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How to create an employment contract PDF.

Learn how to write an employment contract PDF in India and which rules to follow.

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How to create an employment contract PDF

The labour laws in India are uniquely governed by the Union and State Legislatures, ensuring distributed power and regional consideration. The Ministry of Labour and Employment*, Government of India, has laid clear guidelines for employers and candidates to ensure fair working conditions and remuneration.

One such consideration is a well-documented employment contract that contains your basic details and work profile. This information is vital to ensure you and your employer adhere to fair working conditions, remuneration, and expectations during the period.

But how do you make an employee contract and ensure it is just and binding? Is it only a physical piece of paper, or can it be an online copy that can be maintained and updated securely? Let’s find out!

What is an employment contract?

An employment contract is a legal agreement between an employer and an employee. It outlines the terms and conditions that both parties must adhere to. Employers are responsible for providing a safe working environment, while employees must follow company policies and contribute their professional skills to the success of the organisation.

Although there is no explicit requirement for a written contract, it is advisable to have one to avoid any misunderstandings. A legally binding written contract can serve as valid proof in a court of law. Creating the contract as a PDF document can help ensure the security of the content.

What are the four types of employment contracts in India?

India has different sector-specific labour regulations, covering everyone from minimum wage workers to full-time corporate employees. Despite the variations, standard contracts are commonly used.

Permanent employment contracts.

Under this category, employees are usually hired for a long period and typically have a lock-in period to fulfil. After this period, their role is indefinite unless disputed. Permanent employees enjoy benefits such as paid parental leave, gratuity, provident fund, insurance, and relocation allowance. Most companies also offer health and life insurance plans, which may include coverage for medical expenses, dental insurance, and life insurance.

Fixed-term employment contracts.

Under fixed-term contracts in India, employees provide services for a specific period with no particular project defined, only the duration.

Contractual employment contracts.

Employees under contractual employment contracts are hired on a project-requirement basis and work with their employer for the duration of the specified project.

Part-time employment contracts.

Part-time employees are not directly tied to an employer and do not follow a minimum wage/hour rule. They offer their services for a stipulated time, usually freelance or as a side business.

Understanding contract employment rules in India.

Understanding employment contract rules in India

Over the years, the Indian labour market has undergone several reforms, creating dedicated units for each section. The Ministry of Labor and Employment addresses all work-related concerns. However, certain laws define the course of action for employment contracts in India:

  1. Indian Contract Act, 1872:

    • Governs the general principles of contracts in India, including the formation, execution, and enforceability of employment contracts. (Indian Contract Act 1872, 10)
  2. Industrial Disputes Act, 1947:

    • Regulates conditions of service, layoffs, retrenchment, and certain dispute resolution between employers and employees. (Industrial Disputes Act 1947, 5)
  3. Factories Act, 1948:

    • Primarily applies to factories and includes provisions for the health, safety, and welfare of all factory workers. (Factories Act 1948, 6)
  4. Shops and Establishments Acts (State-specific):

    • These state-specific laws regulate employment conditions in shops and commercial establishments, including working hours, leave policies, and wage payments. (Delhi Shops & Establishments Act 1954, 2)
  5. Payment of Wages Act, 1936:

    • This ensures the timely payment of wages without unauthorised deductions. (Payment of Wages Act 1936, 3)
  6. Minimum Wages Act, 1948:

    • It sets the minimum wages for employees in certain sectors and is periodically revised. (Minimum Wages Act 1948, 3)
  7. Employees' Provident Funds and Miscellaneous Provisions Act, 1952:

    • This provides for the institution of provident funds for employees in factories and other establishments. (Employees' Provident Funds and Miscellaneous Provisions Act 1952, 3)
  8. Payment of Gratuity Act, 1972:

    • It provides gratuity payments to employees who have offered continuous service for at least five years. (Payment of Gratuity Act 1972, 2)
  9. Employee State Insurance Act, 1948:

    • Provides social security and health insurance benefits to employees. (Employee State Insurance Act 1948, 1)
  10. Equal Remuneration Act, 1976:

    • Ensures equal pay for equal work for men and women. (Equal Remuneration Act 1976, 3)

These Indian laws ensure that the rights and obligations of both parties are well-defined and protected. They are regularly updated to include changing policies and scenarios.

What details need to be included in an employment contract?

Depending on the nature of your work, you can include different details in your contract. However, based on several Indian contracts, we have compiled a brief list for you:

  • Candidate/ Company details
  • Location
  • Roles and responsibilities
  • Remuneration and added benefits
  • Required effort in terms of hours
  • Leave policies
  • Data protection and property rights
  • Termination clause

Steps to create an employment contract PDF document.

Create employment contract PDFs with ease with Acrobat. Adobe’s free PDF online tools let you create seamless, interactive, and collaborative documents that are acceptable across platforms and devices.

Step 1: Create an employment contract template sample using MS Word, PowerPoint, or Adobe PDF.

Editing empolyment contract using Adobe acrobat tool

Step 2: Once you have added all relevant information, go to Adobe Acrobat online services on your browser.

Adobe Acrobat Online PDF tools

Step 3: Select ‘Convert’ and then the Word to PDF converter tool.

Select word to PDF tool from online tool page

Step 4: Select your draft file that needs to be converted to PDF.

Upload the draft emplyment agreement to convert to PDF

Step 5: After Acrobat uploads your file, sign in to continue the conversion process.

Employment agreement converting to PDF from word

Step 6: Your PDF is ready for download. You can further edit it, modify it, reorganise pages, add numbers, request signatures, and share with others via a link.

Converted employment agreement PDF

Leverage PDF document creation tools for employment contracts.

It's important to ensure that both employers and employees are protected through clearly defined rules, especially with a focus on fairness and changing workforce dynamics. Digital tools like Adobe can help create standardised employment contract templates, ensuring consistency, saving time, and reducing disputes.

Adobe Acrobat provides both free and paid tools to modify contracts easily. You can organise pages, edit outdated details, extract pages to highlight clauses, request signatures for authenticity, password-protect your documents, and limit access. There's a lot to explore with Acrobat!

Frequently asked questions about employment contracts.

How long is an employment contract valid?

The duration of an employment contract is typically agreed upon and stated within the contract itself. If there are any changes to this duration, both parties should be informed, and a new contract reflecting the updated terms must be created.

Is an employment contract legally binding in India?

Yes, an employment contract is legally binding in India. A valid employment contract should include the basic details of both parties, their roles and responsibilities, and remuneration details. To enhance authenticity and reliability, you can use Acrobat to digitally fill out and sign your contracts from anywhere.

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Content as a Service v2 - Monday 16 September 2024 at 18:34