Below you will find a list of the main conditions that should be part of an employment contract: Perspective Similar to any other valid contract, and employment contract is also based on an offer, acceptance, consideration, competent parties, legal purpose and free consent. An employment contract is a bilateral agreement of an agreed duration for the exchange of services and remuneration. This employment contract, i.e. the terms of employment, is a user contract when an Indian company hires a new employee. It can be used for a number of types of employment, including full-time, part-time and fixed-term employment. However, this employment contract discusses the different conditions of employment in more detail and contains a stronger document so that employers and workers fully understand what is expected of each other and how the employment agreement can evolve over time (for example. B by indicating bonuses and salary increases). The advisory agreement can be used if they use the services of the independent advisor or contractor by a natural or commercial organization. For more information on the difference between these two agreements, see our guide: What is the difference between an employee and an independent contractor? Judicial trends: Although Section 27 provides for the cancellation of agreements to restrict a profession, profession or business, reasonable restrictions are allowed according to several precedents and the same do not render the contract null and void from the outset. As noted above, the adequacy of the withholding depends on various factors, and the restriction to prevent the disclosure of trade secrets or confidential business-related information must be appropriate in the interests of the parties in order to ensure adequate protection of the party imposing this restriction. The courts have always refused to end non-competition prohibitions under section 27 of the Act and have regarded them as an “restriction on trade”, inadmissible and contrary to public policy, because they can deprive a person of his fundamental right to livelihood. When a treaty or treaty is initiated, the Court of Justice has a duty to interpret the same thing and to determine the extent to which it constitutes a trade restriction; It is imperative to draft a balanced employment contract that is easily identifiable and put to the test in the event of a dispute between employers and workers.