Employment Contract
Secure your SaaS leadership with a Texas-compliant founder employment contract addressing IP assignment, at-will status, and TX Bus & Com Code § 15.50.
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As a SaaS founder in Texas, your employment contract is more than a payroll document; it is a critical instrument for safeguarding your intellectual property (IP) and defining executive liability.... Read more
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Legal Document
This Employment Contract ("Agreement") is entered into and made effective as of 2026-04-19 (the "Effective Date"), by and between [employer_name] ("Employer") and [employee_name] ("Employee"), collectively referred to herein as the "Parties" and individually as a "Party."
WHEREAS, Employer desires to employ Employee in the capacity of [job_title], and Employee desires to accept such employment, subject to the terms and conditions set forth herein;
WHEREAS, the Parties wish to establish the terms of Employee's employment, including compensation, duties, and obligations, to ensure a clear mutual understanding;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Employer hereby employs Employee in the position of [job_title]. Employee shall perform all duties and responsibilities customarily associated with such position, as well as any additional duties reasonably assigned by Employer from time to time. Employee shall devote their full professional time, attention, and best efforts to the performance of their duties and shall act in the best interests of Employer at all times. Employee shall comply with all policies, procedures, rules, and regulations established by Employer, as may be amended from time to time at Employer's sole discretion.
In consideration of the services rendered by Employee under this Agreement, Employer shall pay Employee a gross annual salary of [salary] (the "Base Salary"), payable on a [pay_frequency] basis in accordance with Employer's standard payroll practices, less all applicable withholdings, deductions, and taxes as required by law. Employer reserves the right to review and adjust Employee's compensation at its discretion, and any such adjustment shall not constitute a new agreement or modification of this Agreement unless set forth in a written amendment signed by both Parties.
Employee may be eligible to participate in any employee benefit plans, programs, and arrangements that Employer makes available to its employees generally, subject to the terms and eligibility requirements of such plans. Such benefits may include, but are not limited to, health insurance, dental and vision coverage, retirement plans, paid time off, and other fringe benefits. Employer reserves the right to modify, amend, or terminate any benefit plan or program at any time, in its sole discretion, with or without notice, subject to applicable law. Nothing in this Agreement shall be construed as a guarantee of any particular benefit.
Employee's primary work location and schedule shall be as set forth in this section, subject to modification by Employer as business needs require.
Employee's employment under this Agreement shall commence on 2026-04-19 (the "Start Date").
This Agreement and Employee's employment may be terminated under the following circumstances:
Employee acknowledges that during the course of employment, Employee will have access to and may acquire knowledge of confidential and proprietary information belonging to Employer, including but not limited to trade secrets, business plans, financial information, customer lists, marketing strategies, product designs, software, technical data, and other information not generally known to the public (collectively, "Confidential Information"). Employee agrees to hold all Confidential Information in strict confidence and not to disclose, publish, or otherwise reveal any Confidential Information to any third party during or after employment, except as required in the performance of Employee's duties or as authorized in writing by Employer. Employee agrees not to use any Confidential Information for Employee's own benefit or for the benefit of any third party. This obligation of confidentiality shall survive the termination of this Agreement and Employee's employment for any reason.
During the term of Employee's employment and for a period of twelve (12) months following the termination of employment for any reason, Employee shall not, directly or indirectly: (a) solicit, recruit, or attempt to induce any employee, contractor, or consultant of Employer to leave Employer's employment or engagement; or (b) solicit, divert, or attempt to divert any customer, client, or business relationship of Employer for the purpose of providing products or services that are competitive with those offered by Employer. Employee acknowledges that this non-solicitation covenant is reasonable in scope and duration and is necessary to protect Employer's legitimate business interests.
Upon termination of employment for any reason, or at any time upon Employer's request, Employee shall immediately return to Employer all property belonging to Employer, including but not limited to keys, access cards, identification badges, laptops, mobile devices, documents, files, records, manuals, software, data (in any form or medium), and any other materials or equipment provided to Employee or created by Employee during the course of employment. Employee shall not retain any copies, duplicates, reproductions, or excerpts of any Employer property or Confidential Information.
This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of [state_law], without regard to its conflict of laws principles. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or validity thereof, shall be resolved exclusively in the state or federal courts located in the State of [state_law], and each Party hereby consents to the personal jurisdiction of such courts.
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No amendment or modification of this Agreement shall be valid or binding unless set forth in writing and signed by both Parties. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's right to enforce that provision or any other provision in the future. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The headings in this Agreement are for convenience only and shall not affect the interpretation of any provision.
[equity vesting schedule]
[ip assignment scope]
IN WITNESS WHEREOF, the Parties have executed this Employment Contract as of the date first written above, intending to be legally bound hereby.
Employer
Name: Employer
Date: 2026-04-19
Employee
Name: Employee
Date: 2026-04-19
As a SaaS founder in Texas, your employment contract is more than a payroll document; it is a critical instrument for safeguarding your intellectual property (IP) and defining executive liability. This contract addresses unique Texas statutes like Tex. Bus. & Com. Code § 15.50 to ensure non-compete enforceability, alongside digital-first protections against data breach liability and service downtime. By establishing clear SLA expectations and MRR-linked performance metrics, you mitigate risks under the DTPA while securing the startup’s core assets through robust confidentiality and Texas-specific at-will employment provisions.
Beyond the standard employment contract sections, this template adds fields specific to SaaS Startup Founder:
An employment contract establishes a formal employment relationship between an employer and an employee, outlining the terms and conditions of employment, rights, obligations, and responsibilities of both parties. It provides legal protection and clarity, ensuring compliance with employment laws and minimizing the risk of misunderstandings and disputes.
Data Breach Liability
Contracts often include detailed data security protocols, cyber liability insurance, and indemnification clauses to distribute risk.
Service Downtime Liability
Service Level Agreements (SLAs) typically specify uptime guarantees and provide remedies, such as service credits, for downtime.
Under Tex. Bus. & Com. Code § 15.50, non-compete agreements in Texas must be 'ancillary to or part of an otherwise enforceable agreement' and include reasonable limits on time, geographical area, and scope of activity. For SaaS founders, this usually means the clause is tied to the exchange of trade secrets or specialized training to ensure enforceability during potential IP disputes.
Yes. While the employment contract focuses on the founder's role, it includes critical indemnification and confidentiality clauses that align with GDPR and CCPA requirements. It ensures that the founder’s management of software availability and data security is governed by specific performance standards, limiting personal liability for industry-standard risks like MRR churn or minor SLA breaches.
Yes, Texas is an at-will employment state. However, SaaS founder contracts often include specific 'Termination for Cause' and 'Good Reason' definitions to protect the executive's equity and compensation should the board or investors seek a leadership change, providing a layer of security not found in standard at-will agreements.
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