A company's employment agreement outlines the terms and conditions of a worker's employment, whether they are currently employed in that company or otherwise. A typical employment agreement in India is signed when a company hires a new employee is referred to as an employment agreement. The whole employment relationship is written in this agreement, covering vital factors like yearly leave, confidentiality, work hours, etc. Do you wish to learn more? The specifics of employment agreements are discussed in this article, so keep reading to find out more.
Things to Include:
When it comes to an employment agreement India, there are four major terms to be aware of: explicit terms, statutory terms, implicit terms, and incorporated terms. It is a good idea as an employer to include all the conditions pertinent to the relationship in a written employment contract (such as salary and working hours). These terms must be documented in writing via a written declaration.
Classification of Employees
The document must state the type of employee to whom the employment contract will be directed. It must specify whether a new employee is employed full-time or on a contract basis. This statement helps avoid misunderstandings about work duties and also avoids expensive litigation brought about by misclassification.
Position Title and Duties
Employers are required to disclose to the employees why they were employed. Therefore, an employee's work title and description must be written in the employment contract. Additionally, the contact must include what they are expected to do and how they are needed to do it. This term can also be found in a co-founders agreement when there are multiple founders of a company.
Work Schedule and Hours
The joining date and working hours must be defined in the contract depending on whether the employee is a full-time employee or a contractor. This description covers the minimum amount of hours each week and the days they must work. Employers must include available flexible working choices, such as working from home or telecommuting.
Compensation and Benefits
An employment contract must incorporate information on employee compensation and perks. Along with detailing the specifics of how and when the employees are eligible for bonuses and incentives, employers must also clarify whether they are paying them monthly or weekly-basis. Similar to the co-founders agreement, the employment contract must also include information about any additional benefits the company provides, such as retirement, insurance, etc.
Policy for Paid and Sick Leave
All paid vacations and sick leaves (provided under the policies of the company) should be specified in an employment contract. Moreover, include a description of what you expect as an employer for the leave policies and the effects of absences your employee will take.
Terms of Confidentiality
Businesses seek to maintain privacy. You can include a clause requiring secrecy or non-disclosure in the employment contract itself, even if these agreements can be distinct. This term is also included in the co-founders agreement.
Details of Termination
The employment contract must include information on termination in detail. This detail contains the justifications for firing the employee and the notice period they need to serve if they want to quit.
The Bottom Line
Although these fundamentals for an employment agreement in India provides you with a place to start when drafting one, you can add more specifics based on the nature of your company. Hiring a lawyer will help establish a precise employment contract most suited to your company's needs and employment goals.
