Employment
Employment Contract Checklist: What to Review Before Accepting a Job
What is an Employment Contract?
An employment contract defines the terms of employment, compensation, job responsibilities, notice period, confidentiality, and IP assignment between an employer and an employee.
The Complete Employment Contract Checklist
Job Title & Responsibilities
Is the role clearly defined? Vague descriptions can lead to scope creep in duties.
Compensation & Benefits
Base salary, bonuses, stock options, health insurance, PF contributions. Get everything in writing.
Start Date & Probation Period
How long is probation? What are the terms during probation? (Often: shorter notice, easier termination)
Working Hours & Location
Is remote work allowed? What about overtime expectations?
Notice Period
How much notice must you give to resign? 30-90 days is common in India.
Non-Compete Clause
⚠️ Big one. Can you work for competitors after leaving? For how long? In which geographies?
Non-Solicitation Clause
Can you hire former colleagues or approach company clients after leaving?
Intellectual Property Assignment
Does the company own everything you create? Even side projects? Outside work hours?
Confidentiality Terms
What information can't you share? How long does this last?
Termination Conditions
What constitutes termination for cause? What severance do you get?
Legal Deep Dive: Section 27 & Non-Competes
Many Indian employers include aggressive non-compete clauses (e.g., "cannot work for a competitor for 2 years"). However, **Section 27 of the Indian Contract Act** strictly prohibits restraints on trade. While these clauses are often included to deter employees, they are rarely enforceable in court post-employment.
Red Flags to Watch For
- ❌ Non-compete lasting more than 1 year
- ❌ IP assignment for work done outside office hours
- ❌ "Garden leave" that locks you out without pay
- ❌ Unilateral salary reduction rights
- ❌ Broad definitions of "competitor"
Don't Sign Blindly. Protect Yourself.
Templates are just a start. Use Contract Shield's AI to scan your contract for hidden risks, unfair clauses, and Indian legal compliance issues — in 60 seconds.
Analyze Your Contract Free →Frequently Asked Questions
Are non-compete clauses valid in India?
Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.
What is the standard notice period in India?
Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.
Can an employer reduce my salary during the contract term?
Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.
Are electronic signatures legally valid in Indian contracts?
Yes. Under Section 10A of the Information Technology Act 2000, electronic contracts and digital signatures are legally recognized and enforceable. However, certain documents like negotiable instruments, power of attorney, trust deeds, and wills cannot be executed electronically.
Frequently Asked Questions
Are non-compete clauses valid in India?
Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.
What is the standard notice period in India?
Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.
Can an employer reduce my salary during the contract term?
Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.
Frequently Asked Questions
Are non-compete clauses valid in India?
Under Section 27 of the Indian Contract Act, 1872, any agreement that restrains anyone from exercising a lawful profession, trade, or business is void. This means post-employment non-competes are generally unenforceable in India. According to Section 10 of the Indian Contract Act 1872, agreements are enforceable only when executed with the free consent of parties competent to contract, for a lawful consideration, and with a lawful object.
What is the standard notice period in India?
Typically, notice periods range from 30 to 90 days. For employees on probation, it's often shorter (15-30 days). This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.
Can an employer reduce my salary during the contract term?
Generally, no. A unilateral reduction in salary without a corresponding amendment signed by the employee can be challenged as a breach of contract. This is subject to the provisions of the Indian Contract Act 1872 and other applicable local regulations, which define the rights, obligations, and legal remedies available to the contracting parties.