ADP License Agreement: What You Need to Know

If you use ADP (Automatic Data Processing) for payroll or other HR functions, you may have encountered their license agreement. This agreement outlines the terms and conditions of using ADP`s software and services, and it is important to understand what you are agreeing to before signing on the dotted line. In this article, we will break down the key aspects of the ADP license agreement and what you need to know.

License Terms

The license terms section of the agreement outlines the specific terms under which you are allowed to use ADP`s software and services. It covers things such as the number of users who can access the software, the scope of the license (e.g. whether it is limited to a specific location), and any restrictions on how you can use the software. For example, you may be prohibited from using the software for any illegal purposes or sharing it with unauthorized users.

Fees and Payments

The fees and payments section of the agreement specifies the amount you will be charged for using ADP`s software and services. This may include one-time fees for installation or setup, ongoing monthly or annual fees, and any additional fees for services such as support or training. It is important to carefully review this section to ensure that you understand what you will be charged and when payments are due.

Intellectual Property

The intellectual property section of the agreement outlines who owns the rights to the software and any related materials, such as documentation or training materials. It also specifies what you are allowed to do with the software and materials, such as whether you can make copies or modifications.


The confidentiality section of the agreement outlines what information is considered confidential and how it can be used. This may include things such as trade secrets, customer data, and financial information. It also specifies how you are expected to protect confidential information from disclosure and what happens in the event of a breach.


The indemnification section of the agreement specifies who is responsible for any losses or damages that may occur as a result of using ADP`s software and services. This may include things such as data breaches or other security incidents. It is important to understand what your responsibilities are and what protections ADP provides in the event of a problem.


The termination section of the agreement outlines the circumstances under which the agreement can be terminated, such as if you fail to pay fees or violate the terms of the agreement. It also specifies what happens when the agreement is terminated, such as whether you are required to return any software or materials and whether you are entitled to a refund of any fees.


Understanding the ADP license agreement is essential if you are planning to use their software and services. By reviewing the key sections of the agreement, such as the license terms, fees and payments, intellectual property, confidentiality, indemnification, and termination, you can make sure that you are aware of your rights and responsibilities. It is always a good idea to consult with a legal professional if you have any questions or concerns about the agreement before signing.