India
Capital: New Delhi
Currency: - INR
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
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Personal Income Tax:
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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%
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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/