The work authorizations in India, is partitioned into 5 general classes, viz. Working Conditions, Industrial Relations, Wage, Welfare and Social Securities. The establishments are completely founded on Constitution of India and the goals set aside in ILO shows from effort to time.
Indian work law alludes to laws managing business. There more than fifty national laws and a lot more state-level laws. Customarily Indian Governments at bureaucratic and state level have tried to guarantee a high level of assurance for laborers through enforesement of work laws.
While adjusting to the basics of the laws of agreements, an agreement of work must cling likewise to the arrangements of relevant work laws and the standards contained under the Standing Orders of the foundation.
Employee Agreement determines terms and states of work of a representative in the association he is or will be working for. Work Agreement is an agreement usually went into when a business procures another worker. It tends to be utilized for a scope of various business types, including full time, low maintenance and fixed term or Contract.
This Agreement sets out the entirety of the terms of business, including work obligations, compensation and advantages, work hours, privacy, yearly leave and different other key terms.
Much of the time, when a business decides to take on another worker, the gatherings need to begin immediately. The business may, in this way, wish to initially furnish the worker with a letter which illuminates a portion of the key terms all the more quickly. In these circumstances, managers may wish to utilize a Letter of Offer for Employment, and afterward to line it up with this Employment Agreement.
An Employment Agreement can't reasonable for use by temporary workers. The contractual workers are prescribed to utilize another lawful understanding called Service Agreement.
Is it mandatory to print the Employment Contract on Stamp Paper?
It doesn't make a difference whether an understanding is imprinted on a letter head of the organization, on a plain paper or on a stamp paper. What makes a difference is whether legitimate stamp has been paid on the understanding or not? (which varies from state to state).
Section 17 of the Indian Stamp Act, 1899 states that "All instruments chargeable with obligation and executed by any individual in India will be stepped previously or at the hour of execution" and Section 2(14) of a similar demonstration characterizes "Instrument" as "each report by which any privilege or risk is, or indicates to be, made, moved, constrained, expanded, stifled or recorded". Accordingly, passing by the arrangements of the Indian Stamp Act, 1899 it very well may be inferred that it will be lawfully positive to decide to pay a rihght measure of Stamp Duty, which varies from state to state, on Employee Agreement to keep up its lawful legitimacy.
Work Contract Laws:
The work might be dependent upon the terms and states of the pertinent Shops and Establishments Act or Factories Act contingent upon the idea of movement carried on by the business. Each State in India has its own Shops and Establishments Act which sets out specific terms in regards to working hours, additional time and so forth.
Duties and responsibilities of Employer and Employee
Duties and responsibilities of the employee must be clearly defined in the employment agreement. As well responsibility of employer is also mentioned in the employee agreement.
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 employee. Hence, its important to be keep in mind the same while drawing the employment agreement.
Salary and Remuneration
Salary is very import term for all employees. It is the return value for employee what he is putting in terms of effoerts. In India salaries are paid on monthly basis to full time employees. Salary Structure and Amount of Salary need to mentioned clearly in employee agreement. Notice period for change in salary should also mentioned in the agreement.
Dual Employment
To safeguard the interest of the employer, employee should not take multiple jobs at one point. it is important to add clauses prohibiting the employee from taking up any other employment during the course of this employment contract.
Non Disclosure and Confidentiality
Non Disclosure and Confidentiality is biggest issue to many employers. If employee day to day or any duty and responsibility involve working in a position wherein they would come to know about sensitive information like trade secrets, Intellectual property or confidential information of the business, it is important for the employer get non disclosure agreement signed from employee. In case of highly specialised employment involving extensive disclosure of confidential information to the employee, a separate employee non-disclosure agreement can be executed as well.
Intellectual Property rights
Any organisation puts lot of efforts to educate employees on new trends and business requirements. A lot of intellectual property is created employees on day to 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. Employee has to declare that all the IP created or used for employers will have sole right for employer.
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, employer add clauses like non compete, where employee is not permitted to start a similar business as well as can not join other organisation which is in direct competition.
Termination of Employment
it is important for all employment contract to have a clause for termination of employment. The grounds and terms on which the employment contract can be terminated must be clearly provided.
Arbitration
In case of the breach of contract, both parties will be approaching to predefined Arbitration Authority
