Why Employment agreement template is important for an employer and employee?

An employment contract is made between an employer and employee if:

• there is an offer of employment from the employer;
• Offer must be valid 
• the offer is accepted by the employee;
• Both employer and employee has accepted an obligation to perform their part of the agreement (e.g. the employee will receive a wage in return for working);
• both employer and employee intend to create a legally enforceable bargain (the contract will be legally binding);
• Both employer and employee have the legal has capacity to enter into a contract (the employee is of sound mind;
• Employer and employee give their consent to the terms of the agreement); and
• The contract does not violate the  legal requirement ( e.g. contract must be for lawful purpose only.

Employment contract is also called employment document. Employment contract regulates the employment relationship between employer and employee. It is a legal agreement and enforceable under the law. Labour laws in India regulate the contract of employment. India has also implemented the standard code of ILO for the benefits and welfares of the workers.

Employment agreement can be oral or in written form. However the employer can not deprive the employee form their statutory entitlements. There are three different types of leaves available to workers under the different labour law of India such as casual leave, sick leave, earned leave.

Employees are entitled to 20 earned leaves, 15 casual leaves and 10 – 40 days sick leave. The nature of leave depends on the nature of jobs. Because there are different types of labour laws which deals with different nature of employment.

Employment agreement describes the rights and obligations of the employer and employee. Employment agreement must be clear and does not lead to any confusion. Employment agreement must specify the term of the agreement whether is contractual or permanent. Employment agreement must also describe that under what circumstances employee can be sacked.

Employment agreement must be in written form because it is very hard to prove oral terms in case of disputes. Industrial tribunal always prefer the written employment contracts because written employment contract clearly define the intentions of the both parties. Employment agreement must contain the following minimum provisions. Such as

• Nature of job;
• Job description;
• Payment;
• Place of work;
• leaves;
• Termination procedure;
• Confidential information;

Employer cannot change the nature of employment agreement without the consent of the employee. Employee has a right to challenge such action of the employer before the Industrial tribunal.

Employee must read and fully understand the advantages and disadvantages of the each provision of the agreement. Because once the employment agreement is signed it becomes the legal document that is enforceable under the law. Both employer and employee must sign the employment agreement in the presence of the independent witness.

The following labour law deals with employment contracts in India. Such as:

• Factories Act, 1948
• The Shops & Establishment Act
• Minimum Wages Act 1948
• Industrial Employment (Standing orders) Act 1946
• Payment of Wages Act 1936
• Workmen’s Compensation Act 1923
• Industrial Disputes Act 1947
• Maternity Benefit Act 1961
• Payment of Gratuity Act 1972
• Payment of Bonus Act 1965
• Employees Provident Funds and Miscellaneous Provisions Act 1952.

Net Lawman offers following type of employment contract template. Such as

Employment contract: retail sales manager: Standard contract of employment for any retail sales manager in any type Indian shop or retail store

 Employment contract: standard: This is a standard, comprehensive contract of employment for any staff below director level. It complies with all current legislation, yet preserves maximum flexibility to the employer. It is fair but tough.

 Employment contract: accountant: Comprehensive contract of employment for any accountant practising in India Includes extensive provisions relating to intellectual property and other areas where a senior person may have scope to damage your business in the event of a dispute.

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