Free agreement template · Word

Permanent Employment Agreement

A permanent employment agreement records an open-ended employment relationship that continues until retirement, resignation or termination. It suits confirmed or directly permanent hires and covers long-term matters such as appraisals, retirement age, gratuity and conflict of interest.

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[Company Logo][Company Name]

PERMANENT EMPLOYMENT AGREEMENT

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

This Agreement is entered into on [Date] between [Company Name], having its office at [Company Address] ("Company"), and [Employee Name], residing at [Employee Address] ("Employee").

1. Appointment

The Company employs the Employee as [Designation], [Department], on a permanent basis with effect from [Date of Joining]. Service with the Company from [Seniority Date] will count for seniority.

2. Tenure

Employment is for an indefinite period and continues until the Employee reaches the retirement age of [Retirement Age] years, or until ended under Clause 9.

3. Responsibilities

The Employee shall carry out the responsibilities of the role and any reasonable additional duties, in the best interest of the Company.

4. Remuneration and Appraisal

4.1 Annual CTC: ₹[CTC] as per Schedule 1.
4.2 Performance will be reviewed annually. Increments and promotions depend on performance and Company policy.

5. Benefits

PF, ESI (if eligible), gratuity after five years' continuous service, group insurance and leave as per policy.

6. Exclusive Service and Conflict of Interest

The Employee shall not engage in any business or employment that conflicts with the Company's interests and shall disclose any directorship, partnership or relative's interest in a vendor or competitor.

7. Confidentiality and Intellectual Property

The Employee shall protect confidential information during and after employment. All work product created in the course of employment belongs to the Company.

8. Transfer

The Employee may be transferred to any location or group company in India with reasonable notice.

9. Termination and Resignation

9.1 Either party may end employment by giving [Notice Period] written notice or salary in lieu.
9.2 The Company may terminate for proven misconduct after due inquiry as per standing orders.
9.3 The Employee shall complete handover and return Company property before release.

10. General

This Agreement, with Company policies as amended, forms the full understanding. It is governed by Indian law; courts at [City] have jurisdiction.

For [Company Name]
[Authorised Signatory]
[Designation]

Employee
[Employee Name]
Signature: ____________
Date: [Date]

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What this template includes

Indefinite tenure clause so status is clear
Annual appraisal and increment process
Retirement age and superannuation terms
Gratuity after five years of continuous service
Conflict of interest and outside-work rules
Notice period that reflects seniority

When to use it

Hiring an experienced professional directly into a permanent role
Converting a confirmed employee onto a signed long-term contract
Key positions where retention and long-term obligations matter
Replacing outdated agreements for long-serving staff

How to customise this template

1Use this only where no probation applies or after confirmation
2Set notice period according to the grade
3Add insurance, car or other long-term benefits in Schedule 1
4Check the retirement age against your standing orders

HR tips

Do not mention guaranteed increments; refer to the appraisal policy
Require disclosure of directorships or side businesses
Ensure seniority is counted correctly where the employee was earlier on contract
Keep the agreement consistent with the HR manual

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.

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Frequently asked questions

Can a permanent employee be terminated in India?+

Yes, by notice under the agreement or for proven misconduct after a fair inquiry, subject to labour law protections, standing orders and retrenchment rules where they apply.

Is probation required before permanent employment?+

No. A company may appoint someone directly as permanent, though many prefer a probation period first.

When does gratuity become payable to a permanent employee?+

Generally after five years of continuous service, at 15 days' wages for each completed year, as per law.

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[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
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[Company Logo][Company Name]
FIXED-TERM EMPLOYMENT AGREEMENT
Ref. No.:
[Reference Number]
Date:
[Date]
This Agreement is made on [Date] at [City] between [Company Name], [Company Address] (the "Employer") and [Employee Name], [Employee Address] (the "Employee").
1. Engagement and Term
1.1 The Employer engages the Employee as [Designation] for the purpose of [Project / Reason for Fixed Term].
1.2 The term starts on [Start Date] and ends automatically on [End Date] (the "Term") unless ended earlier under Clause 7 or extended under Clause 8.
2. Duties
The Employee shall perform the duties listed in Schedule A under the supervision of [Reporting Manager] at [Work Location].
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[Company Logo][Company Name]
LETTER OF REGULARISATION – TEMPORARY TO PERMANENT
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]
Subject: Conversion to Permanent Employment
Dear [Employee Name],

You have been working with [Company Name] as [Current Designation] on a [temporary / contract / fixed-term] basis since [Original Start Date]. We are pleased to inform you that the management has approved your appointment as a permanent employee with effect from [Conversion Date].
1. Designation and grade: [Designation], Grade [Grade], [Department].
2. Continuity of service: Your service from [Original Start Date] will [count / not count] towards seniority and service-linked benefits, subject to law.
3. Compensation: Your revised annual CTC will be ₹[CTC] as per the annexure.
4. Probation: [Probation is waived / Probation Period in months].
5. Benefits: You will be eligible for all benefits applicable to permanent employees, including [Benefits List].
6. Notice period: [Notice Period] from either side.
7. Earlier contract: Your [temporary / contract] engagement dated [Original Letter Date] stands closed on [Day Before Conversion]. Dues under it, if any, will be settled with [Month] payroll.
8. Other terms: All company policies apply as amended from time to time.
Congratulations on this milestone. Please sign the duplicate copy as acceptance.

Yours sincerely,
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[Company Logo][Company Name]
LETTER OF APPOINTMENT
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Candidate Name]
[Candidate Address]
[City] – [PIN Code]
Subject: Letter of Appointment – [Designation], [Department]
Dear [Candidate Name],

Further to your acceptance of our offer dated [Offer Date], the management of [Company Name] is pleased to appoint you to its services on the terms set out below.
1. Position and duties: You are appointed as [Designation]. Your main duties are described in Annexure B. The management may assign other duties suited to your skills from time to time.
2. Commencement: Your employment begins on [Date of Joining]. Your seniority will be counted from this date.
3. Place of work and transfer: Your initial place of posting is [Work Location]. You may be transferred to any office, branch or associated company in India, with reasonable notice and applicable allowances.
4. Compensation: Your annual CTC is ₹[CTC], made up as per Annexure A. Salary is paid by bank transfer on or before [Pay Day] of the following month.
5. Probation and confirmation: You will be on probation for [Probation Period] months. Confirmation will be communicated in writing; without it, you remain on probation.
6. Leave: You are eligible for [Earned Leave] days earned leave, [Casual Leave] days casual leave and [Sick Leave] days sick leave per year, plus declared holidays, as per the leave policy.
7. Statutory coverage: PF, ESI (if eligible), gratuity and bonus will apply as per law.
8. Termination: After confirmation, either party may end this employment with [Notice Period] notice or pay in lieu. Employment may be ended without notice for proven misconduct after due inquiry as per standing orders.
9. Retirement: You will retire on reaching the age of [Retirement Age] years.
10. Company property: On leaving, you will return the laptop, ID card, documents and any other company property before full and final settlement.
11. Jurisdiction: Any dispute will be subject to the courts at [City].
Please confirm your acceptance by signing and returning the duplicate copy. We look forward to a long association.

Yours faithfully,
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[Company Logo][Company Name]
CONFIRMATION OF EMPLOYMENT
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]
Subject: Confirmation of Your Employment
Dear [Employee Name],

We refer to your appointment letter Ref. [Appointment Letter Ref.] dated [Appointment Date], under which you joined [Company Name] as [Designation] on [Date of Joining].
Based on the review of your performance, attendance and conduct by [Reporting Manager], the management is pleased to confirm you in the services of the company with effect from [Confirmation Date].
Terms applicable from the date of confirmation
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[Company Logo][Company Name]
CONTRACT OF EMPLOYMENT
Ref. No.:
[Reference Number]
Date:
[Date]
Employer: [Company Name], [Company Address], Shops & Establishments Reg. No. [Registration Number]
Employee: [Employee Name], [Employee Address]

Both parties agree to the following terms of employment.
1. Job title: The Employee is employed as [Designation] and will report to [Reporting Manager].
2. Start date: Employment starts on [Date of Joining]. Previous service with any other employer does not count.
3. Place of work: [Work Location], or another location of the Employer within [City/State] when reasonably required.
4. Pay: Gross monthly salary of ₹[Amount] (annual CTC ₹[CTC]) paid by bank transfer by the [Pay Day] of each month, after deduction of PF, ESI, professional tax and TDS as applicable.
5. Hours: [Working Hours] per day, [Working Days] days per week, with a weekly off on [Weekly Off]. Overtime, when approved in advance, will be paid as per law.
6. Leave and holidays: As per the Employer's leave policy and applicable state rules.
7. Probation: [Probation Period] months. Notice during probation is [Probation Notice].
8. Conduct: The Employee will follow the code of conduct, attendance rules, POSH policy and safety instructions.
9. Data protection: The Employee will use customer and employee personal data only for work purposes and keep it secure.
10. Disciplinary matters: Any allegation of misconduct will be handled through a written show-cause notice and an opportunity to explain before any action.
11. Ending employment: After probation, either party gives [Notice Period] written notice or pay in lieu. The Employee will complete handover and return company property. Full and final settlement will be made within [F&F Days] days of the last working day.
12. Other terms: [Role-Specific Terms]
13. Entire contract: This contract, with the salary annexure and company policies, forms the full terms. Changes must be in writing.
Signed on the date written above.
For [Company Name]
[Authorised Signatory]
[Designation]
Employee
[Employee Name]
Signature: ____________
Date: [Date]
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LETTER OF APPOINTMENT ON PROBATION
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Candidate Name]
[Candidate Address]
[City] – [PIN Code]
Subject: Appointment on Probation as [Designation]
Dear [Candidate Name],

We are pleased to appoint you as [Designation] in [Department] at [Company Name], [Work Location], with effect from [Date of Joining]. Your appointment is on probation on the terms below.
1. Probation period: [Probation Period] months from your date of joining.
2. Remuneration: Annual CTC of ₹[CTC] as per the enclosed salary annexure.
3. Reporting: You will report to [Reporting Manager], who will guide and assess you during probation.
4. Notice during probation: Either side may end the employment with [Probation Notice] written notice or pay in lieu.
5. Extension: If your performance needs more time to be assessed, probation may be extended once by up to [Extension Period] months, with written reasons.
6. Confirmation: You will be treated as confirmed only on receipt of a written confirmation letter.
Probation review plan
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[Company Logo][Company Name]
TEMPORARY EMPLOYMENT LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Candidate Name]
[Candidate Address]
[City] – [PIN Code]
Subject: Temporary Employment as [Designation]
Dear [Candidate Name],

We are pleased to offer you temporary employment with [Company Name] as [Designation] at [Work Location] to support [Reason for Temporary Engagement].
1. Period: From [Start Date] to [End Date]. Your employment will end automatically on the end date unless extended in writing.
2. Wages: ₹[Amount] per [day/month], paid [weekly/monthly] by bank transfer, subject to statutory deductions.
3. Working hours: [Working Hours], with weekly off on [Weekly Off]. Approved overtime will be paid as per law.
4. Statutory benefits: You will be enrolled under PF and ESI where applicable. Please share your UAN, if any, and your ESI details on joining.
5. Early release: The company may release you before the end date if the work is completed early, with [Notice Days] days' notice or wages in lieu. You may also resign with the same notice.
6. Status: This is a temporary engagement and does not give you any right to permanent employment. Any future vacancy will be filled through the normal selection process, where you are welcome to apply.
7. Conduct: You will follow the company rules, safety instructions and POSH policy, and keep customer information confidential.
Please bring your PAN, Aadhaar (masked copy), bank details and two photographs on your first day.

Kindly sign the duplicate copy in acceptance.

Yours sincerely,
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