The genuine resources of any association or firm, be it a startup or a timeless one, are a employees, and therefore it is intensely critical for each association to have a professionally drafted ‘Employment Agreement‘ sealed with a employees, since it is this agreement that clearly stipulates and papers all a terms of practice and a rights and liabilities of both parties and is deliberate an enforceable agreement by a Indian courts.
- The disputes occurring between a association and a employees can be broadly personal into 3 categories:
- Pre-joining – This occurs when employees accept a offer minute and practice agreement though afterwards exclude to join practice and news for work for any reason whatsoever. This unfolding leads to undue hardship and detriment to a association that spent time and resources in conducting interviews, selecting a right claimant and formulation a destiny work subsidy formed on this claimant usurpation a practice offer.
- During a march of employment – These disputes start during a time a worker is indeed employed with a company. These disputes fundamentally arise due to a mismatch of expectations of responsibilities and rights from possibly a association or a employees or both.
Example 1: The association might cruise it within a right to send a employees to any plcae or to send them for any outstation conferences or work. However, a worker might conflict this and exclude these. In such a unfolding it is a practice agreement that plays a all-important role, since it contingency enclose a well-drafted specific proviso permitting a association to send a employees to any plcae or to ask them to transport anywhere in propinquity to a company’s work.
Example 2: Companies mostly face a problem of employees unexpected terminating their practice and environment adult a opposition business in a same geographical area. Companies can strengthen themselves opposite this conditions by carrying a professionally drafted practice agreement in place that has a specific proviso that restricts a worker from environment adult or carrying any interests in any business competing with a company, so prolonged as a restrictions are reasonable by approach of geographical and time parameters as hold by a courts of India.
- Termination of Employment – These disputes start when possibly a association or worker wants to cancel a employment. The many common problem that companies face is employees absconding from work but portion any notice period. This jeopardises a whole work report and plan deadlines of a association and sets a bad fashion for other employees in future. Therefore, it is critical to have a professionally drafted practice agreement that clearly stipulates a notice duration or a transparent volume of income to be paid in lieu of a same. Moreover, a agreement should clearly outline a procession and terms of stop of practice by possibly party.
- Remedies accessible to a association in box of crack of a practice agreement by a employee:
- Sue for specific opening of a contract – This meant a association can take a worker to justice and record a fit for removing a worker to perform his specific obligations underneath a contract. This is customarily finished when a repairs caused by a crack is such that it can't be accurate by financial compensation.
- Sue for indemnification – This means a association can take a worker to justice and record a fit for removing a worker to compensate income to a association in lieu of a repairs caused by a crack of agreement by a employee. In box a mutually-agreed specific volume was mentioned in a agreement afterwards it would be liquidated damages. If there was no such specific volume specified in a agreement, afterwards a indemnification would need to be guarded in line with correct gratefulness and procedures and contingency be seen as reasonable by a court.
- A professionally well-drafted practice agreement therefore serves 3 vital purposes:
- It might safeguard that both a employer as good as a worker are transparent on a terms of employment, to forestall vital disputes between them.
- Even if a brawl occurs, this agreement serves to solve a brawl since all terms of practice are clearly mentioned in it.
- Finally, in a misfortune box scenario, if a unsolved brawl reaches a court, afterwards this agreement ensures a transparent resolution since all terms of practice are clearly documented in essay and are germane to both parties so distant as it binds adult to a prevalent laws.
To conclude, we can authoritively state that a deficiency of a good drafted practice agreement can lead to disorderly authorised issues after on. In India, many companies miss recognition per a significance of this agreement and dangerously duty possibly but a created one or with a feeble drafted agreement. This eventually, in many cases, propels them to disputes with their employees that utterly mostly land adult during a courtroom. Therefore, a professionally-drafted practice agreement is a must-have for each association right from a start.
(Disclaimer: The views and opinions voiced in this essay are those of a author and do not indispensably simulate a views of YourStory.)