Practical, India-specific answers to the questions we get most about employment agreement. If your question is not here, write to verbatra.legal@gmail.com and we will add it.
What's a typical notice period in an Indian employment agreement?
For non-managerial roles, notice periods of 30 days are standard and broadly enforceable. For managerial and senior roles, 60 to 90 days is common. Some industries (IT services, BPO) have longer notice periods of three to six months. Notice periods longer than three months are sometimes challenged as unreasonable restraint, but Indian courts have generally upheld them when commensurate with the role. The agreement must specify whether the employee can buy out the notice period and at what rate.
Are non-compete clauses enforceable in India after employment ends?
Generally no. Section 27 of the Indian Contract Act voids agreements in restraint of trade. Indian courts have consistently held that post-employment non-compete clauses preventing an employee from working in the same field with a competitor are unenforceable after the employment ends. Non-solicitation clauses (restricting the employee from poaching the company's customers or employees) are more often upheld if reasonable in scope and duration. Confidentiality obligations survive the end of employment and are fully enforceable. Verbatra's employment agreement is drafted to use enforceable mechanisms rather than the unenforceable non-compete.
Is gratuity automatically included in an employment contract?
Gratuity is a statutory entitlement under the Payment of Gratuity Act, 1972, payable to employees who complete five years of continuous service. It is calculated at 15 days' wages for each completed year. The Act applies to establishments employing 10 or more persons. The employment contract does not need to grant gratuity explicitly; it applies by operation of law to qualifying employees. The contract should however acknowledge the entitlement to avoid disputes.
What's the difference between an offer letter and an employment agreement?
An offer letter is a short-form document extending an offer of employment and setting the headline terms (role, salary, start date, location, notice period). An employment agreement is a more comprehensive document setting out the full terms of the employment relationship: detailed compensation structure, benefits, confidentiality, IP assignment, post-employment obligations, termination causes and procedure, dispute resolution. For senior roles, both are often signed. For junior roles, an offer letter with a hyperlink to a standard employee handbook is common. Verbatra's generator produces either depending on which you select.
Can the employer terminate an employee at will in India?
Not freely. Indian labour law distinguishes between workmen (covered by the Industrial Disputes Act, 1947) and non-workmen (managerial and supervisory roles drawing above-threshold salaries). Workmen termination requires statutory notice, retrenchment compensation, and in some cases government permission. Non-workmen can be terminated on contractual notice but face protection against arbitrary or mala fide termination under writ jurisdiction and contract law. The agreement should specify the procedure for termination for cause, termination for poor performance with a performance-improvement plan, and termination on notice.
Do I still need a lawyer if I use Verbatra?
Verbatra produces a solid, India-specific first draft drafted by a corporate lawyer. For most standard, low-stakes contracts between commercial parties, the generated document is enough. For higher-stakes transactions, contracts that materially deviate from standard terms, contracts involving regulated industries, or anything you would be uncomfortable signing without independent review, you should have a qualified lawyer review the document before execution. Verbatra is not a substitute for advice on your specific facts.
Is my data safe when I use Verbatra?
Yes. Verbatra runs entirely in your browser. The document you build is rendered locally on your device and is never uploaded to Verbatra's servers, stored anywhere, or transmitted to any third party. Verbatra cannot read what you draft. The only data we collect is the contact information you voluntarily provide on the lead-capture form before download.
Is Verbatra actually free?
Yes, every generator on Verbatra is free to use, with no payment, subscription, or credit card required. Verbatra was built by a corporate lawyer to give Indian businesses access to enterprise-grade legal drafting without the friction of paying a lawyer for a routine first draft. Verbatra makes money by offering paid contract negotiation and legal-operations services to clients who want a lawyer to take the document further.