Internship Agreement
A short internship agreement that records the engagement clearly and assigns IP, which is the gap that surfaces later in company diligence.
An internship agreement records the terms on which a student or graduate works with a company for a limited period, including stipend, supervision and confidentiality. It also assigns the intern's work to the company, closing a common ownership gap.
What to watch when you use this
- Interns are one of the three most common IP ownership gaps found in startup diligence, alongside agencies and pre-incorporation founder work.
- This template assigns IP expressly rather than relying on a default that may not apply.
- It records the engagement as a fixed-term internship with a stipend, and avoids language that would characterise it otherwise.
- Where an internship is in substance full-time employment, structure it as employment instead.
Stamping and registration. Stamp duty is a State subject, and an unstamped or insufficiently stamped instrument is generally inadmissible in evidence under Section 35 of the Indian Stamp Act, 1899 until the duty and penalty are paid. Registration requirements are separate and depend on the instrument and the State. Confirm both for your State before executing this document.
INTERNSHIP AGREEMENT
This Agreement is made on [DATE] between [COMPANY NAME], [ADDRESS], CIN [CIN] ("Company") and [INTERN NAME], [ADDRESS] ("Intern").
1. ENGAGEMENT
The Company engages the Intern for an internship in the [FUNCTION] team, to gain practical exposure and to work on the assignments described in the Schedule.
2. TERM
The internship runs from [DATE] to [DATE]. Either party may end it earlier on [NUMBER] days' written notice.
3. STIPEND
The Company will pay a stipend of [AMOUNT] per month, subject to deduction of tax at source where applicable. The stipend is not remuneration for employment and does not create an expectation of employment.
4. HOURS AND LOCATION
The Intern is expected to be available for [NUMBER] hours per week, at [LOCATION / remotely], on a schedule agreed with the Intern's mentor.
5. SUPERVISION
The Intern will report to [NAME], [DESIGNATION], who is responsible for assigning work and reviewing progress.
6. INTELLECTUAL PROPERTY
6.1 The Intern assigns to the Company all copyright and other intellectual property rights in any work created by the Intern in the course of the internship, for the full term of such rights, throughout the world.
6.2 This assignment does not extend to work created by the Intern outside the internship, without use of Company resources, and unrelated to the Company's business. Any such existing work is listed in the Schedule.
6.3 Nothing in this clause assigns any right that is not assignable under applicable law.
7. CONFIDENTIALITY
The Intern will keep the Company's confidential information confidential during and after the internship, and will not disclose or use it other than for the internship, except as required by law.
8. RETURN OF PROPERTY
On completion of the internship the Intern will return all Company property, including equipment, access devices and documents, and will delete Company data from personal devices.
9. POLICIES
The Intern will comply with Company policies, including the policy on prevention of sexual harassment framed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
10. NO OFFER OF EMPLOYMENT
This Agreement does not constitute an offer of employment. Any future employment would be the subject of a separate written agreement.
11. CERTIFICATE
On satisfactory completion, the Company will issue an internship completion certificate.
12. GOVERNING LAW
This Agreement is governed by the laws of India, and the courts at [CITY] shall have jurisdiction.
Signed:
_______________________ _______________________
For [COMPANY] [INTERN]
[Where the Intern is below eighteen years of age, this Agreement is countersigned by a parent or guardian.]
_______________________
[PARENT / GUARDIAN]
SCHEDULE: ASSIGNMENTS AND EXCLUDED PRE-EXISTING WORK
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This free template is provided by ClauseAudit as general information, not legal advice, and using it does not create an advocate-client relationship. Replace every [BRACKETED] placeholder. Stamp duty and registration requirements vary by State and are your responsibility. Have the final document reviewed by a qualified advocate before use.When to use this template
- When taking on a student or recent graduate for a fixed-period internship with a stipend.
- When the intern will write code, content or designs that the company will use.
- When the intern will have access to confidential information or company systems.
- When a college or university asks for a written agreement for an internship linked to academic credit.
How to fill it in
- Insert the company's name, address and CIN, and the intern's name and address. Confirm the intern's age; if the intern is under eighteen, take advice before relying on the IP assignment.
- Describe the team and assignments in the Schedule, and name the mentor in clause 5.
- Fill in the start and end dates, early exit notice, stipend and weekly hours. Keep hours consistent with a learning engagement.
- List any pre-existing work of the intern in the Schedule, or write "None".
- Share the company's policies, including the POSH policy, before the start date.
- Pay stamp duty on the agreement as your State requires and sign. Electronic signatures are generally valid.
- At the end, collect company property, confirm deletion of company data from personal devices and issue the completion certificate.
Key clauses explained
- Term and early exit (clause 2)
- Fixes start and end dates and lets either side end the internship early on notice. A defined term supports the internship's character as a time-bound learning engagement.
- Stipend (clause 3)
- Records the monthly stipend and tax deduction, and states it is not remuneration for employment. The label helps, but the actual working pattern still decides how the engagement is treated.
- Intellectual property (clause 6)
- Assigns copyright in work created during the internship expressly and in writing, with a carve-out for unrelated personal work. It does not rely on the employer rule in Section 17 of the Copyright Act, 1957.
- Confidentiality (clause 7)
- Protects company information during and after the internship, which is the lawful way to protect information without restraining the intern's future work.
- Return of property (clause 8)
- Requires return of equipment, access devices and documents, and deletion of company data from personal devices, closing a common security gap.
- No offer of employment (clause 10)
- Makes clear the internship does not promise a job, and any future employment needs a separate written agreement.
Frequently asked questions
Does the company automatically own what an intern creates?
Not necessarily. Section 17 of the Copyright Act, 1957 gives an employer first ownership only of work made in the course of employment under a contract of service. Whether an intern is under a contract of service is uncertain, so relying on that rule is risky. Clause 6 assigns the work expressly in writing, which is what Section 19 requires for an assignment.
Is an intern an employee under the Labour Codes?
It depends on the substance. A short, supervised, learning-focused internship is generally treated differently from employment, but an intern doing a regular job for regular hours may be treated as an employee for wages and social security. The four Labour Codes, in force since 21 November 2025, define these terms, and State rules vary. Apprentices are a separate category under the Apprentices Act, 1961.
Can a minor sign an internship agreement?
A person under eighteen is not competent to contract under Section 11 of the Indian Contract Act, 1872, and courts have long held a minor's agreement void. A parent's countersignature does not make the minor's own promises, including an IP assignment, binding on the minor. For interns under eighteen, take advice on securing ownership, and check the restrictions on employing adolescents.
Is a stipend taxable?
A stipend is generally taxable in the intern's hands, and the company may need to deduct tax at source depending on how the payment is characterised and its amount. Scholarships granted to meet the cost of education can be treated differently. The Income-tax Act, 2025 has applied since 1 April 2026 with renumbered provisions, so confirm the treatment with a chartered accountant.
Do interns have to be paid minimum wages?
If the arrangement is genuinely an internship for learning, it is usually treated as outside wage law. If in substance the intern works as an employee, the minimum wage provisions of the Code on Wages, 2019, with rates fixed by the appropriate government, may apply regardless of what the document is called. Keep the engagement time-bound and supervised, with a real learning component.
Can an intern be stopped from joining a competitor afterwards?
A restriction on working elsewhere after the internship ends would generally be void under Section 27 of the Indian Contract Act, 1872, which voids agreements in restraint of trade. This template does not contain one. The confidentiality obligations in clause 7 continue after the internship and are the proper way to protect the company's information.
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Review a employment contractRead before you sign
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This free template is general information about Indian law as at 2026-10-10, not legal advice, and using it does not create an advocate–client relationship. Replace every bracketed placeholder and have the final document reviewed by a qualified advocate before use.