How far are “Employment Contracts” Enforceable Before Courts?

How far are "Employment Contracts" Enforceable Before Courts?
HR should be cautious while incorporating terms and conditions in the Appointment letter that such conditions must always stand the test of law.

We do engage people suitable to any position based on technical skills with expertise in the respective area. The engagement is based on an “Employment Contract” normally captioned as Letter of Appointment. The Employment Contracts may be normal ones and may incorporate certain conditions like – non-compete, non-solicitation, non-disclosures of technical knowhow, serving the company for a stipulated number of years, if not, to claim un-liquidated or liquidated damages in case of any breach by either party, to safeguard Intellectual Property, etc. Any Employment Contract must stand the test of Law at any time, otherwise, it is a futile one. Hence, it is essential that while drafting an Employment Contract one must keep in mind its enforceability before a Court of Law. Hence, an attempt is being made in this direction to enlighten the professionals in this article.

The Employment Contracts stipulate various terms and conditions as mutually discussed and accepted by the Management and the Employee. Such contracts are “Contracts” as defined under...

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K. Vittala Rao

is Legal & Management Consultant and author of Labour Law books.

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Author

K. Vittala Rao

is Legal & Management Consultant and author of Labour Law books.

April 2024

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