A Guide to Drafting Enforceable Employment Agreements

Employment agreements frequently receive less drafting attention than commercial contracts, despite governing one of a business's most important relationships. A poorly drafted employment agreement can expose an employer to disputes over termination, confidentiality breaches, or misuse of intellectual property.

Key clauses that require careful drafting include probation and confirmation terms, notice period and termination provisions, confidentiality and non-disclosure obligations, intellectual property assignment (particularly for roles involving creative or technical output), and restrictive covenants such as non-compete and non-solicitation clauses.

It is worth noting that under Indian law, post-employment non-compete clauses are generally viewed as being in restraint of trade under Section 27 of the Indian Contract Act, 1872, and are often unenforceable beyond the term of employment unless narrowly tailored to protect legitimate business interests such as trade secrets.

Employers should also ensure employment agreements align with applicable state Shops & Establishments Act provisions, and that policies referenced in the agreement (POSH policy, leave policy, code of conduct) are actually in place and consistently applied.

We assist businesses of all sizes — from early-stage startups to established organizations — in drafting employment agreements, HR policies, and consultancy agreements that are both protective and compliant.