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An employment agreement is a binding contract between an employer and a potential employee. The contract covers specific aspects of employment.
Date
To,
Name
Address
Dear First Name,
Subject: Employment Agreement
Welcome to Company Name
With reference to your application for employment and subsequent interviews you had with us, we are pleased to offer you employment in Company Name, as detailed below on the remuneration and the other terms and conditions of employment contained in this letter and the Annexure attached, which forms an integral part of this letter.
- Commencement Date: This appointment will be effective from the date of your Joining, i.e., ___
- Designation: _______
The above-mentioned designation had been allotted in terms of the present organization structure. However, if in future, the organization structure is amended, you will be governed by the corresponding grade and designation in the amended organization structure.
- Salary: You will be paid a fixed stipend of ____ per month during the probation period and your fixed CTC will be _______ once you are confirmed.
- Allowances & Reimbursements: As detailed in the Annexure to this letter. The basic salary, allowances and reimbursements will be paid subject to deductions of all taxes and statutory deductions that the company is required to make. The basic salary, allowances and reimbursements contained in the annexure are those presently applicable to your grade structure. This structure may be revised or amended from time to time, whilst protecting your gross emoluments, and if and when such revision or amendment is effected, you will be governed by the salary/ allowances/ reimbursements in terms of the revision or amendment. In case any Allowances/ reimbursements cover the members of your family, family shall be as defined in the applicable Rules and /or schemes of the company.
- Probation Period: You will be on probation till _____. The Management reserves the right to reduce or extend this probationary period if it so desires or can terminate your services during the probationary period without assigning any reason.
- Notice Period: The notice period for termination of the employment is 1 week during probation period and 2 months once confirmed. Waiver of Notice Period will be the sole discretion of the management. This notice period is required to be adhered to, both by the company and the employee. However, this condition may also be satisfied, by the company or by the employee (at the sole discretion of the company) paying compensation to the other in lieu of the notice period. This Compensation will be the equivalent to the monthly gross emolument. The resignation shall be final and binding on the employee upon acceptance of the same by the company. If, in future the company’s policy as regards notice period is modified, both the company and the employee will abide by the modification.
- Present Location & Transferability: Present Location – ____
During your employment with the Company, it will be permissible for the Company to transfer you temporarily or permanently to any other offices, departments, shifts, divisions, establishments or locations of the company as well as to any other associate or group company whether existing or to be established, as per Company’s Rules.
- Leave: Your leave entitlement in respect of Consolidated Leaves (Earned + Casual) and Sick Leaves will be governed by the Company‘s Leave Policy framed from time to time.
- Hours of Work: You will observe such hours of work, weekly or other holidays, as may be observed by the department, division, establishment, location, group or associate company, in which you are placed from time to time.
- Retirement Age: Retirement age will be ___ Years, for this purpose; your date of birth as recorded with the Company on the basis of the Govt. approved photo id proof submitted for the same purpose will be treated as authentic. Any change on this account in future, will not be accepted.
- Benefits as per Law:
a) Provident Fund: You will be governed by applicable Provident Fund laws. As per your declaration, PF will/ will not be deducted from your CTC.
b) Gratuity: You will be entitled to payment of gratuity as per the provisions of the Gratuity Act and Rules framed there under the Act.
- Non-Solicitation and Restrictive Covenants:
a. You hereby acknowledge that in the course of your services with the Company:
i. You will or may have dealings with clients, suppliers and fellow employees over whom You may develop a degree of influence;
ii. The Company invests a considerable amount of time, energy and money in training its employees and fostering relationships with clients, suppliers and customers and that those employees, clients, suppliers and customers and the general stability of the workforce form an important part of the goodwill of the Company; and
iii. You will have access to and be entrusted with confidential information in respect of the Company, its clients and their respective business.
b. In order to safeguard the Company’s clientele, goodwill and name and to protect the Company’s legitimate proprietary interests you hereby acknowledge, agree and accept the non-solicitation and restrictive covenants set out below:
i. You must not for a period of twelve (12) months immediately following the termination of your services, whether on your own behalf or on behalf of any other person, firm or company:
a) Directly or indirectly solicit or entice away from the Company or deal with any person who is now or at the termination of his services, a customer or client of Company name and with whom you had dealings during the last 12 months of your services with the Company (or if your services with the Company is for a shorter period, such shorter period);
b) Directly or indirectly encourage or procure any employee of Company Name who:
i) Is an employee at any Grade; or
ii) Is reasonably likely to be in possession of Confidential Information or trade secrets relating to the business of the Company and/or any other Company Name and with whom you had dealings during the last 12 months of your services with the Company to leave their services with the Company or such other Company name;
c) Directly or indirectly employ or engage or use the services of any person who:
i) Is an employee or director or consultant of the Company or any other Company name at the termination of your services; or
ii) Is reasonably likely to be in possession of confidential information or trade secrets relating to the business of the Company and/or any other Company name and with whom you had dealings during the last 12 months of your services with the Company;
d) Directly or indirectly interfere with any contract, agreement, agency, license etc. between the Company or any other Company name on the one hand and a third party on the other in respect of the supply or distribution of goods, materials or services to or on behalf of Company name (except for the Company’s benefit)
c. You acknowledge and agree:
i. That the above restrictions are no greater than necessary and are reasonable and necessary for the protection of the legitimate interests of the Company, given the nature of its business and that, having regard to those interests, the restrictions do not work harshly on the you;
ii. That each of the above restrictions constitutes an entirely separate and independent restriction on you; and
iii. That in addition to the Company, you provide the covenants containing these restrictions for the benefit of Company Name and agree that Company Name may independently enforce the covenants against you.
You hereby acknowledge that the restrictions set out herein are necessary to protect the legitimate interests of the Company and do not result in any undue hardship to you.
Each of the above restrictions is independent and severable from the other restrictions and enforceable accordingly. If any restriction is unenforceable for any reason but would be enforceable if part of the wording were deleted, it will apply with such deletions as may be necessary to make it a valid and enforceable.
You agree that the Company’s remedies at law for breach or threat of breach by you of the above restrictions may be inadequate, and that the company shall be entitled to an injunction or injunctions to prevent breaches of such provisions and to enforce specifically such restrictions, in addition to any other remedy to which the Company may be entitled at law or in equity.
- Other Terms and Conditions
- Ethics & Confidentiality: Strict confidentiality and secrecy is mandatory from you, as regards any information of whatever nature (verbal or documentary) acquired during the course of employment and /or interaction with the company‘s associates, suppliers, customers, etc. You will not at any time divulge or disclose such information except with the written consent of the Company or if required under legal process. It is also obligatory that you deal with the Company’s money, materials and documents, with utmost honesty and professional ethics and be true and fair to the Company in relation to all accounts and transactions related to the Company’s business. You agree to comply with the attached “Zero Tolerance Policy” of the company. Non- adherence to these conditions will constitute a breach of trust and the Company reserves its right to terminate your employment without any notice. In case of such termination, no compensation for deficiency of notice period will be paid by the Company.
- Engagement in Other Employment /Activities: During the continuance of your employment, it is imperative that you do not engage yourself or be employed or interested, whether directly or indirectly, in any other employment, business, profession or activity whether part time or full time, without the consent in writing of the Company. For any action to the contrary, the Company reserves its right to terminate your employment without any notice, and in case of such termination, no compensation for deficiency of notice period will be paid by the Company.
- Correctness of your Particulars: You have been employed on the assumption that the particulars furnished by you in your employment application and bio data are correct. In case, at any time, such particulars are found to be incorrect or that you have withheld information relating to your employment, the Company reserves its right to terminate your employment without any notice, and in case of such termination, no compensation for deficiency of notice period will be paid by the Company.
- Medical Fitness & References: Your initial appointment and continuance in employment is subject to,
i) Your being certified medically fit at all times, which the Company shall be entitled to determine through a qualified medical practitioner of its choice and whose opinion shall be final and binding; and
ii) No adverse conclusion as a result of discussions with References.
- Misbehaviour or Breach of Trust: If, during your employment with the Company, Management arrives at the conclusion that you have committed any misbehaviour or breach of trust in relation to the assignments handled by you, or generally in relation to your employment with the Company, the Company reserves its right to terminate your employment without any notice. In case of such termination, no compensation for deficiency of notice period will be paid by the Company. Besides, the Company reserves its right to seek recompense for any loss or detriment that it may have suffered as a result of such misbehaviour or breach of trust.
- Discovery of New Inventions, Improvements and Processes: The Company encourages innovation and discovery of invention and processes. If you do discover or contribute to any invention or improved process, it is expected that you assist the Company in transferring the ownership and your interests therein, to the company, with all the related rights and privileges, and for such purpose, execute requisite documentation; the Company shall bear all expenses related thereto.
- Cessation of Employment: On cessation of your employment with the Company. You shall be required to complete the requisite separation formalities in terms of the Company’s Rules and Regulations and the final settlement of your dues shall be made upon completion of the separation formalities.
- Service Rules and Regulations: During your employment with the Company, you will, at all times be governed by the service Rules and Regulations of the Company, the Company’s Schemes for Employee Benefits and other Rules and Regulations of the Company presently applicable or as may be introduces or amended from time to time.
You hereby, undertake and declare that you are authorized and entitled to take up this employment and there are no obligations, restrictions or covenants from your current employer or previous employer, firms, companies or any other body corporate restraining you to take up this employment. You hereby agree to reimburse all costs, expenditure incurred by Company name in relation to your employment in case any such obligations, restrictions or covenants find subsequent to your employment with the Company and shall have the right to terminate your employment with immediate effect, at its discretion, with an intimation to you and the Company shall have the right to take appropriate legal actions against you.
We would appreciate, if you could please sign each page of the duplicate of this letter and the annexure, as a token of your acceptance of the terms and conditions of this appointment letter.
May we request that the detailed terms and conditions of this appointment letter be reviewed by you in all, its entirety before signing the duplicate copy, since the Company is committed only to the terms of employment as contained in this letter and the attached annexure.
We once again welcome you and look forward to your commitment and dedication. We wish you a fulfilling and successful career with Company name
Yours faithfully,
Employer name
Signature
I accept the terms and conditions of service as mentioned in this letter.
Employee name
Signature
Date
Annexure 1
Candidate name
Designation
Company name
CTC Breakup (With PF)
Name of Employee:
Designation
Level
Date of Joining:
** Sr. No. Particulars Amount (Monthly) Amount (Yearly) **
1 Basic Salary
2 House Rent Allowance
3 Conveyance Allowance
4 Medical reimbursement
5 Special allowance
Monthly Gross
6 Medical reimbursement (Quarterly)
7 Leave Travel Allowance
8 Provident Fund (Employer Contribution)
Annual Gross
10 Gratuity (Payable after 5 years service)
**Cost to Company **
Other Benefits (As applicable)
Employee Signature
Employer Signature
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