Hire with Confidence, Audit with Ease
From Offer Letters to Separation Agreements, our AI audits your HR documents for compliance with Indian Labor Laws, POSH acts, and IT data guidelines.
Why HR Compliance is Non-Negotiable
In the evolving Indian legal landscape, employment contracts are no longer simple agreements. With the new Labour Codes and Data Privacy (DPDP) requirements, HR teams must ensure every clause—from remote work policies to data handling—is airtight.
A single "Non-Compete" clause that is too broad or a missing "IP Assignment" can lead to expensive lawsuits and loss of company trade secrets. Our AI identifies these gaps in seconds.
HR Compliance & Safety Checklist
Probation & Termination Logic
Are the notice periods during and after probation clearly defined? Ensure "Termination for Cause" conditions are specific.
IP Assignment & Confidentiality
Does the contract explicitly state that ALL work created during employment belongs to the company? Check for broad but enforceable confidentiality.
POSH & Code of Conduct
Is there a clear reference to the POSH (Prevention of Sexual Harassment) policy? Modern contracts must include these as standard.
Broad Non-Solicitation
Does the employee agree not to poach other staff or clients for a fixed duration after leaving? Ensure this is reasonable to be enforceable.
Comprehensive HR Document Audit
Offer Letters
Salary, benefits, joining conditions, and role expectations.
Employment Agreements
Full terms of service, restrictive covenants, and statutory obligations.
Employee Handbooks
Policy audit for leaves, code of conduct, and grievance redressal.
Separation Agreements
Full and final settlement terms, liability releases, and exit protocols.
Employment Law FAQs
Are Non-Compete clauses legal in India?
Post-employment non-compete clauses are generally difficult to enforce in India under Section 27 of the Contract Act. However, non-solicitation and confidentiality clauses ARE enforceable.
What should be the ideal notice period?
While 30-90 days is standard, ensure it's "Mutual." If the company requires 90 days from the employee, it should ideally offer the same or equivalent pay for termination without cause.
Do I need to assign IP in every offer letter?
Yes. Especially for tech roles. Without a clear "Work for Hire" or "IP Assignment" clause, the ownership of code or designs can create major legal hurdles during funding or M&A.
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Start Free HR Audit →Common Legal Risks for HR Teams & Employers
These are the four most frequently encountered legal pitfalls that result in financial losses and disputes for hr teams & employers in India:
Unenforceable Non-Compete Clauses
Most Indian employment contracts contain non-compete clauses that are void under Section 27 of the Indian Contract Act. Relying on them is false security. Focus on non-solicitation and IP protection instead.
Vague Employment Terms Leading to Disputes
Ambiguous CTC structures, undefined KPIs for variable pay, and unclear termination procedures are the primary drivers of employment disputes in India.
POSH Policy Non-Compliance
Every company with 10 or more employees must have a compliant POSH policy under the Sexual Harassment of Women at Workplace Act, 2013. Non-compliance attracts penalties and personal liability for directors.
Notice Period Disputes
Notice period enforceability varies significantly. Many employees simply don't serve their notice period. Understanding what you can and cannot enforce is critical to protecting operations.
Contracts You Need as a HR Teams
Employment Contract
Comprehensive agreement covering designation, CTC, KPIs, IP assignment, confidentiality, notice period, and termination procedures.
Offer Letter
Pre-employment document confirming the job offer. Legally binding once accepted. Must be carefully drafted to avoid inadvertent commitments.
POSH Policy
Mandatory under the Sexual Harassment of Women at Workplace Act, 2013. Must include ICC composition, reporting procedures, and timeframes.
ESOP Agreement
For startups and growth-stage companies offering equity compensation. Must cover vesting schedule, exercise price, good/bad leaver provisions, and anti-dilution rights.
Must-Have Clauses to Negotiate
These four clauses provide the greatest protection in contracts for hr teams & employers. If any of these are missing or weak in your current contracts, upload them to Contract Shield AI for an immediate risk assessment.
IP Assignment (Broad Scope)
Employees automatically create IP during employment. Include a comprehensive IP assignment clause covering inventions, code, creative works, and improvements to existing products — created during work hours or using company resources.
Non-Solicitation (Instead of Non-Compete)
Draft a specific non-solicitation clause prohibiting departing employees from soliciting named colleagues or clients for 12 months. This is enforceable; a broad non-compete is not.
Variable Pay Conditions
If CTC includes variable pay (bonus, commission), specify exact KPIs, measurement periods, and payment timelines. Ambiguous variable pay is the most litigated employment dispute in India.
Termination Procedure
Specify the notice period (both employer-initiated and employee-initiated), grounds for termination without notice (misconduct, fraud), and severance pay obligations if any.
Analyze Your Contracts Now
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