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LOOK BEFORE YOU LEAP INTO AN EMPLOYMENT AGREEMENT

Yashaswini Manasa

Have you just been offered a new job? What do you need to look out for when your future employer sends you a draft employment agreement? Before signing on the dotted lines, it is essential to understand the mechanics of an employment agreement, in order to claim one’s rights. An employee should always check if all of his/her rights are protected under the agreement, as it is rarely open to any detailed negotiation.

These clauses would be valid without breaching Section 27 under the Indian Contract Act if:

  1. The agreement is signed by both the employer and employee with free consent (not caused by coercion, undue influence, fraud, mistake or misrepresentation).

  2. The clauses stipulated are reasonable.

  3. The clauses imposed on the employee are necessary to safeguard the interest of the employer.

  4. The covenant is not to be too widely worded.

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