How to negotiate employment contract

17.10.25 08:18 AM - By Shrisha

Indian Doctors: How to Negotiate Hospital Contracts in 2025
Protect your time, autonomy, and financial future
Your stethoscope builds trust with patients.

Your employment contract should protect that trust — and your financial freedom.

The catch? Hospitals draft contracts to protect themselves first. As a doctor, you need to negotiate from strength. Here’s your 2025-ready checklist.

What’s Changing in 2025
  • Non-compete clauses → Courts rarely enforce long non-competes.

Negotiate them down to ≤6 months and ≤3 km, or swap for a simple non-solicit.

  • Telemedicine duties → Many contracts now add online consults, consent protocols, and revenue-sharing terms. 

Clarify what counts toward incentives.

  • NMC 2023 regulations → Expect tighter clauses on generic prescriptions, CME sponsorship, and social-media use.

Ensure penalties are proportionate.

  • Revenue-share + minimum guarantee → Popular hybrid model. Push for audit rights and clear definitions of “eligible revenue.”
  • Professional indemnity → Hospitals are tightening AOA/AOP ratios and retroactive clauses.
Ensure you’re covered under their group policy.

Incentives: Demand Transparency
  • Avoid vague profit-linked bonuses.
  • Ask for payout history and the exact formula in writing.
  • Negotiate a joining bonus or minimum guaranteed incentive.
  • Push for pro-rata annual payouts if incentives are deferred >1 year.

Clauses That Shape Your Future
  • Termination terms → Aim for 90-day mutual notice; protect earned incentives and leaveencashment.
  • Clinical freedom → Ensure protocols allow independent judgment.
  • Academic rights → Clarify publications, conferences, and teaching permissions.
  • External consulting → Negotiate carve-outs for visiting roles and teleconsults.
  • Data liability → Systemic IT breaches shouldn’t sit on you.

Salary, Tax & Compliance
  • Confirm gross vs. net on incentives.
  • Lock TDS timelines and Form 16 commitments.
  • Clarify CME, travel, and conference allowances — tax-free vs taxable.
  • Watch for clawbacks on joining bonuses — negotiate a cap or declining recovery.

Negotiation Playbook for Doctors
  • Benchmark smartly → Metro vs. Tier-2/3 pay varies widely; compare peers.
  • Leverage multiple offers → Better options = stronger negotiation power.
  • Get everything in writing → Incentive formulas, OPD/IPD share, leave entitlements, duty hours.
  • Seek professional review → Senior roles deserve legal vetting, especially for indemnity and restrictive covenants.

Pre-Signing Checklist
Transparent incentive formula with payout history
  • Fair notice period + reasonable non-compete
  • Protected clinical freedom + teaching/research rights
  • Hospital-funded PI cover with retroactive clauses clarified
  • Clean tax treatment + capped clawbacks

Closing Thought
Contracts decide whether your career feels like a calling — or a cage.
Negotiate with the same care and diligence you give your patients.
Willing to explore what suits you best? Schedule a one-on-one consultation today → .

Shrisha