Country Information

India, officially known as the Republic of India, is the second most populous democracy in the world (1.38 billion people) and it also is one of the world’s largest economies. With a Gross Domestic Product (GDP) valued at USD3.2 trillion, this south Asian country relies heavily on agriculture as its economic backbone. Telecommunications, chemical and biotechnology industries are gaining ground and helping the country diversify and strengthen its economy. Hindi and English are the primary languages in India.

Employment Contracts

Employment contracts can be verbal or written, but a written contract is recommended. A written contract should include:

  • Names of the employer and employee
  • Address of the employer and location where work will be performed
  • Salary and payment intervals
  • Vacation and other leave entitlements
  • Work hours and days
  • Probation period (if applicable)
  • Notice periods and other details related to end of employment.
  • The contract must be signed by both parties.
Working Hours

Employees generally work between 40 and 48 hours per week but work hours can vary depending on the type of work being performed and the industry. Workers receive 10.5 hours of rest between workdays.

Sick Leave

Employees are entitled to sick leave if unable to work due to illness. The number of sick days received by employees varies by State and position but is generally around 10 to 15 days. Employees also can take casual leave.

Maternity/Paternity Leave

Female employees receive up to 26 weeks of paid maternity leave. Maternity leave can start eight weeks before the expected date of the birth, with the remaining leave taken after the birth of the child. There is no paternity leave.

Compensation

An employee’s salary is dependent on a variety of factors including the position, skill and experience, industry, region and variety of other factors. Allowances and bonuses are common and should be stated in the employment contract.

Vacation Leave

Employees receive one day of paid leave for every month of service. Up to 30 days of accrued but unused leave can be carried over.

Public Holidays

India observes the following holidays:

  • Republic Day
  • Labor Day
  • Independence Day
  • Gandhi Jayanti
  • Christmas Day
  • The government may announce additional holidays, which may vary by region and year.
Health Insurance Benefits

India has a mix of public and private insurance, and some candidates request an allowance for supplementary medical coverage.

Employment / Termination / Severance

Either the employer or employer can terminate an employment contract in India. In most cases, notice must be provided. The notice period is between 15 and 30 days, depending on whether the employee is still in the probation period or not. Payment in lieu of notice is allowed. Severance is paid in some circumstances and is 15 days of pay for each year of service.

Local Laws & Regulations

We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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Partner with Atlas

Partnering with Atlas when expanding into India, can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Atlas can simplify your ability to expand globally, please feel free to contact us.
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