What is Employment Contract in India?

An employment contract India is an agreement between an employer and an employee, signed by both the parties that sets out both the responsibilities and rights of the two parties, that is, company and worker. Why Employment Contract Is Needed Also known as a contract of employment or employment agreement, it lays out the rights and responsibilities of both an employer and an employee. Following specifications can be included in it:   The agreed upon salary, commission, or wage between both parties.  The schedule about number of hours and days an employee is required to work.  The duration an employee has agreed to work for a company. This time period may be ongoing in some cases and fixed for a specified duration among others.  The responsibilities a worker is expected to perform in the course of employment.  Confidential statement might be included as part of a contract in some cases, though in most cases a worker signs a non-disclosure statement separately.  Contract may state that control and ownership is to be retained by company over every communication in cases employees are involved in handling email, social media, websites etc.  It should set out all benefits that form a part of employment including perks, 401k, health insurance, vacation time etc.  The inclusion of a non-compete agreement or NCC which states that when an employee will leave the job, he will not take up jobs to keep a check on future competition.

Employment Contract Process  In most cases, employees are required to sign a contract that specifies terms of the employment.  It documents their salary, start date, benefits package etc.   In case a relocation package/ signing bonus are offered, the requirements of repayment are stipulated in case an employee terminates employment prior to a certain date.  Noncompete and nondisclosure clauses may be included in the contract.   An employee is expected to sign only if he is ready to work and can remain committed for the job. He is expected to not engage in a job search any further and reject any future offers that he may receive.  Once an employment contract is signed by an employee, the process of an employment contract is over. Documents Requirement for Employment Contract  Written and verbal agreements between an employer and an employee may include valid provisions of an employment contract.   Other documents that may form part of such contract include company bulletins and handbook of an employee.  If one has been employed for a long time, the employer’s conduct may be understood to imply a provision of a valid employment contract. For example, if one’s job performance is appreciated by the employer, this may imply that he will not be terminated from his position because of his work, if he continues to work maintaining the same standard. Advantages and Benefits of Employment Contract o An employment contract clearly defines an employee’s job, responsibilities and benefits. It helps in preventing any confusion related to the job. o It also ensures that legal remedies are available to both the parties when one of them breaches a condition of the contract.

To get your Employment Contract Generated visit Company Vakil and get your contract drafted in India.