5 things you’ll suffer from if you don’t have employee agreement!

Ishank Singh
March 16, 2021

The employee agreement is crucial for the employee as well as for the employer. For those who don't know, It is a legal document that is signed between an employee and an employer. Such contracts ensure the reservation of interests of both the parties. It encompasses all the terms, guidelines, rights and responsibilities that an employee and an employer must attend to.

Certain significant elements that the contract must contain are

1. Salary
2. Schedule of the employment
3. Duration of the role
4. Responsibilities associated
5. Confidentiality Clause
6. Benefits of the profile
7. Termination clause

the role of experience differentiates this understanding. Below are the things that can cause trouble without the agreement.

1. Not getting rights

In most of the workplaces, the agreement between the employer and the employee is done verbally. This can go well until and unless there has been a conflict among them for a mutual decision. The right of contemplating one’s decision can only be incorporated if an agreement has been involved. Even the courts have a system for determining an employee’s rights from verbal, written and conduct-based elements.

2. Transition in working conditions

In every business the needs get fluctuated over time, these changes may cause a reason for the employee to expect varying compensation or even a modifying duty. New workplace policies are often introduced by employers that were never discussed at the origin of the employment relationship. In the absence of employee agreement, such changes create a nuisance.

3. Restrictive covenant

From the employer’s standpoint, there can be a threat of a key employee not keeping the insights of the company confidential. Possibly the employee may also leave along with all the customers, this certainly happens. If the employment agreement is not intact then our control over the situation is restricted. An employee agreement provides protection and contractual provisions can take various forms, such as non-competition, non-solicitation and confidentiality clauses.

4. Job security

An employee agreement prevents sudden termination or resignation from the job. This agreement specifies both the parties (employer and the employee) with a set of guidelines to follow that are preferable for mutual growth. The consequences of any nuisance occurring are illustrated in the agreement.

5. Dispute resolution

The employee agreement states the laws and measures that the employer and employee should keep in mind to resolve their disputes. This may include any form of Alternative Dispute Resolution that they may employ, like Arbitration (a procedure where a dispute is submitted to an arbitrator who’ll make a binding decision)

It's highly possible that the likelihood of more such issues might fluctuate. Depending on the circumstances one needs to be attentive with the procedure of the employee agreement.

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