Jul 11,2020 | 10 min read

Permanent Employment Agreement

Meaning of Permanent Employment Agreement

Permanent Employment Agreement refers to the agreement where the Employee renders services to the Employer and is directly paid for it. Permanent(full time)Employees do not have any predetermined date to end the employment and are entitled to receive many benefits.

                                 PERMANENT EMPLOYMENT AGREEMENT

This Permanent Employment agreement(“the Agreement”)  ___________ is executed on Date __________between _______________(”the Employer”) having registered office at____________________  and ___________ (“the Employee”) ____________ S/o or D/o _________residing at______________.

HEREBY, the Employer and Employee agrees to the terms and conditions set forth in this Agreement, in consideration of the mutual understanding:

1-Employment Term

1.1 The effective date from which the employee should join the work is____________.

1.2 The place and address at which the employee should report to commence the work is _______________________.

1.3 The employee is subject to successfully complete its probationary period of_____months. The completion of probation shall be communicated to him/her by the concerned authorised department/person and the employment shall come into effect accordingly.

1.4 During the probation period, the employer reserves all right to terminate this agreement without any reason. Completion of the probation period shall not automatically be construed as the confirmation of the full-time employment unless the employee is communicated officially in writing by the company.

1.5 The employee shall not be entitled to terminate the employment and serve notice in this regard without serving a  prior notice of_____days to the concerned authority. The ______% of shall be claimed by the employer from the employee as a form of compensation of the expenses that the Company has made in holding and conducting the induction and training sessions.

2-Work Responsibilities

The Employee agrees to perform the roles and responsibilities in the full capacity according  to the directions and instructions given  by the employer and as stated hereunder:

2.1 The Employee is hired for the designation of ______________in the department of _____headed by __________.

2.2 The Employee agrees to comply with companies policies and procedures at all times.

2.3 All the tasks and responsibilities will be given to the Employee on the date of the joining.

2.4- The Employee acknowledges that he/she shall be obliged to perform additional tasks over and the primary tasks for which he/she is employed as per Annexure -1. The Employer, however, undertakes that these additional tasks may be within the training, experience or occupational capabilities of the employee concerned and shall be subject to compensation for any such work done on additional tasks, if applicable.
2.5- The Employee shall not be entitled to do or take- up any private work whatsoever or be a party thereto to any other business entities in competition without the written approval of the Employer.

3-Reporting Information

3.1  On the first day of work the employee shall be subject to reporting to the Human Resource Department at _________ time.

3.2 The Employee shall be subject to the submission of timely-report in accordance with standard format detailing the working of the past-month on the ___day of the on-going month.

3.3 The Employee shall be entitled to receive feedback on the basis of this report that shall be assisting the company in determining the performance of the employee.

3.4 The Employee, wherever required, shall be asked to submit quarterly reports as well depending upon the nature of the project involved in.

4-Working Hours

4.1 The Employee will be working from _______am to_________pm for ________hours on a particular day.

4.2 If any changes are required to the above work time schedule will be informed to the Employee to this agreement.

4.3 The nature of the shift of the employees is ________ and may be subject to change as per need of the work of the company. The Information of the same shall be provided to the employee within a reasonable time to check upon its availability and supply him/her with the requirement details. 


5.1 The Employer agrees that the Employee will receive the fixed compensation of ___________INR annually with provident fund, tax and other mandatory employment deductions.

5.2 The Employee will be subject to the performance review of the work either monthly, quarterly or annually as the case be.

5.3 The Employee shall be entitled to receive compensation where it has actively performed his/her additional duties/ task. The amount of compensation shall be variable and is subject to the determination on the basis of the revenue generated by the company by his/her contribution.

6- Remuneration and Benefits    

6.1 The Employee will be entitled to the reimbursements (if any) for the reasonable business  expenses incurred by him/her during the term of the employment by the Employer.

6.2 The Employee will be required to fill the form for the reimbursement(if entitled) of the expenses duly signed and approved by the Reporting Manager. Provided that he/she has provided the supporting documents for such reimbursement claims.

6.3 The Employee will have the access to ____________ benefits(if entitled) shall only be offered to him/her by the Employer once the probation period is successfully completed.

6.4 The Employer shall be liable to reimburse the expenses to the Employee on complete satisfaction of the reimbursement claims by Employee in accordance with this Agreement.

7-Paid Time off

7.1 The Employee may be entitled to ____________________ paid leaves every month during the term of this employment agreement as authorised by the Employer.

7.2 The Employee shall be entitled to___________ sick paid leaves as authorised by the employer. Provided that it shall not exceed____number of days in a year.

7.3 The Employee shall be liable to LOP(Loss of pay) if access leaves are availed by him/her than the accumulated leaves.

8.4 The Employee shall make sure to receive the approval of the leave from the authorised person.

8.5 The Employee shall also be entitled to ______________paid holidays each calendar year during the term of this employment agreement as agreed and authorised by the Employer.

8.6 The Employer has the right to modify and amend the paid time off policies in compliance with the Holiday Act 2003.


The employee shall be prohibited from unauthorised use or disclosure of any confidential information about details of the Employer’s business to any outside company. The employee shall also be responsible for Data Privacy and security during the term of this agreement to maintain the confidentiality of all access authorised to him/her by the employer in the course of the business

10- Non Solicitation and Competition

10.1 During the term of the Employment, the Employee shall not engage or conduct business in any capacity with any other Competitive Employer either full time or part-time.

10.2 In the breach of such conditions stated herein this Agreement, the Employee shall be liable to pay the damages to the Employer.

10.3 The Employee shall perform all the duties and obligations with diligence and loyalty in the best interest of the Employer's business.

 11- Termination

    11.1 Employee’s employment hereunder be subject to termination automatically in the following conditions, 

11.1.1 The Employer may terminate this Agreement at any time, with or without prior notice, for any reason.

11.1.2 The Employee may terminate this Agreement at any time, by giving ______________ days of written notice to the Employer without giving any reason.

11.1.3 The Employer may also terminate this agreement during the probation period at any time without giving any advance notice to the Employee.

12-Intellectual Property

Employee hereby covenants and agrees not to release or otherwise disclose any Trade Secret Information, as hereinafter defined, that Employee may have received in the course of the employment. Trade Secret Information includes, but is not limited to, any formula, process, method, pattern, design, or other information that is not known or reasonably ascertainable by the public, consumers, or competitors through which, and because of such secrecy, an economic or commercial advantage can be achieved. Where the Clause 11 of this Agreement has come into effect, the Employee shall return to the Employer any such intellectual property, documentation, records, or Confidential Information which he/she has come in receipt of during the course of their employment with the Company. 

13-Governing Laws and Arbitration

Parties hereto agree that whenever any dispute, claim or controversy which may be arising out of or is relating to or in connection with this Agreement , or the breach, termination or validity hereof shall be subject to settlement by arbitration in respect to the Arbitration  and Conciliation Act ,1996 (includes the amendments) and in compliance with the laws of the country and the award passed in pursuance thereof shall be final and binding upon the Parties. The Seat of arbitration will be_________, India. The Language of proceedings of arbitration will be____. The Cost of Arbitration will be borne by the Parties amongst each other in equal proportions.


This Agreement shall remain in effect and legally binding in the event any clause or section or provision is declared unenforceable or invalid by the court of jurisdiction.

14-Modification of Agreement

 No modification of this Agreement shall be valid unless in writing and executed by both Parties.


Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties.

IN WITNESS OF THIS AGREEMENT the parties have executed this Agreement in duplicate on the date set out at the head of the Agreement.


Name of Employee


Signature of Employee




Name of Employer


Signature of Employer

Fixed Term Employees as compared to Contractual Employees ...


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