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Employment Agreement

An Employment Agreement is the sole legal document between the Employer and Employee, which lays out the rights, duties, and obligations of both parties during the employment period. An Employment Agreement is a crucial document in managing employees as it lays down the rights and obligations of both the Employer and the Employee. From junior-most level to the CEO, everyone is an Employee, and to manage the employees efficiently, one needs to have an Employment Agreement.


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Tags: employment, agreement, legal, drafting

Drafting of Employment Agreement

An Employment Agreement is the sole legal document between the Employer and Employee, which lays out the rights, duties, and obligations of both parties during the employment period. An Employment Agreement is a crucial document in managing employees as it lays down the rights and obligations of both the Employer and the Employee. From junior-most level to the CEO, everyone is an Employee, and to manage the employees efficiently, one needs to have an Employment Agreement.

Explore Employment Agreement

Elements of Employment Agreement

An Employment Agreement should clearly define the terms and conditions of employment. The most common elements discussed in the Employment Agreement are:

  • Job Description of the Employee
  • Term of the Employment
  • Employee benefits
  • Remuneration/compensation to the Employee
  • Leave Policy
  • Grounds for termination
  • Protection of Confidential information
  • Ownership of Intellectual Property
  • Dispute Resolution
  • Governing laws and jurisdiction
  • Any other provisions deemed to be relevant to the Employer.

In the case of individuals hired on contractual basis for a limited period of time such as candidates hired for specific projects Service Agreement is drafted instead of Employment Agreement.

Position in Law

Employment Agreement has not been mentioned anywhere in the Indian Contracts Act, 1972. Still, as per section 27 of the Act, an agreement, which restrains an individual from carrying on a lawful profession, trade, or business, is void to the extent it restrains them. The restraint has to be reasonable to be permitted by law. Employment policies such as leaves, maternity leaves, working hours, etc. are governed by the applicable Shops and Establishment Act. Other relevant laws that govern various aspects related to employment are Factories Act,1948, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, etc.

Drafting of Employment Agreement is simple with LegalWiz.in as it has experienced lawyers who ensure highest customer satisfaction and timely delivery of services. Whole process is managed online, with regular communication and assistance by the professionals available throughout. We have clients in all major cities of India including Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Hyderabad and more as well as our services have equally relevant reach within smaller cities and towns in the country.