Essentials of Employment Contracts


Essentials of Employment Contracts

An employment contract is an elaborated leagl agreement between the employer and the employee.,It helps both parties to comprehend their obligations and the stipulations of employment. Employment contract lays down the all terms and obligatation of the employers related with the employment. All terms are drafted thats mutually agreed between the employer and employee. Whether stated explicitly in the agreement or not, both the employee and the employer have the duty of mutual confidence and trust, and to make only lawful and reasonable demands on each other.

While drafting an Employers contract folloing to be considered

  • Title of Contract: The contract draft  should start with the title of the Employment contract. The title of the Employment Contract need not give any details about the terms and conditions of the Contract. In general, the title ‘Employment Contract’ is considered more than enough.
  • State the Parties: It is crucial that the name and identity of the parties to the Contract must be mentioned in the contract explicitly. Generally, in the case of Employment Contract, the parties comprise the name of the Company and the name of the Employee. In addition, the locality of the Company must be particularly written in the Contract.
  • List Terms and Conditions: The most important aspect in drafting an Employment Contract, are the stipulations of the contract.By and large, the bare minimum requirement of an Employment contract is salary, hours of employment, and the severance packages provided in terms and conditions.
  • Delineate Position Duties: It ought to be kept in mind that the employee should not be astonished by any new accountability or work, and the employer is getting what needs to be done. For ensuring these things, it is vital to write an outline of things, and it is important to write a detailed outline of the duties of the person applying for such a position. A complete list should be prepared with the Employment Contract for providing transparency about the tasks associated with the position.
  • Be Clear on Compensation: The compensation facet of your contract must be unambiguous and direct. This way, there will not be any perplexity or disagreement regarding the employee is first or second retribution.
  • Miscellaneous Clauses: On the basis of the nature of the Company and the kind of business, the company may consider adding other clauses in the contract which include, i) Non-Solicitation Clause- which bans the employees from soliciting the customers from any particular geographical area and taking them with him ii) Privacy- this clause says that the employee shall not have expectations of confidentiality in the employer-issued devices. iii) Probationary Clause- this clause provides the authority to an employer to remove an employee within a particular period of time.

After the Company has finished drafting the Employment Contract, it is essential to seek advice from an attorney to methodically review the contract. This way can unpredictably lower the chances of facing litigation arising out of the contract. The legal document should be combined with the prior oral or written negotiations that took place between the parties.