Employment Agreement India

Employment Agreement India helps while hiring any employee or contractor, whether for part time or full-time, an employment contract is required.

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Employment Agreement India

Employment agreement India is an all-inclusive record on paper that discourses all clauses that govern the employment, as well as the rights, obligation, and responsibilities of the parties involved, concerning one other. When hiring, an employment agreement contract becomes a mandate irrespective of whether the hiring is full time or part-time. Some of the probable points of an employment agreement letter comprise of salary break-up, joining date, notice period, and non-compete clause.

Significance of Employment Agreement India

Clarity upon terms of employment
Employment Contract provides clear and detailed information about the provisions like remuneration, working hours, job description, duties, and obligations of the Employee.
Dispute Resolution
Employment Contract may include a clause relating to the resolution of disputes. Disputes can be resolved in several ways, and parties are free to choose any method
Protection of trade secrets
Employment Contract contains clause relating to the protection of confidential information from disclosure to a third party. This clause states that Employee shall not disclose the confidential information of the organization which he is exposed to during the term of employment to any third party.
Restrictive Covenants
It ensures that an Employee shall not join a competitor or start a business based on the same idea and solicit the organization’s other employees, clients, distributors or service providers to leave the organization and join him after terminating his employment with the Employer.

Elements of Employee Agreement India

Employment Agreement India should clearly define the terms and conditions of employment. The most common elements discussed in the Employment Agreement India are:

  • Job Description of the Employee
  • Term of the Employment
  • Employee benefits
  • Remuneration/compensation to the Employee
  • Leave Policy
  • Grounds for termination
  • Protection of Confidential information
  • Ownership of Intellectual Property
  • Dispute Resolution
  • Governing laws and jurisdiction
  • Any other provisions deemed to be relevant to the Employer.

In the case of individuals hired on contractual basis for a limited period of time such as candidates hired for specific projects Service Agreement is drafted instead of Employee Agreement India.

Position in Law

Employment Agreement has not been mentioned anywhere in the Indian Contracts Act, 1972. Still, as per section 27 of the Act, an agreement, which restrains an individual from carrying on a lawful profession, trade, or business, is void to the extent it restrains them. The restraint has to be reasonable to be permitted by law. Employment policies such as leaves, maternity leaves, working hours, etc. are governed by the applicable Shops and Establishment Act. Other relevant laws that govern various aspects related to employment are Factories Act,1948, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, etc.

Drafting of Employee Agreement India is simple with Bharatregister as it has experienced lawyers who ensure highest customer satisfaction and timely delivery of services. Whole process is managed online, with regular communication and assistance by the professionals available throughout. We have clients in all major cities of India including Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Hyderabad and more as well as our services have equally relevant reach within smaller cities and towns in the country.

Clauses of Employment Agreement India

Variable salary component:

This portion is dependent on the company earning enough profits during the year, and its willingness to pay a bonus to employees.

Notice period:

It is the defined time period that one must serve from the date of submitting the resignation letter, till the date of being relieved from the company.

Terms of employment:

Most companies do not allow their employees to carry out any other profession or business parallel to their employment.

Non-compete clause:

It legally prevents employees from offering their services, for a given period, to other employers working in the same industry or segment (competitors).

Transfers & promotion policy:

Details on the frequency of transfers within the company, and the basis of being promoted.

Probation period:

This is the time that the company takes to form an opinion about the employee, work ethic, commitment & willingness towards the job, etc.

Additional allowance:

House rent, travel, medical reimbursements, insurance cover, and other allowances are part of most standard employment contracts.

Get an Employment Agreement drafted in 3 Easy Steps

1. Follow Quick Process
  • Pick the best suitable Package
  • Spare less than 10 minutes to fill out our online Questionnaire
  • Upload required documents
  • Make quick payment through our secured gateways
2. Experts are here to help
  • Assigned Relationship Manager
  • Consultation for apt clauses to safeguard your rights as an Employer
3. Start binding your Employees with the Agreement
  • All it takes is 3 working days.

Employment bonds are essentially employment agreements that contain a negative covenant and are legally enforceable. The agreement is enforceable if the parties agree to work according to it with their free consent. In case the employer or employee breaches the contract, the other party is entitled to damages. Hence, an employee agreement helps to secure the best interests of the employer.

  • The agreement must be signed by both the employee and employer by their own free will and with their consent.
  • The conditions stated in the agreement must be reasonable.
  • The conditions imposed on the employee must be prepared to safeguard the interests of the employer.
  • The agreement must be written and signed on a stamp paper, whose value is predetermined and fixed as per law.
  • Safeguards the interest of the employer
  • Gives the employee proper guidelines to follow while working
  • Sets expectations for both parties
  • Enlists all the conditions the employee is expected to follow
  • Lists down all the laws of employment

Here's How it Works

1. Fill Form
Simply fill the above form to get started.
2. Call to discuss
Our startup expert will connect with you & prepare documents.
3. Get Certificate
Get your company incorporation certificate

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