Do’s and Don’ts for an Employment Agreement
1. Define the ownership of Intellectual Property created during the term of employment clearly.2.Clearly state the extent to which IP will be transferred to the employer.3. Ensure that Employee is obliged to execute all necessary documents and assists the Employer in transferring any Intellectual Property created by him during his employment to the Employer. Also incorporate provisions requiring employee’s co-operation with respect to prosecution and litigation.
4. Ensure that Employee is obliged to refrain from using third party Intellectual Property without the permission of the Employer. Incorporate necessary safeguards in case of such a use by the Employee.
5. Define Confidential Information that may be disclosed to the Employee during his employment with the Employer. Incorporate all provisions recommended in the NDA in the confidentiality clause.6. Clearly state the meaning of course of employment.7. Incorporate non-competition and non-solicitation clauses based on the position of the employee and his access to the Employer’s confidential information.8. Include post employment obligations of the Employee clearly with regard to Confidential Information and Intellectual Property among others;9. Ensure that Employee indemnifies the Employer for any losses or damages suffered by the Employer due to the Employee’s action or inaction.
10. Include adequate remedies in case of breach of terms of agreement by the Employee.
1. Avoid restricting the scope and extent of IP to be transferred to specific aciivities.2. Do not provide for more than two years of non competition period in the agreement;3. Avoid broad and general language for definitions.
Note: Please note that the Dos and Donts provided hereunder are broad and non-exhaustive guidelines. Kindly consult a lawyer for spcific advise.
Authors: Dr. Kalyan Kankanala and Ms. Vintee Mishra