How to Start a Employment Contract

service package

What is Employment Contract?

A contract of employment may be a reasonable contract employed in labor law to attribute rights and responsibilities between parties. The contract is between associate “employee” and an “employer”.


It is also defined as a formal agreement that specifies the conditions of the connection between associated employee and employer together with compensation and expectations. Conjointly named as employment contracts.

Essential features of employment contract

Like any alternative, the contract conjointly consists of the subsequent essential features- supply, acceptance, though, competent parties, legal object, and free consent.

Terms and condition of contract

The terms and conditions included in the contract that is as per agreed by employer and employee for purpose of employment. Terms of employment embody the employee’s job responsibilities, working hours, days, earned leaves, dress code, vacation and sick days and pay. The advantages like insurance, and retirement plans if any prevailing in the organization.

Below may be a list of most relevant terms that ought to kind a neighborhood of associate degree employment agreement:

  • appointment (acceptance of employment, workplace/location of leader, news senior)
  • the term of the contract between employer and employee
  • the primary responsibility and verbal description
  • remuneration (base wage, incentives, bonus, provident fund, gratuity)
  • payment terms
  • deductions
  • termination (termination while not cause, resignation, termination for cause)
  • death and incapacity
  • hours of labor
  • confidentiality
  • return of employers property
  • intellectual property
  • indemnification
  • notices
  • on content
  • non-solicitation
  • governing law, jurisdiction, and arbitration

Disputes concerning employment contracts relate to following stages

  • Pre-hire stage
  • During employment
  • Termination stage
  • Post-termination

There are such a large number of factors that cause termination of service, specifically

  • Voluntary termination (retirement of associate degree worker, resignation of associate degree worker, failure to come from leave, failure to report back to work while not notice),
  • Involuntary termination (layoffs, disciplinary actions, unsatisfactory work of associate degree employee).

Employment Agreement Procedure

  • 2 working DAYS

    The contact will be delivered to you within approx. 2 working days after the information required for such is received from the client.

  • 2 operating DAYS

    In case of several changes to the agreement, it will be carried and delivered within 2 working days.

Frequently Asked Questions

An employment contract is a type of bilateral agreement for a fixed duration of time in exchange of service to be provided along with the remuneration.

The employment contract is based on an offer, acceptance, consideration, parties agreed to enter the contract, legal object and also free consent.

Any contract of employment must have name and address of the parties entering the contract, the start date of the employment must be mentioned in the contract. The contract must contain the employee’s job title along with the work description. Other contents which must be mentioned in the employment contract are place of work, hours of work, along with the probation period of the employee must be stated clearly in the contract. Salary, deductions, expenses, holidays, pension, intension to leave employment and notice period must also be stated.

Employment contract is considered to be valid in India if the employee enters into the contract with the employer with the free consent.

The main advantage of an employment contract is that it allows employer to have detailed information on employee. It allows both the parties to negotiate with each other in order to come to a mutual agreed term. The agreement once signed, can be referred in future in case of any dispute between the employer and the employee.

Employee contract helps to maintain a positive relationship between the employer and the employee thus leading to a cordial work environment.

The whole process to draft an employment contract may be completed within three to four working days.

As per The Employment Act, 2002 Employment Tribunal can hear the grievance and can take action against it.

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