Labor Laws in India
Labor laws of India are almost almost like laws in the other country. India offers lot of potential for outsourcing IT functions, KPO and BPO operations due to availability of highly skilled and economical resources. So whenever someone cares fixing a subsidiary in India, the primary question is about labor laws in India. during this article we attempt to explain the foremost important and relevant labor laws present in India to assist you create the descision. Deatiled labor laws are often found here.
Working Hours:
The working hours are defined in every state law. In Bangalore and most the large cities in India the law mandates that working period of any employee shouldn’t exceed 48 hours and 58 hours including extra working hours.
Our comments: Generally companies work 5 days every week . every day its nine hours of labor with 1 hour break for food.
Work Timings:
Any establishment shall not run its business before and after following hours.
- In Bangalore city; Morning before 6 am and Night after 9 pm.
- The women employee aren’t allowed to figure after 8 PM.
There is a exemption for IT, BPO and KPO to figure after 9 PM. Also the ladies employees are permitted to figure , therein case the employer must offer door-to-door transport and meet some security-related requirements. Thus the businesses who provide support functions to the businesses outside India are allowed to figure after 8 PM.
Leave Policy in India as per labor laws in India
Under The Karnataka Shops & Commercial Establishments Act, 1961:
Earned Leave/Paid Leve @ 1 Day for each 20 Days work Performed-maximum 18 days once a year on civil year Basis
Accident Leave Cum leave 12 days once a year (Calendar Year)
10 days National festival Holiday under Karnataka National & Festival Holidays Rules
1 Weekly Holiday
Termination of Employment as per labor laws of India
A 30 to 90-day notice period applies so as to terminate ‘workmen’ (as defined within the Industrial Disputes Act, 1947) – that’s , employees whose role isn’t primarily supervisory, administrative or managerial) for convenience, with 15 days’ pay due for each year worked. within the case of producing units, plantations and mines with 100 or more workmen, termination for convenience requires prior government approval; in other sectors, it requires only government notification.
For IT and other companies there’s no specific law which defined the notice period. Generally in India companies enforce 7-60 day notice period
Insurance Scheme for workers
As per the labor laws in India its not mandatory to supply insurance benefits for the workers . But generally employees demand that insurance benefits be provided. Its very simple to urge the insurance benefits for the workers
Below are the key points:
- State labor laws in India generally provide for about 15 days of earned/regular leave a year. Employees also enjoy up to 10 days of leave and a possible 10 additional days of ‘casual leave’. this is often generally quite what most organisations would ideally wish to provide.
- Indian labor laws provide for ‘casual leave’ – the worker can opt to not come to figure that day without applying for leave beforehand . Many organisations find this disruptive.
- Most state labour laws in India restrict women from performing at night; if women are to figure in the dark , specific approval must be obtained. This exemption is granted only to limited business sectors (eg, IT sector). Further, the employer must offer door-to-door transport and meet some security-related requirements.
- Most state labour laws in India prescribe overtime for any hours worked beyond 48 hours during a week.
- Indian law regulates and in some cases prohibits the utilization of contract workers. to interact contract workers, the contractor must hold a licence and therefore the employer must be registered as a ‘principal employer’.
- Non-compete agreements aren’t enforceable under Indian law, while non-solicitation clauses are often enforced only in limited ways.
- While the ‘work for hire’ principle applies under the Indian copyright regime, it doesn’t apply under the Indian patent regime; employees must thus provide formal assignments.
- Indian labor laws require employers to take care of a plethora of registers and notices. Compliance with such requirements is difficult and full compliance is rare. we will assist you with payroll processing and labour law services in India.