Dont Try To Sign Your Employment Contract Without Reading This First

In India, many people simply sign on the dotted line in the employment agreement; just by looking salary. However, it is important for you to understand everything in the employment agreement to claim your rights. Before discussing what is included in an employment agreement, let us understand the exact meaning of an employment agreement.

What is an employment agreement?

This is a formal agreement between an employer and an employee; it specifies a relationship that includes compensation and expectations. It also includes all the terms and conditions of employment.

Things you must know before signing an employment contract

Before signing an employment agreement, you must understand the following key things.

Designation and responsibilities 

This is important because it defines the scope of your exact role and the duties that your employer can or cannot require you to perform. The broader the job description, the more work your employer will require you to do and the more flexibility you have to change your target position. You should check the job description to fully reflect the position you are applying for and do not want to impose additional duties that you cannot or do not want to perform. Also, check whether the position is correct.

Place of work

If you agree to work in a wide geographical area, such as other offices, offices in the UK or even abroad, your employer will be in an advantageous position if you object to relocation in the future. If you can discuss the possibility of working remotely from home, the contract should reflect this. In addition, if you agree to do so in the contract in advance, then if you refuse to work in the new location, your layoff subsidy rights may be adversely affected.

Salary, benefits and bonuses

Make sure that your employment contract reflects the contents of the offer letter. You need to check whether you are prepared to pay other agreed benefits, such as pensions, cars, private medical insurance, stocks or share options, bonuses and commission payments. Check whether the bonus is guaranteed or discretionary. If it is based on performance, you should set goals and understand who will determine whether the goals are achieved.

Outline the working hours in the employment agreement

Don't agree with a job routine that you will regret later. If possible, it is better to discuss a difference at the beginning, including the prospect of flexible work if this is the only way you can get the job done. Check whether there are any shift patterns, as well as hours of work, including if you are expected to work weekends or evenings, and if so, on what days and for how long? "Also search if you are asked to" work all the required hours involved in the job, "And if so, what is expected? Also, check if you need to do overtime, and if this is going to be accounted for.

Social Security 

According to rules, social security benefits such as employee provident fund (EPF) contributions are mandatory and must be mentioned in the employment agreement. These are subject to company policy and must be shown in the employment agreement. As an employee, you must check whether these deductions have been deposited with the relevant authorities.

Vacation and sick leave. Do you have paid vacation?

It is important that you check how many paid vacation days you can use in a year so that you can plan how to use them. In addition, please pay attention to statutory holidays. Different countries/regions have different regulations. As a new employee, you also need to know when you can take a vacation. Don't forget to check how to propose vacation, emergency vacation and sick leave.

Under what circumstances can your employer fire you?

Read and understand the termination terms and conditions. If you have any questions, please clarify this. The termination clause must be clear. Otherwise, you may end up agreeing to terminate the agreement at any time without notice, and worse, without any reason. This is called "no cause". There may be different legal terms try to understand the correct meaning.

Restrictive clauses

You should check whether there are any restrictive clauses in the contract. They also apply to you even after termination of employment. Employers may pay special attention to this clause to protect the company, its customers and other employees. There are four of them, namely non-competitive, non-collective, non-trading and non-poaching clauses. Therefore, if there are any restrictive terms, please read them carefully and understand their purpose.

• Non-competition clauses may restrict you from working for a competitor of your former employer

•  The non-solicitation clause prohibits you from poaching customers and suppliers of your former employer 

• Non-trading clauses prevent former employees from dealing with former customers and suppliers 

• Non-poaching clause prevents former employees from poaching former colleagues