Internship Agreement (India)
INTERNSHIP AGREEMENT
Governed by the Indian Contract Act 1872 | POSH Act 2013 applies to all interns
This Internship Agreement is entered into on [Agreement Date] between:
(1) [Org Name], having its address at [Org Address] (hereinafter referred to as "the Organisation"); and
(2) [Intern Name], residing at [Intern Address], currently enrolled at [Intern Institution] (hereinafter referred to as "the Intern").
1. INTERNSHIP PERIOD AND ROLE
1.1 The Organisation agrees to host the Intern in the [Department] department under the supervision of [Supervisor Name] for the period from [Internship Start Date] to [Internship End Date].
1.2 Working Hours: [Working Hours].
1.3 Learning Objectives: The primary purpose of this internship is educational and skill development. The agreed learning objectives are:
[Learning Objectives]
2. STIPEND
2.1 The Organisation shall pay the Intern a stipend of [Stipend Amount]. This stipend is a subsistence payment to support the Intern's participation in the learning programme and does not constitute wages under the Minimum Wages Act 1948 or salary under the Income Tax Act 1961, given the educational nature of the engagement.
2.2 The Intern is responsible for their own income tax compliance in respect of the stipend received.
2.3 The Intern is not entitled to EPF, ESI, gratuity, or other employment benefits under this Agreement.
3. INTELLECTUAL PROPERTY AND CONFIDENTIALITY
3.1 All work product, software, code, designs, research, content, and deliverables created by the Intern during the internship, whether alone or with others, using the Organisation's resources or information, are assigned to and shall be the exclusive property of the Organisation with effect from creation.
3.2 The Intern shall maintain strict confidentiality of all proprietary information, trade secrets, client data, financial information, and business plans of the Organisation during and after the internship.
3.3 The Intern shall not publish, share, or disclose any Organisation information on social media, academic papers, or otherwise without prior written consent.
4. POSH COMPLIANCE
4.1 The Intern is covered under the Organisation's POSH Policy pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013, which expressly includes interns within the definition of 'aggrieved woman'.
4.2 The Intern acknowledges having received and read the Organisation's POSH Policy and having been briefed on the Internal Complaints Committee (ICC). Any complaints of sexual harassment may be made to the ICC.
5. COMPLETION AND TERMINATION
5.1 This Agreement shall terminate automatically on [Internship End Date].
5.2 Either party may terminate this Agreement by giving one week's written notice.
5.3 Completion Certificate: [Completion Certificate] upon completion of the internship period.
5.4 This Agreement does not create any expectation of employment with the Organisation after the internship.
6. GOVERNING LAW
6.1 This Agreement is governed by Indian law. Disputes shall be subject to the jurisdiction of courts at the Organisation's principal place of business.
Organisation (Authorised Signatory)
________________
Signature
Intern
________________
Signature
What Is a Internship Agreement (India)?
An Internship Agreement in India defines the working relationship between employer and employee, including remuneration, place of work, probation and notice periods.
The internship agreement defines: the duration and timing of the internship; the role, department, and learning objectives; the stipend (if any) payable to the intern; working hours and attendance requirements; confidentiality obligations to protect the organisation's proprietary information; and IP assignment to confirm that work created during the internship belongs to the organisation.
The legal classification of an intern — whether as an employee or an independent learner — has significant consequences for statutory obligations. If an intern is treated as an employee (performing productive work, subject to supervision and control, integrated into the workforce), they may attract statutory obligations under the Minimum Wages Act 1948, EPF Act 1952, ESI Act 1948, and state Shops and Establishments Acts. A genuine educational internship, where learning rather than productive work is the primary objective and where a stipend rather than wages is paid, is generally outside these statutory obligations — but this distinction must be clearly documented in the agreement.
All interns are covered by the POSH Act 2013, which expressly includes interns and research scholars within its definition of 'aggrieved woman'. Organisations must confirm their POSH policy extends to interns and that interns are briefed on the POSH policy on commencement.
The legal framework governing the Internship Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Internship Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Industrial Disputes Act, 1947 sets the foundational requirements.
When Do You Need a Internship Agreement (India)?
You need an Internship Agreement before engaging any intern — whether a student on a mandatory academic internship, a college student seeking voluntary work experience, a recent graduate on a pre-placement internship, or a professional seeking a career change through an internship.
You need this agreement to clearly document that the engagement is an internship (a learning arrangement) rather than employment, to manage the risk of the intern later claiming employee status with associated statutory rights and benefits.
You need this agreement to protect your organisation's confidential information and intellectual property. Interns who are not bound by a written confidentiality agreement may inadvertently or deliberately disclose sensitive business information to academic supervisors, peers, or future employers. An IP assignment clause confirms that code, designs, research, and other work created during the internship belongs to your organisation.
You need this agreement for PM Internship Scheme compliance if your organisation participates in the scheme, which requires a formal internship agreement documenting the stipend contribution (₹500 per month from the company, ₹4,500 from the government), training plan, and completion certification.
You need a fresh agreement for each intern, and for each new internship period if an intern's engagement is extended. Oral arrangements carry the risk of disputes about duration, stipend, and expectations.
Parties in India should prepare a Internship Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Internship Agreement (India)
A thorough Internship Agreement for India should contain the following key elements.
Parties: Full legal name of the organisation (host company) and the intern's full name, address, and educational institution (if applicable).
Duration: Clear start and end dates of the internship. State whether the internship is full-time or part-time.
Role and Department: The department, project, or team the intern will be attached to, and the intern's supervisor.
Learning Objectives: Specific skills, knowledge areas, or project deliverables that the intern is expected to develop or contribute to during the internship.
Stipend: Monthly or weekly stipend in INR (if any). Clarify that the stipend is not wages under the Minimum Wages Act 1948 and does not constitute employment income for EPF/ESI purposes (subject to the actual nature of the engagement).
Working Hours: Hours per day and days per week. Should not exceed the working hours standard for the establishment.
Confidentiality: Obligation to maintain strict confidentiality of all proprietary information, trade secrets, client data, and business plans during and after the internship.
IP Assignment: All work, inventions, code, designs, and research created during the internship are assigned to the organisation.
POSH Compliance: Acknowledgment that the intern has received and read the POSH policy and is subject to it.
Certificate: Whether a completion certificate will be issued on satisfactory completion.
Termination: Grounds for early termination and notice required.
Governing Law: Indian law and applicable jurisdiction.
Additional compliance elements for a Internship Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Internship Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/employment/contracts/internship-agreement-india
"Internship Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/employment/contracts/internship-agreement-india.
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title = {Internship Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/employment/contracts/internship-agreement-india}},
note = {Free legal document template. Based on Industrial Disputes Act, 1947}
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Frequently Asked Questions
The legal status of interns in India — and whether they are entitled to minimum wage, EPF, ESI, and other statutory benefits — depends on the nature of the internship and the applicable legislation. There is no single dedicated statute governing internships in India (unlike apprentices, who are governed by the Apprentices Act 1961), so the position must be assessed under general labour law principles. On minimum wage, the Minimum Wages Act 1948 applies to 'employees' employed in scheduled employments. If an intern is performing work substantially similar to that performed by employees (rather than receiving training for their own educational benefit), they may be characterised as employees for minimum wage purposes. However, genuine educational internships — particularly those linked to academic programmes and where the primary purpose is learning rather than productive work — are generally not treated as employment for minimum wage purposes. The National Apprenticeship Promotion Scheme (NAPS) provides a different framework for formal apprenticeship-cum-training. On EPF and ESI, the EPF Act 1952 applies to 'employees' of covered establishments. If an intern is classified as an employee (due to supervision, integration into work processes, and payment of wages rather than a stipend), they may need to be enrolled for EPF and ESI if they meet the wage thresholds. However, short-term interns engaged for educational purposes, paid only a stipend (not wages), and not performing independent productive work are generally outside the scope of EPF and ESI.
The ownership of intellectual property created by interns during an internship in India is not automatically vested in the employer (or the organisation hosting the internship) in the same way as it is for employees. Under the Copyright Act 1957, Section 17 provides that when a work is made by an author in the course of employment under a contract of service or apprenticeship, the employer is the first owner of the copyright in the absence of an agreement to the contrary. However, this provision applies to 'employees' under a contract of service, not to independent contractors or interns. For interns, who are typically engaged under a contract that is closer to a contract for services (or a training arrangement) than a contract of service, the Copyright Act's automatic employer ownership provision does not apply. This means that without an express IP assignment clause in the internship agreement, the intellectual property created by an intern (code, designs, written works, research) may belong to the intern rather than the organisation. Similarly, under the Patents Act 1970, inventions made by an employee in the course of employment belong to the employer only if the employee was specifically hired to make inventions or if the invention relates directly to the employer's business and was made using the employer's resources. For interns, this connection is less clear without an explicit assignment.
In India, internships and apprenticeships are both forms of work-based learning, but they are governed by different legal frameworks and have distinct characteristics. An internship is a relatively informal arrangement, typically between a student or recent graduate and an organisation, for a short period (usually 1–6 months). It is governed primarily by the Indian Contract Act 1872 and general labour law principles. There is no dedicated statute for general internships in India (though the PM Internship Scheme launched in 2024 provides a structured framework for participating companies). Interns may or may not receive a stipend. Their primary purpose is to gain practical work experience and exposure to industry, often as part of an academic programme. Interns are generally not treated as employees for statutory purposes, though POSH Act protections apply. An apprenticeship is a formally structured programme governed by the Apprentices Act 1961, which is administered by the Ministry of Skill Development and Entrepreneurship. The Act covers trade apprentices (engaged in designated trades in industries), graduate, technician, and technician (vocational) apprentices. Employers with 30 or more workers in specified industries are required under the Act to engage apprentices within prescribed ratios. Apprentices receive a stipend that must meet the prescribed minimum rates (e.g., ₹7,700 per month for freshers under the 2019 guidelines).
A Internship Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Industrial Disputes Act, 1947 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Internship Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Industrial Disputes Act, 1947, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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