Agreement

Employee Referral Agreement

An agreement under which an employee refers a candidate and becomes eligible for a referral bonus on defined conditions.

EMPLOYEE REFERRAL AGREEMENT

This Agreement is made on [Date] between [Employer Name], having its office at [Address] ("Employer"), and [Employee Name], the referring employee residing at [Address] ("Referrer").

  1. Referral. The Referrer has referred [Candidate Name] for the position of [Designation], and this Agreement governs the referral with effect from [Effective Date].
  2. Eligibility. The Referrer shall be eligible for a referral bonus only if the referred candidate is hired and joins the Employer.
  3. Referral Bonus. The Employer shall pay a referral bonus of Rs. [Amount], subject to applicable TDS, on fulfilment of the conditions herein.
  4. Retention Condition. The bonus shall be payable only after the referred candidate completes [Number] months of continuous service.
  5. Referrer in Service. The Referrer must be an active employee of the Employer on the date the bonus becomes payable.
  6. Exclusions. Referrals of candidates already in the Employer's pipeline, or by employees of the HR/hiring team, shall not be eligible.
  7. Confidentiality. The Referrer shall keep candidate and hiring information confidential.
  8. Employer Discretion. All hiring decisions remain at the sole discretion of the Employer, and referral does not guarantee employment.
  9. Governing Law & Jurisdiction. This Agreement is governed by Indian law and subject to the jurisdiction of the courts at [City].
  10. Dispute Resolution. Disputes shall be resolved amicably, failing which by arbitration seated at [City].

IN WITNESS WHEREOF, the parties have signed this Agreement on the date first written above.

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For [Employer Name]
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[Employee Name]
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Witness 1
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Witness 2

Before you use it — fill in / check

  • Party 1
  • Party 2
  • Effective date
  • Key term

How to use this template

  1. Read through and replace every [bracketed] or blank placeholder with your actual details.
  2. Delete any clause that doesn't apply and add anything specific to your situation.
  3. Click Print / Save as PDF to download, or Copy text to paste into your letterhead.
  4. Get it signed / stamped / notarised as required, and keep a copy for your records.

This is a general, editable template for convenience only — not legal advice. For anything material, have a professional review it. TaxClue isn't liable for how it's used.