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Employee Agreement specifies terms and conditions of employment of an employee in the organisation he is or will be working for. Employment Agreement is a contract commonly entered into when a business hires a new employee. It can be used for a range of different employment types, including full time, part time and fixed term or Contract.


Here are the essential clauses covered in an employment agreement

  • Duties and responsibilities of Employer and Employee
    Duties and responsibilities of the employee must be clearly defined in the employment agreement. As well responsibility of employer is also mentioned in the employee agreement.
  • Working Hours and Leaves
    The normal working hours and days for the employee must be mentioned in the employment agreement. Working hours are governed by the Shops & Establishment Act. Shop & Establishment Laws takes care of safety and security of the employee. Hence, it’s important to be keep in mind the same while drawing the employment agreement.
  • Salary and Remuneration
    Salary is very import term for all employees. It is the return value for employee what he is putting in terms of efforts. In India salaries are paid on monthly basis to full time employees. Salary Structure and Amount of Salary need to mentioned clearly in employee agreement. Notice period for change in salary should also mentioned in the agreement.
  • Dual Employment
    To safeguard the interest of the employer, employee should not take multiple jobs at one point. it is important to add clauses prohibiting the employee from taking up any other employment during the course of this employment contract.
  • Non-Disclosure and Confidentiality
    Non-Disclosure and Confidentiality is biggest issue to many employers. If employee day to day or any duty and responsibility involve working in a position wherein, they would come to know about sensitive information like trade secrets, Intellectual property or confidential information of the business, it is important for the employer get non-disclosure agreement signed from employee. In case of highly specialised employment involving extensive disclosure of confidential information to the employee, a separate employee non-disclosure agreement can be executed as well.
  • Intellectual Property rights
    Any organisation puts lot of efforts to educate employees on new trends and business requirements. A lot of intellectual property is created employees on day to basis. To protect this IP from misuse or personal use, employers ask for IP rights, which states that all the IP created in the employer’s premises or using employer infrastructure like internet, laptop, place or any other device. Employee has to declare that all the IP created or used for employers will have sole right for employer.
  • Non-Compete-Clause
    Many employees learn the trade secret, and create a competition for its employer by starting a same business and porch the existing customers.
    To stop this practice and safeguard the business, employer add clauses like non-compete, where employee is not permitted to start a similar business as well as cannot join other organisation which is in direct competition.
  • Termination of Employment
    it is important for all employment contract to have a clause for termination of employment. The grounds and terms on which the employment contract can be terminated must be clearly provided.
  • Arbitration
    In case of the breach of contract, both parties will be approaching to predefined Arbitration Authority


  1. Safeguard Interest of Employer
  2. Safeguard Interest of Employee
  3. Set Expectations
  4. List Down Laws of Employment



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