Employment Service Agreement Template for India

The Employment Service Agreement serves as a foundational document for formalizing employer-employee relationships in India. It is essential for businesses operating in India to have properly structured employment agreements that comply with both central and state-specific labor laws. This agreement is typically used when hiring permanent employees, fixed-term contractors, or senior executives, and includes comprehensive terms covering everything from basic employment conditions to complex benefits structures. The document must align with various Indian labor laws including the Industrial Employment (Standing Orders) Act, Minimum Wages Act, and other relevant legislation. It provides legal protection for both parties by clearly defining employment terms, responsibilities, compensation, benefits, and termination procedures.

1. Parties: Identifies the employer and employee with their full legal names and addresses

2. Background: Brief context about the employment relationship and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Term: Details of the position, job title, and duration of employment (fixed-term or permanent)

5. Duties and Responsibilities: Detailed description of the employee's role, responsibilities, and reporting structure

6. Place of Work: Specifies the primary work location and any flexibility for remote working

7. Working Hours: Standard working hours, overtime policies, and flexible working arrangements

8. Compensation and Benefits: Details of salary, bonuses, and other benefits including statutory benefits

9. Leave Entitlement: Various types of leave (annual, sick, casual, maternity/paternity) and related policies

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Intellectual Property: Ownership of work product and intellectual property created during employment

12. Non-Compete and Non-Solicitation: Restrictions on post-employment competition and solicitation

13. Code of Conduct: Expected standards of behavior and compliance with company policies

14. Performance Review: Process for performance evaluation and review

15. Termination: Grounds and procedures for termination, notice periods, and consequences

16. Governing Law: Specifies Indian law as governing law and jurisdiction for disputes

17. Miscellaneous: Standard boilerplate provisions including entire agreement, amendments, and notices