EMPLOYER – EMPLOYEE AGREEMENT

EMPLOYER - EMPLOYEE AGREEMENT

The Employer-Employee agreement is one of the important agreements which are specially made for assigning the works, salary, duration and other benefits. With the agreement it clears all the queries which are related to the employment. Furthermore with the Agreement the employee or the employer shall claim their right if it was violated by any parties. The well known company L&T, for their construction works they made this kind of agreement for securing their works. Signing these agreements which protect the employer from unauthorised works and suspension.

MEANING :

Generally the Employer-Employee agreement is also known as the employment contract. The employment of the new employee into the company which involves the parties to entering into an agreement or the contract. Those agreements between the employer and employee are known as the employment agreement. The agreement which contains the duties and responsibilities between the both parties.

Once the employment agreement was signed by both parties , it became legally binded by law. If any of the parties who act against the agreement or the terms and condition of the agreement, held liable for the legal actions.

TYPES OF EMPLOYMENT AGREEMENT :

Basically there are three types of employment agreement. The agreements which are used based on the employment levels.

Written employment contract :

The written employment contract is the most common agreement which commonly contains the basic things such as the rights, duties, rules and general conditions. These kinds of agreements are used for the basic employment or for the basic workers. The agreement which was signed by the both parties either digitally or print form.

Implied contract :

The employee shall enter into the implied contract when the purposes of the employment or the position of the job role is higher. In this situation the implied contract agreement plays a major role for entering into the contract.

Eg : Software company hires a new employee for the company which discloses all the terms and conditions and rules that should be acknowledged formally before signing the documents or the contract.

Oral contract :

The oral contract is generally the verbal agreement between the both parties (the employee and the employee) which includes the basic information such as the salary, scope of the work, and working hours. The Oral contracts are not legally enforceable by law.

USES OF THE EMPLOYMENT AGREEMENT

The employment agreement is mainly used as the primary evidence before the court when the employee or the employer who acts against the agreement should claim the legal actions. It provides all the information about the parties and entering into the contract for the particular job assigned for him. The employment agreement mainly protects the company confidential information and royalty of the business. The agreement should protect both parties legally.

ADVANTAGES OF THE EMPLOYMENT AGREEMENT :

Clarity : The agreement clearly states rights, responsibilities, duties and the assigned works, compensations and benefits which were agreed in the contract or the agreement.
Shield to secret : The agreement which protects the company trade secrets, and prevents data theft which gives the shield for the intellectual property by the agreement.
Prevent unprocedural resignations : The contract between the both parties which prevent the unauthorised resignation without proper notice.

Both parties should accept the terms and conditions, before entering into the legal agreement or the contract.

REQUIREMENTS FOR THE VALIDITY OF THE EMPLOYMENT AGREEMENT IN INDIA :

The following should be the requirement for the validity of the employment agreement in India.

The agreement or the contract should be printed on the valuable stamp paper which complies with the legal requirement
The agreement should contains the terms and conditions of the employment and should be reasonable.;
The agreement should be neutral to both parties in which all the information was favourable to both parties. It should not support a single party.
The Agreement should be voluntarily signed by both parties with free mind.

ESSENTIAL ELEMENTS FOR THE EMPLOYMENT AGREEMENT :

There are certain essential elements which include for the drafting of the good employment agreement or the contract.

1. TITLE OF THE JOB :

The agreement should contain the employee’s title and the description of the job. The document which assures the main duties, rights, ultimate goal for the employee in the company or the employment, his role should be clearly stated. The title should be flexible to the employee to accept the Job.

2. TERMS :

The terms which generally means the following guidelines that the employee or the employer should not violate the Terms and conditions of the company or in the business. This also clearly states that the employee is beyond or violates the terms and conditions. The employer has the right to terminate him from the job with the reasonable notice which was sent to him.

3. SALARY AND COMPENSATION :

The agreements should be detailed with the salary, remuneration, and bonuses in the agreement. The employer should detail the monthly and the annual salary, allocation of bonuses, employee provident fund, insurance, medical expenses, increment of the job. The language should be understandable by the employee and the words should not be confusing to the employee. The compensation which in case of any dispute or the company violates the agreement the compensation shall be granted to the employee should be mentioned clearly in the employment agreement.

4. WORKING HOURS AND LOCATION :

In certain companies the working hours may vary, the employer should mention the working hours in order to clear the misunderstanding of the employee. The working hours for the week and the shift for the work (night shift or day shift), the location of the allocated works, in case the company has a lot of branches and every shift if the employee should work each branch, those should be mentioned clearly in the agreement.

5. CONFIDENTIALITY :

One of the important clauses is how the employee will treat the confidentialities of the company and the above work information and the employer’s business should not be misused by the employee which leads to the violations of the terms and conditions by the employee. The above information should be disclosed clearly by the employer in the agreement.

6. NON COMPETE AND NON SOLICIT CLAUSES :

The Non compete clause which ensures that the employees are restricted to enter into any other business during the terms of their incorporation with the company. If any employee associated with another business before the termination period. The agreement became void. The Non solicit clauses which prevent the employee are prevented from the further business agreement other than the business which engaged. This prevents the further interests of the employee from the business.

7. TERMINATION :

The termination clauses help the parties to terminate their agreement legally. The breach by legal approach which helps in the labour clauses. The party sent the notice for the termination of the employment of the company within the period which mentioned in the agreement, should be legally valid. Those clauses should be clearly understandable by both parties.

Post termination of the employee, which results in the employee failing to join the company in the particular period, leads to the post termination of the employee from the job.

8. DISPUTE RESOLUTION :

The agreement should be mentioned with the appropriate dispute resolution system for solving the issues. There are two ways to approach the dispute resolution under these clauses for the enforcement of the employment agreement in India.

ENFORCEMENT OF THE EMPLOYMENT AGREEMENT IN INDIA :

ARBITRATION :

The employment agreement which contains the arbitration clauses in the dispute resolution. We can approach the issue by promoting the arbitrator for the case. The arbitration is one of the easy ways to disclose the case with the limited time period if the employee or the employer had been involved in a breach of contract. Speedy trial procedure may happen in this process.

COURT OF LAW :

If the arbitration clauses were not included in the employee agreement, we can approach the court of law under the mentioned jurisdiction for the relief. The court may grant injunction, specific relief or compensation for the wrongful act by the party.

THE GOVERNING LEGISLATIONS FOR THE EMPLOYMENT AGREEMENT :

The Factories Act of 1948.
The Payment of Gratuity Act of 1972
Shops and Establishment Act.
The Maternity Benefit Act of 1961

These are the important acts which govern the legislation for the employment agreement.

BREACH OF THE EMPLOYMENT AGREEMENT :

If the employer or the employee breaches the terms and conditions which are mentioned in the agreements. The non breaching party entitled for the claim of the damages and compensation. The breach of contracts which includes the certain things which the mentioned salary was not granted by the employer, fails to pay the salary on time, terminates the employee without the reasons would be the act of the employer involved in the breach of contract. As the same the employee should not disclose the confidential information of the company or the employee involved or act beyond the agreement and taking extra leaves, commits with other business which leads to the breach of contract by the employee.

FAQ

FAQ ON THE EMPLOYMENT AGREEMENT :

1. WHAT DO YOU MEAN BY THE EMPLOYMENT AGREEMENT ?

2. WHAT ARE THE REQUIREMENTS FOR THE VALIDITY OF THE EMPLOYMENT AGREEMENT IN INDIA ?

The following should be the requirement for the validity of the employment agreement in India.

- The agreement should contains the terms and conditions of the employment and should be reasonable.;
- The agreement should be neutral to both parties in which all the information was favourable to both parties. It should not support a single party.
- The Agreement should be voluntarily signed by both parties with free mind.

3. WHAT ARE THE ADVANTAGES OF THE EMPLOYMENT AGREEMENT ?

Job security : The agreement which guarantees the job and gives the legal protection by the contract between the employer and the employee.
Clarity : The agreement clearly states rights, responsibilities, duties and the assigned works, compensations and benefits which were agreed in the contract or the agreement.
Shield to secret : The agreement which protects the company trade secrets, and prevents data theft which gives the shield for the intellectual property by the agreement.
Prevent dropouts : The contract between the both parties which prevent the unauthorised terminations and the dropouts of the employee.

Both parties should accept the terms and conditions, before entering into the legal agreement or the contract.

4. WHAT ARE THE GOVERNING LEGISLATIONS FOR THE EMPLOYMENT AGREEMENT ?

The Factories Act of 1948.
The Payment of Gratuity Act of 1972.
Shops and Establishment Act.
The Maternity Benefit Act of 1961

These are the important acts which govern the legislation for the employment agreement.

5. WHAT ARE THE ESSENTIAL ELEMENTS FOR THE EMPLOYMENT AGREEMENT ?

There are certain essential elements which include for the drafting of the good employment agreement or the contract.

Job title
Terms and description
Salary and compensation
Working hours and location
Confidentiality
Non compete and non solicit clauses
Termination
Dispute resolution

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