Employment Contract Mumbai

Employment contract in Mumbai

A bilateral agreement for the exchange of service and remuneration for a given period of time is Employment Contract. It is just like any other contract which needs to have essentials such as an offer, acceptance, consideration, legal object, competent parties and free consent to classify it as a valid agreement.

An employment contract is a document binding the parties in an employer-employee relationship.

Generally, a letter of appointment is signed by both the parties i.e. employer and employee prior to the signing of a formal contract to cover the period of probation unless a person employed is confirmed by the employer.

An employment contract generally includes:-

• Particulars of the person employed i.e. the employee (name, birth date, nationality etc) 
• The position of the employee in the organization
• His work hours and duties 
• Salary or remuneration allowances
• Benefits leave
• Retirement age
• The clause regarding termination of employment
• It is not mandatory for contracts to be in writing, in fact, they can be oral also. A written contract is preferable to avoid disputes at a later stage. Both the parties should enter into such a contract after getting familiarize with all the terms and conditions of the employment mentioned in the agreement and must agree upon them i.e. they should have consensus ad idem.
• A contract of employment contains conclusive terms and conditions to which both the employee and employer are bound. A breach of such terms and condition will repudiate the contract.
• In an abstract sketch, an employment contract is a contract of service between the employee and the employer with terms and conditions which is required to be fulfilled by both the parties. They are the requirement of the hour at the workplace to preserve a cordial relationship between the employer and the employee.

What is an Employment Agreement in Mumbai?

Mumbai aka Bombay, is a perfect destination for a foodie as this place is full and famous of street food. In a battle between the pizza, burger and the pani-puri, vada-pav stalls on street, there is no doubt the latter will always and forever win. The street food here includes mouth watering pani-puri, world famous vada-pav, everlasting pav-bhaji, spicy bhel-puri, everyone’s favourite sev-puri and of course the all nighters- tikki. These delicious dishes vanishes your hunger pangs at any hour of the day. If one plans to visit Mumbai, trying the street food is a must-to-do thing.

You can form an employment contract in Mumbai with the help of Company Vakil.

An employment contract is an agreement between an employer and an employee, signed by both the parties, that sets out both the responsibilities and rights of the two parties, that is, company and worker.

Why Is Employment Contract in Mumbai Needed?

An employment agreement in Mumbai or contract of employment, it lays out the rights and responsibilities of both an employer and an employee.
Following specifications can be included in it:

• The agreed upon salary, commission, or wage between both parties. 
• The schedule for the number of hours and days an employee is required to work. 
• The duration an employee has agreed to work for a company. This time period may be ongoing in some cases and fixed for a specified duration among others. 
• The responsibilities a worker is expected to perform in the course of employment.
• The confidential statement might be included as part of a contract in some cases, though in most cases a worker signs a non-disclosure statement separately. 
• The contract may state that control and ownership are to be retained by the company over every communication in cases employees are involved in handling email, social media, websites etc. 
• It should set out all benefits that form a part of employment including perks, health insurance, vacation time etc. 
• The inclusion of a non-compete agreement or NCC which states that when an employee will leave the job he will not take up jobs, to keep a check on future competition. 

Process to form a employment contract in Mumbai

• In most cases, employees are required to sign a contract that specifies terms of the employment. 
• It documents their salary, start date, benefits package etc. 
• In case a relocation package/ signing bonus is offered, the requirements of repayment are stipulated in case an employee terminates employment prior to a certain date. 
• Non disclosure and non- compete clauses may be included in the contract. 
• An employee is expected to sign only if he is ready to work and can remain committed for the job. He is expected to not engage in a job search any further and reject any future offers that he may receive. 
• Once an employee signs a contract of an employment, the process of a contract gets over.

Advantages and Benefits of Employment Contract in Mumbai

• An employment contract clearly defines an employee’s job, responsibilities, and benefits. It helps in preventing any confusion related to the job. 
• It also ensures that legal remedies are available to both the parties when one of them breaches a condition of the contract.