Labour Laws in India

Copyright by Legal Ladder

Basic Labour Laws in India

Rights of employees

Employees are responsible for all of the basic groundwork in any sector. Employers benefit from their businesses only when their staff is productive. All employees have various rights during the course of their job. These fundamental rights are proportional to the employer's responsibility to provide a comfortable and employee-friendly environment. These rights protect employees against discrimination based on their age, gender, race, or religion, protect their interests, and give them the right to privacy and a fair wage.

Employees' interests are protected by many provisions in Indian labour laws, some of which are not applicable to all employees working in different sectors. For instance, no particular rules are governing the rights and obligations of private-sector employees. However, there are several rights and perks that every employee in India is entitled to under Indian law that you should be aware of.

1. Written Employment Agreement

Employees must ensure that they sign such contracts before beginning to work for someone. Having a legal employment contract has become a must in today's workplace. The employee-employer connection is established through the contract.

The following terms and conditions are included in it:

1. Wages

2. Job Designation

3. Place of working

4. Work hours

5. Non-disclosure of confidential information and trade secrets

6. Dispute resolution methods

The terms and conditions of the contract must be fulfilled by both the employer and the employee. The contract of employment helps both employer and employee rights to be protected.

2. Minimum Wages

Every employee working in the organized sector has a right to a minimum wage. A minimum wage not only guarantees basic survival but also provides for education, medical requirements, and some level of comfort.

This is guaranteed by the Minimum Wage Act. The Act establishes a minimum wage for certain specified jobs. This act is applicable to the whole of India. 

Both skilled and unskilled laborers are covered by the Act's minimum wage provisions. This minimum wage is not consistent across all industries in the country. The central government and state governments both have the authority to set minimum wages based on the following criteria:

1. Type of work

2. Working hours

3. Region

4. Cost of living

5. The capacity of the employer to pay

This rate is notified for every applicable industry by the appropriate Government in the Gazette.

3. Protection from Sexual harassment at the workplace

Workplace sexual harassment is a serious issue. The Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, was enacted following a landmark Supreme Court decision. It is a criminal offence punishable under the Indian Penal Code (IPC) for up to three years, with or without a fine.

One or more of the following are examples of sexual harassment:

1. Physical contact and advances

2. A demand or request for sexual favours

3. Making sexually coloured remarks

4. Showing pornography

5. Any other unwanted or resisted physical, verbal, or non-verbal conduct of sexual nature.

The difficulty with female employees is that they are often afraid to disclose workplace sexual harassment. They are concerned about their job security, especially if the harasser is a senior employee or boss. Women employees, on the other hand, must remember that their safety and dignity come first.

4. Working Hours and Overtime

Many laws in India define a specific work hour and the amount of overtime pay. The Factories Act contains the principal rules. Working hours vary for individuals (over the age of 18), women, and young children (aging from 14 to 18).

An adult cannot work more than 48 hours per week or more than 9 hours per day. If an employee works overtime, he is entitled to get double his regular pay for the additional hours.

Women's employment is limited from 7:00 am to 6:00 pm. This may be relaxed with proper permission from 10:00 am to 5:00 pm. Child labour is limited to 4.5 hours per day. The work of minor female labourers from 7:00 pm to 8:00 am is forbidden.

Moreover, a weekly vacation for employees is important. The staff also have a rest period of at least half an hour during the working hours. Work shall be planned in such a way that no day exceeds twelve hours.

5. Leave is the right of all employees

During the duration of an employee's work, he or she is generally granted the following leaves:

(1) Casual Leave

This is given to an employee to deal with urgent or unexpected circumstances, such as a family emergency; for example, employees can request for casual leave to attend a parent-teacher meeting called for by their child's school.

(2) Sick Leave

Sick leave is granted when an employee gets sick.

(3) Privilege or Earned Leave

Long leaves that are planned in advance are known as a privilege or earned leaves.

(4) Other Leaves

In addition to the above-mentioned leaves, the employer may grant other paid, unpaid, or half-paid leaves at its discretion. Two examples are; study leave and bereavement leave.

(5) Medical Certificate for one-day sick leave 

Employees are usually required to present a medical certificate to sanction sick leave that lasts more than two or three days, depending on the company policy. An employer should not, however, request a medical certificate for a one-day sick leave.

The Supreme Court stated in one of its decisions that if an employee is only sick for a day, he or she will not necessarily seek medical assistance.

Pregnancy and parental leave: In India, an employee who is pregnant has the right to take paid pregnancy leave.

Maternity leave was recently increased from 12 to 26 weeks. A maximum of 8 weeks of pre-natal leave is permitted out of a total of 26 weeks.

Adoptive, surrogate, and commissioning moms are entitled to maternity leave as well. However, the amount of days varies from person to person. The Maternity Benefit Act regulates the payment of maternity leave.

Child care leave and paid parental leave are provided by the Central Government. The private sector is not obligated by the law to provide parental leave. It is entirely up to the employer's discretion.

6. Public Holidays’ Pay

The three national holidays observed in India are Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2). It is required to give all employees leave on all three days, regardless of the establishment.

They must obtain prior approval from the proper authority if they want their establishment to operate on these days. Employees working on those days must also be given compensatory leave or double pay. In addition, the compensatory leave must be taken within 90 days of the national holiday.

Each state has its own set of regional holiday celebrations. Employees also have the entitlement to paid days leave during those holidays.

7. Vacation and concept of “Vacation Pay”

In India, we don't have the concept of vacation pay. It's referred to as "earned leave" or "annual leave." In India, every employee who works for at least 240 days in a year is entitled to 12 days of paid leave. Adults and minors have different durations. For every 20 days of service, an adult worker is entitled to one day of paid time off. For every 15 days of employment, a minor worker is entitled to one day of paid leave. Adults are entitled to 15 working days of yearly leave, whereas young workers are entitled to 20 working days yearly leave.

Employees receive normal salaries for their yearly leave days as well. The employee can carry over his or her yearly leave to the next year. However, no leaves more than 30 days can be carried over.

8. Equal pay for male and female employees

Article 39(d) of our Constitution mandates equal pay for equal work for men and women. Equal pay includes not just the basic salary but also all benefits and allowances. Employers are obligated to pay equally for equivalent work under the Equal Remuneration Act of 1976. However, in order to demonstrate equal pay, the company cannot cut the pay of the employees.

9. What if an employer doesn’t pay employees for their work?

The Payment of Wages Act, 1936, obligates companies to pay wages within a certain time frame. If the employee does not get the payment within that time period, he/she may initiate a civil suit or approach the Labour Commissioner. A civil action against the employer is also available for employees earning more than Rs. 18,000 per month.

Furthermore, payment of wages below the minimum wage rate is forced labour. Our country's constitution forbids forced labour. If an employee is not paid the minimum wage, he may file a case.

10. Changes that occur after the Sale of Business

When employers change because of a sale, acquisition, or merger, the terms of employment, such as salary, paid vacations, and working hours, should not be altered without providing employees advance notice.

11. Employee’s rights on Probation

Employees normally have a six-month probation period. It is up to the employer to decide whether to continue it for another three months. However, the maximum probation period is two years.

An employer has the right to terminate an employee's job only if the employee is unsuitable for the position or if his work is unsatisfactory. An employee, on the other hand, has the right to receive proper notice before being fired. If the cause for termination is not due to substandard work, an employee has the right to request a proper investigation of the matter.

12. Safety and Health in the workplace

It is the responsibility of the government to regulate all workplaces in terms of healthy and safe working conditions. The Factories Act provides a number of guidelines for the workers' health, safety, and well-being. It includes the following provisions:

1. Cleanliness

2. Disposal of wastes and effluents

3. Ventilation and temperature

4. Dust and fume

5. Overcrowding

6. Lighting

7. Clean drinking water

8. Latrines and urinals, and

9. Spittoons

An employer is responsible for providing instruction, training, and supervision. This is essential to safeguard his employees' health and safety at work. Employers must provide safety equipment such as goggles, hand gloves, and other items to the employees in hazardous workplaces.

The tools and machinery in the company should be safe and should be repaired on a regular basis. If an employee is injured at work as a result of the employer's negligence, the employer must compensate the employee according to the Employees Compensation Act's requirements.

13. Gratuity

Employees receive gratuity as one of their retirement benefits. It is a one-time payment made by the employer to the employee when the latter leaves the company. The number of years an employee has worked is used to determine the gratuity amount. The Payment of Gratuity Act of 1972 establishes guidelines for the payment of gratuity to employees. The Act requires that a minimum of 5 years of employment is required to receive gratuity. Employees make no contribution in the amount of gratuity. It's a method of thanking the employees for their service.

The employee receives a gratuity for one of the following reasons:

1. Superannuation (Pension)

2. Retirement

3. Resignation

4. Disablement due to accident or illness

5. Death of the employee (gratuity paid to employee’s nominees)

In the course of work, however, dismissal of an employee for unlawful or disorderly behaviour, acts of violence, or moral turpitude (subjecting a lady to cruelty, killing her for dowry, a conviction for a charge of attempted murder, etc) results in loss of the gratuity. Forfeiture should be imposed on the employee if he or she is proven guilty of such conduct.

14. Provident Fund (PF)

The Employees Provident Fund (EPF) is a retirement savings plan for salaried workers. This scheme is overseen and regulated by the Employees Provident Fund Organisation of India (EPFO). It can be used by employees for the following purposes:

1. Retirement

2. Medical Care

3. Housing

4. Family obligation (like marriage expenses)

5. Education of Children

6. Financing of Insurance Policies

The provident fund is funded equally by the employer and the employee. Every month, a monthly contribution of 12% of the basic salary and dearness allowance is made. The fund is credited with annual interest at a rate set by the government.

This is a voluntarily paid benefit, however, employees may only opt-out of it at the start of their employment. It is not possible to opt-out of it if the one-month contribution is provided by the employee. For emergency requirements and necessary expenses, the money can be taken after a two-month waiting period. The rules establish withdrawal limitations and the number of years of service necessary for each purpose. For example, after 7 years of service, an employee can withdraw 50% of his or her EPF contribution. This is also only feasible three times during your job.

15. Right to Strike

Employees have the right to strike without giving notice, but if the employee is a public utility employee, he will be bound by the prohibitions laid out in the Industrial Disputes Act 1947, Section 22(1), which lays out certain conditions on strikes by public utility employees, including giving the employer six weeks' notice before going on strike.

16. Right to get Insurance

In case of an injury due to accident or miscarriage incurred during the course of employment, each employee shall have the right to be insured under the Employee State Insurance Act, 1948.

The writer is pursuing a degree of BA.LL.B (Bachelors of legislative law)

From, Department Of Law, Maharshi Dayanand University (Rohtak) Haryana, INDIA.

Reach him at Instagram @shivaanshvermaa