What is a Contract of Service?
A ‘Contract of Service’ is the contract an employee agrees to with the company employing him or her as a part of the employment. It binds the employee to work for the company for a set of compensation and benefits.
Along with the compensation and benefits, it covers all aspects of their work and employment like their working hours, duties, dress codes, leaves, holidays, etc. Similarly, it also prescribes that any IP created by the employee will be the property of the employer unless specified otherwise.
This contract stays in effect until the employee is working for an organization. As it contains the termination clauses, whoever begins the termination process must consult it before beginning the process.