Services Offered For Businesses in India
Employment & HR Advisory - Employment Lawyers in Ahmedabad with Pan-India Coverage
Overview
Employment and HR law is far broader than recruitment or payroll management. For organisations operating in India, it encompasses a wide spectrum of strategic, legal and regulatory considerations,which includes structuring executive contracts, designing ESOPs, drafting confidentiality and workplace conduct policies, implementing compliance frameworks, and ensuring compliance with statutory obligations under labour and employment laws.
Unlike jurisdictions where employment law is consolidated, India follows a fragmented framework of central statutes, sector-specific regulations, and contractual arrangements.
This creates complexity at every stage of the workforce cycle:
- Engagement and classification – whether an individual should be engaged as an employee, consultant, or independent contractor, and the statutory implications of each choice.
- Executive employment structures – drafting and negotiating compensation frameworks, restrictive covenants, and termination clauses for senior hires.
- Employee stock option plans (ESOPs) – aligning grant rules and vesting mechanics with the Companies Act, SEBI regulations (for listed entities), and applicable tax provisions.
- HR policies and governance – codifying codes of conduct, prevention of sexual harassment policies, confidentiality and IP protection rules, hybrid/remote work arrangements, and grievance procedures.
- Compliance touchpoints – obligations arising under the Industrial Disputes Act, gratuity, provident fund, wages, and social security laws, all of which directly affect employment documentation and separation frameworks.
- Workforce transitions in M&A – due diligence, continuity of service, harmonisation of benefits, and handling employee transfers during corporate transactions.
- Cross-border employment – expatriate contracts, secondee arrangements, and risk mitigation under FEMA, tax, and immigration laws.
The consequences of overlooking these issues are not only legal but also operational and reputational. Poorly drafted agreements may be unenforceable; gaps in policies may lead to disputes, regulatory exposure, or reputational harm; and missteps in workforce structuring can escalate into tax or statutory liabilities.
Thus, therein lies the need for a well-designed and robust employment and HR advisory framework which will include clarity in contracts, consistency across policies, and compliance embedded into operations.
We provide structured assistance to businesses in navigating the complex framework of Indian labour and employment laws, ensuring compliance, reducing legal risk, and enabling smooth workforce management.
This service page sets out the typical legal framework, key services, and scenarios in which organisations may seek our expert advice on employment and HR matters in India.
Legal Framework & Key Provisions
Employment and HR law in India is presently at a transitional stage. Parliament has enacted four Labour Codes intended to consolidate 29 central laws:
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020
2.1. Existing Statutes (Currently in force)
- Industrial Disputes Act, 1947 (ID Act): regulates layoffs, retrenchment, and dispute resolution for “workmen”; its definitions often determine enforceability of termination clauses and severance benefits.
- Wage and benefits laws: including the Payment of Wages Act, Minimum Wages Act, Payment of Gratuity Act, 1972, and the Employees’ Provident Funds Act, 1952.These override contractual terms to the extent of statutory benefits.
- Employees’ State Insurance Act, 1948 (ESI): creates mandatory social insurance obligations where applicable.
- Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH): requires organisations to establish an Internal Complaints Committee (ICC), adopt procedures for inquiry, and meet disclosure/reporting obligations.
- Companies Act, 2013 & SEBI (SBEBSE) Regulations, 2021: regulate employee stock option plans (ESOPs) and other stock-linked benefits for both private and listed entities.
- Contract Labour (Regulation and Abolition) Act, 1970: governs staffing models and principal-employer obligations in contractor ecosystems.
- Confidentiality, IP, and Data protection: largely contract-driven, but increasingly subject to sectoral and data-protection regulations.
- Cross-border engagements: FEMA provisions, tax rules, and immigration norms apply in the case of expatriates, secondees, or remote work-from-India arrangements.
2.2. Emerging Labour Codes (awaiting full implementation)
2.3. Practical Implication
For organisations, this duality means that contracts and policies should:
a) Remain compliant with current statutes, and
b) Anticipate forthcoming changes so that documentation does not require fundamental restructuring once the Codes are notified.
Key Services - Employment & HR Advisory
3.1. Employment Contracts & Executive Appointments
Clear and enforceable contracts form the foundation of every employment relationship. Our advisory covers the full spectrum of employment agreements, ranging from standard offer letters for new recruits to bespoke contracts for senior management:
- General workforce agreements: Drafting and reviewing contracts that address probation, fixed-term employment, confidentiality, and non-compete clauses. We ensure these align with applicable state Shops and Establishments Acts or the forthcoming provisions of the Labour Codes.
- Executive and C-suite contracts: Senior appointments such as CEO, CFO, or CTO require a different level of structuring. These contracts often include equity-linked pay, severance protection, change-of-control clauses, and board-level accountability under the Companies Act, 2013. We focus on ensuring compliance with statutory limits on managerial remuneration, shareholder approval requirements, and disclosure norms for listed companies.
- Consultant and secondee arrangements: Increasingly, businesses engage independent professionals or secondees from group entities or foreign parents. These require careful drafting to address tax residency, permanent establishment exposure, and liability sharing.
3.2. ESOPs & Incentive Structures
- Policy design and documentation: Preparing ESOP schemes, grant letters, and employee communication documents that reflect vesting schedules, exercise conditions, and exit mechanisms.
Regulatory bifurcation:
- For private/unlisted companies, ESOPs are governed primarily by the Companies Act, 2013, and the rules relating to issue of share capital.
- For listed companies, the SEBI (Share Based Employee Benefits & Sweat Equity) Regulations, 2021 apply, alongside Companies Act provisions.
- Tax implications: Guidance on withholding obligations, perquisite taxation, and cross-border taxation in the case of employees on deputation or foreign parent company grants.
- Alternative incentives: Where equity is not viable, we also structure phantom stock, stock appreciation rights (SARs), or performance-linked cash bonuses.
3.3. HR Policies & Compliance Frameworks
- Every organization requires a coherent set of HR policies to ensure transparency, compliance, and workplace discipline. Our advisory typically covers:
- Employee handbooks: Preparation of comprehensive manuals covering leave entitlements, working hours, code of conduct, data protection, and grievance redressal mechanisms.
- Mandatory compliance: The PoSH Act, 2013 applies to all establishments, irrespective of size or industry. We assist in drafting PoSH policies, setting up Internal Committees, and training stakeholders.
- Grievance and disciplinary procedures: While industrial establishments may be bound by Standing Orders or the Industrial Disputes Act, service-oriented companies also benefit from having documented procedures for employee grievances, disciplinary actions, and performance management.
- Hybrid and remote work arrangements: Policies addressing confidentiality, data security, work-from-home protocols, and reimbursement of remote working expenses are increasingly sought.
3.4. Workforce Restructuring in M&A Context
- Mergers, acquisitions, and corporate reorganisations often trigger complex HR considerations. We advise on:
- Employee transfer frameworks: Structuring transfer of employees between entities, including continuity of service, accrued benefits, and handling of gratuity/leave encashment.
- Consultation and consent requirements: Evaluating whether employee consent is required for transfer of contracts and documenting novation or tripartite arrangements where necessary.
- Harmonisation of policies: Aligning disparate HR policies, compensation structures, and ESOP schemes across merged or acquired entities.
- Change-of-control implications: Reviewing executive contracts and incentive plans to address acceleration of vesting, golden parachutes, or termination protections triggered by M&A events.
- Cross-border acquisitions: Advising foreign acquirers on Indian labour law implications, especially where Indian subsidiaries or branches are included in global deals.
3.5. Dispute Resolution & Termination
- Despite best efforts at preventive structuring, employment relationships may lead to disputes. Our services cover:
- Arbitration clauses in executive contracts: For senior management, arbitration is often agreed as the preferred dispute resolution method. We assist in drafting enforceable arbitration clauses consistent with Indian law and international practice.
- Negotiated settlements: Many disputes are best resolved through negotiation or mediated settlements. We guide clients through severance negotiations, ensuring compliance with applicable tax and labour laws.
OUR APPROACH
4.1. Compliance – Driven, Document-Disciplined Drafting
4.2. Tailored Frameworks for Diverse Business Models
- Technology & startups often need agile agreements and equity-linked pay structures.
- Service providers benefit from detailed handbooks and PoSH compliance systems.
- Cross-border entities face challenges with secondees, global–local policy alignment, and recognition of foreign incentive plans.
4.3. Coordination with Foreign Counsel Where Needed
While most employment issues can be addressed under Indian law, certain matters involve overlap with foreign regulations. In such cases, coordination with foreign counsel becomes necessary to ensure seamless integration into a client’s global framework. For example:
- A U.S. parent company wants to extend its NASDAQ-listed stock options to employees of its Indian subsidiary.
- While we draft the Indian ESOP addenda, U.S. securities counsel must confirm compliance with SEC rules and insider trading restrictions.
- Coordination ensures Indian tax withholding rules and U.S. securities restrictions don’t conflict.
Secondment Agreements in M&A
A UK company acquires an Indian target, and during integration, secondees from the UK are temporarily placed in India. We structure secondee contracts to avoid creating a permanent establishment (PE) in India. However, UK counselonly will confirm how the secondment is treated for UK employment law purposes, for e.g., continuity of service, collective bargaining rights, or TUPE (Transfer of Undertakings) implications.
Industries Client We Support
5.1. Technology & SaaS Companies
- Structuring ESOP schemes for growth-stage startups and established SaaS firms.
- Drafting developer and engineer contracts with confidentiality and IP assignment clauses.
- Policies for remote/hybrid work, data security, and reimbursement of work-from-home costs.
- PoSH compliance, including Internal Committee set-up and training.
5.2. Service-Provider Corporates
- Preparing employee handbooks and grievance procedures for large workforces across multiple states.
- Standardising employment contracts for mid-level and senior-level staff.
- Ensuring compliance with Shops and Establishments Acts, covering hours, leave, and record-keeping.
- Documenting disciplinary frameworks that withstand scrutiny.
5.3. Foreign Companies Employing Staff in India
- Structuring secondee agreements without triggering a permanent establishment risk.
- Drafting employment contracts for Indian staff engaged by foreign subsidiaries or branches.
- Aligning foreign stock option plans with Indian taxation and disclosure requirements.
- Addressing continuity of benefits during global restructuring affecting Indian employees.
illustrative Scenarios (Neutral Examples)
- A listed company may require C-suite contracts that integrate ESOP-linked compensation and severance protections in the event of a change of control.
- A startup raising venture capital may need to design and implement an ESOP scheme, balancing investor preferences with employee retention.
- A mid-sized IT company in Ahmedabad may decide to introduce PoSH and grievance policies to ensure compliance and workplace transparency.
Related Services (Internal Linking)
- Arbitration & Dispute Resolution: Employment disputes at senior levels often include arbitration clauses or escalate into contractual disputes requiring adjudication.For a broader perspective, you may click here to explore our in-depth articles on these subjects published on our website, which provide practical insights for employers and businesses.
- International Taxation: Cross-border secondees, expatriate employment contracts, and foreign stock option plans frequently raise international tax implications alongside employment law questions.For a broader perspective, you may click here to explore our in-depth articles on these subjects published on our website, which provide practical insights for employers and businesses.
Frequently Asked Questions (FAQs) on EPC Contracts
Office Details
To maintain transparency and consistency across all public listings, the exact details of our office are provided below. These are aligned with the firm’s Google Business Profile (GMB), ensuring accuracy for search visibility and authenticity.
R & D Law Chambers
604 Entice, Bopal-Ambli Road, Ahmedabad, Gujarat – 380058, India
Phone: 09898550411 | +91 9898550411
*This page is intended solely for informational purposes. It should not be construed as professional advice. The descriptions of practice areas and services are general in nature and are provided only to assist readers in understanding the range of corporate law and related legal issues commonly handled by corporate law firms in India.
Nothing on this page is to be taken as a guarantee of outcome or as an invitation to create a lawyer–client relationship. Readers are encouraged to seek independent professional advice based on their specific facts and requirements.
R & D Law Chambers makes every effort to ensure that the information presented is accurate as of the date of publication. However, laws and regulations evolve, and the applicability of legal principles may vary depending on the facts of each case. The firm disclaims any liability arising from reliance placed on the content of this page without obtaining tailored advice.