Can Companies Request Employment Contracts? Navigating Corporate Ethics Together

Dear Sir,

Can a corporate company seek the contract agreement of employment? Does this comply with corporate ethics?

Please suggest.

Regards,
Vishnu

Understanding Ethics in Corporate Settings

What is ethics? Ethics is the philosophy of moral rules and values, and the ideas of right and wrong. Corporate ethics entail that no one should be demoralized; the commitment to society and responsibility should not be betrayed for reasons of self-development. The question of ethics is relevant to everyone and every organization; they should serve the community, and any business dealings should not solely focus on making huge profits. Here, profit is defined in terms of monetary value. Therefore, ethics have both societal and personal value, which are intertwined with organizational values. A corporation is not a separate entity; it encompasses its people.

The Importance of Employment Contracts

The key question is whether a corporate company should seek a contract agreement of employment. Certainly, one organization should seek such an agreement for transparency, and it involves all aspects of respect. Ethics in employment and contracts require mutual understanding and agreement on the terms of service and respect in terms of payment. While not all aspects need to be explicitly written down, there should be a mutual understanding in the employment agreement without any suspicious clauses. Employment terms may involve flexible working hours based on the service needs, and even in such cases, there should be an implicit agreement on benefits for a certain period. This ethical approach is evident in professions like medicine, engineering, and government offices.

Consequences of Not Having Employment Contracts

In cases where there is a failure to seek an employment contract, it reflects a breach of ethical values by the organization. However, the absence of a contract does not imply the absence of ethics, as some companies pay their employees without a formal contract. Violations of rules, such as those related to domestic or state shop acts, are apparent in retail shops, photoshopping studios, and other establishments, highlighting ethical breaches. In the corporate world, adhering to ethical values and seeking contractual employment agreements is essential to maintain a service code.

Best of luck. Remember, ethics are inherent within us and within organizations.

I apologize for the confusion in my previous message. I have been working in the industry for 15 years, and I have never encountered employment agreements being presented to employees before joining, especially in the corporate world. Each company has its own policies. In my understanding, if a corporate company requires a 3-year agreement before hiring, it can feel like a form of bonded labor. In today's modern and rapidly growing world, where all applicable labor laws are in place, such practices may seem outdated.

Question on Employment Commitment

I have a simple question regarding this matter: If a company asks for a 3-year commitment from an employee before they join, should the company also commit to retaining the employee for 3 years if there is a lack of work after the employee has joined?

Your insights on this issue would be greatly appreciated.

Best regards,
Regards

There is no bonded labor policy in the Indian corporate sector. Every person is free to seek employment of their choice and is free to join and depart, subject to some rules. If a company incurs expenditure on special training, they can ask the employee to work for a minimum period so the company recovers the cost of training. For example, Air India trains pilots on some aircraft, incurring huge expenditure; they can legitimately ask the pilots to serve for a certain additional period.

One more point from my side - please avoid spelling mistakes while putting up your query. Your one-line query has two spelling mistakes and grammatical errors in sentence construction. Why is a spell check not used before posting on a professional forum?