Employment Contract

Employment Contract in Delhi NCR

Employment contract lays down the kind of relationship that an employer have with his employees in any particular business.  It includes job description, job duration, salaries of the employees, protection against company secrets, limitations of employee regarding ownership and their ground for termination. Employment contract is for particular time duration and provides a great opportunity to the employees to demonstrate their worth.

Following are the characteristics of Employment agreement in Delhi NCR:-

• Part time Contract

In Employment contract, the number of working hours is limited and is defined under the terms of the contract. This helps the employee to work on different things in parallel like education, skill development, personal development etc. Also, the employees in the contract employment work on a fixed rate of payment.

• Agency Staff

In Employment contract, a person works for an agency hired by other business organizations i.e. the employees work on the payroll of the agency and not that organization. Employment contract provides a great opportunity to the person to learn and get in the desired organization by the experience they gained through employment.

• Consultation or freelancing

In employment contract, the employee act as a free lancer i.e. the employee is self-employed and is not committed to the particular employer for a long time period. The liability of the employee towards the business is only for the time period the contract is valid.

• Zero Hour Contract

The employment contract requires skilled labor and is on call work. The employees are free to search for other employment opportunities once they complete the task assigned in the employment contract.

• Voluntary Employment

Employment contract is voluntary and a person according to its own will and area of interest selects the kind of employment. Also, they are free to decide the working hours.

Reasons to have an Employment Contract in Delhi NCR

Delhi NCR, the capital of the country, is famous for its monuments. One of them is the ‘Qutb Minar’. It is one of the UNESCO’s world heritage sites from the nation. It was constructed by the first Sultan of Delhi NCR, Qutb-ud-din Aibak, from the Slave dynasty. It is named after Qutb-ud-din Bakhtiar Kaki. Depicting the epitome of Afghani architecture, it has five stories with balconies. Qutb Minar is the largest of its kind in the world.

Following are the reasons for employment contract in Delhi NCR:-

• Evidence for Resolving Disputes

Employment contract provides certain specific provisions for resolving disputes in the employment. Therefore, if any dispute arises related to any particular aspect of the employment, one can simply go through the terms of the agreement and use it as evidence if necessary for resolving that dispute.

• Controls the Employee’s ability to leave the business

Employment contract is a situation where the employees are hired for a particular job for specific period of time. The terms of the contract provides for the time period for which the employee is being hired. Thus, it puts check on the employee’s ability to leave the business prior to the expiry of the contract. The employer has the right to take legal action or any action as per the terms of the contract against the employee who left the business before the end of the contract.

• Less Competition

There is less competition in contract based employment than a full time employment. With less competition, a person can easily analyze its worth by working on a contractual basis. It helps to add to the experience, know more about themselves and become confident which ultimately provides an edge when they move out in search of full time employment. 

• Provides more control over employees

Employment contract provides employer more control over the employees by regulating their behavior and makes them responsible for the effective and efficient functioning of the business.

• Why do I need an Employment Contract in Delhi NCR

Employment agreement in Delhi NCR is required for the following reasons:-

• Healthy work Relationship

The roles and responsibilities of the employer and the employees are clearly specified in the employment contract. Employment contract helps to foster healthy work relationship among the employer and the employees by providing a sense of security and stability to the employees and creating an enhanced degree of organization and structure in the work relationship.

• Flexibility

Another important aspect of contract employment is that there is flexibility of work hours. In full time employment, the employee is required to adhere to the strict structure of the business whereas in a contract employment, the employee gets an opportunity to choose how they want to work on a particular project, design their work delivery structure and can even decide the working hours. Therefore, flexibility in the contract employment attracts everyone.

• Fixed Term Contract

Employment contract is for fixed time duration and cannot be extended beyond that. In fixed term contract, the employees are assigned with certain task or project to complete within a given time period. After the completion of the project, the contract will be terminated. The salary and compensation that employees will receive are predetermined according to the terms of the contract.

• Continuous Growth

In a full time contract, the employees get stuck in a single profile or work type for a longer period of time whereas in employment contract, the employees are assigned projects based on their relevant skills for a fixed duration. This helps the employees to demonstrate their skills and gaining experience.

Process of Drafting employment contract in Delhi NCR

For drafting an effective employment agreement in Delhi NCR, the employer is required to follow following procedures:-

• Formation of Fundamental Policies of Employment contract

The most important step in drafting an employment contract is to form the fundamental policies and values of the employment contract. This includes the basic essentials related to the contract like general writing principles along with definition of terms.

• Formation of Contract Principles

Once the layout for the employment contract is prepared, the employer is required to include contracting principles like basic attributes of contractual relationship, terms and conditions, warranties and standard provisions.

• Establishing Rights, Obligations and Remedies

The third most important step in drafting contract is to establish the roles and responsibilities of the employee for the whole duration of the contract. The obligations of employees include not revealing the company secrets, not working for competing against company etc. whereas the agreement includes offer, acceptance and consideration. Also, the contract provides certain remedies to the employees in case where an irreparable damage has been caused to the employee during the course of employment.

• Contract Interpretation

It is important for any contract to provide provisions through which the contract is interpreted. The employment contract addresses the possibility of future litigation by providing terms for termination, risk allocation and impracticability of performance and frustration of purpose.

• Assembling Contract

The final step in drafting the employment contract is to assemble the contract after adding all the important clauses related to the business.

Minimum Requirements for Employment Contract in Delhi NCR

The legislations do not require strictly, that the employment contract should be in writing. However, it is advisable that the employment contract must be prepared in writing with the help of a legal expert and it includes all the terms and conditions related to the business. It is required to have an employment contract on paper with all the terms and conditions agreed and signed by both the parties.

The minimum requirement for an employment agreement in Delhi NCR is that it must include:

• Location, Description and Title of Job
• Trial or Probationary period
• Date of commencement, duration and type of job
• Grounds for termination of contract
• Salary details of employees
• Restrictive covenants
• Governing law