There is no provision under the Indian laws that mandates an employer to enter into a written contract with an employee. Many employers only issue a letter of Allotment to their employees. However, most of the companies do enter into contracts with all their employees as it is important to have all the terms and conditions in writing to avoid future disputes regarding the same.
While entering into an employment contract, one should keep in mind the following clauses:
i. The appointment of the Employee
ii. The Term of employment
iii. The Position in which the Employee is being employed
iv. Period of training
v. Responsibilities of the Employee
vi. The salary and allowance that the Employee will be entitled to
vii. Termination clause
viii. Confidentiality clause
ix. Intellectual Property
x. Damages if the Employee leaves employment during the training period or without giving adequate notice.
xi. Non-compete vcv ,..
xii. Restrictive Covenant
xiv. Code of Conduct to be followed
xv. Governing Law