ARTICLE · 02 MAY 2025

Employment Agreements In India - 101

BTG Advaya

Explore more from BTG Advaya

Employment agreements are more than just formalities; they serve as the foundation for clear, transparent working relationships.

IndiaEmployment and HR

Author LinkedIn connections

THE INGREDIENTS (NON EDIBLE) –

What am I here for? - Assess the nature of work and roles and duties of the prospective employee. This will decide their terms of employment. Hiring of independent consultants may be possible for services that are not indefinite and not normally performed by employees.
How long can I stay? - Indefinite term contracts are most common i.e., employment at will. But other options are possible too e.g., employment for a fixed duration. Always evaluate the requirements of the role and position before deciding the length of service. Statutory notice periods apply for termination.
Agreements come in all sizes - The employment agreements should reflect the seniority of the role; the most common classification is to separate employment contracts based on: junior to mid-managers, senior managers, CXO level staff and Directors on the board. Each level should have a specific employment contract to cater to the duties of the role

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

EPFO Wage Ceiling Increase: What Employers Should Review Before Their Next Payroll

IndiaEmployment and HR

Khurana & Khurana, Advocates and IP Attorneys

Gender Pay Equity Audits In India: Employer Obligations Under The Code On Wages

IndiaEmployment and HR

King, Stubb & Kasiva

Standing Orders Compliance Under The Industrial Relations Code, 2020: An Employer’s Guide To Applicability, Certification And Implementation

IndiaEmployment and HR

King, Stubb & Kasiva

The PIP Trap: How Performance Improvement Plans Create Legal Risk For APAC Employers

IndiaEmployment and HR

Unravelling The Legal Nuances Of Performance-Based Termination In India

IndiaEmployment and HR

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Employment and HR

Related Comparative Guides

Comparative Guide

Employee Incentives

Comparative Guide

Technology Outsourcing

See more popular content from

Employment and HR

Changes To Provident Fund Contributions And Impact On Employers And Employees

The Indian government has raised the mandatory wage ceiling for Employees' Provident Fund Organisation coverage from INR 15,000 to INR 25,000 per month, a change that will bring more than five million...

IndiaEmployment and HR

Littler - Canada

Ministry Of Labour And Employment Operationalises The Provisions On Payment Of Statutory Bonus

On 25 August 2026, the Ministry of Labour and Employment issued two notifications (Notifications) under the Code on Wages, 2019 (Wage Code), thereby operationalising specified provisions relating to payment of statutory bonus for establishments for which the appropriate government is the Central Government. The Wage Code consolidates the legislative framework governing wages and related employee entitlements, including the regime previously governed by the Payment of Bonus Act, 1965.

IndiaEmployment and HR

Notified Social Security Code (Central) Rules, 2026: What Employers Need To Know

The Ministry of Labour and Employment has notified the Social Security Code (Central) Rules, 2026, establishing a comprehensive regulatory framework for provident fund, employee state insurance, gratuity, maternity benefits, and gig worker protections.

IndiaEmployment and HR

Government Raises Wage Ceiling For Bonus To INR 21,000 Per Month

The Payment of Bonus Act 1965 is applicable to every factory and other establishment in which 20 or more persons are employed on any day during an accounting year.

IndiaEmployment and HR

Notified Code On Wages (Central) Rules, 2026: What Employers Need To Know

India's Ministry of Labour and Employment has notified the Code on Wages (Central) Rules, 2026, operationalizing the Code on Wages, 2019. These comprehensive rules establish frameworks for minimum wage fixation, working hours standardization, permissible wage deductions, bonus computation methodologies, and enhanced principal employer accountability in contractor-based employment arrangements.

IndiaEmployment and HR

Decoding Karnataka's Revised Minimum Wage Notification

The Government of Karnataka's notification dated 22 May 2026 revising minimum wages across the State has generated significant attention among employers, industry bodies, and labour law practitioners.

IndiaEmployment and HR

Revision to EPF Wage Ceiling: Coverage, Contributions and the September Transition

The Indian government has raised the EPF wage ceiling from Rs. 15,000 to Rs. 25,000 per month, effective mid-September 2026, creating immediate compliance questions for employers. How should contributions be calculated for the transition month when the change takes effect partway through the wage period, and what treatment applies to employees who become newly covered versus those already enrolled?

IndiaEmployment and HR

Enhancement Of PF Wage Ceiling To INR 25,000

The Ministry of Labour & Employment has issued a notification dated September 17, 2026, notifying INR 25,000 per month as the new wage ceiling for the purposes of the provident fund provisions (“PF“) of the Code on Social Security, 2020 (“SS Code”). The notification is effective from September 17, 2026. The wage ceiling was last revised 12 years ago in September 2014, when it was increased from INR 6,500 per month to INR 15,000 per month.

IndiaEmployment and HR

Provident Fund Scheme 2026: Effective Date, Employee Contribution Choices And Practical Implications For Employers

The article discusses the new Provident Fund Scheme, 2026, including its effective date, the transition period, statutory minimum versus voluntary higher contributions, voluntary contributions under the 2026 Scheme, and what are the practical implications for employers.

IndiaEmployment and HR

Lakshmikumaran & Sridharan

Recovery Of Excess Salary Payments: Supreme Court Clarifies The Role Of Employee Undertakings And Equitable Relief

The judgment addresses the scope of protection available to employees who receive excess payments without fraud or misrepresentation, the significance of undertakings permitting recovery, and the circumstances in which equitable considerations may justify judicial intervention.

IndiaEmployment and HR