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.
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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
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
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
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