EMPLOYMENT CONTRACT

This contract entered into on the (Date)_______________________________________,

between
1) M/s ______Name of the Company_____, a company incorporated under the
Companies Act, 1956 with its registered office at Hyderabad represented by its
Director / Managing Director, Mr. _________, (Hereinafter referred to as the
company, which expression shall mean and include his heirs, executors,
administrators and assignees), and
2) Mr. _________(Name of the Manager)___, S/o ______(Fathers Name)____, aged
about ___(age)___, resident at ______(address)_____. (Hereinafter referred to as
the Manager unless context otherwise requires)
R E C I T A L S:
WHEREAS, the company is engaged in the business of Dealing in ____________Give
the Nature of Business___________, and such other items at various places like
______Give the Places of operations_____, etc.
WHEREAS, The company desires to employ the Manager, provided that in doing so it
can protect the customer lists, vendor lists, trade secrets and other proprietary intangible
assets of the Company.
Therefore, in consideration of the mutual promises, terms, covenants, and conditions set
forth herein and the performance of each, it is hereby agreed as follows:
AGREE ME NT
1.

Employment.
(a) The Company hereby employs the Manager as Showroom Manager of
_________ showroom. As such, the Manager shall have responsibilities, duties, and
authority commensurate with such position and will report to the Board of
Directors of the Company. The Manager hereby accepts this employment upon the
terms and conditions herein contained and agrees to devote Managers time,
attention, and best efforts to promote and further the business of the Company.
(b) The Manager shall faithfully adhere to, execute, and fulfill all policies, duties
established by the Company as described in paragraph 3 hereof.
(c) Manager shall not, during the term of Managers employment hereunder, be
engaged in any other business activity pursued for gain, profit, or other pecuniary

advantage if such activity interferes with Managers duties and responsibilities

hereunder. However, foregoing limitations shall not be construed as prohibiting
Manager from making personal investments in such form or manner as will neither
require Managers services in the operation or affairs of the companies or enterprises
in which such investments are made nor violate the terms of paragraph 4 hereof.
(d) The managers appointment is liable for re-location / transfer to anywhere in
India under the same organization or its branches on account of business work
exigencies.
2. Compensation. For all services rendered by Manager, The company shall compensate
Manager as follows:
(a)

(b)
(c)
(d)
(e)
(f)

Basic Salary. Beginning on the date of the execution hereof, the base salary
payable to Manager shall be _________ per month, payable on a regular
basis in accordance with The companys standard payroll procedures. On at
least an annual basis, Managers performance will be reviewed and increases
to such basic salary may be recommended if, in the discretion of the Board
of Directors of the The company, any such increase is warranted.
House Rent Allowance: The Manager shall be paid a House Rent allowance
at the rate of 40% of the basic salary.
Conveyance Allowance: The Manager shall be paid a Conveyance
Allowance of Rs. 800/- per month
Bonus: The Manager shall be paid bonus at the rate of ____
Commission: The Manager shall be paid commission at the rate of _% on
sales / purchases.
Perquisites, Benefits and Other Compensation. Manager shall be entitled to
receive additional benefits and compensation in such form and to such extent
as specified below:
(1) Participation in health, hospitalization, disability, dental and other
insurance Plans that the Company may have in effect.
(2) Reimbursement for all business travel and other out-of-pocket
expenses reasonably incurred by Manager in the performance of Managers
services pursuant to this Agreement. All reimbursable expenses shall be
appropriately documented in reasonable detail by Manager upon submission
of any request for reimbursement, and in a format and manner consistent
with the Companys expense reporting policy.
(3)

(g)

(2) weeks of paid vacation per year.

Taxes: The above amounts payable to the Manager are subject to the Tax
Deduction at Source (TDS) provisions under the Income tax act, 1981 as
applicable from time to time.

3.

Terms and conditions and general duties:

(a)
(b)

(c)
(d)

(e)

(f)

(g)
(h)
(i)
(j)

4.

The Manager shall be incharge of the showroom and all other employees /
staff shall report to him.
The Manager shall be accountable for all the stock coming into, stored at and
going out of the showroom and shall maintain proper records as per the
companys standard policies and shall produce the said records as and when
demanded by the board of directors / auditors of the company.
He shall take proper care and follow the standard safety methods of the
company for prevention of any damage to the stocks of The company.
The Manager shall ensure apart from the companys stocks, only stock of
franchisees authorized by the board of directors by way of a board
resolution, shall enter the showroom and be allowed to be traded at the
showroom. If it is found that the manager has allowed any stocks to be
traded in the showroom without a proper board resolution, he shall be liable
to account for the sales and pay to the company, the profits earned on the
said stocks. However the company is not liable for any losses incurred on
such sale. Further the company reserves the right to confiscate any unsold
stocks which are intended to be traded without a proper board resolution.
The Manager shall periodically verify the stocks put on display / stored in
the showroom by the franchisees and ensure that only the goods described in
the board resolution are being traded. If the manager notices any
discrepancy, he shall inform the board of directors immediately and
implement their instructions.
General Duties: Administering the day-to-day operations of the Company
and performing administrative functions necessary in the management of the
showroom, including the collection of revenues, the payment of the
Company's expenses, debts and obligations and the maintenance of
appropriate computer services to perform such administrative functions
Enforce discipline among the staff and ensure that the day to day operations
are smoothly conducted.
Furnish reports and information as may be required by the board of directors
from time to time.
The Manager shall ensure no illegal activities are carried out at the
showroom and bring to the notice of the board of directors any such
activities noticed by him.
The Manager shall advice the company about any changes that might bring
in economy / efficiency / improved margins, etc.

Non-Competition Agreement.

(a) The Manager will not, during the period of his / her employment by or with the
Company, and for a period of six (6) months from the date of his / her resignation /
termination for any reason whatsoever, directly or on behalf of or in conjunction
with any other person, persons, company, partnership, corporation or business of
whatever nature:
(i) engage, as an officer, director, shareholder, owner, partner, joint venturer, or
in a managerial capacity, whether as an employee, independent contractor,
consultant or advisor, or as a sales representative, in any business selling any
products or services in direct competition with the Company or any of the
Companys subsidiaries or divisions, within 100 miles of the Companys principal
place of business or the principal place of business of any of the Companys
subsidiaries or divisions.
(ii) call upon any person who is, at that time, within the Territory, an employee
of the Company (including its subsidiaries) in a managerial capacity for the purpose
or with the intent of enticing such employee away from or out of the employ of the
Company (including its subsidiaries), provided that, after Employee has ceased
employment hereunder, Employee shall be permitted to call upon and hire any
member of Employees immediate family;
(iii) call upon any person or entity which is, at that time, or which has been,
within one (1) year prior to that time, a customer of the Company (including its
subsidiaries) within the Territory for the purpose of soliciting or selling products or
services in direct competition with the Company within the Territory;
(b) The Manager shall make good the losses if any incurred by the company by
breach of any condition in paragraph 4.
5.

Termination of Contract / Resignation of Employee.

(a) The company has the right to terminate this contract by giving a notice of 1
month to the Manager or by paying the Manager an amount equal to 1 month
gross salary, in lieu of the notice period.
(b) If there are any breach of conditions in any part of this agreement, The
company can terminate the contract without giving any notice period or salary
in lieu of notice period, i.e., with immediate effect.
(c) The manager can resign from his employment by giving 1 month notice or by
paying an amount equal to 1 month gross salary. The managers resignation is
deemed to be accepted only after the company provides the manager a
relieving letter. Till that time he has to provide the services as required by the
board of directors irrespective of the fact that he has paid / agreed to pay the
amount in lieu of notice period.

6. Return of Company Property. All records, designs, patents, business plans,

financial statements, manuals, memoranda, lists and other property delivered to or
compiled by Employee by or on behalf of the Company or the representatives, vendors or
customers thereof which pertain to the business of the Company shall be and remain the
property of the Company and be subject at all times to the discretion and control thereof.
Likewise, all correspondence, reports, records, charts, advertising materials and other
similar data pertaining to the business, activities or future plans of the Company which is
collected by Employee shall be delivered promptly to the Company without request by it
upon termination of Employees employment
7. Trade Secrets. Employee agrees that Employee will not, during or after the term
of this Agreement with the Company and for six (6) months thereafter (unless terminated
without cause) disclose the specific terms of the Company relationships or agreements
with its significant vendors or customers or any other significant and material trade secret
of the Company, whether in existence or proposed, to any person, firm, partnership,
corporation or business for any reason or purpose whatsoever.
hich was in existence as of the date of this Agreement.
8. Arbitration: In the event of any dispute, difference or question arising out of or in
respect of this agreement or the commission of any breach of any terms thereof or of
compensation payable thereof or in any manner whatsoever in connection with it, the
same shall be referred to _____________ or such other person mutually acceptable to
both the parties, for arbitration and the decision or award so given shall be binding on the
parties hereto.
9. Jurisdiction: Any dispute arising out of or in conjunction with thisAgreement shall be
referred to the Courts in State of _______.

Witness:-

Signatures

1. _____________________

1. ____________________________

2. _____________________

2. ____________________________