Overview of Indian Labour Laws and Employment Policies

Employment Law Overview

• Key Legislations:
  • Factories Act (1948)
  • Mines Act (1952)
  • Employees' Provident Funds and Miscellaneous Provisions Act (1952)
  • Employees' State Insurance Act (1948)
  • Payment of Wages Act (1948)
  • Industrial Disputes Act (1947)
  • Labour Code (2020)
• Legal Characteristics:
  • Aim to protect employee rights and welfare
  • Prescribe standards for minimum wages, working hours, leave, maternity benefits, and severance pay
  • Applicable to all industries and establishments, regardless of size

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Terms:
  • Must include details of job description, remuneration, working hours, leave, etc.
• Language and Currency:
  • Contracts must be written in English or Hindi
  • Currency is Indian Rupee (INR)

Working Hours Regulations

• Standard Working Hours: 48 hours per week
• Rest Days and Breaks: Minimum of one rest day per week, 30-minute break after 9 hours of work per day

Leave Policies

• Annual Leave: Minimum of 15 days per year
• Public Holidays: 18 national public holidays
• Special Leaves:
  • Sick leave: 10 days per year
  • Maternity leave: 26 weeks
  • Paternity leave: No statutory provision, but some employers offer

Employee Termination and Contract Termination

• Notice Period:
  • Establishments with 50 or more employees: 1 month
  • Closure of establishments with 50 or more employees: 60 days
  • Establishments with 300 or more employees: 3 months
• Severance Pay:
  • 15 days' average pay for each completed year of service
• Protection Against Unfair Dismissal:
  • Employees have the right to file a complaint against unfair dismissal

Tax Laws

• Personal Income Tax:

  • Salary Range (INR)	Tax Rate
    0 - 300,000	0%
    300,001 - 600,000	5%
    600,001 - 900,000	10%
    900,001 - 1,200,000	15%
    1,200,001 - 1,500,000	20%
    1,500,000 and above	30%

• Social Security Contributions:

  • Employer: 16.75%
  • Employee: 12%

Health Insurance

• Insurance Policy:
  • Employers are required to provide health insurance to employees
• Coverage:
  • Basic medical services

Compensation and Benefits

• Minimum Wage: Varies by state and industry
• Compensation Structure:
  • Basic salary
  • Allowances
  • Bonuses

Work Permits and Visas

• Permit Requirements:
  • Foreigners require a work permit or visa
• Application Process:
  • Contact Indian embassy or consulate abroad

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in India
• Common Provisions:
  • Prohibit employees from disclosing confidential information after leaving employment
  • Prohibit employees from working for competitors after leaving employment

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skill enhancement training to employees
• Government Support:
  • Government provides funding and incentives to encourage corporate training

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibit discrimination based on factors such as race, religion, gender, disability
• Enforcement Measures:
  • Employers must establish policies and procedures to ensure compliance

Remote Work Policies

• Legal Framework:
  • Remote work is permitted, but requires a written agreement between employer and employee
• Tax and Insurance Implications:
  • Remote work may impact tax and social security contributions

Authoritative Website Addresses

• Ministry of Labour, India: https://labour.gov.in/