An employment contract or an employment agreement sets forth the terms of employment between an employer and its employee. The following is an example of a employment agreement for the position of City Manager.


THIS AGREEMENT, made and entered into this ______ day of __________________ 20__, by and between the City of __________, State of ______, a municipal corporation, hereinafter called “Employer”, as party of the first part, and ________, hereinafter called “Employee”, as party of the second part, both of whom understand as follows:


WHEREAS, Employer desires to employ the services of said _______ as City Manager of the City of _____, as provided by Chapter V, Section 21 of the _____ City Charter of 20__; and

WHEREAS, it is the desire of the Governing Board, hereinafter called “Commission”, to provide certain benefits, establish certain conditions of employment and to set working conditions of said Employee; and

WHEREAS, it is the desire of the Commission to (1) secure and retain the services of Employee and to provide inducement for him to remain in such employment, (2) to make possible full work productivity by assuring Employee’s morale and peace of mind with respect to future security, (3) to act as a deterrent against malfeasance or dishonesty for personal gain on the part of Employee; and  (4) to provide a just means for terminating Employee’s services at such time as he may be unable fully to discharge his duties due to age or disability or when Employer may otherwise desire to terminate his employ; and

WHEREAS, Employee desires to accept employment as City Manager of _________;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:


A. Employer hereby agrees to employ said ________ as City Manager of __________ to perform the functions and duties specified in said Chapter V, Section 21 of the ________ Charter of 20__ and to perform other legally permissible and proper duties and functions a the Commission shall from time to time assign.

B. Employer hereby agrees to the principle of noninterference in the administration as necessary to the orderly and efficient implementation of Commission policy and agrees to direct concerns and communications to the administration through the City Employee agrees to respond promptly to all inquiries from the Commission whether made individually or collectively.


A. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the Commission to terminate services of Employee at any time, subject only to the provisions set forth in Section 4, paragraphs A and B, of this agreement.

B. Nothing in this agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with Employer, subject only to the provisions set forth in Section 4, paragraph C, of this agreement.

C. Employee agrees to remain in the exclusive employ of Employer until December 1, 1985, and neither to accept other employment nor to become employed by any other employer until said termination date, unless said termination date is affected as hereinafter

The term “employed” shall not be construed to include occasional teaching, writing, consulting or military reserve service performed on Employee’s time off. Excluded from the term “employed” shall be the conduct of a private business that has no relation or conflict with the City as decided by the Commission.

D. In the event written notice is not given by either party to this agreement to the other 30 days prior to the termination date as herein provided, this agreement shall be extended on the same terms and conditions for one-year terms. If the term is not extended, it will be allowed to reach its existing effective ending date. This subsection should take full effect upon completion of the first seven months of employment. Renewal for the next twelve months shall then occur, with annual renewals or notice as provided. Renewal shall automatically occur unless specific action to the contrary is taken or a mutually agreed upon change is made to the agreement.


Employer may suspend Employee with full pay/ and benefits at any time during the term of this agreement, but only if

(1) a majority of Commission and Employee agree, or

(2) after a public hearing, a majority of Commission votes to suspend Employee for just cause, provided however, that Employee shall have been given written notice setting forth any charges at least ten days prior to such hearing by the Commission members bringing such charges.


A. In the event Employee is terminated by the Commission before expiration of the aforesaid term of employment and during such time that Employee is willing and able to perform his duties under this agreement, then in that event Employer agrees to pay Employee a lump sum cash payment equal to six months at Employee’s highest rate of pay during his term of City employ.

Termination for cause shall be immediate by the Commission in the event of Employee’s conviction of any illegal act, i.e refusal to comply, conviction of fraud, embezzlement, involving personal gain to himself, not carrying out provisions of agreement, etc. Employer shall have no obligation to pay any severance designated in this Section.

Termination without cause by either party giving 30 days notice shall be termination in good standing and shall entitle Employee to a lump sum payment equivalent to all accrued vacation and sick leave benefits.

B. In the event Employer at any time during the term of this agreement reduces the salary or other financial benefits of Employee, with the exception of unavoidable budgetary reasons, or in the event Employer refuses, following written notice, to comply with any other provision benefiting Employee herein, or Employee resigns following a suggestion, whether formal or informal, by the Commission that he resign, then, in that event, Employee may, at his option, be deemed to be “terminated” at the date of such refusal to comply within the meaning and context of the herein severance pay provision.

C. In the event Employee voluntarily resigns his position with Employer before expiration of the aforesaid term of his employment, then Employee shall give Employer 45 days notice in advance, unless the parties otherwise

D. In the event of termination of agreement by Employer, Employee shall be entitled to severance as provided for involuntary termination during mid-term of the agreement but reduced as follows:

– 150 – 180 days notice, one months severance pay
– 90 – 150 days notice, three months severance pay
– 30 – 90 days notice, four months severance pay
– 30 days or less notice, six months severance pay


If Employee is permanently disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity or health for a per iod of four successive weeks beyond any accrued sick leave, or for twenty working days over a thirty working day period, Employer shall have the option to terminate this agreement, subject to the severance pay requirements of Section 4, paragraph A. However, Employee shall be compensated for accrued sick leave, vacation, holidays, compensatory time and other benefits.


Employer agrees to pay Employee for his services rendered pursuant hereto an annual base salary of $___,___ payable in installments at the same time as other employees of the Employer are paid.

In addition, Employer agrees to increase said base salary and/or other benefits of Employee in such amounts and to such extent as Employer may determine that it is desirable to do so on the basis of an annual performance evaluation made at the same time as similar consideration is given other employees generally.


A. The Mayor and Commission agree to meet with Employee in January or February each year for the purpose of defining goals and performance objectives which they determine necessary for the proper operation of the City and the attainment of the City’ s policy objectives. The Commission shall establish a relative priority among the various goals and objectives and reduce them to writing. Said goals and objectives shall generally be attainable within the time limitations as specified and the annual operating and capital budgets and appropriations provided.

B. Commission and Employee shall meet at least annually to evaluate and assess performance of Employee in meeting or progressing towards the goals formally adopted by Commission. These annual evaluations shall be conducted at least 120 days prior to the annual renewal date of the agreement.

C. The Mayor and individual Commission members shall be encouraged to periodically identify their concerns to Employee by either informal discussions with Employee or by more formal means during Commission meetings.

D. In the event Commission determines that the performance of Employee is unsatisfactory in any respect or needs significant improvement in any area, Commission shall describe these concerns in writing and in reasonable detail or with specific examples so as to be objective and positive in An adequate opportunity shall be provided for Employee to discuss the evaluation with the Commission.

E. In effecting provisions of this Section, Commission and Employee mutually agree to abide by the provisions of applicable law.


Because Employee will devote a great deal of time outside normal office hours to business of the City, flexibility in hours worked and work schedules benefit both Employer and Employee, Employee has sole discretion as to his work schedule and hours worked. Work in excess of an average 40 hour week shall be deemed part of the professional responsibility for which Employee shall not be paid overtime; but for which, he shall be allowed to offset, in part, by taking compensatory time off as he shall deem appropriate.


Employee shall not spend more than 10 hours per week in teaching, counseling or other non-Employer connected business without prior approval of Employer.


Employee agrees to move into the City of ________ within one year of appointment. Employee shall be paid at time of move, an amount not to exceed $______, to cover costs associated with subsequent move.


Employee shall bear all current home sale and future home purchase expenses.


Employer agrees to compensate Employee for use of his private vehicle to perform work related activities at a rate not to exceed $____ per month.


A. In recognition of Employees education and experience in local government administration, equivalent to almost 25 years, Employee shall be credited with 7/12ths of 30 days, or 18 days (144 hours) vacation credit on December 1, 20__ and 30 days (240 hours) credit on July 1, 20__ and each ensuing July 1 thereafter.  Employee shall be credited with 30 days sick leave. Thereafter, Employee shall accrue, and have credited to his personal account, sick leave at the same rate as other general employees of the City.

B. Employee shall be entitled to military reserve leave time pursuant to State law and City policy.


A. Employer agrees to put into force and to make required premium payments for Employee for insurance policies for life, accident, sickness, disability income benefits, major medical and dependent’ s coverage group insurance covering Employee and his dependents, which policies are under the group programs offered by the City.

B. Employer agrees to purchase and to pay the required premiums on whole life insurance policies equal in amount to three times the annual gross salary of Employee, with the beneficiary named by Employee to receive one-half of any benefits paid, Employer the other one-half.

C. Employer agrees to provide hospitalization, surgical and comprehensive medical insurance for Employee and his dependents and to pay the premiums thereon equal to that which is provided all other employees of Employer or, in the event no such plan exists, to provide same for Employee.

D. Employer shall provide travel insurance for Employee while he is traveling on Employer’s business, with Employee to name beneficiary thereof.

E. Employee agrees to submit once per calendar year to a complete physical examination by a qualified physician selected by Employer, the cost of which shall be paid by Employer shall receive a copy of all medical reports related to said examination.

F. Employer shall pay initiation fees for Employee and family to belong to a health Membership to be in City’s name and Employee to pay monthly fees.

G. Employer to cover Employee and dependents from date of hire to date of eligibility in City’s insurance programs by reimbursing Employee’s contributions to existing program in City where he is employed.


A. Employer agrees to contribute into the State Public Employees Retirement System (PERS), on Employee’s behalf, an amount equal to six percent of Employee’s gross salary each payroll period.

B. In addition to the base salary identified in Section 6, Employer agrees, on Employee’s behalf to contribute into a deferred compensation program designated by Employee an amount equal to 7 percent of Employee’s base salary, in equal proportionate amounts each pay period, and to transfer ownership to succeeding employers upon Employee’s resignation or discharge.


Employer agrees to budget and to pay for professional dues and subscriptions of Employee necessary for bis continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for bis continued professional participation, growth and advancement, and for the good of Employer.


A. Employer hereby agrees to budget for and to pay travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the annual Conference of International City Management Association, the State league of municipalities and such other national, regional, state and local governmental groups and committees thereof which Employee serves as a member.

B. Employer also agrees to budget and to pay for travel and subsistence expenses of Employee for short courses, institutes and seminars that are necessary for his professional development and for the good of Employer.


Employer recognizes that certain expenses of a nonpersonal and generally job-affiliated nature are incurred by Employee, and hereby agrees to reimburse or to pay said general expenses and the Finance Director is hereby authorized to disburse such monies upon receipt of duly executed expense or petty cash vouchers, receipts, statements or personal affidavits.


Employer recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to become a member of civic service clubs upon the advise of the Mayor and for which Employer shall pay all expenses. Employee shall report to Employer on each membership that he has obtained at Employer’s expense.


Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee’s duties as City Manager.    Employer will compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered thereon.


Employer shall bear full cost of any fidelity or other bonds required of Employee under any law or ordinance.


A. The Commission, in consultation with the City Manager, shall fix any such other terms and conditions of employment as may be determined from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of the agreement, the ________ Charter of 20__ or any other law.

B. All provisions of the _________ Charter of 20__ and City Code, and regulations and rules of Employer relating to vacation and sick leave, retirement and pension system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended, also shall apply to Employee as they would to other employees of Employer, in addition to said benefits enumerated specifically for the benefit of Employee except as herein provided.

C. Employee shall be entitled to receive the same vacation and sick leave benefits as are accorded department directors, including provisions governing accrual and payment therefor on termination of


Employer shall not at any time during the term of this agreement reduce the salary, compensation or other financial benefits of Employee, with the exception of unavoidable budgetary reasons.


Notices pursuant to this agreement shall be given by deposit in the custody of the United States Postal Service, postage prepaid, addressed as follows:

(1) EMPLOYER: ______________________________(title and address of relevant official i.e. Mayor, City Recorder, etc.)

(2) EMPLOYEE: _____________________________(i.e. name, address)

Alternatively, notices required pursuant to this agreement may be personally served in the same manner as is applicable to civil jud icial practice.     Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.


A. The text herein shall constitute the entire agreement between the parties.

B. This agreement shall be bind ing upon and inure to the benefit of the heirs at law and executors of Employee.

C. This agreement shall become effective commencing on December 1, 20__.

D. If any provision, or any portion thereof, contained in this agreement is held unconstitutional, invalid or unenforceable, the remainder of thip agreement, or por tion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

IN WITNESS WHEREOF, the City Commission of ________ has caused this agreement to be signed and executed in its behalf by its Mayor and duly attested by its City Recorder, and Employee has signed and executed this agreement, both in duplicate, the day and year first above written.



Mayor, City of ________




City Recorder, City of _______   Employee




City Attorney, City of _________