An employment contract for hiring employees in IT companies operating in the High-Tech Park is a crucial tool in forming legal relations between the employer and the employee. In the context of the dynamic development of information technology and constant changes in the labour market, the competent execution of labour relations is becoming especially relevant. This contract not only safeguards the interests of both parties but also establishes a clear framework of responsibilities, rights and working conditions, providing a sense of security. In this article, we will consider the main elements of of an employment contract, its features in the context of hiring in IT companies – residents of the High-Tech Park, as well as essential aspects that must be taken into account when drafting it to ensure the effective work of the personnel in modern IT companies.
Is there a Standard Contract for Hiring Employees in HTP Resident Companies
It’s important to note that the state requirements for hiring employees do not prescribe a standard form of employment contract specifically for IT companies — residents of the High-Tech Park.
State-Recommended Forms and their Additions
All Belarusian employers are required to meet the minimum necessary conditions of an employment contract. At the same time, employment contracts with employees of HTP resident companies can include conditions that distinguish such contracts from ordinary ones. Each HTP resident company develops its standard employment contract based on the state-recommended one.
The state recommends the form of an employment contract (https://etalonline.by/document/?regnum=W20002550) and an employer-employee contract (https://etalonline.by/document/?regnum=C29901180). These forms can be supplemented with conditions the HTP resident employer considers necessary. It is important to remember that the added conditions should not worsen the employee’s position compared to the general requirements of the state. Otherwise, such conditions of the employment contract or agreement will be invalid, and the contracts will remain valid.
Minimum Necessary Conditions of a Standart Contract
To develop an employment contract form for your company, you need to include the minimum necessary conditions required by the state:
- Information about the employee and employer who are entering into the employment contract.
- Place of work and structural unit in which the employee is hired.
- The job title and description of the job function are provided in the Unified Qualification Handbook of Jobs.
- Fundamental rights of the employer and employee by the established requirements.
- For fixed-term employment contracts, indicate the term of the employment contract.
- Work and rest schedule, if it differs from those established by this employer. For example, remote workers may have a different work and rest schedule than cleaning employees.
- Wages. Sometimes, the wages are indicated as a salary before taxation.
- If the employee is hired for a probationary period, the employment contract indicates the period (no more than three months).
- If an IT company sends an employee for training, the mandatory work period is indicated in the employment contract.
Minimum Necessary Conditions of the Contract
When a contract is concluded with an employee, it is necessary to specify in it additionally:
1. Days of salary payment (at least twice a month).
2. Incentive measures for the contract:
Additional incentive leave of up to 5 calendar days, for which the average salary is retained.
Salary increase: from 0.1% to 50%.
3. Bonuses may be reduced or deprived for absence from the workplace and failure to perform work duties without good reason.
4. Reduction of labour leave for absenteeism or intentional failure to perform duties for at least 3 hours during the working day. However, labour leave must remain for at least 24 calendar days.
5. Obligations of the parties to the contract to notify each other in writing at least one month before the end of the contract of the intention to terminate or continue the employment relationship.
The contract is concluded for a period of one year to five years. Within the five-year period, it can be extended at any time with the written consent of the employee.
Minimum Necessary Conditions of an Employment Contract for Hiring Employees in IT in Case of Remote Work
When an employee is hired for remote work, the employment contract must specify that the work is remote. The employment contract may also provide for:
- The employee’s performance of work with equipment, software and hardware, information security tools, and other tools that belong to the employer or that he recommended.
- The procedure and terms for transferring such tools to the remote worker.
- The procedure for reporting by remote workers and methods for submitting reports.
- The procedure for compensating a remote worker for using his equipment and other tools to perform work and reimbursing other expenses related to remote work.
- Independent determination of the work and rest schedule by the remote worker.
- The procedure for providing vacations.
Terms that IT Companies – HTP Residents may Include in an Employment Contract for Hiring Employees
In addition to the minimum necessary conditions of an employment contract for hiring employees, HTP resident companies may include in employment contracts the following terms:
- Wage indexation.
- The employee’s development plan (career plan).
- The possibility of relocation.
- Bonuses and social guarantees.
- The amount of compensation for concluding a non-competition agreement, which the employer pays during the employment contract term.
- The obligation to sign the IT company’s Regulation on commercial secrets.
- Payments for concluding a non-disclosure agreement.
- Other conditions that do not worsen the employee’s position compared to the requirements of the state.
An IT company — a resident of the HTP can include some conditions in an employment contract with an employee. These conditions concern the conclusion of a non-competition agreement and the obligation not to disclose confidential information.
Non-Compete Agreement
A Non-Compete Agreement (NCA) is an agreement between an employer — HTP resident and an employee that prohibits the employee from engaging in competitive activities for a specified period, even after the termination of the employment contract. While the NCA may be mentioned in the employment contract, it is advisable to conclude it as a separate document to ensure its validity beyond the employment period.
The employee’s refusal to compete means his obligation:
- Not to enter into employment or civil contracts with third parties – competitors of the employer – HTP residents.
- Not to independently carry out competing activities as an individual entrepreneur.
- Not to act as a founder (participant) of an organization that is a competitor of the employer and not to perform the functions of its director or member of its collegial governing body.
The NCA also provides for:
- Territorial boundaries within which the employee must fulfil the non-compete obligation.
- The type of activity for which the non-competition obligation is assumed.
- Liability for breach of the non-competition agreement.
- Compensation is established for the employee for concluding an NCA.
Features of the Employee’s Payment for Concluding an NCA
The payment for compliance with the non-competition agreement is established at least one-third of the employee’s average monthly salary for the last year of work. It is the payment that the former employer-IT company pays to the former employee for each month of compliance with the non-competition obligation after the termination of the employment relationship when the term of this obligation does not exceed one year after the employee’s dismissal.
The payment for concluding an NCA for the duration of the IT employee’s work can be established in the employment contract, but this is not a mandatory condition for concluding an NCA.
Non-Disclosure Agreement
A Non-Disclosure Agreement (NDA) is an agreement on the non-disclosure of commercial information. The obligation to conclude such an agreement with the employer can be provided for in the employment contract with an employee of an IT company — a resident of the HTP.
The non-disclosure agreement is concluded as a separate document.
The NDA can provide for the employee’s obligation not to disclose information that has become known to him:
- Personal data of colleagues and clients.
- Work correspondence.
- Ideas, methods, principles of development.
- Project financing issues, a list of contractors, clients, intermediaries, salary, information on promotion in the market and other confidential information.
- Confidential information can be attached to the agreement as a separate sheet (file).
Such information is usually valuable for business, is not publicly available and is not intended for an unlimited number of people. Based on these features, a list of information for the NDA can be compiled.
It is recommended that the NDA include:
- What actions are related to the disclosure of information.
- How exactly should an IT company employee store confidential information known to him, what actions to perform (not to perform).
- Whether the employee is paid compensation for concluding the agreement (in this case, indicate the amount of compensation) or not.
- Cases when disclosure of confidential information does not violate the NDA. For example, this is the report of information at the request of government agencies.
- The period during which the employee is obliged to comply with the NDA (the term of the agreement) is usually the term of the employment contract.
The NDA usually provides for the employee’s liability for disclosure of confidential information.
The employer himself determines the terms of the NDA since the requirements for such an agreement are not established by the state.
Protection of the Trade Secrets of an IT Company
When a company has a trade secret regime (in Belarus, such a regime is regulated by the state, unlike the NDA), a new employee must familiarize himself with the Regulation on Commercial Secrets and accept responsibility for complying with its provisions. The corresponding obligation can be spelt out in the employee’s employment contract.
Unlike an NDA, which is concluded personally with each employee, the trade secret regime assumes that all employees must comply with it. Therefore, a separate non-disclosure agreement with each employee is not necessary.
It is easier for an IT company to monitor employees’ compliance with the NDA than with the trade secret regime. Each company decides for itself what measures to take to protect confidential information and how to “attach” employees to these measures.
How we can Help Develop a Standard Contract for Hiring Employees in IT Companies – Residents of the HTP
Our lawyers are experienced specialists in the field of labour law and information technology. We can:
- Consult you on the execution of an employment contract with IT employees.
- Consult you on the drafting of NCA and NDA.
- Consult you on compensation for IT employees.
- Taking into account your requirements, develop standard forms of employment contracts, contracts, NCAs, and NDAs for your company.
- Represent your interests in government agencies and when concluding contracts with IT employees.
Contact us
If you have any questions or disputes regarding an employment contract for hiring employees in IT companies in the High-Tech Park in Belarus, we will be happy to help! Our long-term experience in divident payment will help you resolve any disputes in this area.
- +37529366-44-77 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
