top of page

An employment contract in India is a legally binding document that defines the terms and conditions of the employer-employee relationship. It should be clear, concise, and in compliance with the applicable labor laws in India, such as the Industrial Disputes Act, the Minimum Wages Act, and the Shops and Establishments Act of the respective state.

[Image description: An office with computers and large hanging lights from the ceiling. People are sat at the desks talking and looking at the screens.]

[Image description: An office with computers and large hanging lights from the ceiling. People are sat at the desks talking and looking at the screens.]

Here’s a format for an employment agreement tailored to Indian regulations:



[COMPANY NAME]
EMPLOYMENT AGREEMENT


This Employment Agreement ("Agreement") is made on this [DATE] by and between:
[EMPLOYER NAME], having its registered office at [COMPANY ADDRESS], (hereinafter referred to as "Employer"), and
[EMPLOYEE NAME], residing at [EMPLOYEE ADDRESS], (hereinafter referred to as "Employee").


The parties agree as follows:


1. Position and Duties

The Employee is employed as [DESIGNATION] and shall report to [MANAGER/SUPERVISOR] or such other person designated by the Employer.
The Employee's duties shall include, but are not limited to, [BRIEF DESCRIPTION OF RESPONSIBILITIES].

The Employee agrees to perform these duties diligently and in accordance with the Employer's policies and standards.



2. Commencement and Term

The employment shall commence on [START DATE] and shall continue:

  • For a fixed term of [DURATION], unless terminated earlier in accordance with this Agreement.

  • At will, subject to termination by either party as per Clause 7.


3. Compensation

The Employee shall be entitled to the following:

  • Salary: ₹[AMOUNT] per [MONTH/YEAR], subject to applicable taxes and deductions.

  • Other Benefits: [DETAIL OTHER BENEFITS, SUCH AS BONUS, ALLOWANCES, OR MEDICAL INSURANCE].


The salary shall be payable on or before the [DATE] of each month.


4. Working Hours and Leave


  • Working Hours: [DETAIL STANDARD WORKING HOURS, E.G., 9 AM TO 6 PM, MONDAY TO FRIDAY].

  • Leaves: The Employee shall be entitled to [ANNUAL LEAVE DAYS] days of paid leave annually, along with other statutory leaves as per applicable law.


5. Confidentiality and Non-Disclosure

The Employee acknowledges that during their employment, they may have access to confidential information, including but not limited to trade secrets, business strategies, and client data.

The Employee agrees not to disclose or use any such information for personal benefit or any third party, both during and after the term of employment.


6. Non-Compete and Non-Solicitation

For [DURATION] following the termination of this Agreement, the Employee agrees not to:


  1. Engage in any business that directly competes with the Employer.

  2. Solicit or attempt to solicit the Employer’s clients, customers, or employees.

[Image description: A person is signing paperwork with a black and gold pen. They are wearing a shirt and leaning on a desk.]

[Image description: A person is signing paperwork with a black and gold pen. They are wearing a shirt and leaning on a desk.]

7. Termination

This Agreement may be terminated under the following conditions:


  • By either party, with [NOTICE PERIOD, E.G., 30 DAYS] written notice or payment in lieu of notice.

  • By the Employer, without notice, in cases of gross misconduct, breach of confidentiality, or failure to comply with company policies.


Upon termination, the Employee must return all company property and settle any outstanding dues.


8. Governing Law and Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of India. Any disputes arising out of this Agreement shall be subject to the jurisdiction of the courts in [CITY/STATE].


9. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes any prior agreements, oral or written.


10. Amendments

Any amendments to this Agreement must be made in writing and signed by both parties.


IN WITNESS WHEREOF, the parties have executed this Agreement on the date first mentioned above.


For the Employer
Signature: ___________________________
Name: [EMPLOYER REPRESENTATIVE NAME]
Designation: [EMPLOYER REPRESENTATIVE DESIGNATION]
Date: _______________________________

For the Employee
Signature: ___________________________
Name: [EMPLOYEE NAME]
Date: _______________________________


This format provides a comprehensive framework but can be customized based on the nature of employment and specific company requirements. Ensure it complies with the respective state’s Shops and Establishments Act and other applicable labor laws

More articles we think you'll enjoy . . .

Sexual Harassment as a Female Disabled Entrepreneur

Lucy Cohen Empowering Female Founders at the Tramshed Tech Dinner

Do I need to speak the same language as my employees

Getting the Best Out of Your Global Workforce

Boosting Employee Engagement in New Jersey

HR in Germany

Boosting Employee Engagement in Guam

Boosting Employee Engagement in Oregon

Understanding Collective Agreements in Denmark

Creating Effective Employee Guidelines for Small Businesses

Understanding Collective Bargaining Agreements in the Netherlands

Understanding Florida’s At-Will Employment Contracts

Employee Contract Agreement Format (India)

Merryn Roberts-Ward

January 2025

bottom of page