Skip to main content
UrbanVakeel
Live wire
www.iconnectblog.comWhen Apex Courts Disown Their Watchdogs: India, Judicial Accountability, and the Proprietary TurnSCC OnlinePresident Appoints Four Chief Justices and One Senior Advocate to Supreme Court, Taking Working Strength Closer to New Sanctioned Strength of 38MoneylifeFrom First-generation Lawyer to Supreme Court Judge: Justice V Mohana’s Historic AscentIndian Television Dot ComBroadcasters to take Ad-Cap battle to Supreme Court soon after HC blowBar and BenchJudicial recognition of ‘transnational issue estoppel’ in India: Fortifying finality in International Commercial ArbitrationBusiness StandardSupreme Court swears in five new judges, strength increases to 37LawBeatSupreme Court Weekly Round Up [May 25- May 31, 2026]WIONMeet the lawyer who skipped High Court bench and went straight to India’s Supreme CourtDT Next5 things to know about newly appointed Supreme Court judge Venkita MohanaThe Indian ExpressSupreme Court gets 5 new judges, strength increases to 37The New Indian ExpressSovereignty of nation must prevail over personal liberty in narcotics cases: SCThePrintSubscriberWrites: Euthanasia for Dogs: The Supreme Court’s stance on public safety and animal welfare in IndiaAl Jazeera‘Cockroach Janta Party’: Top Indian judge’s comment sparks satire, protestStoryboard18TV broadcasters weigh Supreme Court appeal against ad-cap verdictBar and BenchRailway staff are Central government employees: Supreme Court restores benefits to KSEB employee

Contract Law

Employment Contracts: Five Clauses That Protect Both Sides

A well-drafted employment contract isn't about leaning toward employer or employee — it's about clarity. The clauses below settle questions that, left ambiguous, become disputes.


By Editorial Desk1 min read
Person signing an employment contract
Person signing an employment contract

Most employment disputes don't start as disputes — they start as ambiguities. A contract that clearly answers the predictable questions can defuse problems before they escalate to lawyers.

1. Notice period and resignation

Specify the notice period required from each side, what counts as breach (e.g., abandonment), and whether payment in lieu of notice is allowed. Vague notice clauses are the most litigated provision in employment contracts.

2. Intellectual property assignment

For any role involving creative or technical work, the contract must clearly assign IP created during employment to the employer — and define what counts as during employment. Without this clause, IP ownership defaults to creator under the Copyright Act.

3. Non-compete and non-solicitation

Indian courts are skeptical of post-employment non-competes. Section 27 of the Indian Contract Act makes them broadly unenforceable. Non-solicitation of clients and employees is more defensible, provided the scope is reasonable.

4. Confidentiality

Different from an NDA, the confidentiality clause in an employment contract should survive termination and clearly identify what's confidential. Pair it with a return-of-property obligation on exit.

5. Termination for cause

Enumerate the grounds: misconduct, breach of policy, conviction of a crime involving moral turpitude. Be specific — vague termination clauses get scrutinised closely if challenged in industrial tribunals.

A good contract makes the easy cases easy and the hard cases clearer. It cannot eliminate disputes, only make the path through them shorter.

The Brief · the newsletter

Short legal explainers in your inbox.

Continue reading