Employment Agreements for Remote and Hybrid Work in India: Key Clauses to Update

Many employment agreements still assume that an employee will work from one fixed office, access company information only from that location, and perform duties within a conventional workplace structure. That assumption becomes less reliable when employees work remotely, follow a hybrid schedule or move between locations. The agreement should reflect how the employment relationship actually operates rather than leaving important working arrangements to informal practice.

This has become particularly important after India's four Labour Codes came into effect on 21 November 2025. The Codes replaced and consolidated a number of earlier central labour laws, while employment regulation in India continues to involve both central and state-level requirements. The government has also emphasised formal employment documentation, including appointment letters, under the new framework.

Why Work Location Needs More Attention

1. A Fixed Office Address May Be Too Narrow

An employment agreement commonly identifies the employee's place of work. Where the employee is permitted to work remotely or under a hybrid arrangement, stating only the company's office address may not accurately describe the employment arrangement. The agreement should identify the primary location while also addressing when and on what conditions remote work is permitted.

This does not necessarily require an employee to have an unrestricted right to work from anywhere. The employer may need flexibility to require attendance at an office, change the designated work location or approve remote-working locations. The clause should therefore distinguish between the employee's primary place of work and any flexibility granted by the employer.

2. Employees Should Not Assume They Can Work From Any Location

Remote work is sometimes treated informally as permission to work from whichever city or state the employee chooses. From an employment-law perspective, location can matter because employment requirements may vary depending on the state to which the employee is connected. Documentation should therefore make clear whether working from another location requires approval.

This becomes more important where employees relocate for extended periods without formally changing their employment arrangements. Leave, working conditions and other employment requirements may need to be considered by reference to the employee's applicable location. Businesses should therefore know where employees are working rather than treating location as irrelevant simply because the work can be performed online.

Clauses That Should Reflect Remote and Hybrid Work

1. Duties and Responsibilities

An employment agreement should clearly describe the employee's role and principal responsibilities. It should also provide sufficient flexibility for duties to develop as the organisation changes, particularly where teams work across locations or functions. Remote work should not create uncertainty over reporting lines or the work the employee is expected to perform.

The agreement does not need to reproduce an exhaustive job description. It should, however, establish the employee's role while allowing reasonable changes in responsibilities as business needs evolve. This can be supported by internal policies dealing with reporting, communication and remote-working procedures.

2. Working Hours and Availability

A remote-working arrangement should not mean that working hours become undefined. Employees and managers should understand when the employee is expected to work, attend meetings and remain available for business purposes. This is particularly important where teams operate across different cities or time zones.

India's labour framework regulates matters including wages, occupational conditions and employment relationships through the four Labour Codes now in force. Employers should therefore avoid treating remote employment as outside the ordinary employment-law framework merely because work is performed away from the office. The applicable requirements should be considered when working arrangements and internal policies are designed.

3. Transfer and Change of Work Location

Businesses often require flexibility to move employees between offices, functions or locations. That flexibility should be stated clearly rather than relying on an assumption that the employer can change the employee's workplace whenever required. The provision should also work alongside any remote or hybrid arrangement offered to the employee.

For example, an employee permitted to work from home should understand whether the arrangement is permanent or remains subject to organisational requirements. The agreement can preserve the employer's ability to require office attendance or alter the designated workplace where appropriate. Clear drafting reduces the risk of an informal working arrangement being understood differently by each party.

Confidentiality Becomes More Important Outside the Office

1. Confidential Information Should Be Defined Clearly

Remote employees may access company information from homes, shared environments or other locations outside the employer's physical control. The confidentiality provision should therefore identify the types of information that employees are required to protect. Depending on the business, this can include commercial information, client data, internal documents, technology, financial information and other proprietary material.

The obligation should also address confidentiality after employment ends where appropriate. Sensitive information does not stop being commercially valuable merely because the employee resigns or the employment is terminated. Employment documentation should therefore make clear which confidentiality obligations continue beyond the employment relationship.

2. Remote Work Creates Practical Security Issues

Confidentiality is not only about deliberately sharing information with a competitor. Employees working remotely may access business systems from personal devices, save documents locally or discuss confidential matters in environments where other people are present. Employment documentation and internal policies should therefore work together to establish appropriate information-handling expectations.

Indian cybersecurity requirements also impose obligations on organisations concerning security practices and certain cyber incidents, making internal control over company systems and information commercially important. Remote working policies can support these obligations by specifying approved devices, access procedures and security requirements.

Intellectual Property Should Not Be Left Implicit

1. Work Created by Employees Should Be Addressed

Employees may create software, documents, designs, processes, research or other intellectual property while working remotely. The location from which the employee creates the work does not eliminate the need to establish who owns the resulting intellectual property. Employment agreements should therefore deal expressly with work-related creations and the intended ownership structure.

This becomes particularly important for technology, research and knowledge-based businesses. The employment documentation should identify the scope of work-related intellectual property and include appropriate ownership or assignment language where required. Relying on a generic confidentiality clause is not the same as dealing with intellectual property ownership.

2. Personal and Company Work Should Be Distinguishable

Remote work can blur the physical boundary between company resources and an employee's own equipment or projects. Employees may use the same laptop, home workspace, or development environment for different activities if company policies do not prevent it. That can make ownership questions more difficult when a new work product is created.

Businesses should therefore define work-related creations by reference to the employment relationship rather than merely where the work was created. The agreement can also work alongside technology and acceptable-use policies governing company systems and devices. Clear documentation is especially valuable where intellectual property represents a significant part of the company's value.

Remote Work Should Not Exist Only as an Informal Arrangement

1. The Agreement and Company Policy Should Work Together

Not every remote-working rule needs to appear in the employment agreement itself. Detailed operational matters can often be addressed through a remote-work or hybrid-work policy, while the agreement establishes the underlying contractual position. The two documents should nevertheless be consistent.

For example, the employment agreement may establish the designated work location and the employer's ability to permit remote work. A policy can then deal with matters such as attendance schedules, equipment, information security and approval procedures. This structure allows operational rules to evolve without leaving the contractual position unclear.

2. Informal Manager Approvals Can Create Uncertainty

A recurring problem arises when remote work develops through individual arrangements between employees and managers without being properly documented. One employee may understand a two-day office schedule as permanent while the employer considers it temporary. Similar disagreements can arise over relocation or fully remote work.

Important deviations from the normal employment arrangement should therefore be recorded appropriately. The documentation does not necessarily need to be lengthy, but it should establish what has actually been agreed. This becomes particularly important when working arrangements continue for extended periods.

Termination Clauses Also Need to Work Remotely

1. Notice and Termination Procedures Should Be Clear

An employment agreement should identify the circumstances and notice requirements applicable to termination. A remote employee may never physically attend the office during the termination process, but the same need for clear employment documentation remains. Employers should ensure that termination provisions reflect the applicable employment framework rather than rely on concepts such as unrestricted employment at will.

India's current labour regime has been substantially reorganised through the four Labour Codes effective from 21 November 2025. Employers should therefore review employment templates against the framework currently in force instead of continuing to rely on older templates without checking whether their assumptions remain accurate.

2. Return of Company Property Should Cover Remote Employees

A conventional employment agreement may assume that laptops, documents and access cards can simply be returned at the office on the employee's final day. That may not work where an employee is located in another city. The agreement or applicable policy should therefore establish obligations concerning return of company property and information.

Digital access also needs attention. Company data may remain on devices or accounts after physical equipment has been returned. Exit processes should therefore deal with both physical property and continued possession or access to business information.

Common Mistakes in Remote Employment Agreements

1. Calling a Role Remote Without Defining What That Means

Terms such as “remote” and “hybrid” can describe very different arrangements. One business may expect attendance twice each week, while another may require employees to visit the office only for specific meetings. The employment documentation should therefore explain the structure rather than rely solely on a label.

The same applies to fully remote roles. A business may still need the employee to remain within a particular city, state or country even if office attendance is unnecessary. Geographic flexibility and workplace flexibility should not automatically be treated as the same thing.

2. Ignoring Confidentiality and IP Because the Clauses Already Exist

A template may already contain confidentiality and intellectual property clauses, but that does not mean they are appropriate for a remote-working environment. The wording should be reviewed against how employees access information and create work in practice. Generic provisions may fail to address important operational risks.

The objective is not to make employment agreements unnecessarily long. It is to ensure that the provisions dealing with valuable information and intellectual property correspond with the company's actual working model. Remote work makes that alignment more important.

3. Using the Same Employment Template Indefinitely

Employment arrangements change as businesses grow. A company that was completely office-based three years ago may now employ people across several locations under different working models. Continuing to issue the original agreement without reviewing its assumptions can gradually create inconsistencies between the contract and reality.

India's labour-law framework has also changed materially with the implementation of the four Labour Codes from November 2025. Employment templates should therefore be periodically reviewed for both operational and legal developments.

Frequently Asked Questions

Conclusion

Remote and hybrid work do not require employment agreements to become substantially more complicated. They do require the agreement to stop assuming that every employee works permanently from one office. Work location, responsibilities, confidentiality, intellectual property and termination should reflect how the employment relationship operates in practice.

Businesses should also review older employment templates against India's current labour-law framework. The four Labour Codes have been effective since 21 November 2025, making older assumptions about the regulatory structure particularly worth revisiting.

About the Author

Shauree Gaikwad is the founder of Wayver and advises founders and businesses on corporate, commercial, employment and intellectual property matters. Her practice includes employment agreements, workplace policies, confidentiality and intellectual property provisions, and commercial arrangements for growing businesses. She can be reached at shauree@wayverlaw.com.

This article is intended for general informational purposes and does not constitute legal advice. Employment requirements can depend on the employee's role, location, applicable legislation, and the particular working arrangement adopted by the employer. Specific advice should be obtained after reviewing the relevant employment documentation and circumstances.