An employment agreement is an agreement between management key members and employee. This is an important effort towards continuity of management and also it is in favour of safety and protection of the company. An employment agreement covers information regarding employment, non-complete and relocation of employees in black and white.
An employment agreement has effective date, company’s name, and state of incorporation, the type of company and also name of the employee. The position or capacity of the employee needs to be stated distinctly in an employment contract. It also contains information on compensation to be made by the company for services rendered by employee towards the company. Incentives and other benefits incurred by employee are detailed in this agreement. Automobile Allowance, temporary living allowance and relocation allowance etc are also covered under compensation set of rules. Term employment, if any, is flashed in an employment agreement only. Confidentiality; Non-Competition; Non-Solicitation. Company Property. All written materials, records, data and other documents prepared or possessed by EMPLOYEE during EMPLOYEE's employment by the Company are and shall be the Company's property.
Each and every duty expected from employee is mentioned clearly in black and white. Also the obligations of the employer are stated in the employment contract. Thus, an employment contract facilitates transparency between employee and employer. They can understand each other and their duties towards each other very well with the medium of employment contract.
An employment contract becomes handy in the times of disputes and also when any party’s expectations are not met justly. In order to ensure that company runs smoothly in any situation and to avoid future risks an employment contract is a mandatory thing. Also employees can use it in their favour whenever they find themselves cheated or something is not happening as per promised.
An employment contract becomes responsibility of recruitment agency when you are seeking recruitment consultants like MM Enterprises helps for hiring manpower for your company.