What is the minimum wage in India?

Minimum wage rate vary as per state and level of skill the employee possesses.

Are employees allowed paid leaves in India?

Yes, employees are allowed to apply for annual or sick leaves.

What is the notice period for terminating employement?

Notice period is based on the contract of employment, usually ranges from 1 to 3 months.

Is gratuity compulsory in India?

Yes, gratuity is compulsory to employees who have worked for at least 5 years in an organisation.

What are the maximum working hours of employees in a week in India?

The maximum is 48 hours per week with a daily limit of 9 hours under the Factories Act, 1948.

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What Things You Must Know About The Employment Laws In India?

Samridhi

Author

Updated: 28-01-2025 at 6:50 AM

What Things You Must Know About The Employment Laws In India?

The employer-employee relationship is a sensitive one. It consists of various rights and duties of both the employees and the employers. In India, since there are a lot of workers in the unorganised sector, which is away from governmental control, there was a need to enact laws to protect the interests of employees of organisations.

To address and sort these concerns, the government of India introduced various laws governing different issues such as working conditions, maternity leave, insurance, gratuity, wage hours, laying off, etc.

These different laws individually address different establishments and concerns. In 2019, the Government of India introduced a consolidated Labour Code that brings together all different Acts into one place with amendments.

The Employment Act Of India

The Employment Act of India is one of the major legislations among the different labour laws. The Act guarantees certain basic rights to its stakeholders under different Sections. These rights can be counted as

The right to be aware of all laws and regulations relevant to their employment;
The right to a fair and equitable compensation;
The right to a safe and healthy working environment; and
The right to receive timely notice upon termination.

The Act also lays down specific guidelines regarding the pay, leaves, employment conditions and other provisions for the employees. It is the guiding Act for all other supporting Acts. It also provides that till the time all the conditions of the employment agreement are met, no employee shall face harsh punishment or penalties.

Employee Benefits Under The Act

In India, the labour laws provide for various employee benefits in addition to the basic working conditions. These are incentives in the form of:

Payments of gratuities
Lending Money
Government-issued insurance
Paid time off
Maternity benefits

Minimum Wages

The minimum wage is governed by the Minimum Wage Act of 1948 which lays down the conditions that shall determine the minimum age. Minimum wages differ from state to state and the authorities impose fines and imprisonment for non-compliance. However, there is no centralised minimum wage.

The New Labour Code, 2019, once brought into effect will introduce a centralised wage for the benefit of labourers.

Working Hours

India's labour laws allow a maximum of 12 hours per day and 48 hours per week as working hours for employees. The regulations also provide for maximum permitted overtime and break after a certain time

These regulations, however, differ from industry to industry and also only apply if a person qualifies as a ‘workman’ under the Industrial Disputes Act.

Public Holidays

Republic Day (January 26), Independence Day (August 15), and Gandhi Jayanti (October 2) are the three national paid holidays that an employee gets. However, national bodies such as railways, airways, seaways and all infantry services such as fire brigade, task forces and military are functional even on public holidays.

Any establishment must stay closed and out of operation on these days. State holidays differ from region to region.

Employer-Employee Disputes

In the event of disputes between an employer and an employee, the Industrial Disputes Act of 1947 comes to the rescue. An employee or a workman can sue the employer for non-performance or breach of obligations.

The first step under the Act is taking the help of a conciliating officer, however, in case the issue is not solved, it can ultimately be taken to the Court. This provision especially helps employees if the employer engages in unfair dismissal, harassment, unpaid overtime, or broken contracts.

Ensuring Compliance in India

Due to the unorganised nature of the sector, many times, employees are not able to exercise their complete rights and many remain deprived of them. This shows the need for strict compliance measures to be put into place. While authorities and Courts go a long way in helping to resolve these conflicts, employers must also ensure compliance to avoid scrutiny.

Conclusion

The labour laws are crucial legislation for any country highly dependent on its workforce. These help in maintaining humane conditions of work and ensuring social welfare and growth. Following the labour laws is a must for each employer and each employee must know about their rights.

For more information, queries or grievances, send it in writing to the Ministry of Labour & Employment Govt. of India, Shram Shakti Bhawan Rafi Marg. New Delhi-110001.

To know more such laws and information, stay connected to Jaagruk Bharat. You can also share your thoughts or ask questions with us by reaching our community page.

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