Recently, while I was switching jobs, I went through my erstwhile employment contract and the engagement letter to analyse what are the real-life implications of my resignation. Sadly, due to lack of legal understanding, I could not claim my bonus based on the agreement.

I realised I had to know how to draft a resignation letter! However, the rest of the process was still unclear to me as an employee. This goes to show how clueless even a lawyer can be sometimes. In my defense, I was just excited to get my first job and went through the agreement for vulnerabilities. But I at that time did not think through about the implications of my resignation. There is no justification for my ignorance, even being a rookie.

Turns out that my employment agreement had made it binding for me to serve a notice period of three months before leaving the job. Imagine staying in a position you have formally given up on! It is not easy.

I had to either pay an equivalent of three month’s salary or serve the notice period. I, like many, had not thought through while signing the employment terms. But my ignorance had come back to bite me! Thankfully there was no non-compete or non-solicitation clauses; otherwise, I would have been restricted from working in the same industry for a while.

https://lawsikho.com/course/labour-law-hr-managers
click above

While I wait for my full and final settlement payment which has been due for over a month, I figured why not find out more about employment and labour laws. I have again signed a contract, which was one-sided. Who knows what I need to know this time around?

To say there is no method to this madness is untrue. There are laws and regulations in place which are to be adhered to. What all don’t I know? I have never paid much attention to the labour laws, and my rights or claims thereof. I mean, I did do that one semester (or two?) in college, but I don’t remember much of it.

I thought I would put down my papers and after three months, I will be free. But was I wrong or what? Turns out there are ‘inner mechanisms and protocols in place to facilitate a successful transition’. Not my words, it is a direct quote from my Human Resource Manager. As a lawyer, am trained to read between the lines, but this was a no-brainer. I had to fulfil and do a set of things before attaining freedom.

Some of the routine tasks were reasonable like fulfil my ongoing responsibilities and create a smooth handover of work. But then there were weird requests from bosses to share the hard disk before I had done the hand-over! I mean how can I possibly work till the end of three months if I hand over my hard drive 3 days prior! Then I had to remind my HR for my Form 16 repeatedly. By law, my employer has to provide me with certain documents. But it took a month of nagging, begging and cajoling to ensure that I get what is rightfully mine!

Not knowing about industrial and labour laws did not bode well for me in hindsight.

So here is a quick refresher for all the in-house lawyers, practising lawyers and anyone who wishes to be employed someday- know your laws.

So what are the important rights of a private employee protected by the law?

Although there are terms of employment defining the specific terms, the employees in the organised private sector are governed by various laws such as Payments of Bonus Act, Equal Remuneration Act,  Payment of Gratuity Act, Employees Provident Fund and Miscellaneous Provisions Act, Employees’ State Insurance Act, Maternity Benefit Act, etc.

The right to safe working place with basic amenities, right to appropriate working hours, right to any assured incentive etc. are protected under the law. Here’s a list of essential rights of an employee under the various laws and regulations:

Employment Agreement

These days the norm is to enter into an employment agreement which details out the terms of employment like, compensation, place of work, designation, work hours, etc. The rights and obligations of both the employer and employee are listed out clearly like non-disclosure of confidential information and trade secrets, timely payment, provident fund etc. In case of a dispute, the agreement also contains a mechanism for effective dispute resolution.  

I remember when a client came to me with his first employment agreement after 30 years of service! He wanted me to have a look and tell him whether or not to agree to those terms. In a cursory glance, it was evident how one-sided the whole agreement was. From retrospective deductions and penalties to an ineffective dispute resolution mechanism, it was dreadful! The owner had made appointed himself as the binding authority in case of a dispute. After my advice, the client went and renegotiated and got his old terms of service renewed.

But the point remains that without a written employment agreement in place, the employee does not have much protections afforded to him in case of a dispute.

Maternity Benefit

The Maternity Benefit Act, 1961, provides for prenatal and postnatal benefits for a female employee in an establishment. Post-2017 amendments, the duration of paid leave for a pregnant female employee has been increased to 26 weeks, including eight weeks of postnatal paid leaves.

In case of a complicated pregnancy, delivery, premature birth, medical termination, female employees are entitled to one month paid leave. In case of tubectomy procedure, only two weeks of additional paid leave is provided for.

Pregnant female employees cannot be discharged or dismissed on account of such absence. Such employees are not to be employed by the employer within six weeks of delivery or miscarriage. If dismissed, they can still claim maternity benefits.

In India, men do not get any paid paternity leave. The Central Government provides for child care leave and paid paternal leave. But in case of private sector, it is a discretionary right of the employer.

Provident Fund

Employee Provident Fund Organisation (EPFO) is the national organisation which manages this retirement benefits scheme for all salaried employees. Any organisation with more than 20 employees is legally required to register with EPFO.

Any employee can opt out of the scheme provided they do it at the beginning of their career. The amount cannot be withdrawn at will. The rules limit the withdrawal amount and term of years in service. Once registered, both employer and employee have to contribute 12 % of the basic salary to the fund. If the employer does not pay his share or deduct the entire 12 % from the employee’s salary, he can be taken to PF Appellate Tribunal for redressal.

The amount can be withdrawn subject to a waiting period of maximum two months for emergent needs and necessary expenses. The rules specify limits of withdrawal and the necessary years of service for each purpose. An employee can withdraw a maximum of 3 times, and if withdrawn before five years the amount becomes taxable. A list of withdrawal rules of EPF is available here.

Gratuity

The Payment of Gratuity Act, 1972  provides a statutory right to an employee in service for more than five years to gratuity. It is one of the retirement benefits given to the employee. It is a lump sum payment made in a gesture of gratitude towards the employee for their service. The amount of gratuity increases with increment and number of years of service.

However, the employee if dismissed for proven lawless or disorderly conduct, forfeits this right upon dismissal.

Timely and Fair Salary

The whole point of providing service for an employee is fair and appropriate remuneration. Article 39(d) of the Constitution provides for equal pay for equal work. The laws under The Equal Remuneration Act, The Payment of Wages Act, mandates timely and fair remuneration of an employee. If an employee is not receiving his/her remuneration as per the employment agreement, can approach the Labour Commissioner or file a civil suit for arrears in salary. An employee cannot be given wages less than the legal minimum wages, as per law. A more detailed look into the remuneration under the Equal Remuneration Act, is available in this article.

Appropriate Working Hours and Overtime

All employees have a right to work in a safe workplace with basic amenities and hygiene.

The Factories Act provides and the Shop and Establishment Acts (statewise) protects the rights of the workers and non-workmen.

Under the most recent laws, an adult worker shall work over 9 hours per day or 48 hours per week and overtime shall be double the regular wages. A female worker can work from 6 am to 7 pm. This can be relaxed to 9.30 pm upon explicit permission, and payment for overtime and safe transportation facility. Apart from this weekly holiday, half an hour break and no more than 12 hours of work on any given day is mandated. The working hours for child workers are limited to 4.5 hours a day.

Right to Leaves

An employee has the right to paid public holidays and leaves such as casual leave, sick leave, privilege leave and other leaves. For every 240 days of work, an employee is entitled to 12 days of annual leave. An adult worker may avail one earned leave every 20 days whereas its 15 days for a young worker. During notice period an employee can take leaves for emergencies, provided the employment agreement does not bar it.

Prevention of Sexual Harassment at workplace

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 protects women at the workplace from sexual harassment. The Indian Penal Code also provides a penalty of upto three years imprisonment with or without fine, for sexual harassment.

For organisations with ten or more employees, there has to be an internal complaint committee constituted for the aid of the victims of sexual harassment.  The law mandates that a grievance redressal policy and mechanisms be in place in such organisations which outlines what constitutes sexual harassment, penalties, redressal mechanism, etc. The committee should also include a senior woman as a member, two other employees as members and a non-governmental member. The detailed duties of an employer are available in this article.

My attempt here is, simply to demystify the jargons used with an employee who does not fully understand and agree to it anyway. The HR or the company is not always going to educate you about all this. It is not their job, but yours to learn about your rights.

This is by no means an exhaustive list of rights and obligation of an employee under the laws and regulations. There are so many laws governing different aspects of labour and employment-related laws!

How does one learn about the labour laws which directly impact most of us everyday?

Well, I will not say its an easy task to accomplish. You have to do a lot of reading and research to understand the labour and employment laws, and their implications. Although there are  easier way to learn like the comprehensive online courses covering the relevant aspects of industrial and labour law. But all of this is incomplete without hard work and dedication.

There is no shortcut here. You have to put in the time to know your rights and obligations as an employee or even as a lawyer advising one’s clients. The employment agreement is the holy grail for an employee, but one must proceed with caution while signing one. You have to know the prevalent laws and what you can or cannot do. I mean I have learnt my lesson, why else will I research about this and write an article to talk about it?  But please don’t be as ignorant as me, and get stuck in the nitty-gritty of things.

Just be more proactive, learn and be wiser!

 

Did you find this blog post helpful? Subscribe so that you never miss another post! Just complete this form…

52 COMMENTS

  1. im work with private company last 7 years,in store dept,after 7 years management say me ur not capable for store dept,how can possible im not capable for store,company harassing me and forcing for change the dept.please suggest me.

    • Thanks for sharing such a useful information here. i have clear some doubt about legal rights for women keep it up with good work!!.

  2. Dear Sir,

    I am working in reputed ltd firm for the last 8 years, receiving salary alongwith perks.

    But now they have transferred my services to another location and giving me profile, which I never did in past, i.e. supervision and safety trainings.
    What to do?

  3. Hi sir, Is there is any notice period to be provided during the probation period by the employee….In my call letter the probation period is 6 to 9 months and I just worked for 4 months and I just resigned immediately without any notice period and I had joined in a other company and they told to provide notice period for 30 days or else 15 days salary will be deducted from the last month salary .I want to know that whether I want to provide notice period or not whether it is mandatory or not

  4. I worked air state courier for 20 years he removed for the office with out notice he was not given any grauivit for all this years what can i do

  5. Hi, I am a working as manager legal in an organization since January 2019 and probation period shall complete in July 2019. Since April I am on bed due to road accident. I have informed immediately but have not received any formal communication from company end. Orally my manager told that you may be on leave without pay till medical requirements. What I do?

  6. Can anybody say about Pay Roll system, if i am working in private Organisation and company HR says that please do submit your Police verification certificate is not submitted so first go to police station and bring your Police verification certificate than you will be eligible for your Salary. If you will not submit than your salary will be hold.
    So My question is that what any company can hold salary?

  7. Is there no law for employer or company while making the aggrement or offer letter?
    Employer can print any thing on offer letter and made it be signed from needy employee…
    If they are writting unfair things what complain can be done and where…?

  8. Hi, I am Rajesh working in FRBRIS MULTISPECIALITY HOSPITAL as a Radiology Technician, they are not give me salary on timely and stopped my salary for Feb 2019 to still working because problem of hospital financial conditions and deduction of PF and ESI but not submit for last November 2017. So, my conditions is bad in this hospital. What can I do for cash in labour court this regarding.

  9. I’m working in a service provider company which provides service to many AMC in India
    Few people in senior position in AMC misbehaves with ladies and forces to timestamp on blank paper and forces to do all illegal official work. Kindly advise how to deal with such situation
    In mutual fund industries sales people have more control and They behaves like dictators and spoiled many people career

  10. Respected sir
    I have worked in manufacturing unit 4 years 2 months, no any type of appointment letter sign between both of them, he give me only salery not bonus, esi, pf, gratuities, medical leave, sick leave, HRA etc
    After 7 days absence of my duty i resigned,
    Now he says your resigned not accepted, i reply that how can you suppose that i was an employee? Because company didn’t give me the any facilities of employees like bonus, pf, esi, pay benefits, sick leave, medical leave etc
    Correct or not?
    Please suggest a right as soon as possible
    Thanks
    Sarvesh
    Ghaziabad up

  11. I worked for a company for 6 months. I applied for another company on jobads site and got an offer. Previous company is not giving my experience letter. What I have to do?

  12. Dear sir/madam
    I’m working in limited company, they deducted pf two times in my salary instead of his share. I want to file a case in labor court please suggest.

  13. My husband is working in a 3 star hotel in Kolkata . Problem with company is they are not give salary on time. They give salary gaping more then 20 days. But there upper level salary is on time every month. Plz help me how to get solve of this big problem.

  14. Hello sir,
    I came across a case, a reputed private company having more than thousands of employees, is not paying its labour , according to minimum wages. What measures can be taken by its labour against this. Please suggest.

  15. Hi All,

    The scenario is my compensation letter is not released yet.
    This compensation letter was due in March end. it has not arrived even in April end how I can do against the company?

  16. Hi,
    I graduated (BCA) from Maharishi Dayanand University that too on regular . But there is 4 years of gap between 10th & 12th…even after completion of my data scientist courses like SQL , Tableau, python SAS, Advance Excel,only because of their norms I am unable to get any job…Don’t know what to do..Need your guidance..what should I do to get a job.. please help me

  17. I am working in a limited company since last 25 years, since Oct’1993. I am Graduate (B. Com) + knowledge of Engine Steno + Computer knowledge, Initially a joined at a Stenographer, later given me Accounts Job + responsibility of Sales Tax etc ( Company CMD appointed me Business Manager for appearing at Sales Tax Deptt. etc since July 2005 ). In 2015 company introduce Salary Portal system in my Salary Portal my Post is as an Executive. Company never used to give me increment more than 10% of my salary when ever they announce some time after 1 year, some after 1 and Half Year and some time after 2 years.

    I am working in a Branch Office, and I have told many time to my management to correct my rank, they give me assuring till date they are doing nothing.

    Please let me know whether there is any law to change my position and got increment according to my work.

  18. respected sir
    my mom is working in a hospital from last 4 years before few months the hospital management handover their hospital to other party on contract. but now they went off and the real management came back but the other party who took the management on contract didnt paid the salary of any staff so what we have to do sir please reply because we poor guys dont know the legal procedure to fight against these rich peoples ,please help

  19. As I’m searching for jobs, My friend sent a notification to my mail. It is a jobads notification, and I applied for a job. I got a job at Vijayawada as an SEO analyst. The company was good and friendly with employees.

  20. Hi.. I am Working in a private manufacturing company into sales and marketing. My company timing is 10.00 am to 8.00 pm Monday to Friday and on Saturday is 10.00 am to 7.00 pm. It’s almost 59 hrs in a week. I want to know can I file a case against that company.

  21. Respected sir/medam
    As per the pay-slip my Basic salary was 4000/- and PF deduction was 1450/- (As per PF Rule on prescribed salary of 15000/-).When I resigned they told me to deposit a sum of 41000/- (Roughly) in order to serve the notice period of 3 months. As per the contract I am liable to pay 3 months basic salary. But now they are saying as my PF deduction has been occurring on prescribed salary of 15000/- so I have to pay that Basic salary which is decided on PF deduction.
    Practically they gave me 4000/- as basic but claiming 13670/- (Roughly) right now. So please help me, guide me to out of this dispute.
    Thank you

  22. I joined as a “Telecaller cum Receptionist” in a real estate company named “MULLICK REALCON PRIVATE LTD.”, Kolkata in 2nd July, 2018. But they gave me the appointment letter in the name of a company “S & S SERVICE PROVIDER” although my salary is registered in MULLICK REALCON PRIVATE LTD.
    I have no Cl, El, Ml, PF, Gratuity. I did not get any Bonus in 2018. I used to draw my salary by cash.
    Please tell me what should I do or how much I’m deprived legally.
    Thank you.

  23. Hi .

    I’ve working in MNC company Chennai Tamilnadu in that time I’ve met an accident with 14 stitches in my foot with that stiches they told me to work from home but doctor said you need to take rest but they not accepted.. I’ve worked for two months in my home with laptop they not give any compensation or anything to me but my started swelling while I’m work.. after that I came to office back to work they said to me to work for 12 hours to complete the volume. I said to them I’m unable to do that bcoz of my injury they threatened me with appraisal and termination. I escalated this issue with HR nothing happened remains same again they send email to me if you not extend disciplinary action will be taken from the company.. still my leg is swelling while I do my work for 12 hours.. doctor said to take rest for 2 months.. in that time I’ve worked from home.. if I take rest instead of working .. my leg will be fine but it’s still swelling.. shall we ask any compensation to company with the help of labour court.. kindly advice me..

  24. sir,
    i have joined in a company as a area sales manager on 18th jan 2017 and on 28th april( i am on probation ) i met with an accident with my junior ,my junior was spot dead and i was hospitalized and till the time i am under treatment my both limbs was fractured as well as my knee and gradually i am recovering .
    company initially given me salary till august 2018 and then they told me as per company policy you are entitled for half salary so your salary from may,18 to august,18 will be adjusted in next four months. but when i contacted to my sales manager on january 28th they have not responded and when i contacted to hr , hr told me that your salary has been paid till nov,2018 and i has to see what co can do for your half salary hr also told me that your insurance claim form we are going to process.

    so please suggest me what to do in this regard.

  25. I am employed in NSFDC (under Central Government) for seven years. I am a data entry operator. I work very diligently and honestly here, but despite this, many people here bother me and say that you are not a permanent employee who will work slowly. And I repeatedly threaten to end your contract. Is there a law in this case that can help me?
     

  26. Hi.
    I have worked in a private ltd company for 2 years given good results. My salary compounded of fixed and variable parts during June July and august the company paid me only fixed part and variable was due around 2.5 lac . Sep the company makes me resign forcefully without notice. Now they deny to pay the pending incentive or variable amount of June July and August.

  27. Dear Sir,
    I did work with private ltd company more than 5 years and i left the job due to less salary and joining another company but my previous company not release my full & final yet its almost done 6 month and i also given noticed period approx 2 month and given properly hand over but company making me fool and after many follow up they haven’t release my F&F yet ,So kindly suggest where should i log my complain

  28. Hi,
    I joined on a hospital on the month of December 13 2017,and Iam given resignation period on the month of 4 th December 2018 (15 days resignation) can i eligible for earned leave.plz reply

  29. Thanks for sharing this article. Its really helpful for me. If Anyone want to know more about Labour Law Consultant and also need any kind of help then contact Ahlawat & Associates

  30. I am working in Vista Chemtech Pvt Ltd, where my boss pays the salary half in cash and he does the rest amount NEFT, sometime it happens like For November months salary ,it should be credited by December 7th but he keeps on distribute the salary till December 27th-28th. then whats the point to work? and they do not provide the salary slip also.please help me.

  31. I have big problem though my company because when I was joined that company that time i was deemed offer letter as pat employment but that time my senior told me when I was completed my 3 months work then company give me offer letter but in this time my suddenly told me if I don’t going to Bengaluru then I will lose my job,so pls suggest me what can I do in this time

  32. Hi I am working with turtle brand Vadodara but I didn’t get my salary I leave my job 15September 2018 and my brand manager told me that company reserved 10days payment for security…

    I have some family issues so I leave my job with out notice period but they told me that now you will get nothing please give me some suggestions

  33. Mr Alam Khan….
    Plz give me answer of some questuons
    You start job in a company and your territory sale was 30% at your joing time.
    You put the effort and after one year you tranform the territory sale from 30% to 105%
    You gain incentive of 1st quarter and suddenly 1 brand gets banned from two brand. Despite that you again earn incentive of second quarter by doing sale…

    After 19 month of your service you transferred to other division because of bullshit politics of you upper management.. You are doing your budget, There is no indisciplinarycomplaint against you… Then how can Company transferred you from Vaccine division to Respiratory division…
    I joined company to make career in Vaccine field why I’ll work in respiratory field while Vaccine division is also exist….
    Can you give me the ri8 answer…
    Otherwise no need to advocate to the writer……

  34. You guys need to really work on checking plagiarized content. This entire article is just a rearranged piece of another person’s work. Do you guys even check before publishing. I know having a blog is a trend since few years now but seriously the sheer amount of plagiarized content I find here is hilarious. I remember commenting on another article in the last year, still haven’t received any response from you guys. Do you even the comment or this section is also just for show. Don’t want to be harsh but it’s sickening that someone just copy pasted other person’s work and you conveniently publish it. Now I won’t tell where I found the original article, simply search on Google and you will know.

    • Your allegation seems to be mistaken. This is an original article. How do you know that the other article is not plagiarized from this one? All over the internet people are copying our article every day, and it can’t be helped. It is a bit presumptuous for you to assume that our articles are plagiarised. We run every article through plagiarism check before publication. No plagiarized article is published in iPleaders blog.

  35. Hi,

    I really need help, my fried is suffering from cancer and she needs financial help. I was hoping the company to help create a joint fund. They are not helping me.

    Please suggest.

  36. Dear Writer,
    Nice to read about the Knowledge you possess and have shared.
    Why not any one of you is finding out and writing up an article on:
    “Intentionally Non-Performing Employees Case”
    Now, Don’t tell that you have never heard of such employees.
    The question is when these kind of employees threat to be going to the labour commission or consumer court, what are the rights of a company?
    If the Company is not paying such employees, then why does that becomes an offense. Such Employees keep switching the companies in 1-6 months duration. They keep enjoying the the tag of being employed until they are caught not-working.
    When caught, they say they were not sure whether the company will operate or not and whether their clients will get the services properly or not. So, they did not get the clients.

    What do you legally suggest in such cases, a company must do?
    Especially, such cases arises with the sales people.
    These days, employees try to be more bigger and smarter than the company, where as it is very simple “Employees bring revenue for the company and from that revenue the salaries and other benefits, perks and expenses are taken care of”
    Or is it written some where that employees can decide to be non-performing and piss down the company for the payments.
    I hope you know, that it takes some time to understand whether the zero or lowered down performance is intentional non-performance or it is just not happening. In such cases, company seeks time either by delaying the salaries of such doubtful employees or some other practices.
    But later on the same non-performing employees, start creating the ruckus by spreading negativity amongst other employees, clients and also start threatening the company with the help of “lawyers”

    I read, you are also a lawyer, what remedies and solutions do you suggest in legal terms against such employees.
    Because it is very simple, if a growing company gets 10 sales employees every month who are intentionally not performing. So, keep paying their salaries leads to losses to the company as well the company fails to reward the actually performing employees.

    Waiting for your Reply

    • Mr Alam Khan….
      Plz give me answer of some questuons
      You start job in a company and your territory sale was 30% at your joing time.
      You put the effort and after one year you tranform the territory sale from 30% to 105%
      You gain incentive of 1st quarter and suddenly 1 brand gets banned from two brand. Despite that you again earn incentive of second quarter by doing sale…

      After 19 month of your service you transferred to other division because of bullshit politics of you upper management.. You are doing your budget, There is no indisciplinarycomplaint against you… Then how can Company transferred you from Vaccine division to Respiratory division…
      I joined company to make career in Vaccine field why I’ll work in respiratory field while Vaccine division is also exist….
      Can you give me the ri8 answer…
      Otherwise no need to advocate to the writer……

  37. Hi,
    The firm I work for does provide any PF benefits and nothing has been stated about the same in my contract.
    I had asked them about it, I was told that PF benefits will be added to my contract after 6 months of employment. I completed my six months within next 4 days.
    What action can take regarding the same?

  38. I am working with a private company since 30 years, as a steno, my current salary pm is 9700/, the employer has not given bonus since 3 – 4 years, no increment since 2012, irregular in depositing EPF and ESI dues, no minimum wages what shall we do.

  39. Respected sir/mam
    My mother was a cancer patient and still she facing the complications , I am also chronic backache patient
    So when I request for transfer they denied and when I request for leave the again denied.
    Now what should I do. I request many times for transfer because my place is a very hostile place there is no service of hospitals and I am the only child to takecare of her.

    Please suggest me

LEAVE A REPLY