Things to know before making - EMPLOYEE AGREEMENT


Employee Agreement specifies terms and conditions of employment of an employee in the organization he is or will be working for. Employment Agreement is a contract commonly entered into when a business hires a new employee. It can be used for a range of different employment types, including full time, part time and fixed term or Contract.

This Agreement sets out all of the terms of employment, including job duties, salary and benefits, work hours, confidentiality, annual leave and various other key terms.

In many cases, once an employer chooses to take on a new employee, the parties want to get started without delay. The employer may, therefore, wish to first provide the employee with a letter which spells out some of the key terms more briefly. In these situations, employers may wish to use a Letter of Offer for Employment, and then to follow it up with this Employment Agreement.

An Employment Agreement is not always suitable for use by contractors. The contractors are recommended to use another legal agreement called Service Agreement.


  1. Decreases the chances of an employee leaving/absconding without notice
  2. Specifies the duties of an employee
  3. Safeguard your confidential information not to be leaked.
  4. Non-competition clause binds the employee from working with your competition or becoming your competition.
  5. Employee cannot poach/directly approach clients of the employer.
  6. Gives right to terminate the employee in case of non-performance, fraud or any other misconduct.