Employment Contracts: What Every Business Must Include

An employment contract is far more than a formality. It defines the relationship, sets expectations and provides the framework for resolving disputes. A well-drafted contract protects the business and gives employees clarity and confidence.

Core Clauses to Include

• Role, reporting structure and place of work.
• Remuneration, benefits and review mechanisms.
• Working hours, leave and notice periods.
• Confidentiality and protection of business information.
• Intellectual property assignment for work created.
• Termination grounds and process.

Restrictive Covenants: Handle With Care

Non-compete and non-solicitation clauses must be drafted carefully. Indian courts scrutinise post-employment restrictions closely, and overbroad clauses may be unenforceable. Reasonable, well-tailored restrictions stand a far better chance of protecting your interests.

Compliance and Policies

Contracts should sit within a compliant framework of workplace policies — including anti-harassment (POSH), leave and conduct policies. Compliance is not only a legal obligation but a foundation of a healthy workplace.

“Clarity in the contract is kindness to the relationship.”

— Advocate Tanmay Jadhav, Founder

Common Mistakes

• Using a generic template without tailoring it to the role and business.
• Omitting IP assignment, leaving ownership of work ambiguous.
• Drafting unenforceable, overbroad restrictive covenants.
• Failing to keep contracts updated as the law and business evolve.