Rights of Employees according to the Indian Labour Laws


Posted On : November 26, 2019
Rights of Employees according to the Indian Labour Laws
The rights of employees as defined and explained in the Indian Labour Laws have been discussed in this blog and therefore the blog is quite informative. Employment Agreement, maternity Benefit, Provident Fund, Gratuity so on and so forth have been explained in layman's terms.
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Table of Contents

Employment Agreement


Employment agreement detailing the employment terms and conditions including compensation, place of work, designation, work hours, and so on is mandatory. The employer’s rights and obligations including non-disclosure of confidential information and trade secrets, timely payment, provident fund, and so on are clearly stated in an employment agreement. If a dispute arises, the agreement incorporates an effective mechanism for resolution of disputes.

Without a written employment agreement, the employee does not have recourses if a dispute arises.


Maternity Benefit


The Maternity Benefit Act, 1961, has provisions for prenatal and postnatal benefits for a female employee. Owing to Amendments after 2017, the timescale of paid leaves for an expecting female employee has risen to 26 weeks, inclusive of eight weeks of postnatal paid leaves.

If the pregnancy leads to complications like caesarian, premature birth then in such cases female employees have the right to paid leave for a month. In instances of tubectomy, an additional paid leave of two weeks is granted.

Expecting female employees cannot be terminated because of pregnancy-related absences and employers cannot employ them within over a month of delivery or miscarriage; six weeks to be exact. employees are not to be employed by the employer within six weeks of delivery or miscarriage. If terminated, they can claim maternity benefits anyway.

In India, men cannot claim any paternity leave while getting paid. There is provision for childcare leave and paid paternal leave if one is a Central Government employee. In the case of the private sector however, the employer has discretionary powers.


Provident Fund


The national organization is the Employee Provident Fund Organisation (EPFO) managing this benefits scheme post-retirement for all salaried employees. Any organization with over 20 employees is legally bound to have their organization registered with EPFO.

It's the employee’s prerogative to opt-out of the scheme but they have to do it as they begin their career. The employee cannot withdraw the amount at will. The withdrawal amount and term of years in service are limited by the rules.

Once the organization is registered, it's obligatory for employers and employees alike to contribute 12 % of the basic salary into the fund. In case of the employer not contributing his share or deducting the entire 12 % from the salary of the employee, the employer is liable to be prosecuted by the PF Appellate Tribunal.

After a waiting period, of a maximum of two months, the amount can be withdrawn to fulfill emerging needs and essential expenses. The limits of withdrawal are specified by the rules for the tenure of service for each purpose. An employee can withdraw a maximum of 3 times, and if the amount is withdrawn prior to five years the amount is taxable.


Gratuity


A statutory right to an employee in service for over five years is granted on the basis of The Payment of Gratuity Act, 1972. It is amongst the retirement benefits provided to the employee and is a bulk payment made as a gesture of appreciation for the services that the employee has provided. There is an incremental increase in the gratuity amount based on the tenure of service.

However, the employee can be terminated for evidenced lawlessness or unlawful conduct gives up this right once dismissed.


Timely and Fair Salary


Article 39(d) of the Constitution mandates equal pay for equal work along with The Equal Remuneration Act and The Payment of Wages Act, mandating an employee’s timely and fair remuneration. If an employee does not get paid according to the employment agreement, the employee can lodge his/her grievances with the Labour Commissioner or file a lawsuit for non-payment of salary. An employee cannot be paid less than the legally stipulated minimum wages.


Appropriate Working Hours and Overtime


All employees have a right to work in a safe, secure and hygienic workplace with basic amenities. The Factories Act provides for and the Shop and Establishment Acts (statewide) protects the rights of the workers as well as the non-workers.

According to the newest laws, an adult worker’s work hours would be more than nine hours daily or weekly 48 hours and any overtime would double the minimum wages. The work hours for a female worker would be from 6 am to 7 pm.

The hours are stretchable up to 9.30 pm once explicitly permitted, along with overtime payment and a safe and secure transportation facility. Besides half an hour break time and 12 hours of work on a daily basis are obligatory. The work hours for juveniles are limited to 4.5 hours daily.


Right to Leaves


Paid public holidays including casual leave, sick leave, privilege leave, and other leaves are the rights of an employee. For every 240 workdays, an employee has rights to 12 days of leave annually. An adult worker may avail one earned leave every 20 days whereas for young workers its 15 days. While an employee is serving notice period leaves of employees are permissible only for emergencies, as long as the terms of employment do not bar prevent it.

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Call 7604047601 for consultation with registered expert Employment and Labour Lawyers on Vidhikarya.

Written By:
Avik  Chakravorty

Avik Chakravorty


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