New Delhi, April 16 -- Wars and global trade embargos have started reshaping employment contracts. Indian companies are hiring law firms to incorporate conditions that provide legal protection if such unprecedented events prompt layoffs or other measures to cut costs.

Not just that. "Some of the [other] potential changes will include renegotiating senior management remuneration, increased outsourcing and framing of voluntary retirement schemes, more fixed-term employment contracts and redundancies at the mid-management level," said Sowmya Kumar, partner at Cyril Amarchand Mangaldas who looks at employment practice for the law firm.

Companies will review clauses, especially for remote workers, as it is "possible that employee disputes on...