Employment Contract Mumbai

An agreement between an employer and employee and is the basis of the employment relationship

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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?

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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. 

Documents required for Employment Contract in Mumbai

All the Documents are required only in scanned form. You can attach the document in the form after payment or email it to us on documents@companyvakil.com. Feel free to get in touch for any query.

  • Written and verbal agreements between an employer and an employee may include valid provisions of the contract
  • Other documents that may form part of such contract include company bulletins and handbook of an employee.
  • If one has been engaged in employment for a long time, the employer’s conduct may be understood to imply a provision of a valid contract. For example, if one’s job performance is appreciated by the employer, this may imply that he will not be terminated from his position because of his work if he continues to work maintaining the same standard.

TIME TAKEN in registration process

2 to 3 working days

Drafting of Employment contract according to your need

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Frequently asked questions

1.         What is an Employment Agreement?

Employment Agreement is a necessary instrument while hiring any employee or consultant as it defines and addresses all the terms and conditions governing employment comprehensively plus the rights and duties of each concerned party to it.

2.       What are the familiar points included in an Employment Contract in Mumbai?

Common points would be Breakdown of Salary, Notice Period, Date of Joining and Non-Compete Clause.

3.       What are the Benefits of an Employment Contracts?

Following are the benefits of having it:-

1. It minimizes the risk by protecting the rights of both employers and employees. 
2. It sets the expectation of an Employee psychologically and creates a sense of respect for the terms mentioned in it. 
3. The contract defines the responsibilities and expectations of both the Parties.



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