Founder Employment Agreement Template for Netherlands

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Key Requirements PROMPT example:

Founder Employment Agreement

"Need a Dutch Founder Employment Agreement for a SaaS startup with three co-founders, where each founder will receive 25% equity and serve as C-level executives starting March 1, 2025, with specific focus on IP protection and non-compete provisions."

Document background
The Founder Employment Agreement is essential when formalizing the employment relationship between a company and its founder(s) under Dutch law. This document is typically used when transitioning from an informal founding arrangement to a structured employment relationship, or when establishing a new venture where founders will be actively involved in operations. It combines standard Dutch employment law requirements with specific provisions addressing the unique position of a founder-employee, including equity arrangements, board positions, and intellectual property rights. The agreement ensures compliance with Dutch labor laws while protecting both parties' interests through clear terms on responsibilities, compensation, and obligations. This document is particularly crucial for startups and scale-ups seeking to establish professional governance structures and clear organizational hierarchies.
Suggested Sections

1. Parties: Identification of the company and the founder-employee, including full legal names and addresses

2. Background: Context of the agreement, including the founder's role in establishing the company and the purpose of the employment relationship

3. Definitions: Key terms used throughout the agreement, including Company, Confidential Information, Intellectual Property Rights, etc.

4. Appointment and Role: Specific position, duties, and responsibilities as both founder and employee

5. Term and Notice Period: Duration of employment and notice requirements for termination in accordance with Dutch law

6. Working Hours and Location: Expected working patterns and primary work location, acknowledging flexibility typical for founder roles

7. Remuneration and Benefits: Salary, bonuses, equity arrangements, and other benefits

8. Holiday and Leave: Vacation entitlement and other leave rights under Dutch law

9. Intellectual Property Rights: Assignment and protection of IP created during employment

10. Confidentiality: Protection of company secrets and confidential information

11. Data Protection: Compliance with GDPR and Dutch privacy laws

12. Post-Termination Restrictions: Non-compete and non-solicitation provisions subject to Dutch law limitations

13. Termination: Grounds and procedures for ending the employment relationship

14. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction

Optional Sections

1. Board Position: Required if the founder will serve as a statutory director (bestuurder), including specific provisions for corporate governance

2. Shareholding Provisions: Include when the founder holds or will receive shares, covering share-related rights and obligations

3. International Travel: Include for roles requiring significant international travel, addressing expenses and working arrangements

4. Sick Leave and Disability: Enhanced provisions beyond statutory requirements for founder protection

5. Training and Development: Include if specific professional development or training arrangements are agreed

6. Corporate Opportunity: Include to address handling of business opportunities and potential conflicts of interest

7. Severance Arrangements: Special separation terms beyond statutory requirements

8. Regulatory Compliance: Include for regulated industries or positions requiring specific certifications

Suggested Schedules

1. Schedule 1 - Remuneration Package: Detailed breakdown of salary, bonuses, equity, and other financial benefits

2. Schedule 2 - Share Option Scheme: Details of any share options or equity incentive plans

3. Schedule 3 - Job Description: Detailed outline of roles and responsibilities

4. Schedule 4 - Company Policies: Key company policies applicable to the founder-employee

5. Schedule 5 - Restricted Activities: Detailed list of restricted activities under non-compete provisions

6. Appendix A - Invention Assignment: Specific provisions for assignment of inventions and intellectual property

7. Appendix B - Data Protection Policy: Detailed privacy and data protection requirements

8. Appendix C - Expense Policy: Guidelines for business expense claims and reimbursement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Technology

Software Development

E-commerce

Financial Services

Healthcare Technology

Biotechnology

Clean Energy

Professional Services

Digital Media

Manufacturing

Retail Innovation

Educational Technology

Artificial Intelligence

Telecommunications

Sustainable Technologies

Relevant Teams

Human Resources

Legal

Executive Leadership

Board of Directors

Corporate Governance

Compensation Committee

Strategy

Operations

Relevant Roles

Founder

Co-Founder

Chief Executive Officer

Chief Technology Officer

Chief Financial Officer

Chief Operating Officer

Chief Product Officer

Managing Director

Executive Director

Technical Director

Innovation Director

Strategic Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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