Employee Agreement

Employment Agreement is an agreement between an employee and the employer, used to mention the terms and conditions for hiring and stating the compensation that will be received by the employee.

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Employment Agreement is an agreement, between the employee and the employer, used to mention the terms and conditions for hiring and stating the compensation that will be received by the employee. It may or may not be a binding contract between an employer and an employee and is usually in the written form.  It is used for different types of employment, which include full time, part time orcontract-based employment.

Employment Agreement and its benefits

It benefits the employee in a retirement account, disability, life and health insurance. It usually mentions the essential aspects of the employment such as wages, the procedure for termination, covenants not to compete, duties and responsibilities of both, the employer and an employee, and includesemployee’s work hours, confidentiality, annual leaves and various other terms. The contract also protects the employer as it regulates the employee’s behaviour in the office.

How to use this document?

The employment agreement should be printed on stamp paper, and both, the employer and employee, should sign it and keep a copy for their own records.


All employment agreements are different, but some components are typically included, such as:

  • The term of the employment agreement
  • Conditions applied in the event of a process of acquisition or merger
  • The specific duties that the employee is expected to conduct for the company
  • Salary, bonus and increment criteria
  • Employee benefits and other perks
  • Business expense reimbursement
  • The number of vacation weeks
  • Indemnification

It tells the responsibilities and the employee’s work nature. It holds details of sick leaves, yearly leave days, reasons for termination from job and many more. The contract defines the annual income and pays rates. It also decides on the working period and working hours. The employment contract helps both the parties to work happier together.

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