What is an Employment Agreement?

A good employment relationship start with a good recruitment process so that the employee and employer have the same expectations about the role and working conditions. An employment agreement is an agreement that specifies relationship of an employee and employer including compensation and also expectations. It is often referred to as employment contract they have often executed for a specified period of time. It is necessary when hiring any employee whether part time or permanent. It specifies the breakdown of the salary, date of joining, notice period etc.

Advantages of Employment Agreement

The agreement allows high level of specificity regarding the details of the employment. It allows both the parties to negotiate the terms under which they are willing to cooperate with one another.

Another advantage is that the agreement can be referred to in the future if a dispute arises over a particular aspect of the employment.

The written document can be used as evidence if necessary.

Employment agreement are important for fostering a positive relationship between employee and employee.

Procedure for Preparation of employment agreement

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