Important Rights of Private Employees Under the Indian Labour Laws

 I just changed jobs, so I read over my previous employment contract and the engagement letter to determine the practical effects of my resignation. Sadly, I was unable to claim my bonus under the terms of the agreement because of a lack of legal knowledge.


I understood I needed to understand how to write a resignation letter. But as a worker, I was still unsure of how the remainder of the procedure worked. This proves how ignorant even lawyers can be at times. In my defense, I was merely eager to start my first work and checked the contract for flaws. However, I didn't consider the consequences of my resignation at the time. Even though I'm a beginner, my ignorance is nonetheless unacceptable.


It turned out that my employment contract had made it mandatory for me to give three months' notice before quitting my work. Imagine continuing in a job that you have formally quit! It is not simple.


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I have to give the notice period or pay the equivalent of three months' worth of wages. Like many others, I signed the job agreements without giving them any attention. But my ignorance had gotten the better of me! I'm relieved that there were no non-compete or non-solicitation agreements because if there had been, I would not have been allowed to work in the same sector for a long.



I believed it would be a good idea to learn more about employment and labor regulations as I awaited my full and final settlement money, which has been overdue for more than a month. I once again agreed to a one-sided contract. Who knows this time what I need to know?


It is incorrect to assert that there is no method to this craziness. There are rules and laws in place that must be followed. What exactly am I missing? I've never given labor laws, my rights under them, or claims based on them any thought. I mean, I did that for one (or two?) semesters in college, but I don't really remember it.


I figured if I dropped my paperwork, I'd be free in three months. But was I mistaken, what? It transpires that "inner processes and protocols in place to support a successful transition" exist. This is a direct quotation from my human resource manager, not mine. Despite my training as a lawyer to read between the lines, this was obvious. Before achieving independence, I had a number of obligations and things to complete.


Some of the everyday chores, such as fulfilling my ongoing obligations and ensuring a smooth turnover of work, were appropriate. But after I had completed the handover, strange requests from bosses to share the hard drive came in! How am I supposed to finish the three months if I hand up my hard drive three days early? Then I had to continuously remind HR to turn in my Form 16. My employer is required by law to give me certain paperwork. But it took a month of nagging, pleading, and persuasion for me to get what is due to me.


The fact that I was unaware of labor and industrial rules did not augur well for me, in retrospect.




So here's a short reminder for all in-house lawyers, practicing attorneys, and anyone hoping to land a job in the future: know your laws.


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So what fundamental legal protections are there for private employees?


Employees in the organized private sector are subject to a number of laws, including the Payments of Bonus Act, Equal Remuneration Act, Payment of Gratuity Act, Employees Provident Fund and Miscellaneous Provisions Act, Employees' State Insurance Act, and Maternity Benefit Act, among others.




The legislation protects rights such as the right to a secure workplace with minimal amenities, the right to reasonable working hours, the right to any reward that is guaranteed, etc. The following is a list of an employee's fundamental rights as defined by the numerous laws and regulations:




Employment Contract


Nowadays, it's customary to sign an employment contract outlining all the parameters of the job, including pay, location, title, hours worked, etc. The rights and responsibilities of both the employer and the employee are spelled down in detail, including non-disclosure of private information and trade secrets, prompt payment, provident fund, and other things. The agreement also includes a mechanism for efficient dispute resolution in the event of a dispute.


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I still recall the client who, after 30 years of service, came to me with his first employment contract! He asked me to have a look and let him know if I agreed or disagreed with those conditions. A quick scan made it clear how biased the entire agreement was. It was awful, with retroactive penalties and deductions as well as a weak dispute resolution process! The owner had designated himself as the final arbiter in the event of a disagreement. After taking my suggestion, the customer went and renewed his existing terms of service through a fresh negotiation.




But the fact remains that the employee does not have many protections provided to him in event of a disagreement if there is no documented employment agreement in existence.



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Mother's Benefit


A female employee of an enterprise is entitled to prenatal and postnatal benefits under the Maternity Benefit Act of 1961. The length of a pregnant female employee's paid leave has been extended following 2017 modifications to 26 weeks, including eight weeks of postnatal paid leave.



Female employees are entitled to one month of paid leave in the event of a problematic pregnancy, delivery, early birth, or medical termination. Only two weeks of extended paid absence are allowed for tubectomy procedures.


Female employees who are pregnant are not eligible for termination or dismissal due to such absence. Within six weeks of delivery or a miscarriage, the employer is not permitted to hire such workers. They may still file for maternity benefits even if fired.


Men in India are not entitled to paid paternity leave. Paternity leave that is paid is offered by the central government. However, in the private sector, the employer has the discretionary right to do so.


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Deliver Fund


The national organization in charge of overseeing this retirement benefits program for all salaried workers is called Employee Provident Fund Organization (EPFO). Legally, every company with more than 20 employees must register with EPFO.




Any employee may choose to leave the program, as long as they do so early in their employment. The sum cannot be taken out at will. The guidelines set a cap on the withdrawal amount and the number of service years. Following registration, 12% of the basic pay must be paid into the fund by both the company and the employee. The employee may file a complaint with the PF Appellate Tribunal for relief if the employer fails to pay his part or withholds the full 12% from the employee's income.


Subject to a maximum two-month waiting time for urgent requirements and essential expenses, the sum may be withdrawn. The guidelines outline the maximum withdrawal amounts and the number of years of service required for each purpose. A worker may only withdraw three times, and if they do so before five years have passed, the money will be taxed. Here you can find a list of the EPF withdrawal regulations.


Gratuity


An employee with more than five years of service has a legal claim to gratuity under the Payment of Gratuity Act, 1972. One of the retirement advantages offered to the employee is this one. It is a one-time payment offered as a sign of appreciation for the employee's service. The amount of the gratuity rises with pay grade and years of service.




The employee forfeits this privilege upon termination if their behaviour was clearly unlawful or disruptive.




Pay on time and fairly


The goal of delivering services to an employee is to compensate them fairly and appropriately. Equal compensation for equal work is a constitutional right guaranteed by Article 39(d). Employees are required to be paid on time and fairly in accordance with The Equal Remuneration Act and The Payment of Wages Act. An employee may contact the Labour Commissioner or launch a civil lawsuit for unpaid wages if they are not receiving their compensation in accordance with their employment contract. It is against the law to pay an employee less than the minimum wage required by law. This article provides a more thorough analysis of the compensation under the Equal Remuneration Act.




Hours of work that are appropriate and overtime


Every employee has the right to work in a secure environment with reasonable amenities and good hygiene.


The Shop and Establishment Acts (federally) and the Factories Act (state-by-state) safeguard both workers' and non-workers' rights.



The most recent regulations mandate that an adult worker work more than 9 hours per day or 48 hours per week, and overtime pay is double that of regular pay. Working hours for women are from 6 am to 7 pm. With express approval, remuneration for overtime, and access to a secure transportation facility, this can be lowered to 9.30 pm. Aside from this weekly holiday, it is required to take a 30-minute break every hour and to work no more than 12 hours every day. The maximum daily working time for children is 4.5 hours.


Ability to leave


An employee is entitled to paid public holidays as well as other leaves, including casual leave, sick leave, and privilege leave. An employee is entitled to 12 days of yearly leave for every 240 days worked. Every 20 days, an adult employee may use one earned leave; however, a young employee may only use one every 15 days. If the employment contract does not prohibit it, an employee may take leaves for emergencies throughout the notice period.

Workplace sexual harassment prevention


The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act of 2013 offers protection from sexual harassment for women working in the workplace. In addition, sexual harassment is punishable by up to three years in prison, with or without a fine.


For the sake of sexual harassment victims, organizations with 10 or more employees must set up an internal complaint body. The legislation requires that these organizations have grievance redressal policies and methods in place, outlining what constitutes sexual harassment, sanctions, redressal mechanisms, etc. A senior woman, two more employees, and a non-governmental person should all be appointed to the committee. This article outlines the precise responsibilities of an employer.




Here, I'm just trying to explain the lingo to an employee who doesn't fully grasp it but still agrees to it. It's not always going to be the HR or the company's job to inform you of all this. Learning about your rights is your responsibility, not theirs.




This list of employee rights and responsibilities under laws and regulations is by no means complete. Separate labor and employment-related legislation are governed by so many different laws!


How can one get knowledgeable about the labor regulations that affect the majority of us every day?


Well, I won't pretend that doing the work is simple. To fully comprehend the ramifications of labor and employment regulations, you must read widely and conduct extensive research. Even yet, there are simpler ways to study, such as through in-depth online courses that cover the key areas of labor and industrial law. But without effort and commitment, none of this would be possible.


Here, there is no short cut. You must invest the time to learn your obligations and rights, whether you're an employer or a lawyer giving advice to clients. The employment contract is the ultimate prize for a worker, but one must exercise prudence when signing one. You must be aware of current legislation and what you are permitted to conduct. I mean, I've learned my lesson; otherwise, why would I look into this and create an article to discuss it? But kindly refrain from being as illiterate as I was and getting bogged down in the details


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