What is Employment Contract
An agreement between the employer and the employee which defines their relationship, terms and conditions. This agreement solidifies the relationship between the employer and the employee and defines the terms and conditions between them clearly.
The said agreement must be signed by the employee and the representative of the employer. (Also called as employment agreement which explains rights, responsibilities and obligations of both the parties).
To get a proper order against the employee, there should be a proper valid written employment agreement and the proof of breach of contract must be submitted. On satisfying with the documents submitted the court or arbitrator can pass any of the above stated orders.
Enforcement of Employment agreement
Arbitration: If the agreement of your employment has the provision for the arbitration, then the arbitration which is a very simplest way to enforce the employment contract on its breach.
Court of Law: The appropriate jurisdiction court can provide many remediates as acknowledged in agreement between parties. Court can pass the order of Injunction or damages or specific performance.
7 things you need to include in an employment agreement
- Job Description : The primary condition is that the contract should have clearly say about the description and nature of the job.
- Salary and benefits : This is the most important clause in the point of view of an employee. Not only the salary but also the benefits, appraisal terms can also be mentioned.
- Responsibility : Includes the rile, job nature, duties and activity of work.
- Employment period : It is mandatory to say that whether the employment is for a specific period or ongoing.
- Non-disclosure and confidentiality : As the employee knows all your business know-how and confidential details, it is advisable to include the non-disclosure and confidentiality provisions
- Termination clause : As there should always have an exit plan, here also there should be a provision for termination of the agreement.
- Requirements after termination : If any requirement or undertaking from employee after termination, even that need to be incorporated in the agreement. Eg. An employee should not join competitor organisation for a specific period.
Benefits of written agreement
- It clearly defines the job, responsibility and role.
- It avoids any confutation in relating to job.
- This prevents unauthorised resignation.
- This curtails the risk of data theft.
But however make sure you read the agreement carefully before signing the same.
Types of Employment agreement
- Individual contract : Contract between the individual employee and the employer which speaks about the terms and conditions of the employment of that specific individual.
- Collective agreement : Contract speaks about the T&C of employees work belongs to employer union and binds the employees of same union.
Why to use a employment agreement
- The main use of using an employment agreement is that it permit for a high level of un-ambiguity regarding the details of the employment. It specifies the exact amount of salary that the employer is eligible for.
- Further this agreement can be used in the future if a dispute arises on a specific term of the employment. This written document can be used as evidence before the court of law.
- For employees, an employment agreement can provide a sense of stability and security, especially if the agreement lists the time frame for the period of employment.