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Internship Agreement Template for India

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Key Requirements PROMPT example:

Internship Agreement

I need an internship agreement for a college student who will be interning for 3 months, with a focus on gaining practical experience in software development. The agreement should include a stipend, flexible working hours, and a confidentiality clause, with no obligation for employment post-internship.

What is an Internship Agreement?

An Internship Agreement is a formal contract between a company and an intern that sets clear ground rules for their work relationship. It spells out key details like the internship duration, work hours, compensation (if any), and learning objectives - protecting both parties under Indian labor laws.

Beyond basic terms, these agreements typically cover important aspects like intellectual property rights, confidentiality requirements, and performance expectations. They're especially important in India where the Ministry of Labour guidelines require structured training programs and proper documentation for internships across sectors like IT, manufacturing, and professional services.

When should you use an Internship Agreement?

Use an Internship Agreement before bringing any intern into your organization - ideally during the recruitment process. This becomes essential when offering structured internships lasting more than 2 weeks, particularly in regulated sectors like IT, healthcare, and financial services where data security and compliance matter.

The agreement proves especially valuable for paid internships under India's Apprentices Act, professional training programs, and situations involving access to confidential information. It helps prevent misunderstandings about work hours, stipends, and intellectual property rights while ensuring your internship program meets Ministry of Labour guidelines for skill development.

What are the different types of Internship Agreement?

Who should typically use an Internship Agreement?

  • Host Organizations: Companies, NGOs, or institutions that offer internships and need to formalize their training programs under Indian labor laws
  • Interns: Students, recent graduates, or career changers seeking practical experience while ensuring their rights and responsibilities are clearly defined
  • HR Managers: Responsible for drafting and implementing Internship Agreements, ensuring compliance with labor regulations
  • Educational Institutions: Often partner with companies to facilitate internships and may need to approve agreement terms for academic credit
  • Legal Teams: Review and customize agreements to protect intellectual property and ensure compliance with state-specific labor laws

How do you write an Internship Agreement?

  • Basic Details: Collect intern's personal information, educational background, and required documentation including identity proof
  • Program Structure: Define internship duration, working hours, department placement, and specific roles or projects
  • Compensation Terms: Determine stipend amount, payment schedule, and any additional benefits like travel allowance
  • Learning Objectives: Outline skill development goals, training plans, and performance evaluation criteria
  • Legal Requirements: Check state-specific labor laws and Ministry guidelines on minimum wages and working conditions
  • Company Policies: Review internal policies on confidentiality, intellectual property, and code of conduct

What should be included in an Internship Agreement?

  • Party Details: Full names, addresses, and contact information of both company and intern
  • Term and Duration: Clear start and end dates, working hours, and leave policy
  • Compensation Structure: Stipend amount, payment schedule, and any additional benefits as per state minimum wage laws
  • Work Scope: Detailed description of role, responsibilities, and learning objectives
  • Confidentiality Terms: Protection of company information and intellectual property rights
  • Termination Conditions: Notice period and grounds for early termination
  • Governing Law: Applicable state jurisdiction and dispute resolution mechanism
  • Signatures: Space for both parties to sign, with date and witness provisions

What's the difference between an Internship Agreement and an Advisory Agreement?

Let's compare an Internship Agreement with an Advisory Agreement, as both involve bringing external talent into an organization but serve distinct purposes and carry different legal implications under Indian law.

  • Employment Status: Internship Agreements create temporary learning-focused relationships with minimal employment rights, while Advisory Agreements establish professional consulting relationships with more autonomy and responsibilities
  • Compensation Structure: Interns typically receive stipends under minimum wage guidelines, whereas advisors command professional fees and often performance-based compensation
  • Duration and Commitment: Internships have fixed, shorter terms (usually 2-6 months) with full-time engagement, while advisory roles often extend longer with flexible, part-time commitments
  • Legal Obligations: Internship Agreements focus on training and skill development under labor laws, while Advisory Agreements emphasize deliverables and professional services under contract law
  • Intellectual Property: Advisors often retain more IP rights and can work with multiple clients, unlike interns who typically assign all work product to the organization

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