Hiring is an important process for any organization, from finding the right person to completing the protocol of enrolling them into your organization’s ecosystem, everything is part of recruitment. It becomes very important for the Human Resource Management team to follow the right procedure so that they don’t miss any pointers, which can prove again the organization or the employees working there. One of the important aspects that they need to follow is the employment contract. There are different kinds of employees in the organization:
All these are different kinds of the workforce, but in this article, we will be focusing on permanent employment. It is the most common form of employment, but there is a contract which every organization must-have for their employee. This regular employment contract entails all the aspects of employment like date of hiring, designation, salary benefits, retirement, etc.
Offering permanent employment can be the right solution for any organization because you are assured of having the best talent working for you. But, as an employer, it is imperative that you offer them the right role, job security, and stability.
Let us cover all aspects of permanent employment contracts so that you don’t miss any point while going ahead with permanent staffing.
Before we go ahead, we will be focusing on different types of employment contracts and what exactly is an employment contract.
Basically, it is a contract that contains all the rights, duties, responsibilities, employment conditions, etc. that make up the legal relationship between the employer and employee.
It contains different terms and conditions which legally bind the employer and employees.
Permanent employment contracts- This contract is applicable to employees who work regular hours and are paid a salary or are paid on an hourly rate. You can also count it as a permanent employee agreement. This is an ongoing contract unless the employer terminates the employee or the employee resigns on his own. Any employee hired as a permanent employee is benefited from all statutory rights and employment rights.
As mentioned above, a permanent employment contract is a comprehensive document that covers relevant terms of employee's employment. It is important that the regular employment contract covers all aspects mentioned in Section-1 of the Employment Rights Act 1996. It includes the following:
These are the minimum terms which are a must in any employment contract, besides you can also add the following details to the clause:
There are several benefits of going ahead with a permanent employment contract, a few of them are enumerated below:
Well, the right answer to this would be as soon as possible. But the maximum extension time for this within 2 months of the employee joining the organization and commencing their role.
An employment contract is a must, especially if the employer is willing to have a long term association with the employee. It not only talks about the work the employee is subjected to but also entails each and every permanent employee’s right and duty of both the employee and the employer. A permanent employment contract is not just an ethical requirement, but it’s a legal requirement that every organization needs to fulfill when they are hiring permanent employees.
Coming to the checklist of permanent employment contracts, now it can vary from organization to organization based on what they are rendering to their employees. But, here we have brought together general pointers and permanent employee rights that need to be included in the contract.
How soon the employer needs to issue the permanent employment contact, and when does it start?
An employment contract is a legal requirement that every employer needs to fulfill. This contract is issued as soon as a new employee joins the organization. The maximum timeline to sign this contract should be within two months of joining the organization. All the details pertaining to employment are mentioned in this contract.
If an employer doesn’t provide an employment contract, will it be considered illegal?
An employment contract is a must for any organization, and it starts as soon as the employee starts working in an organization. So, it is a must irrespective of any kind of documentation you have with you.
This document contains all the statements, permanent employee rights and key terms to which the employee adheres to stick by, and this signed documentation ensures that the employer also adheres to their promises. This contract includes pay, working hours, appraisal, increment, etc.
What are the key terms that need to be covered in the employment contract?
Employment contracts contain all the terms and conditions that the employee and the employer need to fulfill. It is a kind of permanent employee agreement between the employer and employee. The conditions of contract may vary from one organization to another, but there are certain generic terms which remain the same, here are a few of them: Name of the employer and employee Date of start of the job Wages or Salary details Hours of work Sick leave Retirement policy Notice period Place of work Job role and KRA
Vakilsearch is India’s largest professional platform of lawyers, chartered accountants, and company secretaries-with years of experience behind.
We execute legal work for over 1000 companies and LLPs every month, by leveraging our tech capabilities, and the expertise of our team of legal professionals. Come on board and experience the ease and convenience!
By handling all the paperwork, we ensure a seamless interactive process with the government. We provide clarity on the incorporation process to set realistic expectations.
We make your interaction with the government as smooth as possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
With a team of over 300 experienced business advisors and legal professionals, you are just a phone call away from the best in legal services.
We provide access to reliable professionals and coordinate with them to fulfil all your legal requirements. You can also track the progress on our online platform, at all times.