Employment Agreement and Its Importance

Employment Agreement

& Its Importance

What is an Employment Agreement?

An employment Agreement is a legally binding agreement between two parties, the employer and the employee, and is designed to give both parties security and protection.

Why Have an Employment Agreement?

For the employee a contract gives them the security that they are working for a professional business that has clearly defined its obligations and agreement on all terms of employment.

For the employer they have the security that the employee is fully aware of their obligations and has agreed to comply with the stated terms. For the employer the agreement may also endeavour to protect the business clientele and intellectual property such as:

  • radius restriction by which the agreement attempts to impose a geographical radius in which the employee cannot work for a predetermined time period. If either the radius restriction is too large in area or time period excessive, this will be deemed too restrictive.
  • Theft or misuse of intellectual information whereby the employment agreement is protecting the client details specifically service records and personal contact details.
  • Poaching of clients.
  • Poaching of other staff members.
  • Restrictions on advertising for a timeframe whereby one is prohibited from advertising where they are working. This prohibits them from attempting to solicit clients and staff from a place of employment for a specific period of time.
  • restriction from working for a competitor for a reasonable period of time.

Stay Out of the Court

Having an employment agreement signed by the employee and the employer, none of the parties can misuse the other party by coercing to leave or underperform. Incase the employee is fired, he may not be able to seek damages from the employer if the employment agreement was signed and stated facts and reasons wherein the employee could be fired.

Put it in Writing

As a matter of principle employment agreement should always be in writing. Oral agreements are usually invalid and inadmissible and are also difficult to prove in cases of doubt or if contested. Written contracts create clarity and evidence for both parties.

Whether you are an employee or employer there are numerous legal obligations that you need to live up to. Having legally binding employment contracts avoids misunderstanding and gives both parties absolute clarity about both your rights and responsibilities. Don’t let the formality of contracts be a headache, seek professional advice and value the peace of mind when everything is in place.

Book your employment agreements starting at Rs.1,999/- today! Speak to us for a requirement of more than two agreements. Hire all year long? Speak to us for our yearly packages.

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