1. Compensation Details:

This is the salary details of the employee. It also contains the small print of advantages offered by the corporate additionally to salary. For example- medical insurance, vacation and sick leaves, expense reimbursements etc.

2. Duration of Employment:

An employee may be hired as an ongoing employee or only for some specific duration. An employment agreement specifies the duration that an employee is hired by the corporate.

​

3. Designation:

It specifies the designation of the employee such as Manager, Executive, Vice President etc. and the department

he or she works in.

4. Role & Responsibilities:

An employment contract also specifies the scope of work for the employee. It outlines the responsibilities and tasks

to be performed by the worker.

​

5. Confidentiality:

An employment contract may contain a confidentiality clause especially when work involves dealing with sensitive information. This clause prohibits the worker from disclosing confidential information.

6. Non-Competition Clause:

Though this clause requires separate agreement, it may be included in the employment contract also. It prevents the worker from doing business or activity which is competitive with the company’s business or services for a specified duration after the termination of the contract with the company.

​

7. Notice for Termination of the contract:

It specifies the duration of the notice period to be served in case of termination of the contract by the employee.

It also mentions the circumstances under which the corporate can terminate the contract without prior notice to

the worker .

8. Duties and responsibilities of Employer and Employee:

Duties and responsibilities of the employee must be clearly defined in the employment agreement. As well as the
responsibility of the employer is also mentioned in the employee agreement.

​

9. 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 worker . Hence, it's important to keep in mind the same while drawing the

employment agreement.

​

10. Salary and Remuneration:

Salary is a very important term for all employees. It is the return value for an employee of what he is putting in terms

of effort. In India salaries are paid on a monthly basis to full time employees. Salary Structure and Amount of Salary

has to be mentioned clearly in employee agreement. Notice period for change in salary should also be mentioned within the agreement.

​

11. Dual Employment:

To safeguard the interest of the employer, employees should not take multiple jobs at one point. it is important to feature clauses prohibiting the worker from taking on other employment during the course of this employment
agreement .

12. Non Disclosure and Confidentiality:

Duties and responsibilities of the employee must be clearly defined in the employment agreement. As well as the
responsibility of the employer is also mentioned in the employee agreement.

​

13. Working Hours and Leaves:

Non Disclosure and Confidentiality is the biggest issue to many employers. If an employee day to day or any duty

and responsibility involves working during a position wherein they might come to understand sensitive information

like trade secrets, Intellectual property or confidential information of the business, it is important for the employer

to get a non-disclosure agreement signed by the employee. In the case of highly specialised employment involving extensive disclosure of tip to the worker , a separate employee non-disclosure agreement is often executed also. 

​

14. Intellectual Property rights:

Any organisation puts a lot of efforts to educate employees on new trends and business requirements. A lot of intellectual property is created by employees on a day to day 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. Employees have to declare that all the IP created or used for employers will have sole right for the employer.

​

15. 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, employers add clauses like non compete, where an employee is not permitted to start a similar business as well as can not join another organisation which is in direct competition.

​

16. Termination of Employment:

It is important for all employment contracts to have a
clause for termination of employment. The grounds and terms on which the utilization contracts are often terminated must be clearly provided.

​

17. Arbitration:

Just in case of the breach of contract, both parties are going to be approaching to predefined Arbitration Authority.

​