Employment Agreement

Define job roles, salary structure, termination clauses, and confidentiality to ensure a compliant and transparent employer-employee relationship.

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Employment Agreement

An Employment Agreement is a legal contract between an employer and an employee that sets out the terms and conditions of employment. It covers job responsibilities, salary, working hours, benefits, confidentiality, termination process, and legal obligations. This agreement protects both parties by ensuring mutual clarity and legal compliance.

It is a must-have document for startups, SMEs, corporates, and organizations hiring professionals on a full-time or part-time basis.

Contents of a Employment Agreement

A professionally drafted Employment Agreement typically includes:

How it Works

Laws Governing Employment Agreements in India

Employment Agreement are governed by various laws, including:

  • Indian Contract Act, 1872
  • Shops & Establishment Act (state-specific)
  • Industrial Disputes Act, 1947
  • Code on Wages, 2019
  • Code on Social Security, 2020
  • Payment of Gratuity Act, 1972
  • The Employees’ Provident Fund Act, 1952
  • Information Technology Act, 2000 (for IT employees or remote work)

Frequently Asked Questions (FAQ)

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It is not legally mandatory, but it is essential for legal protection and professional HR practices.

Yes, we can include clauses for probation, confirmation, and performance review.

They are generally not enforceable post-employment, but can be used to protect trade secrets during employment.

Yes, remote or hybrid work terms can be legally documented in the agreement.

Yes. E-signed Employment Agreements are legally valid under Indian law.