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05 · Employment & Service Matters

Employment Contracts

Employment contracts set the terms of a job — role, pay, notice, confidentiality, and restrictions after leaving.

What this covers

  1. 01Appointment letters and employment agreements
  2. 02Confidentiality and intellectual property clauses
  3. 03Non-compete and non-solicitation clauses
  4. 04Notice periods and resignation
  5. 05Separation and settlement agreements

How it generally works

Employment contracts are governed by the Indian Contract Act, 1872 and applicable labour laws, which cannot be overridden by contract to an employee's detriment.

Under section 27 of the Contract Act, agreements restraining a person from carrying on a trade or profession after employment ends are generally unenforceable, while reasonable restrictions during employment and confidentiality obligations can be upheld.

Clear terms on notice, payment on exit and return of property help avoid later disputes.