(1) Council may enter into an employment agreement with the borough manager that specifies the terms and conditions of employment.

(2) The employment agreement may remain in effect for a specified period terminating no later than two years after the effective date of the agreement or the date of the organizational meeting of council following the next municipal election, whichever occurs first.

(3) An employment agreement entered into under this section may specify conditions under which a borough manager will be entitled to severance compensation, but in no event may the employment agreement guarantee employment through the term of the agreement or confer upon the borough manager any legal remedy based on specific performance.

(4) An employment agreement with a borough manager executed on or after a municipal election but before the first meeting in January the year after the municipal election shall be void.

(5) The council may delegate to the borough manager, by ordinance and subject to recall, any of the nonlegislative and nonjudicial powers and duties of the council, the planning commission and the shade tree commission. With approval of council, the mayor may delegate to the borough manager any of the mayor's nonlegislative and nonjudicial powers and duties.