Create a Customized Employment Contract

This template was prepared by: Topstone Solicitors (London), Topstone Solicitors

Instructions

A formal agreement that specifies the conditions of the relationship between an employee and an employer. Employment agreements contain the terms and conditions of employment.

Employment Contract

Choose Type of Employment:

Employees are on a fixed-term contract if both of the following apply: a) they have an employment contract with the organisation and b) they work for their contract ends on a particular date, or on completion of a specific task, eg a project. Workers don’t count as fixed-term employees if they: a)have a contract with an agency rather than the company they’re working for, b) are a student or trainee on a work-experience placement, c) are working under a ‘contract of apprenticeship’, d) are a member of the armed forces. They may be a fixed-term employee if they’re: a) a seasonal or casual employee taken on for up to 6 months during a peak period, b) a specialist employee for a project, c) covering for maternity leave. More at www.gov.uk/fixed-term-contracts/what-counts-as-a-fixedterm-contract

Employees are on a fixed-term contract if both of the following apply: a) they have an employment contract with the organisation and b) they work for their contract ends on a particular date, or on completion of a specific task, eg a project. Workers don’t count as fixed-term employees if they: a)have a contract with an agency rather than the company they’re working for, b) are a student or trainee on a work-experience placement, c) are working under a ‘contract of apprenticeship’, d) are a member of the armed forces. They may be a fixed-term employee if they’re: a) a seasonal or casual employee taken on for up to 6 months during a peak period, b) a specialist employee for a project, c) covering for maternity leave. More at https://www.gov.uk/fixed-term-contracts/what-counts-as-a-fixedterm-contract

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THIS EMPLOYMENT CONTRACT (this 'Contract') dated
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BETWEEN:
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The Employer is
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of
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( the " Employer ")
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OF THE FIRST PART
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and
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of
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( the " Employee ")
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OF THE SECOND PART
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BACKGROUND:
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The Employer is of the opinion that the Employee has the necessary qualifications, experience and abilities to assist and benefit the Employer in its business
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The Employer desires to employ the Employee and the Employee has agreed to accept and enter such employment upon the terms and conditions set out in this Contract
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IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Contract, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Contract agree as follows:
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1
Commencement Date and Term
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1.1
The Employee will commence employment with the Employer on
(the 'Commencement Date').
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2
Probationary Period

A probationary period is a stretch of time during which a new employee receives extra supervision and coaching, either to learn a new job or to turn around a performance problem. The probationary period can be as short as a month or as long as a year, depending on the situation. It is also designed to give managers and employees a way to terminate the arrangement more easily should the employment not work out as expected.

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Will the Employee have a probationary period?

A probationary period is a stretch of time during which a new employee receives extra supervision and coaching, either to learn a new job or to turn around a performance problem. The probationary period can be as short as a month or as long as a year, depending on the situation. It is also designed to give managers and employees a way to terminate the arrangement more easily should the employment not work out as expected.

2.1
The Employee must successfully complete a probationary period of
(the 'Probationary Period') beginning on the Commencement Date. At any time during the Probationary Period, as and where permitted by law, the Employer will have the right to terminate this employment without any notice or compensation to the Employee other than wages owed for hours of work already completed.
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3
Job Title and Description
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3.1
The Employee will be employed as a
or in such other capacity as the Employer may from time to time reasonably direct subject to and in accordance with the terms of this contract.
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3.2
The job duties the Employee will be expected to perform will be the following:
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3.2.1
;
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3.3
The Employee agrees to be employed on the terms and conditions set out in this Contract.
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3.4
The Employee agrees to be subject to the general supervision of and act pursuant to the orders, advice and direction of the Employer.
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3.5
The Employer may make changes to the job title or duties of the Employee where the changes would be considered reasonable for a similar position in the industry or business of the Employer. The Employee's job title or duties may be changed by agreement and with the approval of both the Employee and the Employer or after a notice period required under law.
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3.6
The Employee agrees to abide by the Employer's rules, including those concerning work schedules, holidays and sick leave, as they may from time to time be adopted or modified.
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4
Place of Work
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Will the Employee be required work at more than one place?
4.1
The Employee's primary place of work will be at the following location:
.
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4.2
The Employee will also be required to perform his/her duties
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4.3
The Employer will inform the Employee in advance of the Employee being required to work at other locations.
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5
Time of Work
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5.1
The Employee's normal hours of work and breaks ('Normal Hours of Work') are from
to
.
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5.2
However, the Employee will, on receiving reasonable notice from the Employer, work additional hours outside of the Employee's Normal Hours of Work as deemed necessary by the Employer to meet the business needs of the Employer.
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6
Employee Compensation

Compensation refers to money paid for work or a service.

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6.1
Compensation paid to the Employee for the services rendered by the Employee as required by this Contract (the "Compensation") will include
at the rate of
+ In Words
per hour plus:
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6.1.1
Any compensation to be paid for overtime hours
.
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6.2
The Compensation will be payable
while this Contract is in force. The Employer is entitled to deduct from the Employee's Compensation, or from any other compensation in whatever form, any applicable deductions and remittances as required by law.
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6.3
Employee understands and agrees that any additional compensation paid to the Employee in the form of bonuses or other similar incentive compensation will rest in the sole discretion of the Employer and that the Employee will not earn or accrue any right to incentive compensation by reason of the Employee's employment.
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6.4
The Employer will reimburse the Employee for all reasonable expenses, in accordance with the Employer's lawful policies from time to time, including but not limited to, any travel and entertainment expenses incurred by the Employee in connection with the business of the Employer. Expenses will be paid within a reasonable of time after submission of acceptable supporting documentation.
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7
Employee Benefits
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7.1
The Employee will be entitled to only those additional benefits that are currently available as described in the lawful provisions of the Employer's employment booklets, manuals, and policy documents or as required by law.
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7.2
The Employer’s discretionary benefits are subject to change, without compensation, upon the Employer providing the Employee with 60 days written notice of that change and providing that any change to those benefits is taken generally with respect to the other employees and does not single out the Employee.
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8
Pension

A pension is a way to save money for later in Employee’s life. The Employee may be able to get: a) a pension from the government, b) money from pension schemes the Employee or the Employer pay into. More at https://www.gov.uk/plan-retirement-income/overview

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Has the Employer opted out of the standard occuptational pension scheme with a contracting-out certificate?

A pension is a way to save money for later in Employee’s life. The Employee may be able to get: a) a pension from the government, b) money from pension schemes the Employee or the Employer pay into. More at www.gov.uk/plan-retirement-income/overview

8.1
There is a contracting-out certificate in force with respect to the occupational pension scheme that would have covered this employment.
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9
Holidays

Almost all workers are legally entitled to 5.6 weeks’ paid holiday per year (known as statutory leave entitlement or annual leave). An employer can include bank holidays as part of statutory annual leave. Most workers who work a 5-day week must receive 28 days’ paid annual leave per year. This is calculated by multiplying a normal week (5 days) by the annual entitlement of 5.6 weeks. Part-time workers are also entitled to a minimum of 5.6 weeks of paid holiday each year, although this may amount to fewer actual days of paid holiday than a full-time worker would get. ‘Pro-rata basis’ refers to a calculation made in proportion, according to a certain rate. More at https://www.gov.uk/holiday-entitlement-rights

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9.1
The Holiday year will commence on
day of
(the 'Holiday Year').
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9.2
During each Holiday Year, the Employee is entitled to
of paid annual leave including bank holidays and public holidays, such entitlement accruing on a pro rata basis.
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9.3
The times and dates for any holidays will be determined by
between the Employer and Employee.
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9.4
Upon termination of employment, the Employer will pay compensation to the Employee for any accrued and unused holiday.
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10
Sickness and Disability

You can get £88.45 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks. You need to qualify for SSP and have been off work sick for 4 or more days in a row (including non-working days). You can’t get less than the statutory amount. You can get more if your company has a sick pay scheme (or ‘occupational scheme’). More at https://www.gov.uk/statutory-sick-pay

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Which sick pay will be provided to the Employee?

You can get £88.45 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks. You need to qualify for SSP and have been off work sick for 4 or more days in a row (including non-working days). You can’t get less than the statutory amount. You can get more if your company has a sick pay scheme (or ‘occupational scheme’). More at www.gov.uk/statutory-sick-pay

10.1
If the Employee is unable to perform the Employee's duties as result of illness or injury, the Employee will inform the Employer via
of the reason for the Employee’s absence no later than
on the
of the absence or as soon as is reasonably possible. If the absence extends beyond
days, the Employee will obtain and provide the Employer with a certificate or note from the Employee's doctor corroborating such illness or injury.
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10.2
During such absence the Employer will pay to the Employee the Employee's full pay as contractual sick pay, provided that the Employer will pay a maximum of
+ In Words
to the Employee as contractual sick pay in any
months period, the period commencing on the first day for which the Employee is paid contractual sick pay.
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10.3
Any statutory sick pay will be calculated on the basis of Employee's usual work days, being weekends.
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11
Non-Competition

Employers insert non-compete clauses into employment contracts to restrict a worker’s ability to compete against their former employer after they leave, thereby protecting the former employer’s confidential information or customer relations for a specific period of time. They are used in addition to clauses which relate specifically to confidential information and intellectual property. For a restrictive covenant to be enforced it must not be drafted too widely. It will be for the employer, in the event of a clause being challenged, to show that the clause is justified and sufficiently narrow. To meet these criteria an employer must be mindful of certain factors: a) The breadth of the geographical area of any restriction and the length of time of the post termination restriction must be justified. It is unlikely that a wide geographical area will be justified and, as a general rule, a restriction for more than 6-12 months will be difficult to justify. b) The breadth of the activities that the employer is trying to restrict. c) The type of interest being protected, for instance, information such as trade secrets may be granted wider protection than customer information, given that its potential use across markets is wider.

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11.1
The Employee agrees that during the Employee's term of active employment and for a period of
after the end of that term, the Employee will not, directly or indirectly, as employee, sole proprietor, director, partner, owner, consultant, agent, founder, co-founder, co-venture, member or otherwise, solely or jointly with others engage in any business that is in competition with the business of the Employer within any geographic area in which the Employer conducts its business, or give advice or lend credit, money or the Employee's reputation to any natural person or business entity engaged in a competing business in any geographic area in which the Employer conducts its business.
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12
Non-Solicitation

Non-solicitation clauses are restrictions that seek to prohibit employees from poaching customers or suppliers once they leave. Typically, the more senior the employee and the more access they have to sensitive commercial information, the more likely it is that restrictive covenants will be included – and found to be enforceable by courts.

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12.1
The Employee understands and agrees that any attempt on the part of the Employee to induce other employees or contractors to leave the Employer's employ, or any effort by the Employee to interfere with the Employer's relationship with other employees and contractors would be harmful and damaging to the Employer. The Employee agrees that during the Employee's term of employment with the Employer and for a period of
after the end of that term, the Employee will not in any way, directly or indirectly:
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12.1.1
Induce or attempt to induce any employee or contractor of the Employer to quit employment or retainer with the Employer;
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12.1.2
Otherwise interface with or disrupt the Employer's relationship with its employees and contractors;
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12.1.3
Discuss employment opportunities or provide information about competitive employment to any of the Employer's employees or contractors;
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12.1.4
Solicit, entice, or hire away any employee or contractor of the Employer for the purpose of an employment opportunity that is in competition with the Employer.
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12.2
This non-solicitation obligation as described in this section 12 will be limited to employees or contractors who were employees or contractors of the Employer during the period that the Employee was employed by the Employer.
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12.3
During the term of Employee's active employment with the Employer, and while employed thereafter, the Employee will not divert or attempt to divert from the Employer any business the Employer had enjoyed, solicited, or attempted to solicit, from its customers, prior to termination or expiration, as the case may be, of the Employee's employment with the Employer.
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13
Conflict of Interest
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13.1
During the term of the Employee's active employment with the Employer, it is understood and agreed that any business opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities brought to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer, with the exception of investments in:
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13.1.1
Real estate;
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13.1.2
Stocks and bonds traded on public stock exchanges;
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13.1.3
Established family business;
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13.1.4
Personal investment in less than
of the equity of a business;
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13.2
The Employee agrees that during the Employee's active employment with the Employer, the Employee will not, directly or indirectly, engage or participate in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interest of the Employer without the written consent of the Employer.
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14
Termination of Employment
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14.1
Where there is just cause for termination, the Employer may terminate the Employee's employment without notice, or as required by law.
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14.2
The Employee and the Employer agree that reasonable and sufficient notice for termination of employment by the Employer is
.
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14.3
If the Employee wishes to terminate this employment with the Employer, the Employee will provide the Employer with
notice period.
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14.4
Notwithstanding any other term or condition expressed or implied in this Contact to the contrary, in the event that Employer will discontinue operating its business at the location where the Employee is employed, then, at the Employee's sole option, and as permitted by law, this Contract will terminate as of the last day of the month in which the Employer ceases operations at such location with the same force and effect as if such last day of month were originally set as the Termination Date of this Contact.
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14.5
For the purpose of this Contract 'Termination Date' means the date specified in this Contract or in a subsequent notice by either the Employee or the Employer to be the last day of employment under this Contract.
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15
Disciplinary Procedure

The Employer could start formal disciplinary action against the Employee if they have concerns about work, conduct or absence. Before taking formal disciplinary action or dismissing the Employee, the Employer may try to raise the matter informally. However, the Employer can go straight to their formal disciplinary or dismissal procedures. Disciplinary procedures are a set way for the Employer to deal with disciplinary issues. The Employer should include a disciplinary hearing where the Employee is given a chance to explain your side of the story. There should also be a chance to appeal any disciplinary action the Employer decides to take. More at https://www.gov.uk/disciplinary-procedures-and-action-at-work/overview

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15.1
The Employer's disciplinary procedure, as amended from time-to-time, applies to the Employee. The Employer's disciplinary procedure is
and will be provided to the Employee or made available to the Employee upon request.
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15.2
This Contract and the Employer's disciplinary procedure will be read and interpreted so as to avoid conflict, as far as reasonably possible.
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15.3
If there is a conflict between this Contract and the Employer's disciplinary procedure,
shall prevail.
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16
Grievance Procedure

Grievance refers to injustice, or wrong that affords reason for resistance or a formal expression in form of a written complaint.

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16.1
The Employer's grievance procedure, as amended from time-to-time, applies to the Employee. The Employer's disciplinary procedure is
and will be provided to the Employee or made available to the Employee upon request.
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17
Contract Binding Authority
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17.1
Notwithstanding any other term or condition expressed or implied in this Contact to the contrary, the Employee
have the authority to enter into any agreements or commitments for or on the behalf of the Employer without first obtaining the written consent of the Employer.
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18
Collective Agreement

The Employer may have an agreement with employees’ representatives (from trade unions or staff associations) that allows negotiations of terms and conditions like pay or working hours. This is called a collective agreement. More at https://www.gov.uk/employment-contracts-and-conditions/collective-agreements

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18.1
There
a collective agreement in place , details of which are available to the Employee upon request.
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19
Confidential Information
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19.1
The Employee acknowledges that, in any position the Employee may hold and as a result of the Employee's employment, the Employee will, or may, be making use of, acquiring or adding to information which is confidential to the Employer (the 'Confidential Information') and the Confidential Information is the exclusive property of the Employer.
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19.2
The Confidential Information will include all data and information relating to the business and management of the Employer, including but not limited to:
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19.2.1
Proprietary and trade secret technology;
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19.2.2
Accounting records to which access is obtained by the Employee;
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19.2.3
Work product information, including but not limited to, work product resulting from or related to work or projects performed or to be performed for the Employer or for clients, of any type or form in any stage or actual or anticipated research and development;
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19.2.4
Computer software resulting from or related to work or projects performed or to be performed for the Employer or for clients of the Employer, of any type or form in any stage of actual or anticipated research and development, including but not limited to, programs and program modules, routines and subroutines, flowcharts, coding sheets, and the like), source code, object code and load modules, programming, program patches and system designs;
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19.2.5
Information relating to the Employer's proprietary rights prior to any public disclosure of such information, including but not limited to, the nature of the proprietary rights, production data, technical and engineering data, test data and test results, the status and details of research and development of products and services, and information regarding acquiring, protecting, enforcing and licensing proprietary rights, including patents, utility patents, copyrights, designes and trade secrets,
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19.2.6
Operational information, including but not limited to, internal personnel and financial information, vendor names and other vendor information, including vendor characteristics, services and agreements, purchasing and internal cost information, internal services and operational manuals, and the manner and methods of conducting the Employer's business;
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19.2.7
Marketing and development information, including but not limited to, marketing and development plans, price and cost data, price and free amounts, pricing and billing policies, quoting procedure, marketing techniques and methods of obtaining business, forecasts and forecast assumptions and volumes, and future plans and potential strategies of the Employer which have been or are being considered;
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19.2.8
Customer information, including, but not limited to, names of customers and their representatives, contracts and their contents and parties, customer services, data provided by customers and the type, quantity and specifications of products and services purchased, leased, licensed or received by customers of the Employer;
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19.2.9
Any information that has been disclosed by a third party to the Employer and is governed by a non-disclosure agreement entered into between that third party and the Employer;
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19.3
The Confidential Information will not include information that:
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19.3.1
Is generally known in the industry of the Employer;
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19.3.2
Currently or subsequently becomes generally available to the public through no wrongful act of the Employee;
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19.3.3
Was rightfully in the possession of the Employee prior to the disclosure to the Employee by the Employer;
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19.3.4
Is independently created by the Employee without direct or indirect use of the Confidential Information;
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19.3.5
The Employee rightfully obtains from a third party who has the right to transfer or disclose it;
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19.4
The Confidential Information will also not include anything developed or produced by the Employee during the Employee's term of employment with the Employer, including but not limited to, any intellectual property, process, design, development, creation, research, invention, know-how, trade name, trade-mark or copyright that:
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19.4.1
Was developed without the use of equipment, supplies, facility or Confidential Information of the Employer; and.
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19.4.2
Was developed entirely on the Employee's own time; and.
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19.4.3
Does not result from any work performed by the Employee for the Employer; and.
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19.4.4
Does not relate to any actual or reasonably anticipated business opportunity of the Employer.
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19.5
The Employee agrees that the material term of the Employee's contract with the Employer is to keep all Confidential Information absolutely confidential and protect its release from the public. The Employee agrees not to divulge, reveal, report or use, for any purpose, any of the Confidential Information which the Employee has obtained or which was disclosed to the Employee by the Employer as a result of the Employee's employment by the Employer. The Employee agrees that if there is any question as to such disclosure then the Employee will seek out senior management of the Employer prior to making any disclosure of the Employer's information that may be discovered by this Agreement.
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19.6
The Employee agrees to acknowledge that the Confidential Information is of a proprietary and confidential nature and that any disclosure of Confidential Information to a third party in breach of this Agreement cannot be reasonably or adequately compensated for in money damages, would cause irreparable injury to Employer, would gravely affect the effective and successful conduct of the Employer's business and goodwill, and would be a material breach of this Agreement.
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19.7
The obligation to ensure and protect the confidentiality of the Confidential Information imposed on the Employee by this Agreement and any obligation to provide notice under this Agreement will survive the expiration or termination, as the case may be, of this Agreement and will continue
from the date of such expiration or termination.
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19.8
The Employee may disclose any of the Confidential Information:
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19.8.1
To the extent required by law or by the request or requirement of any judicial, legislative, administrative or other governmental body;
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19.8.2
To a third party where Employer has consented in writing to such disclosure;
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19.9
If the Employee loses or makes unauthorised disclosure of any of the Confidential Information, the Employee will immediately notify the Employer and take all reasonable steps necessary to retrieve the lost or improperly disclosed Confidential Information.
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19.10
The Employee acknowledges and agrees that all rights, title and interest in any Confidential Information will remain the exclusive property of the Employer. Accordingly, the Employee agrees and acknowledges that the Employee will have no interest in the Confidential Information, including, without limitation, no interest in know-how, copyright, trade-marks or trade names, notwithstanding the fact that the Employee may have created or contributed to the creation of Confidential Information.
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19.11
The Employee agrees to immediately disclose to the Employer all Confidential Information developed in whole or in part by the Employee during the Employee's term of employment with the Employer and to assign to the Employer any right, title or interest the Employee may have in the Confidential Information. The Employee agrees to execute any instruments and to do all other things reasonable requested by the Employer, both during and after the Employee's employment with the Employer, in order to vest more fully in the Employer all ownership rights in those items transferred by the Employee to the Employer.
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19.12
The Employee waives any moral rights that the employee may have with respect to the Confidential Information.
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19.13
The Employee agrees that, upon request of the Employer or upon termination or expiration, as the case may be, of this employment, the Employee will return to the Employer all Confidential Information belonging to the Employer, including but not limited to, all documents, plans, specifications, disks or other computer media, as well as any duplicates or backups made of that Confidential Information in whatever form or media, in the possession or control of the Employee that:
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19.13.1
Is connected with or derived from the Employee’s employment with the Employer.
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19.13.2
May contain or be derived from ideas, concepts, creations, or trade secrets and other proprietary and Confidential Information as defined in this Agreement.
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20
Notice
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20.1
Any notice or other communications shall be deemed given upon personal delivery to the appropriate address, or if sent by certified or registered mail
days after the date of mailing to the following:
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20.2
To: Employer.
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Individual Name:
.
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Company:
.
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Phone:
.
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Email:
.
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20.3
To: Employee.
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Individual Name:
.
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Company:
.
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Phone:
.
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Email:
.
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21
Applicable Law
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21.1
This Contract shall be governed by and construed in accordance with the laws of Country of
and the parties submit to the exclusive jurisdiction of the Courts of England and Wales with regard to any dispute or claim arising under this Agreement.
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22
Pronouns; Statutory References
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22.1
All pronouns and all variations thereof shall be deemed to refer to the masculine, feminine, or neuter, singular or plural, as the context in which they are used may require. Any reference to the Code, the Regulations, the Act, or other statutes or laws will include all amendments, modifications, or replacements of the specific sections and provisions concerned.
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23
Interpretation
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23.1
In the event of a claim being made by any party relating to any conflict, omission or ambiguity in this Contract, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Contract was prepared by or at the request of a particular party or the party’s counsel.
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24
References to this Contract
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24.1
Numbered or lettered articles, sections and subsections herein contained refer to articles, section and subsections of this Contract unless otherwise expressly stated.
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25
Exhibits
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25.1
All Exhibits attached to this Contract are incorporated and shall be treated as if set forth herein.
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26
Severability
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26.1
In the event that any term or provision of this Contract shall for any reason be held to be invalid, illegal or unenforceable in any respect, such validity, illegality or unenforceability shall not affect any other term or provision, and this Contract shall be interpreted and construed as if such term or provision, to the extent the same shall have been held invalid, illegal or unenforceable, had never been contained herein.
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27
Cooperation
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27.1
Each of the parties hereto shall execute and deliver any and all additional papers, documents, and other assurances, and shall do any and all acts and things, which are reasonably necessary (including, without limitation, the delivery by Assignor of any original Trademark registration certificates and all subsequent certificates should they issue to Assignor, including all executed assignment documents relating to this Contract to Assignee promptly after the date listed above in connection with the performance by the parties of their obligations hereunder and to carry out the intent of the parties hereto.
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28
Paragraph Headings
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28.1
The paragraph headings used herein are descriptive only and shall not affect the meaning or interpretation of this Contract.
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29
Counterparts
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29.1
This Contract may be executed in one or more counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same Contract.
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30
Entire Contract
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30.1
This Contract constitutes the entire understanding between the parties with respect to the subject matter contained herein.
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30.2
This Contract supersedes any and all pre-existing employment contracts or agreements between the parties. Any duties, obligations and liabilities still in effect from any pre-existing employment agreement are void and no longer enforceable after execution of this Contract.
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IN WITNESS WHEREOF, the Parties agree to the above terms and duly affix their signatures on _____
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__________________________________
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,
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_____
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SIGNED, SEALED AND DELIVERED
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__________________________________
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_____
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