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Novation Employment Contract
"I need a Novation Employment Contract under Indian law for the transfer of 50 IT employees from our subsidiary company to the parent company, effective March 1, 2025, with continuation of existing benefits and protection of ongoing project commitments."
1. Parties: Identifies the three parties: Original Employer, New Employer, and Employee
2. Background: Explains the context of the novation, including the original employment relationship and reason for transfer
3. Definitions: Defines key terms used throughout the agreement
4. Effective Date: Specifies when the novation takes effect
5. Novation: Core clause transferring rights and obligations from original to new employer
6. Continuation of Employment: Confirms continuation of employment terms and conditions
7. Service Continuity: Addresses recognition of continuous service and accrued benefits
8. Duties and Responsibilities: Outlines the employee's role and responsibilities under new employer
9. Remuneration and Benefits: Details salary, benefits, and other compensation arrangements
10. Statutory Benefits: Addresses statutory benefits including PF, ESI, and gratuity
11. Release and Discharge: Releases original employer from future obligations
12. Governing Law: Confirms Indian law governance and jurisdiction
13. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Restrictive Covenants: Include when transferring or implementing non-compete and confidentiality obligations
2. Intellectual Property: Include when job involves creation or handling of IP
3. Relocation Terms: Include when position involves relocation to new location
4. Variable Pay: Include when compensation includes performance bonuses or commission structures
5. Group Company Benefits: Include when new employer offers group-wide benefits or schemes
6. Training Obligations: Include when existing training bonds or obligations need to be transferred
7. International Travel: Include when role involves international travel or assignments
1. Schedule 1 - Original Employment Terms: Copy or summary of original employment agreement terms
2. Schedule 2 - Employee Benefits Summary: Detailed list of continuing benefits and entitlements
3. Schedule 3 - Job Description: Detailed description of role and responsibilities
4. Schedule 4 - Statutory Benefits Statement: Summary of statutory benefits and their continuation
5. Appendix A - Leave Balance Statement: Statement of accrued leave and how it will be handled
6. Appendix B - Outstanding Claims: List of any pending expense claims or reimbursements
7. Appendix C - Company Policies: Key policies of new employer that employee must adhere to
Authors
Information Technology
Manufacturing
Financial Services
Healthcare
Telecommunications
Professional Services
Retail
Education
Construction
Pharmaceuticals
Business Process Outsourcing
Energy
Media and Entertainment
Human Resources
Legal
Finance
Operations
Administration
Compliance
Payroll
Industrial Relations
HR Manager
Legal Counsel
Finance Director
Software Engineer
Project Manager
Operations Manager
Sales Executive
Account Manager
Business Analyst
Department Head
Production Manager
Research Scientist
Marketing Manager
Administrative Officer
Technical Lead
Managing Director
Chief Financial Officer
Regional Manager
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