These are just the basics. Other areas covered in your contract might include sale of home,
deferred compensation, performance evaluations, bonuses, military leave, etc. as shown in the
following sample contract language and model agreements.
Don't be afraid to propose an employment agreement and the terms you would
like. Whether you are able to obtain a written employment in favorable terms
will depending on a number of factors, including such things as the amount of
experience the employer has with employment agreements, the professionalism and
sophistication of the decision-making body, the political climate, the
financial climate, the creativity of the parties, the degree of competition for
the position, and how open the window (sphere) of bargaining is. For
example, if what you would accept as a minimum is nearly the maximum the
employer is willing to grant, your sphere of bargaining will be very limited.
The examples of contract language provided in the following pages have been extracted from
copies of actual employment agreements of various local government managers throughout the
country. In developing any employment agreement, the local government manager should
carefully review the statutes of the state in which they are seeking employment to determine any
legal parameters regarding employment agreements, and consult with competent legal counsel.
Remember, that when you are negotiating your agreement, that the city attorney will be
representing the governing body, although (s)he may try to treat all parties fairly, for obvious
Sample Contract Language-By Subject Area
A. Introductory Language:
This agreement is made and entered into this_____day of___________________,
between the CITY of _____________, hereinafter called CITY, and _________________,
hereinafter called EMPLOYEE, pursuant to these terms and conditions:
(a) WHEREAS, the CITY wishes to employ the services of ________________ as City
Manager of the City of _______________; and
(b) WHEREAS, the CITY and EMPLOYEE desire to provide for certain procedures, benefits
and requirements regarding the employment of Employee by the City; and
(c) WHEREAS, EMPLOYEE wishes to accept employment as City (County) Manager
(Administrator) of said City under the terms and conditions recited herein.
NOW, THEREFORE, CITY and EMPLOYEE agree to the following:
THIS AGREEMENT, made and entered into this ______ day of_____________,20____, by and
between the [City, County] of __________, State of____________, a municipal corporation,
hereinafter called "Employer," as party of the first part, and _________________[name],
hereinafter called "Employee," as party of the second part, both of whom understand and agree as
WHEREAS, Employer desires to employ the services of said _________________ [name] as
_________________ of the [City, County] of _______________, as provided by
___________________ [here recite appropriate charter, statute or ordinance sections]; and
WHEREAS, it is the desire of the Governing Board, hereinafter called "Council," to provide
certain benefits, establish certain conditions of employment and to set working conditions of said
WHEREAS, it is the desire of the Council 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 dishonest 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 the ______________________ of said
NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties
agree as follows:
Example 1--Definite term
Term: (a) Nothing in this agreement shall prevent, limit or otherwise interfere with the right of
the council to terminate the services of Employee at any time, subject only to the provisions set
forth in Section ___ paragraph ___ of this agreement.
(b) Nothing in this agreement shall prevent, limit or otherwise interfere with the right of the
Employee to resign at any time from his/her position with Employer, subject only to the
provision set forth in Section ___, paragraph ___, of this agreement.
(c) The term "employed" shall not be construed to include occasional teaching, writing,
consulting or military reserve service performed on employee's time off.
(d) Employee shall be retained as City Manager of the City of ________________ for a two (2)
year period (longer is desired and possible), commencing with the date of execution of this
(e) In the event written notice is not given by either party to this agreement to the other
_______________ (minimum of 90 days is recommended) prior to the termination date as
hereinabove provided, this agreement shall be extended on the same terms and conditions as
herein provided, all for an additional period of two years. Said agreement shall continue
thereafter for two-year periods unless either party hereto gives notice to the other party that the
party does not wish to extend this agreement for an additional two year term.
Example 2--Definite Term
Terms of Employment: (a) Employee shall be retained as City Manager of the City of
________________ for a three (3) year period, commencing with the date of execution of this
(b) Two (2) years after the execution of this agreement, the City and Employee shall re-negotiate
the terms of this agreement. In the event that mutually agreeable terms cannot be reached by
Employee and City, then this agreement shall terminate within three (3) years of execution
Example 4--(Indefinite term)
Terms of Employment: (a) Employee's term of employment shall be indefinite, as prescribed by
current (state, local) law subject to the conditions contained herein.
(b) Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the
City Council to terminate the services of Employee at any time, subject only to the provisions set
forth in Section ___, paragraph ___ of this agreement (section on termination)
(c) Nothing in this agreement shall prevent, limit, or otherwise interfere with the right of the City
Council to terminate the services of Employee at any time, subject only to the provisions set forth
in Section ___, paragraph ___ of this agreement (termination section).
B. Duties and Hours of Work
Example 1--general duty clause and compensatory time provision
Duties: Employer hereby agrees to employ said __________________ (name) as
_________________ to perform the functions and duties specified in said
____________________(legal reference) of the (City, County) Charter and by said
__________________(legal reference) of said (City, County) Code, and to perform other legally
permissible and proper duties and functions as the council shall from time to time assign.
Hours of Work: It is recognized that the Employee must devote a great deal of time outside the
normal office hours to business of the Employer, and to that end Employee will be allowed to
take reasonable compensatory time off as he/she shall deem appropriate during said office hours.
Example 2-Combines terms, duties, comp. time,
Duties: Employer hereby agrees to employ said employee as city administrator (or manager) for
an indefinite period to perform the functions and duties specified in the City Code, and to
perform other legally permissible and proper duties and functions as the mayor (or council) shall
Hours: It is recognized that Employee must devote a great deal of time outside the normal office
hours to business of the Employer, and to that end, Employee will be allowed to take reasonable
compensatory time off during said normal office hours, provided notice is left with the city clerk.
Example 3--40+ hour week, publicly listed phone, home office
Hours of Work: The minimum work week of the City Manager shall be forty (40) hours plus any
additional work time reasonably required to discharge the duties and responsibilities of the office
of City Manager. It is further recognized that as part of the job as City Manager, the Manager is
required to maintain a publicly listed telephone within his home and maintain an office at home
capable of handling reasonable off-hour business matters from members of the City Council and
the public, relevant to the management affairs of the City.
Example 4--Detailed List of Duties and Responsibilities
Duties and Responsibilities: The duties and responsibilities of the City Manager shall be in
accordance with _______________(state law), all ordinances and resolutions of the City of
________________, and such policies as shall be adopted from time to time by the City Council.
The duties and responsibilities of the manager shall include but not necessarily be limited to , the
(a) Be the chief administrative officer of the City and be responsible to the City Council for
proper administration of all affairs of the City.
(b) Attend all meetings of the City Council at which his\her attendance may be required by the
(c) Appoint and remove at any time all department heads, officers and employees of the City,
except members of the City Council. Appointment power shall be subject to any Civil Service
Law, rule or regulation as well as any employment agreements.
(d) Recommend for adoption by the City Council such measures as he may deem necessary or
(e) See that all laws, ordinances and policies of the City Council are faithfully executed, subject
to the authority which the City Council may grant the mayor to maintain law and order in times
(f) Prepare and submit to the City Council such reports as may be required by that body or as he
may deem it advisable to submit.
(g) Keep the City Council fully advised of the financial conditions of the City and its future
(h) Prepare and submit a preliminary or proposed budget; to work with the Budget Committee in
its analysis and review; and, to be responsible for its administration upon adoption.
(i) Keep public and council informed through periodic reports to Council on City operations.
Example 5--Duty Hours--manager on call 24 hours a day, have city provided vehicle
stocked with emergency supplies and equipment, maintain home phone
____________________ (name of manager) is considered to be on duty twenty-four (24) hours
per day for all-outs, off hour meetings, inspections and emergencies under his responsibilities as
City Manager and (list other functional titles, e.g. Emergency Services Director. The vehicle
assigned to ________________ (name of manager) shall be equipped with adequate emergency
equipment to perform such duties. On-duty time shall begin daily when he enters his City
vehicle for City purposes and will end when the vehicle is parked in its standby location at the
end of the work day. Employee agrees to maintain a home telephone to facilitate such twenty-four (24) hour on-call duties.
Example 1--Employee not Eligible for Compensatory Time
Exempt Status: It is agreed and understood that Employee is exempt from the overtime
provisions of the Fair Labor Standards Act, and is not eligible for overtime or compensatory time
off for any hours worked beyond a normal work period.
Example 1--Salary Review with Other Non-union Employees
Salary: (a) Employer agrees to pay Employee for services rendered pursuant hereto an annual
base salary of $____________, payable through the payroll system at the same time as other
employees of the Employer are paid generally.
(b) In addition, Employer agrees to increase said base salary and/or other benefits of Employee
in such amounts and to such extent as the Council may determine that it is desirable to do so on
the basis of an annual salary review of said Employee made at the same time as similar
consideration is given other management employees generally.
Example 2--Yearly Salary Review
Compensation: The annual compensation of Employee shall be $___________________. Upon
each anniversary of employment, the City Council shall review Employee's performance to
determine annual salary increases.
Example 3--Six Month Salary Review and COLAs
Salary: (a) The City Manager's beginning salary shall be $________ per month. Under the
terms of this agreement, the Manager's salary shall remain at $__________ per month for six
months at which time the council shall review the City Manager's performance and may at the
Council's discretion increase the City Manager's salary by two and one half to five percent (or
whatever range is negotiable). After the initial six month period the City Manager shall be
entitled to annual step increases of two and one half to five percent (or other range) based on the
City Council's performance evaluation.
(b) The City Manager shall also receive any cost of living adjustments received by the
Administrative Management employees of the City during the period of this agreement.
D. Fringe Benefits
Example 1--General statement
Health and Welfare: Employer agrees to provide the Employee with, and pay for, insurance
policies for life, accident, health, medical, etc. on the same basis and in the same amounts as the
Employer provides said health and welfare benefits to other employees.
Example 2--Specified life insurance amount, income protection insurance, comprehensive
general liabilities and errors and omissions coverage
Insurance Coverage: (a) City shall provide full Major-medical insurance for Employee and
dependents as provided for other city employees.
(b) City shall provide Employee with life insurance in the amount of $________________.
(c) City shall provide Employee with income protection insurance providing employee with
compensation equal to 50% of annual salary at the time of debilitating accident or sickness.
(d) City shall furnish and provide Employee with insurance protection including comprehensive
general liability and errors and omissions coverage applicable to all acts or omissions of
Employee arising out of his/her employment. Policy limits of said insurance shall not be less
Example 3--Life insurance beneficiaries 1/2 to specified dependent, 1/2 to City; medical
insurance; travel insurance, yearly physical examination
Disability, Health and Life Insurance: (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 with full dependent coverage.
(b) Employer agrees to purchase and to pay the required premiums on whole life insurance
policies equal in amount to _____ times the annual gross salary of the Employee, with the
beneficiary named by the Employee to receive one-half of any benefits paid, Employer the other
(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
(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 the Employer.
Employer shall receive a copy of all medical reports related to said examination.
Example 1--15 days of vacation at one year, 20 days of sick leave to start, compensation for
stored sick and vacation days at termination
Vacation and Sick Leave: (a) Employee shall be provided with _______ (__) (recommend 15
minimum) working days of vacation leave after his first anniversary date, and at each anniversary
date thereafter shall earn an additional vacation day per year not to exceed ten (10) such
(b) Employee shall be credited with ______ (__) (recommend 20 days minimum) working days
of sick leave and shall earn additional sick leave at the rate of one (1) working day for each
month of service, accumulated to a maximum of one hundred thirty days.
(c) Upon termination, whether voluntary or involuntary, City shall compensate Employee for all
accrued vacation leave and twenty five (25%) percent of accrued sick leave. Said compensation
shall be based upon Employee's salary as the date of employment termination.
Example 2--X number of vacation and sick days given first day of work; Military reserve
Vacation, Sick and Military Leave: (a) As an inducement to Employee for him to become
__________________ (job title), at signature hereof, Employee shall be credited with ______
days (number of days granted other employees in one year is recommended) of vacation leave
and ______ (number of days granted other employees in one year is recommended) of sick leave
at the beginning of employment. Thereafter, Employee shall accrue, and have credited to his
personal account, vacation and sick leave at the same rate as other general employees of
(b) Employee shall be entitled to military reserve leave time pursuant to state law and (City,
Example 1--General Statement
Retirement: Employer agrees to pay the Employer's contribution for the Public Employees
Retirement System. Employer likewise agrees to pay Employee's share of any required employee
Example 2--Employer contribution to ICMA-RC and ownership to succeeding employers;
Retirement: Employer agrees to execute all necessary agreements provided by the International
City Management Association-Retirement Corporation (ICMA-RC) for Employer's (Continued)
participation in said ICMA-RC retirement plan, or in another approved retirement plan of the
employee's choice and, in addition to the base salary paid by the Employer to Employee,
Employer agrees to pay an amount equal to ______ percent of Employee's base salary into the
ICMA-RC or other approved plan on Employee's behalf, in equal proportionate amounts each
pay period, and to transfer ownership to succeeding employers upon Employee's resignation or
discharge (may be in addition to or in lieu of contribution to state or city retirement fund).
Deferred Compensation: City shall execute the necessary agreement allowing Employee to
enroll in a deferred compensation plan selected by agreement of City and Employee. City agrees
to contribute an amount equal to ________% of Employee's annual salary into said deferred
compensation plan annually.
Example 1--Automobile (exclusive unrestricted use)
Automobile: Employee's duties require that he/she shall have the exclusive unrestricted use at all
times during his/her employment with Employer of an automobile provided to him/her by the
Employer. Employer shall be responsible for paying for liability, property damage and
comprehensive insurance and for the purchase, operation, maintenance, repair and regular
replacement of said automobile. Employee shall be obligated to reimburse City for any personal
use of said automobile.
Example 2--Manager to reimburse City for out-of-town personal travel at City's mileage
reimbursement rate, City not liable for personal use of vehicle, City Manager needs
Automobile: The City Manager is required to have a car available for City business. The City
shall supply an appropriate City vehicle, which shall be used for City business; Provided, that
such vehicle may be used for limited personal use, and provided further that the City Manager
shall reimburse the City for all out-of-town personal travel at the City's standard mileage
reimbursement rate. The City shall not be liable for any personal use of such vehicle and the City
Manager shall obtain the legally required insurance coverage.
Example 3--Car can't be older than five years
Automobile: The Employer agrees to provide Employee with exclusive and unrestricted use of a
city vehicle which shall be no older than five (5) years. The Employer shall be responsible for
the insurance, operation, maintenance and expense of said automobile.
Example 4--Travel allowance, employee responsible for insurance
Travel Allowance: Employee shall be reimbursed the sum of _____________ hundred dollars ($
) per month for the use of Employee's vehicle for official use. Employee shall be responsible for
the insurance operation, maintenance, and expense of said vehicle.
v) General Expenses
Example 1-Manager's general Expenses paid out of petty cash are not to exceed X amount
General Expenses: Employer recognizes that certain expenses of a non personal and generally
job-affiliated nature are incurred by Employee, and hereby agrees to reimburse or to pay said
general expenses, up to an amount not to exceed $_________ per month, 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.
E. Residency and Relocation
Example 1--Manager must live within City limits within X months
Residency: Employee agrees to obtain residency within the ________________ City limits
within ____months of the effective date of this agreement, and to continue residency during the
term of this agreement.
Example 2--Employer responsible for moving expenses and expenses associated with selling
employee's current residence
Moving expenses: Employee shall be reimbursed, or Employer may pay directly, for the
expenses of packing and moving himself, his family and his personal property from
________________ to (City, County) with said payment or reimbursement not to exceed the sum
of $_________ , which shall include unpacking, any storage costs necessary and insurance
Home Sale and Purchase expenses: (a) Employee shall be reimbursed for the direct costs
associated with the sale of his/her existing personal residence, said reimbursement being limited
to real estate agent's fees, and other closing costs that are directly associated with the sale of the
house. Said reimbursement shall not exceed the sum of $________.
Example 3--City pays travel and moving expenses, Manager must obtain at least two bids
Travel and Moving Expenses: the City shall pay the City Manager the amount of the travel and
moving expenses incurred in moving his immediate family and their personal possessions from
___________________ to __________________, provided that the City Manager shall first have
obtained two bids for such moving expenses and submitted the low bid to the City for approval.
F. Professional Development & Memberships
Example 1--Generalized statement of professional development costs to be paid by city
Business Expenses: City shall reimburse Employee for all employment-related expenses,
including, but not limited to, meals, civic club membership and subscriptions.
Conferences, Training and Education: (a) Employee shall be reimbursed for all membership
dues and the cost of attending national, state and local association conferences.
(b) City shall budget and pay for the cost of registration, travel and subsistence costs relating to
training programs which serve to continue the professional educational development of
Example 2--City will pay for travel and expenses for ICMA and other professional
organizations, courses and institutes, and civic club memberships that help city and
Professional Development: (a) Employer hereby agrees to budget for and to pay the reasonable
travel and expenses of Employee for professional and official travel, meetings and occasions
adequate to continue the professional development of the Employee and to adequately pursue
necessary official and other functions for Employer, including but not limited to the Annual
Conference of the International City Management Association, the state league of municipalities,
and other national, regional, state and local governmental groups and committees thereof which
the employee serves as a member.
(b) Employer also agrees to budget and to pay for the reasonable travel and expenses of
Employee for short courses, institutes and seminars that are necessary and desirable for his
professional development and for the good of the Employer.
Dues and Subscriptions: Employer agrees to budget and to pay for the professional dues and
subscriptions of Employee necessary for his continuation and full participation in national,
regional, state and local associations and organizations necessary and desirable for his/her
continued professional participation, growth and advancement, and for the good of the Employer.
Civic Club Membership: Employer recognizes the desirability of representation in an before
local civic and other organizations, and employee is authorized to become a member of
_______________ such civic clubs or organizations, for which Employer shall pay all expenses,
including meals. Employee shall report to the Employer on each membership that he has taken
out at Employer's expense.
Example 4--City will pay for ICMA, state association and conference attendance; will pay
for other professional development as travel budget allows
Professional Development: As a part of Employee's compensation, and for the Employee's
continued professional growth and development and for the good of the Employer, Employer
agrees to budget and pay for the costs or participating in national, state and local associations. At
a minimum, said participation shall include, is so desired by Employee, membership in the
International City Management Association, ____________ State City Management Association,
and attendance at the annual conferences thereof. Within the constraints of the adopted travel
budget, Employee may also attend other professional development workshops as Employee
G. Indemnification and Bonding
Example 1--General Statement
Indemnification: 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 ___________________. Employer will compromise and settle any such claim or suit
and pay the amount of any settlement or judgment rendered thereon.
Bonding: Employer shall bear the full cost of any fidelity or other bonds required of the
Employee under any law or ordinance.
Example 2--Employer will defend employee against lawsuits associated with position, be
responsible for costs, bear full cost of bonds
Indemnification and Bonding: Employer shall defend, hold 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. Employee shall be covered under the City's liability insurance policies for
covered acts or omissions occurring in the performance of Employee's duties as a city official at
no expense to Employee. Employer shall be responsible for all costs, including lost time and
wages of Employee, incurred as a result of the defense, prosecution, judgement or settlement of
claims and suits, during the term of this agreement of thereafter, arising in connection with the
performance of Employee's duties as a City official. Employer shall bear the full cost of a public
official bond required of the Employee under any law or ordinance.
H. Suspension and Termination
Example 1--Terms by which employee may be suspended
Suspension: Employer may suspend the Employee with full pay and benefits at any time during
the term of this agreement, but only if
(1) a majority of Council and Employee agree, or
(2) after a public hearing, a majority of Council 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 council members bringing such charges.
Example 2--Lump sum payment or seven months notice at termination; city owes nothing if
terminated because of illegal act; if manager's salary reduced more than other employees
he can terminate employment
Termination and Severance: (a) In the event Employee is terminated by the governing body (or
mayor in mayor-council cities), and Employee is still willing and able to perform his duties under
this Agreement, then in that event, Employer agrees at its option to (1) pay employee a lump sum
cash payment equal to four (4) months aggregate salary, or (2) to provide seven (7) months
advance written notice to the employee; Provided however, in the event the Employee is
terminated because of his/her conviction of any illegal act involving personal gain to him/her, or
for wilfull failure to perform his duties, he/she being under no disability then in that event,
Employer shall have no obligation to pay the aggregate severance sum designated in this
Paragraph, or give said notice.
(b) In the event Employer at any time during the term of this Agreement reduces the salary or
other financial benefits of Employee in a greater percentage than an applicable across-the-board
reduction for all employees of Employer, or in the event other benefits are denied as agreed to
herein, then in that event, Employee may, at his option, be deemed to be "terminated" at the date
of such reduction.
Example 3--Lump sum payment; employee can terminate if employer fails to comply with
terms of employment; employee to give X months advanced notice
Termination and Severance Pay: (a) In the event Employee is terminated by the Council 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 __________ months' (minimum of six months is
recommended) aggregate salary; provided, however in the event Employee is terminated because
of his conviction of any illegal act involving personal gain to him, then, in that event, Employer
shall have no obligation to pay the aggregate severance sum designated in this paragraph.
(b) In the event Employer at any time during the term of this agreement reduces the salary or
other financial benefits of Employee in a greater percentage than an applicable across-the -board
reduction for all employees of Employer, or in the event Employer refuses, following written
notice, to comply with any other provision benefiting Employee herein, or the Employee resigns
following a suggestion, whether formal or informal, by the council that he resign, then, in that
even, Employee may, at his option, be deemed to be "terminated" at the date of such reduction or
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 _____
to three months is average) notice in advance, unless the parties otherwise agree.
Example 4--If city terminates must give notice by certified mail and must pay out
remainder of contract; If employee terminates, not entitled to termination pay
Termination by City: The City may terminate the employment of Employee by directing written
notice of termination to Employee by certified or registered mail, return receipt requested. In the
event of such termination while employee is ready, willing and able to perform the duties of City
Manager, the City shall pay employee a sum equal to the number of working days remaining in
accordance with the provisions of Section ___ of this agreement (insert section referring to term)
Termination by Employee: Employee may terminate his employment with City by certified or
registered mail, return receipt requested. In the event of such termination, Employee shall not be
entitled to receive the termination pay provided for in Section __ of this agreement (refer to
section on termination by number).
Severance pay: Employee shall receive, upon termination, severance pay equal to one months
base salary for each year, or portion thereof, employee has been employed.
Example 5--City terminates, has to pay one years salary or salary until manager finds
employment; if convicted of illegal action city has no obligation
Termination Conditions and Pay: (a) In the event Employee is terminated by the City Council,
either by receipt and acknowledgement of written notice and concurrently while employee is
willing and able to perform the duties of City Manager, in such event, the City agrees to
compensate Employee payment equal to 365 days salary, provided, however, that the Employee
has not secured employment. In the event Employee obtains employment within the 365 day
period, then termination pay will cease upon employment.
(b) In the event the Employee is not willing to perform the duties of City Manager upon
receiving written notice of termination, the City is discharged of any responsibility with respect
to termination pay.
(c) In the event Employee is terminated because of his/her conviction of any felonious act, then,
in that event, the City shall have no obligation to pay the stipulated termination pay.
Example 6--Detailed lists of causes for termination; Employee needs to give 2 months
notice; The shorter notice given by the city the more severance pay
Termination for Cause: This Agreement may be terminated immediately in the sole discretion of
the City upon the occurrence of any one of the following events:
(a) Employee willfully and continuously fails or refuses to comply with the policies, standards
and regulations of the City as are from time to time established;
(b) Employee shall be found guilty of fraud, dishonest, misappropriation of funds,
embezzlement, or other act of misconduct in the rendering of services on behalf of the City;
(c) Employee fails or refuses to perform faithfully or diligently any of the provisions of this
In the event Employee is involuntarily terminated by the City Council before expiration of the
term of employment and during such time as the Employee is willing and able to perform the
assigned duties, then in that event the City agrees to pay Employee a lump sum equal to two (2)
months' pay at the Employee's highest rate of pay during his term of City employment. However,
if Employee is convicted of any illegal act involving personal gain to him, then the City shall
have no obligation to pay the severance pay.
If the City reduces the salary or other financial benefits of Employee, or if the City refuses
following written notice requesting compliance with any other provision benefitting Employee
herein, or if Employee resigns following public suggestion, whether formal or informal, by the
mayor or two or more City Council members that he resign, then the Employee may, at his
option, deem the reduction to be a refusal to comply with the meaning and context of this
Agreement, and the severance pay provision of this agreement shall apply. In the event of
termination or resignation, Employee shall be entitled to a lump sum payment equivalent to all
accrued vacation and sick leave benefits as are paid to other separating employees generally.
If Employee voluntarily resigns his/her position with the City before expiration of said term of
employment, then Employee shall give the City at least forty-five (45) days' notice in advance.
Expiration of the Agreement term due to non-renewal by City shall entitle Employee to all
severance provisions as provided for involuntary termination under pursuant to the terms of this
Example 7--Termination because of disability
Disability: If Employee is permanently disabled or is otherwise unable to perform his duties
because of sickness, accident, injury, mental incapacity or health for a period of four successive
weeks beyond any accrued sick leave, 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 ___, paragraph ___. However, Employee shall be compensated for any
accrued sick leave, vacation, holidays, compensatory time and other accrued benefits.
Example 8--City has to pay salary plus 30% (benefits) for remainder of term
Termination: Nothing in this agreement shall prevent limit or otherwise interfere with the right
of the City or the Employee to terminate employment relationship created hereunder at any time.
Should the City choose to terminate Employee's employment, prior to the end of said term,
Employer agrees to pay Employee, upon separation, the value of the remaining term (or
percentage of remaining term) of the agreement plus _______ percent (__%) for benefits, and
payment for any remaining vacation or other accrued leave time for which other general
employees of the Employer are paid upon separation.
Involuntary Termination: The Council reserves the right to terminate this Agreement and the
services of ____________________ as City Manager, in accordance with _______________.
The parties, however, agree that such termination shall occur on the basis of a 12 month notice of
termination (that is, Employee's services shall be terminated 12 months from receipt by
________________ of written notice of termination) and three months severance pay. Pay
during the 12 month notification period shall include all benefits, including vacation an sick
leave accrual. The 3 months severance pay shall include all benefits except vacation and sick
leave accrual. Payment shall be made for all accrued vacation as of the actual date of termination.
The City Council reserves the right to shorten the notification of termination period, provided a
contract termination penalty shall be paid. The contract termination penalty shall be in the
amount of one-half (or other percentage) month pay times the number of months by which the 12
month termination period is diminished. Contract termination penalty pay shall include all
benefits except vacation and sick leave accrual. Should Employee voluntarily terminate his
employment during the 12 month notification period, the provision relative to contract
termination penalty shall be null and void and Employee shall be solely entitled to pay as to the
last day worked, plus severance pay as previously described.
Voluntary Termination: In the event Employee elects to voluntarily resign or retire, he/she shall
give the City not less than ninety (90) days advance written notice. Failure to give such notice,
shall result in forfeiture of all accrued vacation benefits.
Example 1--An annual performance review at budget time, criteria developed jointly,
annual goal setting with mayor and administrator
Performance evaluation: (a) The mayor (or council) shall review and evaluate the performance
of the Employee at least once annually in advance of the adoption of the annual operating budget.
Said review and evaluation shall be in accordance with criteria developed jointly by the mayor
(b) Annually the mayor and administrator shall define goals and performance objectives which
they determine necessary for the proper operation of the city, and in the attainment of the
council's policy objectives and shall further establish a relative priority among those various
Example 2--Council to give manager a written evaluation on criteria decided on jointly,
manager will have opportunity to discuss evaluation with council, Goals should be
obtainable within year
Performance evaluation: (a) The governing body (or mayor) shall review and evaluate the
performance of the Employee at least once annually in advance of the adoption of the annual
operating budget. Said review and evaluation shall be in accordance with criteria developed
jointly by the mayor and administrator. Said criteria may be added to or deleted from as the
Council may from time to time determine, in consultation with the Employee. Further, the
_____________________ (chief elected officer) shall provide the Employee with a summary
written statement of the findings of the Council and provide an adequate opportunity for the
Employee to discuss the evaluation with the Council.
(b) Annually, the Council and Employee shall define such goals and performance objectives
which they determine necessary for the proper operation of the (City, County) and in the
attainment of the council's goals and shall further establish a relative priority among them. The
goals so established for the manager shall generally be attainable within the time limitations as
specified and the annual operating and capital budgets and appropriations provided.
(c) In effecting the provisions of this Section, the Council and Employee mutually agree to abide
by the provisions of applicable statutes, ordinances, resolutions and adopted policies.
Outside activities/additional employment
Example 1--Outside activities should not require more than 10 hours per week
Outside Activities: Employee shall not spend more than 10 hours per week in teaching,
counseling or other non-Employer connected business without prior approval of the Council.
Other Terms and Conditions of Employment
Example 1--Terms and conditions can change if the manager is consulted; manager has
same benefits as other employees unless stated otherwise; vacation/sick leave benefits same
as for department heads;
Other Terms and Conditions of Employment: (a) The Council, in consultation with the
manager, shall fix any such other terms and conditions of employment, as it may determine 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 this agreement, the [City, County] charter
or any other law.
(b) All provisions of the [City, County] Charter and/or Code, and regulations and rules of the
Employer relating to vacation and sick leave, retirement and pension system contributions,
holiday 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
(c) Employee shall be entitled to receive the same vacation and sick leave benefits as are
accorded department heads, including provisions governing accrual and payment therefore on
termination of employment.
Example 1:--States where notices about the agreement are to be sent
Notices: 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(mayor, clerk, etc.)]
(2) Employee:[name and address of Employee]
Alternatively, notices required pursuant to this agreement may be personally served in the same
manner as is applicable to civil judicial 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 binding upon and inure to the benefit of the heirs at law and
executors of Employee.
(c) If any provision, or any portion thereof, contained in this Agreement is held unlawful, invalid
or unenforceable, the remainder of this Agreement, or portion thereof, shall be deemed severable,
shall not be affected and shall remain in full force and effect. The parties agree to immediately
renegotiate any part or provision in this agreement rendered or declared invalid.
(d) This Agreement shall become effective commencing_________________, 20____.
IN WITNESS WHEREOF, The City Council of the City of _________________ has caused this
Agreement to be signed and executed in its behalf by its Mayor, and duly attested by its City
Clerk, and the Employee has signed and executed this Agreement the day and year above written.
APPROVED AS TO FORM:
Copyright (C) 2000 LGI. All Rights Reserved. This material is for educational
purposes only, and is not intended to provide legal advice or assistance.
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