India
Indian employment law is a mix of central and state regulation. Key central laws include the Industrial Disputes Act and the Payment of Gratuity Act. The Code on Wages, Code on Social Security, and Industrial Relations Code are in phased implementation.
Notice
~1 month
Gratuity cap
₹25 lakh
Maternity
26 weeks
Earned leave
12–21 days
Employment contracts
Reviewed 2026-03-30The appointment letter must specify the state, since state-level rules vary materially on working hours, leave, and overtime.
Written appointment letters are standard. State-specific Shops and Establishments Acts also apply for office employers.
Watch out
Multi-state employers commonly fail to register under each state's S&E Act for offices in that state. The fines are small but the inspections are routine.
Probation
Reviewed 2026-01-15If you intend to extend probation, the original contract must permit it. Verbal extensions do not survive court scrutiny.
Typically 3–6 months. Confirmation must be in writing — otherwise courts may treat the employee as deemed confirmed.
Termination
Reviewed 2026-03-30The workman/non-workman distinction is decisive. 'Workman' classification depends on duties, not job title or salary. Get the classification right before any termination.
Notice or pay in lieu, typically 1 month. For workmen, retrenchment requires government permission above certain thresholds.
Watch out
Companies with 100+ employees in covered states need state government permission for retrenchments under the Industrial Disputes Act. The Industrial Relations Code raises this to 300 but is not yet operational in all states.
Minimum wage
Reviewed 2026-03-01State minimum wage typically governs. The national floor wage under the Code is a minimum below which states cannot fall.
Set by central and state governments separately by skill and sector. The Code on Wages introduces a national floor wage (rollout ongoing).
Leave entitlements
Reviewed 2026-01-1526-week maternity applies only to establishments with 10 or more employees. Adoption and surrogacy maternity leave are also in scope.
Earned leave 12–21 days depending on state. Sick and casual leave commonly 7–12 days. Maternity leave 26 weeks (12 weeks for third child onwards).
Watch out
Maternity Benefit Act also requires creche facilities for establishments with 50+ employees. Frequently overlooked.
Recent regulatory changes
Reviewed 2026-05-02Gratuity ceiling raised to ₹25 lakh (April 2026). Universal PF account portability launched (March 2026).
Recent changes
2026-05-02
Karnataka state Gratuity Act notification
2026-04-29
Gratuity ceiling raised to ₹25 lakh
2026-03-30
Tax-free leave encashment ceiling raised
2026-03-20
Universal PF account portability launched
Three things people get wrong about India
- 1.One contract works across all states. Each state's S&E Act needs its own registration.
- 2.Workman status is about salary or title. It's about duties — and decisive for retrenchment rules.
- 3.Creche facility is optional. Required at 50+ employees under the Maternity Benefit Act.
Cross-country compare
Quick read across the six jurisdictions HR Asia tracks.
| Country | Probation | Notice | Leave |
|---|---|---|---|
| 🇮🇩 Indonesia | 3 months | — | 12 days |
| 🇸🇬 Singapore | 3–6 months | 2 weeks | 7 days |
| 🇲🇾 Malaysia | 3–6 months | 4 weeks | 8 days |
| 🇵🇭 Philippines | 6 months | — | 5 days |
| 🇮🇳 India | 3–6 months | 1 month | 12–21 days |
| 🇯🇵 Japan | 3–6 months | — | 10 days |
Managing this automatically? Aire handles contract generation tied to your live compliance requirements — country by country.
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This page is editorial, not legal advice. Always confirm with local counsel before acting on any specific case.