Question

What kind of contract is between employer and employee?

Answer 1

Answer

An Employment Contract consists of the following information :

• Compensation details: This is the salary details of the employee. It also contains the details of benefits offered by the company in addition to salary. For example- medical insurance, vacation and sick leaves, expense reimbursements etc.

• Duration of employment: An employee may be hired as an ongoing employee or only for some specific duration. An employment contract specifies the duration for which an employee is hired by the company.

• Designation: It specifies the designation of the employee such as Manager, Executive, Vice President etc. and the department he or she works in.

• Role & responsibilities: An employment contract also specifies the scope of work for the employee. It outlines the responsibilities and tasks to be performed by the employee.

• Confidentiality: An employment contract may contain the confidentiality clause especially when work involves dealing with sensitive information. This clause prohibits the employee from disclosing such information outside of work.

• Non-Competition Clause: Though this clause requires separate agreement, it may be included in the employment contract also. It prevents the employee from doing business or activity which is competitive with the company’s business or services for a specified duration after the termination of the contract with the company.