Employee Contract

An employee contract is a formal agreement between the employer and the employee that lays out their respective rights and duties. It is often designed for top management or staff who are involved in corporate plans and have access to sensitive information of the organization.
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The following information is included in a standard employment contract:

  • Designation/Title: It specifies the employee's title, such as Manager, Executive, Vice President, and the department in which he or she works.
  • Date of Appointment and Employment Duration: An employee may be hired on a long-term basis or for a limited time period. An employment contract establishes the length of time that an employee will be employed by the company.
  • Responsibilities and role: An employment contract also describes the employee's scope of work. It lays out the employee's responsibilities and responsibilities.
  • Compensation information: This is the employee's salary information. It also includes information on the company's benefits, which are in addition to the salary. Medical insurance, vacation and sick leave, and expense reimbursements are just a few examples.
  • Confidentiality: A secrecy clause may be included in an employment contract, especially if the job involves dealing with sensitive material. This clause forbids the employee from sharing such information with others outside of work.
  • Non-Competition Clause: Although a separate agreement is required for this clause, it may be incorporated in the employment contract as well. It prohibits the employee from engaging in any business or activity that is competitive with the company's business or services for a set period of time after the company's contract has expired.
  • Termination of the contract notice: It determines the length of the notice period that must be served if the employee terminates the contract. It also specifies the circumstances in which the company may cancel the contract with or without giving the employee prior notice.

Benefits of Employee Contract


Employee Contract

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Frequently Asked Questions

Employment contract is a confidential contract entered into between the employer and employee. They shall be bound to the contract and are not supposed to share the details of the contract to any third party unless otherwise it is required by law.
An employment contract is an official contract and shall be legally binding on both the parties to the contract.
Both the parties to the agreement are mutually benefitted in accordance to the terms and conditions as agreed upon mutually.
A copy of the contract is given to both employer and employee for future reference.
A breach of terms of the employment contract shall give the other party a right to take legal action against such breach.
An employment contract be changed with the mutual consent and in accordance with the terms as agreed upon in the original contract.
A verbal contract has no effect in the eyes of law as the same cannot always be proven. Hence it is suggested to always have a written contract which shall be legally binding on the parties.
An employment contract terminates in accordance with the termination clause of the agreement usually either upon completion of term or on termination of employment.