An employment contract clearly states all the clauses that govern the employment. It mentions the rights/duties/responsibilities of all parties involved. When an employee is hired, an employment agreement contract is mandatory irrespective of whether the employment is full time/part-time. The points of an employment agreement letter usually comprise of an employee’s salary break-up, the date of joining the company, the notice period to be followed after resigning from the job, and the non-compete clause



  • MINIMUM LIABILITY: An employment agreement protects the rights of the employees as well as the employer. A well-inserted clause in an employment agreement helps keep things very clear for both parties involved. A well-drafted employment agreement minimizes the risk of all future legal liabilities
  • ASSURANCE: Once the employee and employer sign the contract, it creates a feeling of mutual respect and trust. The employment contract explicitly states the responsibilities and obligation for both the involved parties in a fair manner.


An employment agreement contract must include the following key provisions-

  • PARTIES INVOLVED: The two parties between whom the agreement will be executed, i.e. the employee and the employer must be mentioned clearly. The personal details of both the parties must be stated
  • JOB DESIGNATION & PROFILE: The job designation and profile of the employee who has been hired, must be mentioned in the employment agreement contract. The agreement should also mention the duties and responsibilities of the employee, against which they will be held accountable
  • REMUNERATIONS AND REIMBURSEMENTS: The total remuneration that will be received by the employee must be clearly stated in the employment agreement. This heading will mention the breakup of the salary components such as the base salary/health benefits/travel expenses/PF contribution etc due to him or her. The employment agreement must also mention the reimbursements, due to the employee for expenses made for official company work
  • LEAVES & OTHER BENEFITS: The employment agreement will include a clause that specifies the number of paid leaves an employee is entitled to during any given year, and how he or she can claim them. The other benefits an employee is eligible to receive such as incentives/bonus/appraisals etc must also be mentioned clearly in the employment agreement
  • CONFIDENTIALITY AND NON-DISCLOSURE: If the responsibilities and duties of an employee puts him or her in a position, where they learn about confidential information or trade secrets of the employer, then it is necessary for the employment agreement to have an appropriate confidentiality & non-disclosure clause
  • TERMINATION OF EMPLOYMENT: The employment agreement must mention the procedure by which an employee or employer can terminate the agreement. The terms and conditions by which the employee will be terminated must be stated clearly. The termination of an employee falls under the purview of several employment laws in India. Therefore, we at ACE ALLIANCE would recommend you consult our service lawyers before including this clause in your employment contracts
  • DISPUTE RESOLUTION: The employment agreement must mention the mitigating measures both parties will take to resolve future disputes, if any. This clause will include alternative forms of dispute resolution they may use such as arbitration etc
  • GENERAL TERMS & CONDITIONS: This will include the duties and rights of the employee and the employer, conditions of penalties, any other important provisions that are applicable to both the parties.


  1. VARIABLE SALARY COMPONENT: This section is dependent on the company/organization earning profits during the year. Also, the willingness of the company/organizations to pay a bonus to their employees
  2. NOTICE PERIOD: This is the defined time period that an employee must serve from the date they submit the resignation letter, till the date their services end with the company
  3. TERMS OF EMPLOYMENT: Most companies/organizations will not permit their employees to work in any other profession or business parallel to their employment
  4. NON-COMPETE CLAUSE: This legally prevents an employee from giving their services for a given period, to any other competitor working in the same industry or segment
  5. TRANSFER & PROMOTION POLICY: This details the frequency of transfers within the said company/organization. It also contains the basis of getting promotions for an employee
  6. PROBATION PERIOD: This is the period a company/organization usually takes to form an opinion about an employee, their work ethic/commitment/attitude towards the job etc
  7. ADDITIONAL ALLOWANCE: This clause includes house rent/travel/medical reimbursements/insurance cover/any other allowances. This clause is a standard part of every employment contract.

Once you get in touch with us at ACE ALLIANCE with your request to create an employment agreement, we will start the process. After our team receives all the details, our expert team of lawyers and attorney will create the employment agreement sample and send it across for your reference within 2- 3 business days. The price you pay for these services will includes three rounds of iterations. Therefore, if you need any changes done to the employment agreement format, our team of lawyers at ACE ALLIANCE will do the needful.