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Home / IP & Legal / Employment Agreement
Last updated: 2 October 2026
A clear employment agreement protects both the company and the employee. Expertvuw’s team drafts appointment letters and employment agreements covering role, pay structure, confidentiality, IP, notice and exit — aligned with the labour codes in force from November 2025.
An employment agreement records the terms on which a person is employed: designation and duties, place of work, working hours, compensation and benefits, probation, leave, confidentiality, ownership of work product, notice period and termination. It is governed by the Indian Contract Act, 1872 and by labour laws that apply to the establishment.
The four labour codes that came into force on 21 November 2025 affect several terms — especially the definition of “wages”, which drives PF, gratuity and bonus calculations, as well as rules on working hours and appointment letters. Salary structures and agreement clauses should be reviewed against the codes and the applicable state rules.
Indian courts treat post-employment non-compete clauses as void under section 27 of the Contract Act, although restrictions during employment and protection of confidential information are enforceable. Agreements should therefore rely on confidentiality, non-solicitation and IP assignment clauses rather than broad post-exit non-competes.
Basis: Indian Contract Act, 1872 (section 27); Code on Wages, 2019; Code on Social Security, 2020; OSH Code, 2020; Industrial Relations Code, 2020 (in force from 21 November 2025); Copyright Act, 1957 (section 17). Last updated: 27 September 2026.
In force from 21 November 2025; affect wage definition and appointment terms.
Allowances excluded from wages are capped, affecting PF and gratuity.
Post-employment non-competes are generally void under section 27.
Exclusivity during employment is enforceable.
Work created in the course of employment generally belongs to the employer, subject to the contract.
Confidentiality obligations can continue after exit.
Employment disputes often trace back to the original agreement.
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Employment agreements connect with these services.
Company HR policies.
Enforceable restrictive covenants.
Structured employee exits.
Payroll and statutory deductions.
Understand roles and policies.
Check pay structure against labour codes.
Prepare the agreement or template.
You review with HR.
Issue to employees.
Refresh as laws change.
Keep employment documents current.
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Share your query and our team will reply during business hours.
The labour codes require appointment letters for workers, and written agreements are strongly advisable for all staff.
Post-employment non-competes are generally void under section 27 of the Contract Act; restrictions during employment are enforceable.
The wage definition caps excluded allowances, which can increase PF and gratuity contributions.
Generally the employer for work made in the course of employment, subject to the agreement.
Yes. Confidentiality obligations can survive termination.
ACS – Director, Expertvuw Management Pvt Ltd
Agreements and policies are drafted by Expertvuw’s team for your review and negotiation. Where you need a legal opinion, dispute advice or representation, it is provided by independent advocates. Expertvuw is a corporate services company, not a law firm.