Employee Contract

Meaning & Definition

An Employment Contract is defined as a legally enforceable written agreement between an employer and employee regarding the expectations of the employment relationship. The contents of an employment contract include the following: job title; salary; benefits; hours of work; notice periods; confidentiality; and termination provisions.

Why Do Employee Contracts Matter?

• It establishes a clear definition for job duties & the amount of pay. 
• May also reduce arguments about pay, notice periods, and termination issues. 
• Safeguards company data through confidentiality agreements. 
• Clarifies working hours, vacation time, and other employee benefits. 
• Provides both parties with additional legal protection in making employment relationships.

Legal Compliance 

It is not a requirement to use a specific form when creating an Employee Contract; however, to be legally enforceable, contracts should comply with all relevant statutory employment laws, including:

• Indian Contract Act 1872
• Industrial Disputes Act 1947 
• Shops and Establishments Act

Employment Contracts cannot include any clause in violation of the statutory provisions of employment law.