Employment Agreement Template (India) — Free Format
An employment agreement records the terms on which a company hires an employee: role, salary, probation, working hours, leave, confidentiality, IP ownership and notice period. This template is drafted for private-sector, non-workman roles in India and should be adapted for state shops and establishments rules.
Stamp, registration and e-sign at a glance
The three things to settle before anyone signs this agreement in India.
Payable under the stamp law of the state where it is signed; rates vary by state. Unstamped, it cannot be used as evidence until duty and penalty are paid. Some states do not charge duty on service agreements of employees; check your state.
Check your state's rateRegistration is not required.
This agreement can be signed electronically with Aadhaar eSign or a DSC under the Information Technology Act, 2000. Electronic signatures listed in the Act's Second Schedule carry a presumption of reliability.
What cannot be e-signedWhat is a Employment Agreement?
An employment agreement supplements the offer letter with the detailed terms of employment. It cannot reduce statutory entitlements such as provident fund, ESI, gratuity, bonus, maternity benefit or minimum wages, which apply regardless of what the contract says.
When to use it
- Hiring full-time employees in managerial, professional or technical roles
- Replacing informal offer letters with a complete contract
- Hiring for roles with access to confidential information or creating IP
Key clauses checklist
Make sure your draft covers each of these. Linked clauses open a sample wording with drafting tips.
- Role, place of work and reporting
- Compensation and statutory benefits Sample clause
- Probation and confirmation
- Confidentiality Sample clause
- Assignment of inventions and IP Sample clause
- Non-solicitation Sample clause
- Notice period and termination Sample clause
- Employee data processing Sample clause
Indian law notes
Post-employment non-competes
Restraints that stop an employee from working for a competitor after leaving are generally void under Section 27 of the Contract Act. Restrictions during employment, confidentiality obligations and reasonable non-solicitation are treated more favourably.
Statutory benefits
Provident fund, ESI, gratuity (after five years' continuous service, or as the labour codes provide where notified), bonus and leave under state shops and establishments laws apply by statute. The contract should reference them, not replace them.
Workmen
Employees who are "workmen" under industrial-relations law have additional protections on termination. This template is designed for managerial and professional roles; get advice before using it for workmen.
EMPLOYMENT AGREEMENT This Employment Agreement is made on [Date] at [City] between [Company Name], a company incorporated under the Companies Act, 2013, having its registered office at [Address] (the "Company"), and [Employee Name], son/daughter of [Parent Name], residing at [Address] (the "Employee"). 1. APPOINTMENT 1.1 The Company appoints the Employee as [Designation] with effect from [Joining Date], reporting to [Reporting Manager]. 1.2 The Employee's place of work is [Location]. The Company may transfer the Employee to another location or group company with reasonable notice. 2. PROBATION The Employee will be on probation for [6] months, which the Company may extend once by up to [3] months. During probation either party may terminate employment on [15] days' notice. 3. DUTIES AND WORKING HOURS The Employee shall perform the duties of the role diligently, comply with Company policies, and work the hours set by the Company in line with applicable law. 4. COMPENSATION AND BENEFITS 4.1 The Employee's annual cost to company is Rs. [Amount], as detailed in Annexure A, payable monthly after statutory deductions. 4.2 The Employee is entitled to provident fund, employees' state insurance (where applicable), gratuity and other statutory benefits in accordance with law. 4.3 The Employee is entitled to leave in accordance with the Company's leave policy and applicable law. 5. CONFIDENTIALITY During and after employment the Employee shall not disclose or misuse the Company's confidential information, including business plans, customer data, pricing, source code and trade secrets, except as required for the job or by law. 6. INTELLECTUAL PROPERTY All work product, inventions, software and materials created by the Employee in the course of employment belong to the Company. The Employee assigns to the Company all present and future rights in them and shall sign any documents needed to record that ownership. 7. CONFLICTS AND OUTSIDE WORK During employment the Employee shall not work for or advise any other business without the Company's prior written consent. 8. NON-SOLICITATION For [12] months after leaving, the Employee shall not solicit any Company employee to leave, or solicit any client the Employee dealt with in the last [12] months of employment for a competing business. 9. EMPLOYEE DATA The Company will process the Employee's personal data for employment purposes in line with the Digital Personal Data Protection Act, 2023 and its privacy notice. 10. TERMINATION 10.1 After confirmation, either party may terminate employment by giving [60] days' written notice or salary in lieu. 10.2 The Company may terminate immediately for serious misconduct, after following a fair process. 10.3 On leaving, the Employee shall return all Company property and data and complete the handover. 11. GOVERNING LAW This Agreement is governed by the laws of India. Subject to applicable labour laws, the courts at [City] have jurisdiction. Annexure A – Compensation structure: [table] For the Company: ____________ Employee: ____________ Name / Designation: [Name] Name: [Employee Name]
Replace every [placeholder] and delete options that do not apply. Estimate gratuity with the gratuity calculator
How to execute it
From blank template to a signed, stamped and stored contract.
Complete the role, compensation annexure and notice periods.
Check state shops and establishments rules and any applicable labour code changes.
Remove or adapt clauses for workmen or fixed-term roles.
Stamp the agreement if your state requires it and sign with eSign.
Store it in the employee file and diarise the probation end date.
Frequently asked questions
Is a non-compete in an employment agreement enforceable in India?
A post-employment non-compete is generally void under Section 27 of the Contract Act. Restrictions during employment and reasonable non-solicitation clauses are more likely to be upheld.
Can an employment agreement be signed with Aadhaar eSign?
Yes. Employment agreements are not excluded by the First Schedule of the IT Act, so Aadhaar eSign and DSC are valid.
What notice period is legal in India?
There is no single statutory notice period for managerial staff; it is set by contract and state shops and establishments laws. Thirty to ninety days is common.
Related templates
Stop emailing Word files around
Turn this format into an approved template, collect approvals, buy e-stamp paper, send it for Aadhaar eSign and get reminded before it renews.