CONTRACT FOR HR MANAGERS

Data Protection

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Appointment Letter Termination Letter

Non-Compete
Confidentiality
Agreement
Agreements

Amendme Attachmen
Addendum Alteration Novation
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ORAL AGREEMENTS
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• ORAL AGREEMENTS

• The simplest form of agreement.

• Implied from the situations or the acts of the parties .

• Specifically excluded in certain situations

 As Evidence

Ram Singh & Ors vs Col. Ram Singh

The voice of the speaker in the recording must be duly recognized

The recording in question must be authentic and this has to be proved by the person
presenting the evidence through sufficient means.

The whole conversation will have to be presented before the court.

The said statements must be relevant and in accordance with the facts of the case.

Voice should be clear and without any disturbance

EMAILS,FAX, FACEBOOK, TWITTER
CONTRACTS
 Valid from 2001 IT Act
What is a contract

Agreement Enforceable Contract

by law

An agreement enforceable by law is a Contract

AGREEMENT -CONTRACT

AGREEMENT
CONTRACT
CP FC LO CON
What is Capacity

 What agreements are contracts.-

 All agreements are contracts if they

 are made by the free consent of parties competent to contract, for a

 lawful consideration and with a lawful object, and are not hereby

 expressly declared to be void.

 Doctrine of Constructive Notice
 Indoor Management
FREE CONSENT

 Fraud  Mistake

 Coercion  Undue Influence

Legality of Object

 The Object should be legal

 Loreal SLA example
Valid Consideration
Section 2(d) in The Indian Contract Act,
1872
 When, at the desire of the promisor, the promisee or any other person has
done or abstained from doing, or does or abstains from doing, or promises
to do or to abstain from doing, something, such act or abstinence or
promise is called a consideration for the promise
 A consideration clause should answer questions of ;

 Who is paying, What, To whom?

 When , why and how?

CONSIDERATION

 Section 25

 An agreement made without consideration is void.

 Consideration is based on the principle of “quid pro quo” which means “something in return.”

 Consideration is the price at which the promise of the other is bought.

 When, at the desire of the promisor, the promisee or any other person has done or abstained from doing,
or does or abstains from doing, or promises to do or to abstain from doing, something, such Act or
abstinence or promise is called a consideration for the promise

 “No Consideration, No Contract”


Value of a Consideration

 Sec.25 of the Act lays down that the agreement to which the consent of
the promiser is freely given is not void merely because the consideration is
inadequate.
 Value of a Consideration

The English common law has always insisted that “consideration” should be of some
value.

Though the Indian Act has not stated anything regarding the value of a consideration
still it is considered as something of value.

Inadequacy of consideration may be taken into account to find out whether the
consent was freely given.
Consideration

 The tendered all-inclusive Price (i.e. the Contract price) is

Rs.____________________________(Rupees_______________________________________
__________________________________only.) but the Company shall pay the
Contractor only for actual work done at the all inclusive rates set down in the
Schedule of work.
Appointment Letter

 A well drafted appointment letter is a must for good IR

 An appointment letter sets out the terms and conditions of employment
including designation of a job, emoluments, leave transferability, notice for
termination, retirement age, suspension allowance during suspension etc. In
case some of such and other important aspects are not enumerated in the
appointment letter, is frustrated and can spell doom. Thus, no chance be
left for ambiguity.
 It should very clearly mention any service rules of employee handbook if it is
to be made part of the Contract
 if retirement age of an employee is not prescribed in the appointment
letter, the employer cannot retire an employee as long as he is mentally
and physically fit.
 It is, however, a different matter that the Kerala High Court has held that
such an employee cannot claim his appointment as one for life.
 if the terms and conditions of employment to not provide for transfer of an
employee, he cannot be transferred and it cannot be contended that an
employer has an implied right to transfer his employee.
 Not only that a clause pertaining to transfer is to be incorporated but at the
same time an employer has no right to transfer his employee to a new
branch factory or a plant started by him subsequent to date of
employment of an employee unless it has been so stated in the relevant
clause pertaining to transfer that the employee would also be liable to be
transferred to any of the existing concerns or to be started in future.
 Similarly, if there is no condition pertaining to suspension or subsistance
allowance during the suspension period (which is generally 50% of the
wages) an employer will be liable to pay full wages during the suspension
of employee as per settled law of Supreme Court.°
 No Probation period- Employee will be considered as regular employee-
Kundan Sugar Mills v. Ziauddin(1960)

 Gratuity is covered in monthly CTC-Employee can claim gratuity even

when he has not completed 5 years of service-
NON-COMPETE CLAUSES

 Section 27 of the Indian Contract Act-1872 provides that ”Every agreement

by which anyone is restrained from exercising a lawful profession or trade
or business of any kind, is to that extent void”.
 Exception : One who sells goodwill of a business with a buyer to refrain from
carrying on a similar business within specified local limits so long as the
buyer, or any person derivingtitle to the goodwill from him, carries on a like
business therein provided that such limits appear to the court reasonable,
regard being had to the nature of business.
 To validate such non compete clauses certain reasonable restrictions may
be imposed like:
 Distance: Suitable restrictions on employee prohibiting them to practice
same profession within a stipulated distance, the stipulation being
reasonable.
 Time limit: If there is a reasonable time provided in the clause then it will fall
under reasonable restrictions.
 Trade secrets: the employer can put reasonable restrictions on the letting
out of trade secrets.
 Goodwill
Non Disclosure Agreement

 "Employee or managing agents ... shall not divulge nor communicate to

any person or persons whatsoever any information which he may receive
or obtain in relation to the affairs of the Company."
 The defendant worked as an apprentice for one year and left the
company. The company sought an injunction which was denied by the
court.
 The court held that on evidence it can be concluded that no special
training was imparted to the defendant so as to treat any information
which the employee may have as trade secrets. Thus, the clauses in the
contract were non-enforceable