Employment Agreement

Purpose of the Agreement: To establish a comprehensive employment relationship framework that defines roles, responsibilities, compensation, and obligations between employer and employee, while protecting company interests through confidentiality and restrictive covenants.

Why It Matters?

• Creates legally binding employment terms and conditions
• Protects company's confidential information and intellectual property
• Establishes clear performance expectations and behavioral standards
• Defines compensation structure and leave entitlements
• Provides framework for probation, confirmation, and termination processes
• Prevents post-employment competition and client/staff poaching
• Establishes dispute resolution and modification procedures

Best Practices:

• Execute on appropriate stamp paper as per state stamp duty laws
• Fill all blank spaces with specific details before signing (salary, notice periods, leave days, etc.)
• Ensure probation period and restrictive covenants comply with local labor laws
• Sign on the last page and initial all pages (bottom-right corner)
• Maintain original signed copies for both employer and employee
• Review local employment regulations to ensure enforceability of non-compete clauses
• Consider having legal counsel review restrictive covenant periods (1-year non-compete, 3-year non-solicitation)
• Update employee handbook and policies referenced in the agreement
• Ensure salary and benefits comply with minimum wage and statutory requirements