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Computercodemonkey

employment contract

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Then they are NOT an employee. Employees get paid for their work. This person is either a contractor in which case you need don't need an employment contract you need a "work for hire" contract. Or they're a volunteer with bonuses, in which case you just need a bonus agreement.

In a lot of jurisdictions, it's illegal to have someone be an employee and work for you for a possible reward in this way. For example, in the UK it would fall foul of minimum wage legislation.

You also need to make sure you have other things, for example; employers insurance, employers tax arrangements etc.

**** GO AND GET A LAWYER ****

If you can't afford to have a lawyer give you an hour's advice over how to structure this deal, then you can't afford to do this deal. Really. You certainly won't be able to afford the fines which come from not complying with employment legislation and tax laws[1] or the costs of the lawyer later when your "contract" turns out to need a long conversation in court about who is getting which money.




[1] Or, if you're really in error about this, the prison time. Tax authorities generally don't regard being "having erred by being uninformed but well intentioned" as a defence for not paying taxes.

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What you need is a collaboration agreement.
http://www.sloperama.com/advice/article58.htm
http://underdevelopmentlaw.com/collaboration-agreements-and-online-development-teams/
And a lawyer to draft one up for you.
http://www.obscure.co.uk/directory/directory-legal/

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