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Free agreement template · Word

Employment Agreement

An employment agreement is a two-party contract signed by the employer and employee that sets out their mutual rights and obligations in numbered clauses. Companies use it alongside or instead of an appointment letter when they need stronger confidentiality, IP and non-solicitation protection.

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Preview of the agreement

[Highlighted] = fill in
[Company Logo][Company Name]

EMPLOYMENT AGREEMENT

Ref. No.:
[Reference Number]
Date:
[Date]

This Employment Agreement ("Agreement") is made at [City] on [Date] between:

[Company Name], a company incorporated under the Companies Act, 2013, having its registered office at [Company Address] (the "Company"); and

[Employee Name], son/daughter of [Parent Name], residing at [Employee Address] (the "Employee").

The Company wishes to employ the Employee, and the Employee agrees to be employed, on the terms set out below.

1. Appointment and Term

1.1 The Company appoints the Employee as [Designation] in the [Department] department with effect from [Date of Joining].
1.2 The employment will continue until ended under Clause 9.

2. Duties

2.1 The Employee shall perform the duties in Schedule 2 and other reasonable duties assigned by [Reporting Manager].
2.2 The Employee shall devote full working time to the Company and shall not take up other paid work without written consent.

3. Remuneration

3.1 The Employee shall receive an annual CTC of ₹[CTC] as set out in Schedule 1, subject to statutory deductions.
3.2 Increments and variable pay, if any, are at the Company's discretion and as per policy.

4. Probation

The Employee will be on probation for [Probation Period] months, which may be extended once by written notice.

5. Hours, Leave and Benefits

Working hours, leave, PF, ESI (if eligible), gratuity and insurance shall be as per law and Company policy.

6. Confidentiality

The Employee shall not disclose any confidential information of the Company, its clients or vendors, during or after employment, except as required by law.

7. Intellectual Property

All work, inventions, software, designs and documents created by the Employee in the course of employment shall belong to the Company. The Employee assigns all rights in them to the Company and will sign any further documents needed.

8. Non-Solicitation

For [Non-Solicit Period] months after leaving, the Employee shall not solicit the Company's clients or induce its employees to leave.

9. Termination

9.1 After confirmation, either party may end this Agreement by giving [Notice Period] written notice or salary in lieu.
9.2 The Company may end employment without notice for proven misconduct after a fair inquiry.
9.3 On exit, the Employee shall return all Company property and data.

10. Governing Law

This Agreement is governed by the laws of India. Courts at [City] shall have jurisdiction.

For [Company Name]
[Authorised Signatory]
[Designation]
[Employee Name]
Employee
Signature: ____________

Witnesses:
1. Name: [Witness 1 Name], Address: [Witness 1 Address], Signature: ____________
2. Name: [Witness 2 Name], Address: [Witness 2 Address], Signature: ____________

What this template includes

  • Parties and recitals that identify the employer and employee clearly
  • Numbered clauses so each obligation can be referred to easily
  • Confidentiality clause that survives the end of employment
  • Intellectual property assignment for work created during employment
  • Non-solicitation of clients and staff for a reasonable period
  • Notice, termination and return-of-property clauses
  • Governing law and dispute resolution

When to use it

  • Senior, technical or client-facing hires who handle sensitive information
  • Roles where work output, code or designs must belong to the company
  • Investors or clients require signed employment contracts for key staff
  • You want both sides to sign each page, not just accept a letter

How to customise this template

  1. 1Fill party details, including registered office and CIN if a company
  2. 2Attach the salary schedule and job description as schedules
  3. 3Choose the non-solicit period your adviser considers reasonable
  4. 4Print on stamp paper as per your state stamp duty rules if required
  5. 5Have two witnesses sign

HR tips

  • Post-employment non-compete clauses are generally not enforceable in India; rely on confidentiality and non-solicit instead
  • Keep the language plain so the employee understands what they sign
  • Give the employee time to read before signing
  • Make sure the agreement and appointment letter do not conflict

This template is a starting point only. Review it against applicable labour laws (including the Labour Codes in force from 21 November 2025 and the state rules being notified), your Shops & Establishments registration, standing orders and company policies, and take advice from a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Does an employment agreement need stamp paper in India?+

Stamp duty on agreements is a state subject, so the requirement and amount vary. Check your state stamp act or ask your legal adviser.

Is a non-compete clause valid after the employee leaves?+

Indian courts generally treat restraints after employment ends as unenforceable. Restrictions during employment, confidentiality and non-solicitation are more commonly upheld.

Can I use an employment agreement instead of an appointment letter?+

Yes. A signed agreement can carry all service terms. Many companies issue both: a short appointment letter and a detailed agreement.

Who should sign as witness?+

Any two adults who are not parties, often an HR colleague and another staff member. Write their names and addresses below the signatures.