What is an IT company contract?

All forms of work have terms and conditions as per the corporation, as well as safeguards for the well-being and humane working experience of the worker. These are reflected in contracts by which are signed and agreed to bilaterally. Because of the global prevalence of information technology companies, it is important to take note of the contracts offered for the mutual benefit of both parties. Company contracts legally bind the employee to the company or corporation they choose to work in, with the former being a direct obligation and party of the company. All material agreements and arrangements are contained in a company contract, which may be contested or negotiated if the applicant feels the need to. The moment an IT personnel signs the company contract is when he or she agrees to render any service regarding information technology, or their niche in general, to the company.

Kinds of Employment Contracts and Benefits to IT Personnel

IT company contracts focus on the employer-employee dynamics of the company and the worker, hence, these are employment contracts in which the parties, by virtue of the labor law, can allot responsibilities and rights to each other and be able to bargain with respect to their comfort and convenience. It is essential to know the different kinds of employment contracts in order for an individual to be aware of the plethora of choices they can opt to, and maximize their vision for themselves as to what kind of partnership they exactly want to have with the company they are applying to. Here are the kinds of employment contracts.

Permanent Employment Contract : Statutory employment rights are intrinsically bequeathed to the employee under this kind of employment contract. This means that the employee gets to work within regular hours i.e. 9-5 jobs, or at an hourly rate. This is an indefinite contract in which the employee may break away from through resignation, or through termination due to violations of company rules or breach of contract. Company benefits are also given to the employee. Permanent employment contracts are great for employees who wish to have long-term regular jobs because its mutual exclusivity is absolute job security. It is a good agreement for an IT personnel because of its stability, and it enables the IT employee to establish a strong foothold in the industry, considering that there is high competition in the field of IT as well.Casual Employment Contract : The casual employment contract establishes a symbiotic relationship for both employers and employees who have commitment issues. This contract states the fluidity of the partnership, as no absolute promises are made. The content could look like an offer to work the minimum specific number of hours a week for instance, or that the agreement only lasts until the project is finished (the job version of one night stands). University students, perhaps in their first or second year, would want to earn income while studying as a supplementary source for their expenses. Casual employment contracts are good for IT students who juggle their education with work, because it is less demanding than the other types of agreements. It gives the employee a breather, and does not make them commit to heavy promises. This may look like a client looking for someone to design a simple website, and after the project is done, the ties between them and the employee are immediately cut.Fixed Term Employment Contract : In a fixed term employment contract, the duration of the whole partnership is stated at first hand. The starting date and expiry date of one’s employment is clear in this contract, agreed upon by both parties. Employees who are on a fixed term employment contract are entitled to the same rights as the regular workers under permanent employment, however only during the given time frame. Because of its fixed nature, there is no time and space for agreements grounded in probation contracts to take place. As stated in the Labor Relations Act, the maximum time frame is only 3 months, and many only be pleaded to be extended for valid reasons such as consecutive absences, or when the employee is still under training and needs more time to work on the project. If the reason does not fit the given standards, it is said that the employee must be leveled up as a permanent worker, thus receives all of the benefits enjoyed by permanent employees. This is a good agreement for IT personnel who do not want to settle for permanent employment yet, and are confident that they could finish a project within a given duration, or perhaps just want to test their skills and see if they can work under such pressure. Nonetheless, it remains a good offer because of the mutual agreement regarding time, as well as the worker benefits that entail your service.Zero Hour Employment Contract : The zero hour employment contract is an agreement that the employee can work whenever they want or when they are available. The employer may specify in the contract the minimum number of hours the worker has to complete within a week, or within a month, and the employee agrees to reach that quota. The employee may refuse to work if they desire. Because of the irregular nature of zero hour employments, their payment rate is proportional to the time frame they have worked in. This kind of employment is prevalent especially in English Second Language tutoring jobs where individuals could choose the classes they wish to hold for a fixed number of time, or in babysitting perhaps where the employee renders service for a given period, and the employer pays accordingly. For IT personnel, zero hour employment is good when they have other commitments to attend to like external projects for instance, but want a fallback in case they need more money. The good thing about this kind of employment is that it is always there whenever you need it, and it is not very taxing and demanding to your schedule.

How to Create an IT Company Employment Contract

An employment contract is not an employment contract without the things that make it up. This is an important aspect of the employment process, because the content of your contract gauges how holistic and fair to laborers a certain corporation is. Benefits and worker rights must always be protected and explicitly stated in employment contracts, as well as the nature of the offered job. Here are the important things to include in an IT company employment contract.

Step 1: Employment Details

Company policies, rules and regulations, employee roles and responsibilities must be included in the employment details to clearly paint a picture of what the nature of the employee’s job is. This also sets the parameters to the things that they are allowed and not allowed to do, as well as the services that they give the company. This is where majority of the job description is tackled, as well as the department that the employee belongs to.

Step 2: Employee Benefits

Incentives are an integral part of a company since these are the things that make employees want to stay working for you. This may include medical or dental care offered by the company. The compensation package may also be included here, where the original salary is stated, as well as acts that may merit raises. Bonuses and incentives are also mentioned in this clause.

Step 3: Valid Employee Leaves

An employee’s job isn’t their whole life. There are obviously other things these people have to take care of, or perhaps they just need a break. Vacation leaves, sick leaves and maternity leaves should be clearly stated in employment contracts as well as the standards for what the company considers a valid leave reason. The number of leaves an employee could avail is discussed here.

Step 4: Non Competition

Because the tech industry is globally booming, a lot of companies offer the same services you may already be offering. It is important for employees to be informed of the non competition clause since this is the company’s way of safeguarding itself as well as the intellectual property it owns and are inherited by employees. This prohibits employees from working for other companies that are in competition with it.

Step 5: Termination

Grounds for termination must be clear in the employment contract. The notice to terminate employment is included here, as well as how the termination process works.


Is it illegal not to provide an employment contract?

According to law, within a month of working for you, you must let an employee sign an employment contract. This safeguards their rights, as well as ensures that your company’s standards and demands are met and agreed with by the employee. Labor rights were incredibly fought for historically, and employment contracts are a manifestation of that.

What is the best employment option for IT people?

The answer to this is completely arbitrary since there is no one-size-fits-all policy for what suits best for individuals. However, given the descriptions of the nature of the different types of employment, one should be able to determine what they want for themselves. For IT students who are still in school, perhaps the best options are casual employment and zero hour employment since it is less taxing compared to the others. You are able to work on your time and pace, and for those who are solely working, it would be best to secure a spot as a permanent employee.

Do IT jobs pay well?

Because of its demand and high spot in trends in the status quo, IT jobs relatively pay really well perhaps even in a global context. In the US, the average IT salary is $203,823 as of 28th July, 2021, and ?23,647 per month in India.

Information technology is a very interesting and favorable field to get into because of its role in our daily lives, and its necessity in various industries, especially in a time where people work and go to school in their respective homes due to the pandemic. This field is what helps innovate our society, and develop various technologies that we are already very dependent on right now. It is fair enough to ensure that our IT employees are well informed about various employments, and the parts of a contract that prove if a company truly cares for the condition of their workers. Knowing company contracts sets a point of comparison for where you may apply to, and lets you gauge if these parameters work well with your preferences as an individual. It gives you a better overview of what you want, as well as lets you know that there are a lot of other options that await you.