The real assets of any company or firm are it's employees and therefore it is extremely important for every company to have a professionally drafted 'Employee Agreement' signed with it's employees because it is this agreement which clearly stipulates and documents all the terms of employment and the rights and liabilities of both parties and is considered an enforceable contract by the Indian Courts.
A professionally well drafted strong 'Employment Agreement' serves 3 (Three) major purposes:
- It may ensure that both the employer as well as the employee are clear on the terms of employment and therefore prevents major disputes between them.
- Even if a dispute occurs, this agreement serves to resolve the dispute because all terms of employment are clearly mentioned in it.
- Finally in the worst case scenario, if the unsolved dispute reaches the court, then this agreement ensures a clear solution because all terms of employment are clearly documented in writing and are applicable to both parties so far as it holds up to the prevailing laws.
The absence of a well drafted 'Employee Agreement' can lead to extremely messy legal issues later on. In India most companies that I have come across lack awareness regarding the importance of this Agreement and dangerously function either without a written agreement or with a poorly drafted agreement which eventually in many cases propels them to disputes with their employees that quite often land up at the courtroom.
As an ethical and committed lawyer I consider it my duty to spread awareness regarding this important Agreement and there has been a steady rise in the number of companies who are approaching me to professionally draft a strong, fair and comprehensive 'Employee Agreement' for them at extremely reasonable costs.
