Employment Agreement Template for AI Startup with specific Annexure governing AI Use terms and conditions (15 pages plus 1 Annexure)

Employer-Friendly | India | Standard Commercial – This is a specialized AI startup employment agreement that consolidates traditional employment terms with advanced technical and intellectual property protections tailored specifically for the artificial intelligence sector. The core agreement comprehensively governs standard workplace parameters—such as appointment, compensation, probation, and termination—while placing an extraordinarily heavy emphasis on data integrity and proprietary technology across forty-three distinct sections. It features rigorous, forward-looking provisions dedicated to “AI-Specific Intellectual Property,” the mandatory “Disclosure of Inventions,” and the explicit “Assignment of Intellectual Property,” ensuring that all foundational source code, models, algorithms, and training datasets created during employment belong solely to the company. Furthermore, the contract embeds specialized security and operational controls, including strict mandates on “Information Security,” “Access Credentials,” and “Company Systems and Monitoring,” which are reinforced post-employment by restrictive covenants and dedicated clauses for the “Continuing Protection of AI Know-How” to prevent critical algorithmic knowledge or proprietary machine learning techniques from leaking to competitors.

Table of Contents

1. Appointment             

2. Position and Reporting        2

3. Duties and Responsibilities               

4. Place of Employment          

5. Working Hours         

6. Probation    

7. Compensation         

8. Employee Benefits                 

9. Leave              

10. Company Policies               

11. Standards of Conduct     

12. Outside Activities                

13. Conflict of Interest              

14. Company Property              

15. Continuing Obligations  

16. Definitions                

17. Confidential Information                

18. Employee Confidentiality Obligations  

19. Exclusions from Confidential Information          

20. Permitted Use and Disclosure   

21. Return and Protection of Confidential Information      

22. Ownership of Work Product         

23. Assignment of Intellectual Property       

24. Future Assistance               

25. Moral Rights            

26. Prior Intellectual Property              

27. Disclosure of Inventions

28. Further Assurances           

29. Survival     

30. AI-Specific Intellectual Property                

31. Continuing Obligations  

32. Information Security         

33. Company Systems and Monitoring         

34. Access Credentials              

35. Company Property              

36. Disciplinary Matters          

37. Termination of Employment        

38. Employee Obligations upon Termination            

39. Return and Deletion of Information        

40. Continuing Protection of AI Know-How                 

41. Restrictive Covenants     

42. Notices      

43. Entire Agreement                 

44. Amendments         

45. Assignment             

46. Severability              

47. Waiver        

48. Governing Law      

49. Dispute Resolution            

50. Counterparts         

ANNEXURE A  – AI-SPECIFIC EMPLOYMENT OBLIGATIONS            

1. AI Assets     

2. AI-Specific Intellectual Property 

3. Ownership of AI-Assisted Work Product

4. AI Models    

5. Machine Learning Algorithms        

6. Neural Network Architectures      

7. Prompt Libraries and Prompt Engineering             

8. Prompt Confidentiality       

9. Training Data             

10. Generated Datasets          

11. Synthetic Data      

12. Data Annotations                 

13. Feature Engineering           

14. Fine-Tuning Methods        

15. Model Weights      

16. AI Pipelines              

17. Evaluation Frameworks 

18. Improvements to AI Assets           

19. Future AI Assets  

20. Ownership of AI Assets  

21. AI Trade Secrets  

22. AI-Specific Confidential Information     

23. Restrictions on Use of AI Assets                

24. Restrictions on External Artificial Intelligence Platforms          

25. Reverse Engineering Restrictions             

26. Open-Source AI Governance        

27. AI Development Records                

28. Responsible AI     

29. Fairness Standards            

30. Bias Testing             

31. Safety Evaluations              

32. Model Governance             

33. Reporting of AI Security and Governance Incidents     

34. Compliance with Applicable AI Requirements                 

35. Continuing Obligations  

Excluding 0% tax
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