Employee contract is a general agreement between an employer and employee to the terms and conditions of employment. The contract is known to state the exact nature of the business relationships as well as the rules that the employee need to follow. If an employee works for more than one month in an organization, he is entitled by law to a written contract. Although, the contract need not cover all the aspects of the employment but should outline the basic terms and conditions.

Every employee who works for a regular wage or salary automatically has a contract of employment. Usually, employees work under open-ended contracts of employment. In simple words, the contract does not expire until the employer or employee ends it. However, employees working under a fixed-term or specified-purpose contracts, ends on a specified date or when a specific task is completed.
Following are the common points that the employment contract should contain:
  • Employer and employee's names.
  • Date of joining of the employee.
  • Job title and description of the employee.
  • Organization's address.
  • Salary details.
  • Working hours details.
  • List of entitled holidays and sickness.
  • Pension schemes (if any).
  • Agreement of grievances.
  •  Termination notice period.
  • Redundancy.
  • Disciplinary procedures.
  • Employers and employee signatures.
The contract must contain all the rules mentioned by the court of law. Every employee need to follow the rules mentioned in the contract. Moreover, the custom and practice to be followed in a particular workplace may form part of a contract. The contract must also include the reference period which can be used by the employer for calculating the employee's entitlements under the Minimum Wage Act, 2000.

over the period, employers are adding specific provisions in contract, which limits the ability of employee to work in a certain sector, with certain suppliers, clients, for a period following termination of employment. Employers also have the right to make certain changes in the contract but must be agreed between both the employer and employee. Hence, employment contract is an important document to have by every employee.