An entrepreneur knows the importance of having key Human Resource (“HR”) documents in place. Of all the HR documents, an employment contract is paramount in safeguarding the interests of any organization as well as its employees.
An employment contract is a legal document that helps both, the employer and an employee, in setting mutual boundaries within which they are expected to work with each other. It lays down guidelines, rules, duties, and obligations, that clearly define an employee’s relationship with the organization. An employment contract helps an organization manage its human resource in a more effective and efficient manner. It defines the position of responsibility that an employee will hold, his/her remuneration, term, termination, and such other provisions. It plays a key role in resolving workplace disputes more amicably.