Employment contract

What are employee bonds??

Employment bonds are essentially employment agreements that contain a negative covenant and are legally enforceable. The agreement is enforceable if the parties agree to work according to it with their free consent. In case the employer or employee breaches the contract, the other party is entitled to damages. Hence, an employee agreement helps to secure the best interests of the employer..

What are the requirements for a valid employee agreement??

The agreement must be signed by both the employee and employer by their own free will and with their consent. The conditions stated in the agreement must be reasonable. The conditions imposed on the employee must be prepared to safeguard the interests of the employer. The agreement must be written and signed on a stamp paper, whose value is predetermined and fixed as per law. .

What are the benefits of being an independent contractor??

Safeguards the interest of the employer Gives the employee proper guidelines to follow while working Sets expectations for both parties Enlists all the conditions the employee is expected to follow Lists down all the laws of employment .

Can an Employee Agreement be printed on Letter head of the Company??

It does not matter whether an agreement is printed on the letterhead of the company, on plain paper, or on stamp paper. What matters is whether a proper stamp has been paid on the agreement or not? (which differs from state to state) as, Section 17 of the Indian Stamp Act, 1899 states that “All instruments chargeable with duty and executed by any person in India shall be stamped before or at the time of execution..

Is it mandatory to pay stamp duty on an Employee Agreement??

Section 17 of the Indian Stamp Act, 1899 states that “All instruments chargeable with duty and executed by any person in India shall be stamped before or at the time of execution”. Section 2(14) of the same act defines “Instrument” as “every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded”. Thus, going by the provisions of the Indian Stamp Act, 1899 it can be concluded that it will be legally favorable to choose to pay the right amount of Stamp Duty, which differs from state to state, on Employee Agreement to maintain its legal validity..