An employment agreement can be written or unwritten Where issues of confidentiality exist or an employer wishes to protect itself against future competition from a former employee, it is preferable to execute a written contract. A written contract can also set out what constitutes reasonable notice on dismissal. The terms of an employment contract can include the duties the employee is expected to perform and when they are expected to perform them. It can also include prohibited conduct either during or after the employment relationship. Written contracts also often set out the terms of how the employment relationship may be brought to an end, and whether any notice or compensation that the employee is entitled to at the end of the relationship. Generally, both parties will be bound by the terms of the written agreement.

All employment agreements are legally binding on the employer and, therefore, employers are best served by having them drafted and reviewed by an experienced employment law attorney. Contract law is a particularly complex discipline that relies largely on common law, which is law as developed by judges and court cases.

The employment bonds are agreements between employee and employer where it contains the terms and conditions of employment. The employment bond contains a clause which requires the employee to serve the employer compulsorily for a specific period of time or else refund the amount specified as bond value.

It is legal in India to work with bonds that prescribe a reasonable penalty as compensation in case of breach. Bonds that are prima facie unconscionable areillegal. An employer expends resources to train his employee and hone his skills. ... To this end, bonds stipulate a period of continuous employment.

Any bilateral agreement/contract executed on Company letterhead is valid if signed by both the parties. However in the event of dispute agreement on a non judicial stamp paper has evidentiary value.

Generally, thorough documentation and communication can go a long way toward reducing an employer’s exposure to liability for wrongful termination. An employer should keep a detailed record of any and all problems relating to an employee’s performance, including dates and times, and communicate the problems and potential remedies to the affected employees. At the time of termination, the employer should meet with the employee and provide a letter stating the reasons for the termination and the date on which it goes into effect.