1
Enter the legal entity names and effective date
Use the company's full registered corporate name and the employee's full legal name as it appears on government-issued ID. Set the effective date to on or before the employee's first day of work.
💡 Check your corporate registry filing for the exact legal name — a trade name on the agreement creates enforceability gaps if the IP is ever litigated.
2
Build Schedule A — the prior works list
Work with the incoming employee to identify every relevant prior work: describe each item clearly, include the approximate creation date, and specify its format (source code, design file, manuscript, patent application, etc.).
💡 A vague description like 'software related to data analytics' is legally insufficient. Use the actual project or file name, the programming language, and the version or repository URL where possible.
3
Define excluded works in Schedule B
List any works the employee is explicitly retaining — personal projects, side businesses, or IP unrelated to the company's current or reasonably anticipated business activities.
💡 Offering a clear excluded-works list dramatically improves employee willingness to sign. A generous carve-out for truly unrelated projects costs the company nothing and reduces signing friction significantly.
4
Confirm the consideration clause is accurate
State the employment offer — including the start date — as the primary consideration. If the agreement is signed by an existing employee (not a new hire), add a separate documented benefit such as a bonus or additional PTO as fresh consideration.
💡 Post-start-date signatures are legally risky in common-law jurisdictions. If you cannot sign before day one, document the fresh consideration in writing before the signing date.
5
Review and complete the representations and warranties
Ensure the warranty section covers sole ownership, originality, absence of encumbrances, and no third-party infringement. Ask the employee to disclose any prior-employer IP agreements that might cloud ownership of the listed works.
💡 Request copies of any prior employer's IP assignment or NDA that might cover the works being assigned. A disclosed conflict is far easier to resolve before the agreement is signed than after a dispute arises.
6
Include the moral rights waiver if applicable
If your company operates in or employs workers from the EU, UK, or Canada, retain the moral rights waiver clause and confirm with local counsel whether the waiver is enforceable in that jurisdiction.
💡 In France and Germany, moral rights cannot be fully waived — the waiver language still demonstrates intent and limits practical exposure, but local counsel should advise on the residual risk.
7
Set the governing law to the employee's work jurisdiction
Use the state, province, or country where the employee will primarily perform their work — not simply where the company is headquartered.
💡 California Labor Code §2870 carves out employee rights to IP developed entirely on personal time with no company resources. Ensure the schedule of prior works and excluded works are drafted with this in mind for California employees.
8
Execute before or on the first day of work
Both parties must sign the agreement before the employee's first day. Obtain wet or electronic signatures on both the main agreement and the schedules (Schedules A and B).
💡 Have the employee initial each page of Schedule A to confirm they reviewed and agreed to the specific list — this prevents later claims that the schedule was added after signing.