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Create a Employment Agreement

What this document does

The full bilateral employment contract between an Employer and Employee: compensation and its structure, duties, working hours, leave, statutory benefits, confidentiality, IP, restraints where lawful, and termination. The right instrument when terms are negotiated and the relationship needs a complete contract — from a household hiring domestic staff to a senior executive hire. For the short statutory letter the Code on Wages requires for every worker, use the Appointment Letter; for a pre-joining offer, the Offer Letter. Governed by the Indian Contract Act, 1872, applicable Shops & Establishments Acts, and the Labour Codes.

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Agreement

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Employment Agreement

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What else is in it — 17 clauses, 5 optional
  1. 01

    Introduction & Preamble

    Identifies the Employer and Employee, effective date, place of execution, and type of employment (full-time, part-time, fixed-term, contract).

  2. 02

    Appointment and Acceptance

    States operatively that the Employer appoints the Employee and the Employee accepts, on the basis set by employmentType. Optionally makes the appointment subject to background verification.

  3. 03

    Definitions

    Defines key terms: Compensation, Confidential Information, Company Property, Intellectual Property, Work Product.

  4. 04

    Employee Representations and Warranties

    What the Employee warrants on joining: freedom to contract, no former employer's confidential information, accuracy of the information furnished, right to work, consent to verification, and that misrepresentation is a ground for termination for cause.

  5. 05

    Employment Term & Probation

    Start date, end date (for fixed-term), probation period, confirmation conditions, and extension provisions.

  6. 06

    Designation & Duties

    Job title, department, reporting line, place of work, key responsibilities, transferability, and travel requirements.

  7. 07

    Compensation & Salary

    Basic salary, allowances (HRA, DA, special), gross salary, CTC breakup, payment frequency, and bank details.

  8. 08

    Working Hours

    Hours per week/day, working days, overtime provisions, flexible hours, and shift work under Factories Act / Shops & Establishments Act.

  9. 09

    Leave Entitlement

    Casual leave, sick leave, earned leave, maternity/paternity leave, public holidays, leave encashment, and carry-forward.

  10. 10

    Benefits & Statutory Contributions

    PF, gratuity, ESI, medical insurance, life insurance, ESOP, statutory bonus, and other benefits under applicable labour legislation.

  11. 11

    Code of Conduct

    POSH Act compliance, conflict of interest, outside employment, social media policy, and dress code.

  12. 12

    Confidentiality

    Definition of confidential information, obligations, post-employment survival, exceptions, and return of materials.

  13. 13

    Intellectual Property

    IP assignment of work product, prior inventions exclusion, moral rights waiver, invention disclosure, and patent cooperation.

  14. 14

    Data Protection and Privacy

    Compliance with DPDP Act 2023, IT Act 2000, data breach notification obligations.

  15. 15

    Termination

    Notice periods (employer/employee), termination for cause, cause grounds, severance, garden leave, notice buyout, full & final settlement, exit formalities.

  16. 16

    Governing Law and Dispute Resolution

    Applicable law, jurisdiction, and dispute resolution mechanism (courts or arbitration under Indian law).

  17. 17

    General Provisions

    Boilerplate: entire agreement, severability, waiver, amendment, notices, assignment, survival, compliance with laws.

After it is drafted

  1. Get the stamp paper

    Buy non-judicial stamp paper of the value your state prescribes, and print the document on it.