Does the Indian government regulates employment contracts?

Yes, in India, “workmen” are entitled statutory rights but “non-workmen” have no such protection. Indian labor law distinguishes between workmen and non-workmen type employees as follows :

• A workmen is a person (including apprentices) employed in any industry undertaking manual, unskilled, skilled, technical, operational, clerical or supervisory work earning less than US$ 25.89 (Rs 1600) per month
• A non-workmen is a person employed in a managerial, administrative or supervisory capacity drawing wages in excess of US$25.89 (Rs 1600) per month