Employment Contracts

What they entail in India

Employment Contracts

Make sure that any agreements made between you and your employer are explicitly stated in your employment contract. Benefits such as tuition fees for your children's education should be mentioned as well as regulations concerning a company car.

From a cultural perspective, contracts are not seen as binding in India as in many western countries. There are hardly ever court cases over employment contracts in India.

You might only be offered a letter of appointment, which serves as your employment contract. It should include details about your position, responsibilities, salary, starting date, benefits and regulations for termination.

If you sign an employment contract with an Indian company it is protected under Indian labour law. Your contract has to be made in writing. It includes the same information as a letter of appointment. The length of the employment should be stated as well as your probation period. During a probation period, your employer is allowed to release you without giving prior notice and with no legal penalty.

Be especially careful with the listing of your salary details. Ask which taxes are directly deducted and which you might have to pay.

Termination conditions usually include a one month notification period. Your company should provide a verbal and then a written warning before that.

If any problems occur with your contract you should at first try to resolve them at work. If you feel your concern is not addressed you should talk to a lawyer. Make sure you hire a local lawyer as he will be familiar with any local regulations. Even though a court case might take years to resolve, the danger of loosing face might convince your employer to negotiate.

Further reading

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