Job contract agreement| Labour contract agreement| standard employment contract checklist
After the job offer has been made and the candidates accept the offers, certain documents
need to be executed by the employers and the candidates. One such document is
the attestation form. This attestation form will be a valid record
for future reference.
There is
also a need for preparing a contract of employment or Labour Contract
agreement - the basic information that should be included in a written
contract of employment will vary according to the level of the job but the
following checklist sets out the difficult headings. Make sure to cover all the
possible terms and conditions of employment while drafting, a standard
employment contract sample is presented below for better understanding:
1.
Job title
2.
Duties,
including a phrase such as - “The employee will perform such duties and will be
responsible to such a person, as the company may from time to time direct”.
3.
Date when
continuous employment starts and the basis for calculating service.
4.
Rate of pay,
allowances, overtime and shift rates, method of payments.
5.
Hours of
work including lunch break and overtime and shift arrangements
6.
Holiday
arrangements:
·
Paid
holidays per year
·
Calculation
of holiday pay
·
Qualifying
period
·
Accrual of
holidays and holiday pay
·
Details of
holiday year
·
Dates when
holidays can be taken
·
Maximum
holiday that can be taken at any one time
·
Carryover of
holiday entitlement
·
Public
holidays
7.
Sickness
·
Pay for time
lost
·
Duration of
sickness payments
·
Deduction of
National Insurance benefits
·
Termination
due to continued illness
·
Notification
of illness (medical certificate)
8. Length of
notice due to and from employee
9. Grievance
procedure (or reference to it)
10. Disciplinary
procedure (or any reference to it)
11. Work rules (or
any reference to them)
12. Arrangements
for terminating employment
13. Arrangements
for Union membership (if applicable)
14.Special
terms relating to rights to patents and designs, confidential information and
restraints on trade after the termination of employment
15.Employer's
right to vary terms of the contract subject to the proper notification being given.
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Great care
should be taken to draft the contract forms. Often, services of law firms (prominent
firms in this category include Mulla, Craigie, blunt and Caroe, Crawford
Bailey, or Amarchand Mangaldas, Hiralal are engaged to get the forms drafted
and finalized. It is utmost important for every employers & employee to
get the agreements being signed on the very first day of onboarding.
Employee bonds – is it a tool of retention?
High
employee turnover sectors such as software, advertising and media are more prone
to use Employee bonds. Wipro has been using the bond scheme with positive
results. The software major calls the bond scheme as an agreement with
employees to say for 15 months on the agreement and employee deposits a certain
amount with a bank. The bank makes a lien to Wipro. In case an employee is unable
to pay, the bank gives a loan to the employee. The bond period is for 15 months
(covering 3 months of training and 12 months’ work). At the end of the period, the employee gets the principal deposited amount, a fixed deposit interest for the duration
and an additional amount as a retention bonus. The company has been doing this
for the last several months and already has 1000 people under the scheme.
The result:
attrition among campus recruits is down to 3-4 per cent.
Then again,
the drawback with the contracts/bonds scheme is that it is almost impossible to
enforce them. A determined employee is bound to leave the firm, contract or no
contract. The employee is prepared to pay the penalty for breaking the
agreement or the new employer will provide compensation (notice period buyback). It is for this reason that several companies have scrapped the contracts
completely.
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