FAQS
Should the founders have employment agreements?
- Operations
- Human Resources
Yes. While not a requirement, it is highly recommended that each of the founders enter into an offer letter agreement and/or employment agreement with the company that sets forth the general terms and conditions of their employment.
Any severance obligations in the event the founder leaves the company should be provided in the employment agreement. Typically, there are separate agreements covering the assignment of intellectual property and confidentiality. It is very important to make sure that the intellectual property generated by the team is properly assigned to the company and not owned by individuals.
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