Employment Agreement
A well-drafted employment agreement protects both employer and employee by clearly setting out compensation, roles, IP ownership, notice period, non-compete terms, and termination rights — ensuring compliance with applicable labour laws.
What is Employment Agreement?
An Employment Agreement (also called an Appointment Letter or Service Agreement) is a contract between an employer and employee that governs the terms of employment. In India, employment is primarily governed by the Indian Contract Act, 1872, the Industrial Disputes Act, 1947, and state-specific Shops & Establishments Acts. A proper employment agreement supplements statutory protections and covers aspects that these laws do not — such as IP assignment, non-compete, equity/ESOP terms, and specific notice periods.
What you get
- Customised employment agreement or appointment letter
- Designation, CTC breakup and benefits schedule
- Probation, confirmation and notice period terms
- IP and work-product assignment clause
- Non-compete and non-solicitation provisions
- Termination grounds and severance terms
- Governing law and dispute resolution
- Word + PDF format
Documents required
- Employer entity name, registered address, and type (company/LLP/proprietorship)
- Employee name, designation, and department
- CTC structure and benefits (HRA, allowances, variable pay)
- Date of joining and probation period
- Notice period requirements
- Nature of work and IP sensitivity
- Non-compete restrictions (geography and duration)
How it works
Share Details
Provide the employer and employee details, compensation structure, and any special terms you need included.
Lawyer Drafts
We draft an employment agreement compliant with applicable labour laws and customised to your industry and role.
Review & Customise
Review the draft, request changes to specific clauses, and approve the final version.
Issue & Execute
Issue on company letterhead; employee and authorised signatory execute with witnesses.
Pricing on Request
Every situation is different — get a custom quote tailored to your exact needs.
Frequently asked questions
Is a separate employment agreement required if I issue an appointment letter?
An appointment letter is typically a summary. A full employment agreement provides detailed clauses on IP, non-compete, termination, and dispute resolution that protect the employer more comprehensively. For senior or technical roles, a full employment agreement is strongly recommended.
Are non-compete clauses enforceable in India?
Non-compete clauses operative during employment are generally enforceable. Post-employment non-compete clauses are more restricted under Section 27 of the Indian Contract Act and are subject to reasonableness in terms of geography and duration. We draft these to maximise enforceability.
What labour laws must the agreement comply with?
The agreement must be consistent with the Industrial Disputes Act, 1947, the relevant state Shops & Establishments Act, the Payment of Wages Act, 1936, and the Minimum Wages Act, 1948. For IT companies, the IT/ITeS policy of the relevant state also applies.
Do I need separate agreements for contract or gig workers?
Yes. Contract workers, freelancers, and gig workers should have a Service Agreement or Consultancy Agreement (not an employment agreement) to avoid creating an employment relationship and the associated statutory liabilities.
Can the agreement include ESOP or equity terms?
Yes. We can include an ESOP clause referencing a separate ESOP Plan, or a simple equity vesting schedule for co-founders / early employees. Complex ESOP structures are best addressed in a dedicated ESOP policy document.
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