Document background
The Founder Employment Agreement is essential when a company founder transitions into or maintains an operational role within their organization in Austria. This document is typically used during company formation, reorganization, or when formalizing existing arrangements between founders and their companies. It addresses the complex dual role of the founder as both an employee and a key stakeholder, covering essential employment terms while acknowledging their unique position. The agreement must balance Austrian employment law requirements with corporate governance considerations, including mandatory labor protections, social security obligations, and specific provisions for managing directors under Austrian corporate law. This document is particularly crucial for startups and growing companies where founders take on executive or operational roles, as it helps prevent future disputes by clearly defining rights, responsibilities, and expectations.
