Whether you are preparing to hire your first employee or
expand your company with new workers, you may want to devote some time
reviewing labour laws act
in India until you take the plunge. Unions and
countries have heaps of laws made to safeguard employees, and familiarity with
the ones that affect your company helps safeguard your bottom line.
These are
some of the most frequent labour laws you should know.
1. Anti-Discrimination Laws
Based on sex whether you're recruiting or have already hired a
employee. As an example, if you're considering promoting among your workers,
you can't legally avoid choosing a female worker just because of gender. Also,
the constitution bans discrimination based on race, religion, caste, and place
of birth. If your workers believe you're being discriminatory, they have the
right to file a complaint with the labour
act rules.
2.
Maternity Leave
If You've Got female employees who have worked 80 Constant
days during an accounting year, they are entitled to paid maternity leave for
12 weeks. Throughout leaves, you need to pay these girls their customary daily
wages, and if you don't offer pre- or post-natal care, you may also need to
issue them bonuses. Most importantly, you can't dismiss women on maternity
leave or change their employment stipulations.
Women may also take a paid off should they suffer an illness
Associated with pregnancy or in cases of childbirth. In the case of
miscarriage, she is also entitled to six weeks away and up to 2 weeks away for
tubectomy operations.
3.
Notice of Termination
You can dismiss employees for misconduct at any time, however, you should hold a disciplinary proceeding first so that your employees can
defend their position. In cases where misconduct isn't involved, you must give
the employee notice. The majority of states require workers be notified of the
dismissals at least a month in advance, however, when your employee's contract
requires a longer time period, you have to bear that in mind.
After the dismissal, you are able to require workers to go
through a "garden leave," which means that they get paid but don't
need to come back to work. As of 2018, if you dismiss a worker, you need to pay
for a brief period. Furthermore, if the worker earns less than INR 21,000 per
year, you've got to pay a statutory bonus. Additionally, workers who have been
with you for five years get a gratuity. This means they get 15 days in wages
for each year they have been with your company, and partial years count as
full years should they run over six months. With this gratuity, you merely need
to pay up to INR 1 crores, but naturally, you can offer more if you like.
4.
Employee Privacy
When you are recruiting employees, you have the right to
perform background checks on them. Beyond this, you should also keep all
employee data securely and have a registered security program set up.
Even though your employees are entitled to privacy with their
Personal communications, you have the right to track all official mails, phone
calls, and computer usage.
Ideally, you should outline your policies on your human
Resources documents so your employees understand what to expect. Similarly, the
law also lets you craft a policy banning your employees from posting derogatory
statements about your business on their social networking profiles.
5.
Worker Rest
If you want your employees to provide you with their very best efforts,
you have to give them time to break, and in actuality, the law requires you to
give 12 paid days off to each employee who works at least 240 times each year.
In particular, you must award your workers one day of leave for every 20 days
of job, and should you have workers under the age of 15, they make a day off
for every 15 workdays.
If your employees do not take all of their leave days, then
you need to roll Unused days to the following calendar year, but you simply
need to do this to get a max of 30 days. On top of these days off, employees
get paid days off for Republic Day, Independence Day, and Mahatma Gandhi's
birthday.
6. Overtime Pay
When your workers work within a specific number of hours, you
must pay them. The threshold changes depending on the industry, but in all
cases, the overtime rate is twice the employee's usual hourly fee. The law also
needs you to track the overtime hours, and you're able to simplify that process
by using a time tracking system or app that syncs with your QuickBooks
accounting software. Doing so saves you time and helps you keep on top of your
documents.
To learn more about labour laws, contact These lawyers can
help you understand your duties and make sure you're all set to take on extra
help. You might also wish to choose apps and tools to help you with the
compliance and record-keeping aspect of labour laws in India.
Also, read our blog on Must-Know Information on Indian Labour Law.
Also, read our blog on Must-Know Information on Indian Labour Law.
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