If you work in India, you have legal protections that your employer must comply with. Many employees are unaware of these rights. Here is a summary of the key employment laws and what they mean for you.
Right to Written Employment Contract
Always insist on a written appointment letter that specifies your designation, salary, working hours, leave entitlement, and notice period. Verbal agreements are difficult to enforce.
Minimum Wages
Under the Minimum Wages Act, every employer must pay at least the minimum wage notified by the state government for your category of work. Paying below minimum wage is illegal.
Working Hours and Overtime
Under the Factories Act and Shops & Establishments Acts, working hours are typically limited to 8–9 hours per day and 48 hours per week. Work beyond this must be compensated as overtime at double the regular rate.
Maternity Benefits
Under the Maternity Benefit Act, female employees are entitled to 26 weeks of paid maternity leave (for the first two children). Employers cannot terminate a woman’s employment during pregnancy or maternity leave.
Protection Against Wrongful Termination
An employer cannot terminate an employee without following due process — proper notice period, settlement of dues, and in some cases approval from the government. “Hire and fire” without cause is not permitted under Indian labour law.
Gratuity
Under the Payment of Gratuity Act, employees who have completed 5 or more years of continuous service are entitled to gratuity at the time of leaving — calculated at 15 days’ wages for each completed year of service.
Sexual Harassment at Workplace
The POSH Act (Prevention of Sexual Harassment at Workplace) mandates that every organisation with 10 or more employees must have an Internal Complaints Committee. Victims can file a complaint for investigation and action.
What to Do if Your Rights Are Violated
You can file a complaint with the Labour Commissioner in your state. For serious matters, you may approach the Labour Court or civil court with the help of an advocate.
GuruLegal advises employees and employers on employment law matters. Book a consultation.