Document background
The Founder Employment Agreement is a crucial document used when formalizing the relationship between a company and its founder(s) in Canada. It is typically implemented either at company formation or during a subsequent funding or restructuring event. The agreement combines standard employment provisions required under Canadian federal and provincial laws with founder-specific elements such as equity participation, intellectual property assignment, and special duties. This document is essential for protecting both parties' interests, establishing clear expectations, and ensuring compliance with Canadian corporate and employment laws. It typically includes detailed provisions on compensation, equity vesting, role responsibilities, confidentiality, non-competition, and termination terms, while acknowledging the founder's unique position as both an employee and key stakeholder in the business.
