not in the US, will consider the laws of the country where the employee is physically working, such as in relation to employment protections, minimum wage and termination rights.
To resolve conflicts, a binding, mandatory Arbitration clause is usually a good idea. This compels both parties to resolve disputes out of court which is often cheaper and quicker. This provision should be explicit on the regulations and venue of arbitration.
7. Next Steps: Turning This Advice Into Action
Drafting a global employment agreement requires careful thought. Do not try to find a single, magic template online and just copy it.
When your firm is recruiting a person in a new state or country, you must have a variant of your main-agreement which is particular to the local legislation of that location. The basic contract is the backbone but the walls that are tailor made are the local labor provisions and disclosures.
The most important takeaway is this: Do not use a single contract to suit all. This guide will help you develop a powerful central template and then have local counsel do it or have a dependent PEO/EOR service modify it to fit each particular location. This is the only means of expanding the remote force safely in the year 2026 and beyond.
Disclaimer: I am providing my personal opinion as a lawyer who has worked within the labor and employment law. This is information only, and does not constitute legal advice. Any agreement, created or signed, should be an employment agreement that you must be able to discuss with qualified legal counsel in each applicable jurisdiction.
Connect with me on LinkedIn for legal drafting, legal research and other legal matters!
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2026 GLOBAL REMOTE WORK EMPLOYMENT CONTRACT
GDPR-COMPLIANT EDITION
This Remote Employment Agreement (“Agreement”) is entered into as of
_ [DATE], 202__ (the “Effective Date”) by and between:
EMPLOYER: EMPLOYEE:
Company Name: _____ Full Legal Name: __
Registration No: __ Date of Birth: ____
Address: __________ Nationality: ______
City, Country: ____ Address: __________
Tax ID/VAT: _______ City, Country: ____
Email: ____________ Email: ____________
Phone: ____________ Phone: ____________
IMPORTANT: This contract is designed for global remote work arrangements
and includes comprehensive GDPR (General Data Protection Regulation)
compliance provisions for employees within the European Union and beyond.
================================================================================
1. POSITION AND DUTIES
JOB TITLE: ________________________________________________
DEPARTMENT: _______________________________________________
REPORTING TO: _____________________________________________
PRIMARY RESPONSIBILITIES:
The Employee agrees to perform the following duties and responsibilities:
- _________________________________________________________
- _________________________________________________________
- _________________________________________________________
- _________________________________________________________
- _________________________________________________________
WORK LOCATION:
Primary Remote Work Location: _____________________________
Country: __________________________________________________
Time Zone: ________________________________________________
□ Employee may work from multiple locations with prior approval
□ Employee must maintain a fixed primary work location
□ Employee may be required to travel to [Location] _ times per year
CORE WORKING HOURS:
Standard Hours: _ hours per week
Core Hours (must be available): ________________________
Time Zone Reference: ______________________________________
Flexibility: □ Flexible schedule □ Fixed schedule □ Hybrid approach
================================================================================
2. EMPLOYMENT TERMS
EMPLOYMENT TYPE:
□ Full-Time Employment
□ Part-Time Employment (_ hours per week) □ Fixed-Term Contract (Start: _ End: _)
□ Indefinite/Permanent Contract
PROBATION PERIOD:
Duration: _ months from the start date
During this period, either party may terminate employment with _ days’
written notice. After successful completion, the terms below apply.
START DATE: _______________________________________________
EMPLOYMENT STATUS:
□ Employee (W-2 / PAYE / Local Employment Law)
□ Independent Contractor (1099 / Self-Employed)
□ EOR (Employer of Record) Arrangement via: ______________
APPLICABLE LABOR LAW:
This employment relationship is governed by the labor laws of:
Country: __________________________________________________
The Employee retains all statutory rights under local employment law,
including but not limited to minimum wage, working time regulations,
annual leave, parental leave, and termination protections.
================================================================================
3. COMPENSATION AND BENEFITS
BASE SALARY:
Annual Gross Salary: __ [Currency: _]
Payment Frequency: □ Monthly □ Bi-weekly □ Weekly
Net Calculation: Salary is subject to applicable taxes, social security
contributions, and statutory deductions in accordance with [Country] law.
PAYMENT METHOD:
□ International Bank Transfer to: ________________________
□ Payroll Service Provider: _____________________________
□ Cryptocurrency (if legally permitted): _______________
□ Other: ________________________________________________
CURRENCY AND EXCHANGE RATE:
Salary is denominated in: ___ [Currency]
□ Fixed exchange rate for conversions: ___________________
□ Market rate on payment date
□ Reviewed quarterly for significant fluctuations (±10%)
SALARY REVIEW:
Annual salary review on: _____ [Date/Month]
Performance-based increases: □ Yes □ No
ADDITIONAL COMPENSATION:
Bonus Structure: _________________________________________
Commission (if applicable): ______________________________
Equity/Stock Options: ____________________________________
Profit Sharing: __________________________________________
BENEFITS PACKAGE:
□ Health Insurance
Coverage: ____________________________________________
Premium Paid By: □ Employer 100% □ Employee % □ Split %
Geographic Restrictions: _____________________________
□ Retirement/Pension Contributions
Employer Contribution: % of gross salary Employee Contribution: % of gross salary
Plan Type: ___________________________________________
□ Professional Development Budget
Annual Amount: __ [Currency]
Permitted Uses: ______________________________________
□ Home Office Stipend
One-Time Setup: __ [Currency]
Monthly Allowance: _ [Currency]
Covers: Internet, equipment, utilities, ergonomic furniture
□ Wellness Budget
Annual Amount: __ [Currency]
□ Technology Equipment (See Section 5)
□ Co-working Space Membership
Monthly Budget: __ [Currency]
□ Travel Allowance (for company meetings/events)
Annual Budget: __ [Currency]
□ Other Benefits: _______________________________________
================================================================================
4. WORKING TIME AND LEAVE
ANNUAL LEAVE (VACATION):
Statutory Minimum: _ days per year (as per [Country] law) Company Provision: _ days per year (including statutory minimum)
Accrual: □ Monthly □ Annually □ Upon completion of probation
Carryover: Maximum _ days can be carried to the next year Notice Period for Booking: _ days advance notice required
PUBLIC HOLIDAYS:
The Employee is entitled to public holidays observed in:
□ Employee’s country of residence: ______________________
□ Company’s country of incorporation: ___________________
□ Agreed hybrid list: ___________________________________
Total Public Holidays: Approximately _ days per year
SICK LEAVE:
Statutory sick pay entitlement as per [Country] law applies.
Company Sick Leave Policy:
- Paid sick leave: _ days per year (above statutory minimum)
- Medical certificate required after: _ consecutive days
- Notification: Must inform manager within _ hours of absence
PARENTAL LEAVE:
Statutory parental leave entitlements apply as per [Country] law.
Company Policy:
- Maternity Leave: _ weeks ( weeks paid at _%)
- Paternity Leave: _ weeks ( weeks paid at _%)
- Adoption Leave: _ weeks ( weeks paid at _%)
- Parental Leave: _ weeks within _ months of birth/adoption
OTHER LEAVE:
□ Bereavement Leave: _ days (paid) □ Study Leave: days per year
□ Sabbatical: Available after __ years of service
□ Emergency/Compassionate Leave: As needed (case-by-case)
DISCONNECTION RIGHTS:
The Employee has the right to disconnect from work outside of agreed
working hours and is not expected to respond to emails, messages, or
calls during:
- Evenings after: __ [Time]
- Weekends
- Public holidays
- Annual leave
- Sick leave
Exceptions only for genuine emergencies as defined: _____
================================================================================
5. EQUIPMENT AND TECHNOLOGY
EMPLOYER-PROVIDED EQUIPMENT:
The Employer will provide the following equipment:
□ Laptop/Computer: ______________________________________
□ Monitor(s): ___________________________________________
□ Keyboard and Mouse
□ Headset/Webcam
□ Mobile Phone: _________________________________________
□ Software Licenses: ____________________________________
□ Other: ________________________________________________
Delivery Timeline: Within _ business days of start date
Shipping: □ Employer covers all costs □ Employee prepays for reimbursement
EMPLOYEE EQUIPMENT:
If Employee uses personal equipment:
□ Monthly stipend: __ [Currency]
□ Annual equipment upgrade budget: __ [Currency]
□ Equipment specifications must meet minimum requirements: _
EQUIPMENT OWNERSHIP:
All employer-provided equipment remains the property of the Employer.
Upon termination:
- Equipment must be returned within _ days to: __________
- Return shipping paid by: □ Employer □ Employee
- Unreturned equipment value will be deducted: □ Yes □ No
SECURITY REQUIREMENTS:
□ Full disk encryption mandatory
□ VPN required for all work connections
□ Two-factor authentication (2FA) enabled on all accounts
□ Password manager required
□ Antivirus/anti-malware software installed
□ Screen lock when away from device (maximum _ minutes) □ No sharing of work devices with family members □ Regular security training: _ times per year
HOME OFFICE REQUIREMENTS:
The Employee must maintain:
□ Reliable internet connection (minimum speed: _ Mbps down/up)
□ Quiet, private workspace free from excessive distractions
□ Adequate lighting for video calls
□ Professional background for video meetings
□ Ergonomic setup (proper desk, chair, monitor height)
INTERNET AND UTILITIES:
□ Monthly internet reimbursement: __ [Currency]
□ Electricity/heating reimbursement: __ [Currency]
□ Included in general home office stipend (Section 3)
================================================================================
6. GDPR COMPLIANCE AND DATA PROTECTION
CRITICAL: This section ensures compliance with EU General Data Protection
Regulation (GDPR) and equivalent global privacy laws.
DATA CONTROLLER AND PROCESSOR:
Data Controller: [Company Name]
Address: _________________________________________________
Data Protection Officer: _________________________________
DPO Email: _______________________________________________
PERSONAL DATA PROCESSING:
The Employer will process the following categories of Employee personal data:
IDENTITY DATA:
- Full name, date of birth, gender, nationality
- Government ID numbers (passport, national ID, social security)
- Immigration/work permit status
- Profile photograph
CONTACT DATA:
- Home address, email address, phone number
- Emergency contact information
FINANCIAL DATA:
- Bank account details, tax identification numbers
- Salary, bonuses, benefits information
- Expense claims and reimbursements
EMPLOYMENT DATA:
- Job title, department, reporting line
- Employment contract and terms
- Performance reviews and feedback
- Disciplinary records (if any)
- Training and development records
TECHNICAL DATA:
- IP addresses, login data, device identifiers
- System access logs, email metadata
- Time tracking and productivity metrics
HEALTH DATA (Special Category – requires explicit consent):
- Sick leave records and medical certificates
- Health insurance information
- Occupational health assessments
- Disability accommodations (if applicable)
LEGAL BASIS FOR PROCESSING:
The Employer processes Employee personal data based on:
□ Contract Performance: Necessary to fulfill employment contract
□ Legal Obligation: Required to comply with employment, tax, and social
security laws
□ Legitimate Interest: Business operations, security, and safety
□ Explicit Consent: For special category data (health information)
PURPOSE LIMITATION:
Personal data will be used ONLY for:
- Employment administration and payroll
- Performance management and development
- Compliance with legal and regulatory obligations
- Internal communication and collaboration
- IT security and system administration
- Benefits administration
- Business continuity and disaster recovery
DATA RETENTION:
Personal data will be retained for the following periods:
DURING EMPLOYMENT: All necessary data maintained actively
AFTER TERMINATION:
- Employment records: _ years (legal requirement: minimum _ years)
- Payroll records: _ years
- Tax documents: _ years (as required by [Country] law)
- Performance reviews: _ years
- Health records: _ years
- Correspondence: _ years
After retention periods, data will be securely deleted or anonymized.
EMPLOYEE RIGHTS UNDER GDPR:
The Employee has the following rights regarding their personal data:
- RIGHT TO ACCESS
Request a copy of all personal data held (within 30 days, free of charge) - RIGHT TO RECTIFICATION
Correct inaccurate or incomplete personal data - RIGHT TO ERASURE (“Right to be Forgotten”)
Request deletion of personal data (subject to legal retention requirements) - RIGHT TO RESTRICT PROCESSING
Limit how personal data is used in certain circumstances - RIGHT TO DATA PORTABILITY
Receive personal data in a structured, machine-readable format - RIGHT TO OBJECT
Object to processing based on legitimate interests or direct marketing - RIGHT TO WITHDRAW CONSENT
Withdraw consent for special category data processing at any time - RIGHT TO LODGE A COMPLAINT
File a complaint with supervisory authority: ___________
(e.g., ICO in UK, CNIL in France, BfDI in Germany)
EXERCISE OF RIGHTS:
To exercise any of these rights, contact:
Data Protection Officer: __________________________________
Email: ____________________________________________________
Response Timeline: Within 30 days of request
DATA SECURITY MEASURES:
The Employer implements the following technical and organizational measures:
TECHNICAL MEASURES:
□ Encryption of data in transit (TLS 1.3) and at rest (AES-256)
□ Multi-factor authentication for all systems
□ Regular security patches and updates
□ Intrusion detection and prevention systems
□ Secure backup and disaster recovery procedures
□ Access controls and role-based permissions
□ Regular security audits and penetration testing
ORGANIZATIONAL MEASURES:
□ Data protection policies and procedures
□ Employee training on data protection (frequency: _____)
□ Confidentiality agreements for all staff
□ Data breach response plan (notification within 72 hours)
□ Regular data protection impact assessments
□ Vendor due diligence and data processing agreements
□ Clear data classification scheme (public, internal, confidential)
INTERNATIONAL DATA TRANSFERS:
If personal data is transferred outside the EU/EEA:
Transfer Mechanism:
□ EU Standard Contractual Clauses (SCCs)
□ Adequacy Decision (recipient country has adequate protection)
□ Binding Corporate Rules (BCRs)
□ Employee consent with clear information
Countries to which data may be transferred: ______________
Purpose of transfer: _____________________________________
Additional safeguards: ___________________________________
DATA BREACH NOTIFICATION:
In the event of a personal data breach affecting Employee data:
- The Employer will notify the Employee within _ hours of becoming
aware of the breach - Notification will include:
- Nature of the breach
- Categories of data affected
- Likely consequences
- Measures taken to address the breach
- Remedial actions recommended for the Employee
- The Employer will notify the relevant supervisory authority within
72 hours if the breach poses a risk to Employee rights
MONITORING AND SURVEILLANCE:
The Employer may monitor the following for legitimate business purposes:
□ Email communication (business accounts only)
Purpose: Security, compliance, business continuity
Retention: _ months
□ System access logs
Purpose: Security, troubleshooting
Retention: _ months
□ Time tracking software
Purpose: Payroll, project management
Data collected: ____________________________________
□ Screen capture/keystroke logging: □ NOT USED □ Used only for: _
The Employee will be informed of any monitoring activities and their
purpose. Personal devices are NOT monitored.
CONSENT FOR SPECIAL CATEGORY DATA:
I, [Employee Name], hereby give my explicit consent for the Employer to
process my health-related data (sick leave records, medical certificates,
health insurance information) for the purposes of:
- Managing sick leave and absences
- Administering health benefits
- Complying with occupational health and safety requirements
- Making reasonable accommodations
I understand that I can withdraw this consent at any time by contacting
the Data Protection Officer, though this may affect the Employer’s ability
to manage health-related benefits and obligations.
Employee Signature: __________ Date: ________
================================================================================
7. CONFIDENTIALITY AND INTELLECTUAL PROPERTY
CONFIDENTIAL INFORMATION:
The Employee agrees to maintain strict confidentiality regarding:
- Trade secrets, proprietary information, and know-how
- Business strategies, financial information, and forecasts
- Customer and supplier lists, contracts, and pricing
- Product development plans and technical specifications
- Marketing strategies and campaigns
- Employee information and internal communications
- Any information marked as “Confidential” or that would reasonably be
considered confidential
This obligation continues indefinitely after termination of employment.
NON-DISCLOSURE:
The Employee will not disclose Confidential Information to any third party
without prior written authorization, except:
- As required by law (with prior notice to Employer if permitted)
- To professional advisors bound by confidentiality
- Information already in the public domain through no fault of Employee
INTELLECTUAL PROPERTY OWNERSHIP:
WORK PRODUCT:
All inventions, designs, writings, software, and other intellectual property
created by the Employee during employment and within the scope of their role
automatically belong to the Employer.
This includes:
□ Copyright works (documents, code, designs, graphics)
□ Inventions and patents
□ Trademarks and brand elements
□ Trade secrets and know-how
ASSIGNMENT:
The Employee assigns all rights, title, and interest in such work product
to the Employer immediately upon creation.
MORAL RIGHTS:
To the extent permitted by law, the Employee waives moral rights to work
product created for the Employer.
PRIOR INTELLECTUAL PROPERTY:
Any intellectual property owned by the Employee before employment must be
disclosed in Annex A. Such prior IP is excluded from this assignment.
EMPLOYEE ASSISTANCE:
The Employee agrees to assist the Employer in protecting intellectual
property rights, including signing documents and testifying if necessary.
PERSONAL PROJECTS:
□ Employee may engage in personal projects outside working hours, provided:
- Projects do not compete with Employer’s business
- Projects do not use Employer’s resources, time, or confidential information
- Projects do not interfere with employment obligations
- Employee discloses projects to: _______________________
□ Employee must obtain written approval for any outside projects
RETURN OF MATERIALS:
Upon termination, the Employee must immediately return:
- All documents, files, and data (physical and electronic)
- Equipment and company property
- Access cards, keys, and security tokens
- Copies, backups, and duplicates of any confidential information
================================================================================
8. RESTRICTIONS AND OBLIGATIONS
NON-COMPETE CLAUSE:
□ No non-compete restrictions apply
□ The Employee agrees not to engage in competing business for:
Duration: _ months after termination Geographic Scope: _______________________________________
Definition of Competing Business: ___________________
Note: Non-compete clauses must be reasonable and may be unenforceable
in some jurisdictions (e.g., California, certain EU countries).
NON-SOLICITATION:
For _ months after termination, the Employee agrees not to:
□ Solicit or hire any current employees of the Employer
□ Solicit or do business with any clients/customers the Employee worked
with during the last _ months of employment
□ Encourage any employees, contractors, or clients to terminate their
relationship with the Employer
CONFLICTS OF INTEREST:
The Employee must disclose any potential conflicts of interest, including:
- Financial interests in competitors or business partners
- Family relationships with colleagues, suppliers, or customers
- Outside employment or business activities
- Receipt of gifts or benefits from third parties
Disclosure must be made to: _______________________________
PROFESSIONAL CONDUCT:
The Employee agrees to:
□ Comply with all company policies and codes of conduct
□ Maintain professional standards in all communications
□ Treat colleagues, clients, and partners with respect
□ Report violations of law or company policy through appropriate channels
□ Complete mandatory training programs
□ Maintain professional licenses/certifications (if applicable)
SOCIAL MEDIA POLICY:
□ Employee may reference employment on personal social media, but must:
- Clearly indicate personal opinions are their own
- Not disclose confidential information
- Not make disparaging comments about the company
- Follow company social media guidelines
================================================================================
9. TERMINATION
TERMINATION BY EMPLOYER:
WITH CAUSE (Immediate termination without notice):
- Material breach of contract
- Gross misconduct or negligence
- Criminal activity
- Repeated policy violations after warnings
- Fraudulent or dishonest conduct
- Serious breach of confidentiality
WITHOUT CAUSE (With notice period):
Notice Period: _ weeks/months (as required by [Country] law)
Statutory Notice Periods:
- After probation: Minimum _ weeks
- After _ years: Minimum _ weeks
- After _ years: Minimum _ weeks
Payment in Lieu of Notice: □ Permitted □ Not Permitted
TERMINATION BY EMPLOYEE:
Notice Period: _ weeks/months
The Employee must provide written notice to: ______________
SEVERANCE / REDUNDANCY PAY:
In case of termination without cause or redundancy:
□ Statutory severance as per [Country] law
□ Enhanced severance: _ weeks/months salary per year of service
□ No severance beyond statutory requirements
GARDEN LEAVE:
During the notice period, the Employer may place the Employee on garden
leave, during which:
- Full salary and benefits continue
- Employee is not required to work
- Employee must remain available if needed
- All confidentiality and non-compete obligations remain in effect
- Employee may not commence new employment
TERMINATION PROCEDURE:
Upon termination:
- Equipment return (within _ days)
- Final paycheck (including accrued vacation) paid by: ___
- Benefits continuation or conversion options provided
- Reference letter provided upon request
- Exit interview conducted
- Final expense reimbursements settled
- Return of all company property and data
- Deactivation of all system access
- Confirmation of post-termination obligations
POST-TERMINATION COOPERATION:
The Employee agrees to reasonably cooperate after termination regarding:
- Transition of responsibilities
- Knowledge transfer to replacement
- Ongoing projects or client matters
- Legal proceedings or disputes
Reasonable compensation will be provided for time spent.
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10. DISPUTE RESOLUTION
GOVERNING LAW:
This Agreement is governed by the laws of: _________________
Note: Employment law of Employee’s country of residence may provide
additional protections that cannot be waived.
JURISDICTION:
Disputes will be resolved in the courts of: _______________
OR
The Employee may bring proceedings in the courts of their country of
residence for employment law matters.
DISPUTE RESOLUTION PROCESS:
STEP 1 – INTERNAL RESOLUTION:
The Employee should first raise concerns with: ____________
Timeline: _ days for initial response
STEP 2 – MEDIATION:
If unresolved, both parties agree to attempt mediation through:
Mediation Service: _______________________________________
Cost: Shared equally between parties
Duration: _ days maximum
STEP 3 – ARBITRATION OR LITIGATION:
□ Binding arbitration under rules of: ____________________
Location: ______________________________________________
Language: ______________________________________________
□ Court proceedings in the jurisdiction specified above
EMPLOYMENT TRIBUNAL:
Nothing in this clause restricts the Employee’s right to bring claims
before employment tribunals or labor courts as provided by local law.
LEGAL FEES:
In the event of a dispute:
□ Each party bears their own legal costs
□ Prevailing party may recover reasonable legal fees
□ Employer covers legal fees if Employee successful in statutory claims
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11. GENERAL PROVISIONS
ENTIRE AGREEMENT:
This Agreement constitutes the entire agreement between the parties and
supersedes all prior discussions, negotiations, or agreements.
AMENDMENTS:
This Agreement may only be modified by a written amendment signed by both
parties.
SEVERABILITY:
If any provision is found invalid or unenforceable, the remaining provisions
remain in full effect. The invalid provision will be replaced with a valid
provision that most closely reflects the original intent.
WAIVER:
Failure to enforce any provision does not constitute a waiver of that
provision or any other provision.
ASSIGNMENT:
The Employee may not assign or transfer this Agreement. The Employer may
assign this Agreement to a successor or affiliate with notice to the Employee.
NOTICES:
All notices must be in writing and sent to the addresses listed at the
beginning of this Agreement.
Email notices are acceptable if receipt is confirmed.
FORCE MAJEURE:
Neither party is liable for failure to perform due to circumstances beyond
reasonable control (natural disasters, war, pandemic, government actions, etc.).
TAX RESPONSIBILITIES:
EMPLOYEE STATUS:
□ The Employer will withhold applicable taxes as required by law
□ The Employee is responsible for their own tax filings and payments
(independent contractor)
TAX RESIDENCE:
The Employee declares their tax residence as: ______________
The Employee is responsible for:
- Accurate tax status disclosure
- Notifying Employer of any changes in tax residence
- Complying with local tax laws
- Filing all required tax returns
The Employer will provide necessary tax documentation:
□ W-2 (USA) □ P60/P45 (UK) □ Equivalent in [Country]: _
IMMIGRATION AND WORK AUTHORIZATION:
The Employee confirms they have the legal right to work in:
Country: __________________________________________________
Required Permits/Visas: ___________________________________
Valid Until: ______________________________________________
The Employee must:
□ Maintain valid work authorization throughout employment
□ Notify Employer immediately of any changes to immigration status
□ Provide updated documentation before expiration
The Employer will:
□ Sponsor work visa (if applicable)
□ Provide necessary documentation for visa applications
□ Cover visa application costs: □ Yes □ No □ Partial: _
INSURANCE:
EMPLOYER’S LIABILITY INSURANCE:
The Employer maintains liability insurance covering: _______
EMPLOYEE INSURANCE REQUIREMENTS:
□ Professional indemnity insurance (for certain roles)
Minimum coverage: _______________________________________
□ Equipment insurance (if using personal equipment)
MISCELLANEOUS:
PROBATIONARY REVIEW:
Performance review scheduled for: _________________________
REFERENCE CHECKS:
This offer is contingent on satisfactory reference checks: □ Yes □ No
BACKGROUND CHECKS:
Required background checks: _______________________________
Cost covered by: □ Employer □ Employee
LANGUAGE:
This Agreement is executed in: ____________________________
In case of translation discrepancies, the [Language] version prevails.
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12. ANNEXES AND ATTACHMENTS
The following documents are attached and form part of this Agreement:
□ ANNEX A: Employee Prior Intellectual Property Disclosure
□ ANNEX B: Employee Handbook and Policies
□ ANNEX C: Code of Conduct and Ethics Policy
□ ANNEX D: Data Processing and Privacy Policy
□ ANNEX E: IT Security and Acceptable Use Policy
□ ANNEX F: Equipment List and Specifications
□ ANNEX G: Remote Work Policy
□ ANNEX H: Expense Policy and Reimbursement Procedures
□ ANNEX I: Performance Management Framework
□ ANNEX J: GDPR Employee Privacy Notice (Extended)
□ ANNEX K: [Other]: _____________________________________
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ACKNOWLEDGMENT AND SIGNATURES
EMPLOYEE ACKNOWLEDGMENT:
I, [Employee Name], acknowledge that:
□ I have read and understood all terms of this Agreement
□ I have been given the opportunity to seek independent legal advice
□ I voluntarily enter into this Agreement
□ I understand my rights under GDPR and local employment law
□ I agree to comply with all policies and procedures
□ I have disclosed any conflicts of interest or prior obligations
□ I confirm the accuracy of all information provided
□ I understand the confidentiality and intellectual property obligations
□ I have received a copy of this signed Agreement
EMPLOYEE SIGNATURE:
Signature: _________________ Date: ____________
Print Name: ________________
EMPLOYER SIGNATURE:
Signature: _________________ Date: ____________
Print Name: ________________
Title: _____________________
================================================================================
GDPR CONSENT RECORD
SPECIAL CATEGORY DATA PROCESSING:
I consent to the processing of my health and medical information for the
purposes outlined in Section 6.
Signature: _________________ Date: ____________
INTERNATIONAL DATA TRANSFERS:
I acknowledge and consent to the transfer of my personal data outside the
EU/EEA as described in Section 6.
Signature: _________________ Date: ____________
RIGHT TO WITHDRAW:
I understand I can withdraw these consents at any time by contacting the
Data Protection Officer, without affecting the lawfulness of processing
based on consent before withdrawal.
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CHECKLIST FOR COMPLETION
BEFORE SIGNING, ENSURE:
EMPLOYER:
□ All blank fields completed with specific information
□ Salary and benefits clearly stated with currency
□ Working hours and location specified
□ Equipment and technology provisions detailed
□ GDPR compliance sections fully completed
□ DPO contact information provided
□ Local employment law requirements verified
□ Tax and immigration implications reviewed
□ All annexes prepared and attached
□ Legal review completed (especially for cross-border employment)
□ Appropriate employment classification confirmed (employee vs contractor)
EMPLOYEE:
□ Understand job responsibilities and expectations
□ Compensation and benefits are acceptable
□ Work location and hours are feasible
□ Equipment needs will be met
□ Understand data processing and privacy rights
□ Aware of post-termination obligations (non-compete, confidentiality)
□ Disclosed any conflicts of interest
□ Have valid work authorization
□ Reviewed with legal counsel if needed (recommended for senior roles)
□ Comfortable with remote work arrangements
================================================================================
IMPORTANT NOTES
MULTI-JURISDICTIONAL EMPLOYMENT:
This contract template addresses global remote work, but employment law
varies significantly by country. Key considerations:
EUROPEAN UNION:
- GDPR compliance mandatory for EU-based employees
- Strong employee protections under EU Directives
- Works Councils may need consultation for policy changes
- Fixed-term contracts highly regulated
- Probation periods limited (typically 6 months maximum)
UNITED KINGDOM:
- Employment Rights Act 1996 protections apply
- Automatic unfair dismissal protections after 2 years
- Statutory sick pay, maternity pay, etc.
- GDPR UK equivalent applies
UNITED STATES:
- At-will employment in most states
- Limited statutory leave requirements (federal level)
- State-specific laws vary widely (California, New York have strong protections)
- W-2 vs 1099 classification critical
- Non-compete enforceability varies by state
AUSTRALIA:
- Fair Work Act protections
- Strong unfair dismissal protections
- Superannuation (pension) contributions mandatory
- National Employment Standards apply
CANADA:
- Provincial employment standards apply
- PIPEDA for privacy
- Reasonable notice or pay in lieu required for termination
LATIN AMERICA:
- Generally strong labor protections
- Mandatory benefits (e.g., 13th-month salary in many countries)
- Severance pay requirements
- Strict termination procedures
ASIA-PACIFIC:
- Varies widely by country
- Some jurisdictions have strict data localization requirements
- Cultural considerations for management and communication
EMPLOYER OF RECORD (EOR) SOLUTIONS:
For hiring in countries without a legal entity, consider EOR services:
- Deel, Remote, Oyster, Multiplier, Papaya Global
- EOR acts as legal employer, you maintain day-to-day management
- Ensures local compliance
- Handles payroll, benefits, taxes
- Costs typically 15-25% of salary
TAX CONSIDERATIONS:
PERMANENT ESTABLISHMENT RISK:
Remote employees may create tax presence in their country. Consult tax
advisors about:
- Corporate tax obligations
- VAT/GST registration requirements
- Social security contributions
- Withholding tax requirements
DOUBLE TAXATION:
Review tax treaties between employer and employee countries.
WHEN TO SEEK LEGAL ADVICE:
Mandatory legal review recommended for:
□ Cross-border employment (especially EU/US, EU/UK)
□ Senior executive or high-value contracts
□ Equity compensation arrangements
□ When employee country has very different labor laws
□ Non-compete or restrictive covenants
□ Contractor vs employee classification questions
□ Concerns about permanent establishment
□ Group company transfers or secondments
================================================================================
END OF CONTRACT
LEGAL DISCLAIMER:
This template is provided for informational purposes and does not constitute
legal advice. Employment law varies significantly by jurisdiction. This
template includes GDPR compliance provisions but may require adaptation for
specific countries, industries, or circumstances.
Both parties should seek independent legal advice, particularly for
international remote employment arrangements. The drafter assumes no
liability for losses arising from use of this template.
For compliance certainty, consult:
- Employment lawyer in employee’s jurisdiction
- Data protection specialist (for GDPR/privacy)
- Tax advisor (for international tax implications)
- Immigration lawyer (for work authorization)
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