Employment contracts
in India.

SALARY PAYMENT IN Indian Rupee (INR)

CONTRACT LANGUAGES Hindi / English

PAYROLL TAX 16.75%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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India

Standard employment contract in India: Open-ended contract

The standard type of employment contract drafted in India is an Open-ended contract which can otherwise be referred to as a “unlimited” or “permanent” contract. This contract will remain ongoing until an active termination or resignation is facilitated by an employer or employee.

Alternative employment contract in India: Temporary contract

An alternative employment contract type is a Temporary Contract, otherwise referred to as a “limited” or “definite” contract. These contracts aren’t very common in India and only issued in circumstances where an employee will be working on a specific project or as a contract worker. Contract workers are subject to different taxes, will not be issued employment taxation certificates, no social security contributions and have different renumeration calculations. The period of the contract must be specified, and the amount of time has no minimum or maximum caps but must be considered as reasonable for the

Are there other types of employment contracts in India?

There is a third type of employment contract in India known as a Casual Employment Contract. These contracts are drafted when an employer does not have a guaranteed set of hours for the employee to work and hours can fluctuate.

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FAQs

What are the main differences between the standard contract and the alternative contract in India?

Employees on Open-Ended Contract and a Fixed Term Contract in India have different rules and expectations for termination, notice periods, social security contributions and taxation rules. Those on an open-ended contract are more protected by Indian labor laws than those on fixed term contracts.

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