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Finding and hiring the right people is crucial for your business to grow. Most business owners and HRs do mistakes in their employee paperwork, especially employment agreement. One common mistake which we have seen repeatedly is forgetting to pay stamp duty and getting stamp paper for the agreement.

That’s why we’ve designed an employment agreement template as per Indian laws to help you hire and grow with confidence and avoid having legal problems when your business grows.

With eSahayak, you can generate employment agreements along with stamp paper with options to sign digitally as well as with your pen with our doorstep document delivery facility.

In this guide, we’ll explore what an employment contract entails, its significance, and provide you with a template to help you draft one effectively.

One more thing, people also refer to an employment agreement as:

  • Employment Agreement
  • Work Contract
  • Job Contract
  • Contract of Employment
  • Contract of Service

Sample Employment Agreement Template

What is an Employment Agreement or Employment Contract?

An employment agreement, also commonly referred to as an employment contract, is a legally binding document that outlines the terms and conditions of the relationship between an employer and an employee. This agreement serves as a foundational framework for the employment arrangement and sets forth the rights and responsibilities of both parties.

It is like a rulebook between a company and its employees. It spells out what the company expects from the employee and what the employee can expect from the company. It’s a crucial document for a few reasons:

  1. Clear Expectations: It makes sure everyone knows what their job is, how much they’ll be paid, and what benefits they’ll receive. This avoids misunderstandings later.
  2. Legal Protection: It’s like a legal shield for both the company and the employee. If there’s ever a dispute or problem, the agreement helps settle things fairly.
  3. Protecting Secrets: If your business has confidential information, like secret recipes or customer lists, you can add a clause to the contract. This clause stops your employees from sharing these secrets with others. It’s like a promise to keep your business information safe.
  4. Mergers and Funding: When a company grows, merges with another, or gets investment, having employment agreements in place is necessary. It shows potential partners or investors that the company is well-organized and takes care of its employees.

So, even though some startups and companies skip making employment agreements because they don’t know how or they take this lightly because they thought they have to procure stamp papers for it, but it’s actually really important.

What should be there in an employment agreement?

Here are the key components typically found in an employment agreement:

  1. Job Details: The agreement starts by specifying the job title, position, and department the employee will be working in. It may also include a brief description of the role and the employee’s duties and responsibilities.
  2. Compensation: The agreement outlines the employee’s compensation package, which includes details about salary or hourly wage, payment frequency, and any additional benefits such as bonuses, stock options, or commission structures.
  3. Work Hours and Schedule: It defines the standard work hours, days of the week, and any specific scheduling requirements. It may also address overtime policies and compensation for extra hours worked.
  4. Benefits and Perks: This section covers employee benefits such as health insurance, retirement plans, vacation days, sick leave, and any other perks offered by the employer.
  5. Termination Clause: Employment agreements typically specify the conditions under which either the employer or employee can terminate the relationship. It may include notice periods, reasons for termination, and severance packages.
  6. Confidentiality and Non-compete: Some agreements include clauses that require the employee to maintain confidentiality about company information and prevent them from working for competitors for a certain period after leaving the organization.
  7. Intellectual Property: If applicable, the agreement may address ownership of intellectual property created during the employment period, ensuring it belongs to the employer.
  8. Dispute Resolution: It often outlines how disputes between the employer and employee will be resolved, which may involve mediation, arbitration, or legal action.
  9. Governing Law: Specifies the jurisdiction and laws that will govern the agreement in case of legal disputes.
  10. Miscellaneous Terms: This section can include miscellaneous provisions such as a probationary period, non-solicitation agreements, or other specific terms relevant to the employment relationship.

What is the value of stamp paper for employment agreement?

Stamp Duties must be paid according to the state rules. Here are the stamp details:

State/UT(₹) Stamp
Andhra Pradesh₹ 100
Arunachal Pradesh₹ 100
Assam₹ 10
Bihar₹ 100
Chhattisgarh₹ 100
Goa₹ 100
Gujarat₹ 100
Haryana₹ 100
Himachal Pradesh₹ 50
Jharkhand₹ 10
Karnataka₹ 100
Kerala₹ 15
Madhya Pradesh₹ 10
Maharashtra₹ 10
Manipur₹ 10
Meghalaya₹ 10
Mizoram₹ 10
Nagaland₹ 100
Odisha₹ 100
Punjab₹ 10
Rajasthan₹ 10
Sikkim₹ 10
Tamil Nadu₹ 100
Telangana₹ 10
Tripura₹ 100
Uttar Pradesh₹ 100
Uttarakhand₹ 100
West Bengal₹ 100
Andaman and Nicobar Islands₹ 100
Chandigarh₹ 23
Dadra and Nagar Haveli and Daman and Diu₹ 100
Lakshadweep₹ 100
Delhi (National Capital Territory of Delhi)₹ 100
Puducherry₹ 100


Now after reading all this you must have got to know that creating an employment agreement on your own is not so easy. So, eSahayak is here to help you with all the challenges. From simplifying the legal mumbo-jumbo to even getting those pesky stamp papers, we’ve got your back!

We’ve made signing agreements a piece of cake with electronic signatures and even offer options for both digital and old-school paper lovers. Say goodbye to the headache of drafting; our templates are like the recipe book that guides you effortlessly.

Legal compliance? We’ve got you covered there too. We keep our templates updated, so you’re always on the right side of the law. And when it comes to data security, rest easy – we’ve built a vault to protect your sensitive information.

So, in the world of employment agreements, let eSahayak be your sous-chef, your legal guru, and your trusted recipe book, all rolled into one. Because when it comes to hiring the best ingredients for your business, we’re the secret ingredient you’ve been looking for! Happy cooking, and here’s to your recipe for success!

Frequently Asked Questions

Yes, an employment agreement is typically legally binding. When both the employer and the employee sign the agreement, they are essentially entering into a legally binding contract. This means that both parties are obligated to adhere to the terms and conditions specified in the agreement.