Female employees are entitled to 26 weeks of paid maternity leave for the first two children under the Maternity Benefit Act, 1961 (amended 2017). For the third child onwards, the entitlement is 12 weeks.

The leave can be taken up to 8 weeks before the expected delivery date. Adoptive and commissioning mothers are entitled to 12 weeks of maternity leave from the date the child is handed over. The employer bears the full cost of maternity leave benefits.

There is no statutory paternity leave entitlement in the private sector in India. However, central government employees are entitled to 15 days of paternity leave.

Many private sector employers voluntarily offer paternity leave ranging from 5 to 15 days as part of their company policy.

Sick leave entitlements vary by state and are governed by the respective state Shops & Establishments Acts. Generally, employees are entitled to 12 to 15 days of paid sick leave per year.

Some states require a medical certificate for sick leave exceeding 2-3 consecutive days. Unused sick leave policies (accumulation or lapsing) also vary by state legislation and employer policy.

There is no statutory bereavement leave in India. However, most employers provide bereavement leave as part of their company policy, typically ranging from 3 to 5 days for the death of an immediate family member.

Employees may also use their casual leave or earned leave for bereavement purposes.

Termination of employment in India is governed by multiple laws including the Industrial Disputes Act, 1947, state-specific Shops & Establishments Acts, and the terms of the employment contract.

For establishments with 100 or more workers, prior government approval is required for retrenchment, layoffs, or closure under the Industrial Disputes Act.

Valid grounds for termination include:

• Retrenchment due to economic reasons or redundancy
• Misconduct proven through a domestic inquiry
• Continued ill-health or physical disability
• Poor performance (after following due process)
• Closure of the establishment

Notice periods in India depend on the type of establishment, the applicable law, and the employment contract terms.

• Industrial Disputes Act (workmen): 1 month notice or pay in lieu
• Shops & Establishments Acts: 1 to 3 months depending on the state
• Contractual terms: As specified in the appointment letter (commonly 1-3 months)

During the probation period, shorter notice periods (typically 1-2 weeks) may apply as specified in the employment contract.

Retrenchment compensation under the Industrial Disputes Act is calculated at 15 days' average pay for every completed year of continuous service (or any part of a year exceeding 6 months).

Gratuity is payable under the Payment of Gratuity Act, 1972 to employees who have completed 5 or more years of continuous service. Gratuity is calculated at 15 days' wages for each completed year of service, capped at INR 2,000,000.

Upon termination, employees must also be compensated for any unused earned leave as per applicable state laws.

Earned leave (also called privilege leave or annual leave) entitlements vary by state, typically ranging from 12 to 18 working days per year. Under the Factories Act, workers earn 1 day of leave for every 20 days worked.

In addition, employees are generally entitled to 7 to 12 days of casual leave per year, depending on the state Shops & Establishments Act. Casual leave is intended for unforeseen or urgent personal matters and typically cannot be carried forward.

India observes 3 mandatory national holidays, along with numerous state-specific and restricted holidays. The total number of paid holidays typically ranges from 15 to 20 per year depending on the state and establishment.

Mandatory national holidays:

• Republic Day (January 26)
• Independence Day (August 15)
• Gandhi Jayanti (October 2)

Commonly observed additional holidays include:

• Holi (March)
• Diwali (October/November)
• Dussehra (October)
• Eid ul-Fitr (varies)
• Eid ul-Adha (varies)
• Christmas (December 25)
• Good Friday (varies)
• Makar Sankranti / Pongal (January 14-15)
• Buddha Purnima (May)
• Guru Nanak Jayanti (November)

The onboarding process is typically completed within 2-5 business days following client execution of the Statement of Work.

Salaries in India are typically paid on a monthly basis. Employers are required to pay employees on or before the 7th of the following month (or by the 10th for establishments with more than 1,000 employees).

There is no mandatory 13th month salary in India. However, under the Payment of Bonus Act, 1965, eligible employees are entitled to a minimum bonus of 8.33% of annual wages (maximum 20%), applicable to employees earning up to INR 21,000 per month. Festival bonuses and performance-based incentives are also common practice.

While Indian labor law does not strictly mandate written contracts for all employment types, written contracts (appointment letters) are standard practice and strongly recommended. They serve as the primary document defining the employment relationship.

Essential contract elements include:

• Employee and employer identification
• Date of commencement
• Job title, designation, and description
• Compensation structure (basic salary, allowances, deductions)
• Working hours and schedule
• Leave entitlements
• Notice period and termination provisions
• Confidentiality and non-compete clauses (if applicable)

Employment contracts are commonly drafted in English, which is widely used as the business and legal language across India. Contracts may also be executed in Hindi or the relevant state language.

Probationary periods in India typically range from 3 to 6 months, with some organizations extending up to 12 months for senior or specialized roles. The probation period and its terms must be clearly stated in the appointment letter.

During the probation period, either party may terminate the employment with a shorter notice period (commonly 1-2 weeks). Upon successful completion, the employee is confirmed as a permanent employee with full benefits.