What is an employment agreement?
An employment agreement is an all-inclusive record on paper that discourses all clauses that govern the employment, as well as the rights, obligation, and responsibilities of the parties involved, concerning one other. When hiring, an employment agreement contract becomes a mandate irrespective of whether the hiring is full time or part-time. Some of the probable points of an employment agreement letter comprise of salary break-up, joining date, notice period, and non-compete clause.
What are the benefits of an employment agreement?
Certain benefits of an employment agreement contract are mentioned below-
Minimal Liability
Employment agreements shield the rights of the staff as well as the recruiters. A definite, well-devised clause in an employment agreement format will keep things on the right path and steer clear from uncertainty. A well-drafted employment agreement sample also minimizes future legal liabilities.
Gives Assurance
Any legal agreement keeps both parties at peace and so does an employment agreement. Once the staff and the employer sign the contract, it develops a feeling of mutual respect. The contract also sets the responsibilities and obligation for the involved parties, making sure that both the parties are treated fairly
Employment Agreement - Clauses
- Variable salary component: This portion is dependent on the company earning enough profits during the year, and its willingness to pay a bonus to employees.
- Notice period: It is the defined time period that one must serve from the date of submitting the resignation letter, till the date of being relieved from the company.
- Terms of employment: Most companies do not allow their employees to carry out any other profession or business parallel to their employment.
- Non-compete clause: It legally prevents employees from offering their services, for a given period, to other employers working in the same industry or segment (competitors).
- Transfers & promotion policy: Details on the frequency of transfers within the company, and the basis of being promoted.
- Probation period: This is the time that the company takes to form an opinion about the employee, work ethic, commitment & willingness towards the job, etc.
- Additional allowance: House rent, travel, medical reimbursements, insurance cover, and other allowances are part of most standard employment contracts.
What is the process of preparing an employment agreement at Vakilsearch?
3 Business Days
Upon contact, your request to write an employment agreement contract will be received and our representative will be in touch with you to take your request forward. If we need more information from your end, we will call you as and when required. After we receive all your details, our in-house lawyers and legal experts, will create the employment agreement sample and send it across for your view within 2- 4 business days.
2 Business Days
Your original price includes two rounds of iterations. Therefore, if you need any changes done to the employment agreement format, our lawyers will do the needful and send it across to you for your view once again.
Documents required for Employment Contract
In India,Employment Contract cannot be done without proper identity and address proof. These documents will be needed for all the directors and the shareholders of the company to be incorporated. Listed below are the documents that are accepted by MCA for the online company registration process acceptable.
Identity And Address Proof
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter’s ID/Passport/Driver’s License
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned passport-sized photograph specimen signature (blank document with signature [directors only])
For the foreign nationals, an apostilled or notarized copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.
Registered Office Proof
For online company registration in India, the company must have a registered office in India. To prove admittance to the registered office, a recent copy of an electricity bill or the property tax receipt or water bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/his consent to use the office as a registered office of the company should be submitted.
- Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill
- Scanned copy of Notarized rental agreement in English
- Scanned copy of No-objection certificate from the property owner
- Scanned copy of sale deed/property deed in English (in case of owned property)
Note: Your registered office need not be a commercial space; it can be your residence too.
