Dear Arpita,
You do not require any MOU between employer and employee. Once you issue the Appointment Order under the provisions of the Factory Act or Shops and Commercial Establishments Act, a valid and legally tenable relationship is established.
To get the work done from the employee, you can issue the letter on the company letterhead. Obtain the signature of the employee on each page for "ready to abide with the instructions given."
Investopedia defines MOU as "A legal document outlining the terms and details of an agreement between parties, including each party's requirements and responsibilities."
Here, two parties are not separate business entities. An MOU signed on the authorized bond paper is valid between the two parties.
Secondly, probably your company is small at this stage. Today you may get the MOU on 1-2 employees. But then as the strength of the employees increases, will you be able to sign these bond papers? Will it not be time-consuming as well as costly? Please ponder over these points also.
Thanks,
Dinesh V Divekar