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Limited Term Employment Contract for India

Limited Term Employment Contract Template for India

A Limited Term Employment Contract governed by Indian law is a formal agreement that establishes a fixed-duration employment relationship between an employer and employee. This contract complies with Indian labor laws, including the Industrial Relations Code 2020, and specifies all essential terms of employment such as duration, compensation, benefits, and working conditions. It includes mandatory provisions required by Indian employment legislation while protecting both parties' interests through clear terms regarding role responsibilities, termination conditions, and statutory compliances. The document ensures alignment with state-specific labor laws and provides comprehensive coverage of all aspects of the temporary employment relationship.

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What is a Limited Term Employment Contract?

The Limited Term Employment Contract is essential for organizations operating in India that need to engage employees for specific projects, seasonal work, or temporary positions. This document has gained particular relevance since the formal recognition of fixed-term employment in the Industrial Relations Code 2020. It provides a structured framework for temporary employment relationships while ensuring compliance with Indian labor laws, including mandatory benefits and protections. The contract is designed to clearly outline employment terms, duration, compensation, benefits, and termination conditions, protecting both employer and employee interests. It's particularly useful for project-based hiring, seasonal requirements, or when covering temporary vacancies, ensuring all statutory requirements and company policies are properly documented and agreed upon.

What sections should be included in a Limited Term Employment Contract?

1. Parties: Identification of the employer and employee with complete details

2. Background: Brief context about the employment relationship and purpose of the fixed-term contract

3. Definitions: Key terms used throughout the agreement

4. Term and Duration: Specific start and end dates of the employment contract

5. Role and Responsibilities: Detailed description of the position, duties, and reporting relationships

6. Place of Work: Primary work location and possible deployment locations

7. Working Hours: Standard working hours, breaks, and overtime provisions

8. Compensation and Benefits: Salary structure, payment schedule, and statutory benefits

9. Leave Entitlements: Various types of leave and holiday entitlements

10. Termination: Conditions for early termination, notice periods, and consequences

11. Confidentiality: Protection of company confidential information

12. Company Policies: Adherence to company policies, procedures, and code of conduct

13. Statutory Compliance: Compliance with labor laws and statutory requirements

14. Dispute Resolution: Process for resolving employment-related disputes

15. Governing Law: Applicable laws and jurisdiction

What sections are optional to include in a Limited Term Employment Contract?

1. Probation Period: Used when initial probation is required within the fixed term

2. Intellectual Property: Required for roles involving creation of IP or technical work

3. Non-Competition: For senior roles or positions with access to sensitive information

4. Remote Work Provisions: When remote work arrangements are applicable

5. Performance Metrics: For roles with specific performance targets or KPIs

6. Training Requirements: When specific training or certification is mandatory

7. Travel Requirements: For positions requiring regular travel

8. Commission Structure: For sales or performance-based roles

9. International Assignment: For roles involving international work

10. Stock Options/Benefits: For senior positions eligible for equity compensation

What schedules should be included in a Limited Term Employment Contract?

1. Schedule A - Job Description: Detailed breakdown of roles, responsibilities, and expectations

2. Schedule B - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule C - Company Policies: List of applicable company policies and procedures

4. Schedule D - Confidential Information: Specific details of what constitutes confidential information

5. Schedule E - Performance Metrics: Detailed KPIs and performance evaluation criteria

6. Appendix 1 - Statutory Benefits: Details of all statutory benefits and calculations

7. Appendix 2 - Leave Policy: Detailed leave rules and procedures

8. Appendix 3 - Code of Conduct: Company's code of conduct and ethical guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Information Technology

Manufacturing

Healthcare

Education

Financial Services

Retail

Construction

Telecommunications

Professional Services

Media and Entertainment

Hospitality

E-commerce

Pharmaceutical

Automotive

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Information Technology

Operations

Sales

Marketing

Research and Development

Customer Service

Administration

Quality Assurance

Product Development

Business Development

Corporate Communications

Procurement

Relevant Roles

Project Manager

Software Developer

Research Analyst

Sales Executive

Marketing Specialist

Administrative Assistant

Financial Analyst

HR Coordinator

Customer Service Representative

Operations Manager

Content Writer

Data Scientist

Quality Assurance Engineer

Business Development Executive

Technical Consultant

Product Manager

Graphic Designer

Legal Associate

Teaching Professional

Healthcare Professional

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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