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Employment Security

This page was last updated on: 2021-04-02

Employment Status

Note: Upcoming Labour Legislation in India

Last year (2020), the Indian Parliament combined 25 labour laws into three codes, i.e., the Social Security Code, the Code on Industrial Relations and the Code on Occupational Safety, Health and Working Conditions. The Code on Wages, enacted in 2019, also amalgamated four relevant labour laws.  

The Four new Labour Codes were supposed to be effective from 01 April 2021 however considering the rise in COVID cases and the potential impact of the new Codes on per employee costs for enterprises, the Government has delayed implementation of new Codes to a future date. The Central and State Governments have yet to notify the rules. The new legal provisions will be effective only, once notified.  

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Currently Applicable Provisions 

Most workers in the platform economy are not regarded as employees. If they do not have an employment contract, the law essentially sees them as independent contractors who provide services to the platform or to the platform's users. However, when they perform their duties full-time and have to abide by the rules of the platform, a judge can conclude the workers are actually employed. The draft Code on Social Security 2019 defines a gig worker as "a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship"

Written Employment Particulars

There is no provision in the above labour law that requires an employer to provide a written statement of particulars to a newly hired employee. However, a written appointment letter or employment contract is signed between the employer and the worker as a matter of practice.

The written document may contain the following information: name and address of the employer; name and address of the employee; title of the job or nature of work to be performed by the employee (or job description); place of work and hours of work; and probation, if any, and its term, etc. The employers may also incorporate the following information into employment contract: option of the employer to transfer an employee from one office to another branch office, affiliate, etc.; date of commencement of employment; wages or salary details (overtime wages); any benefits that an employee is entitled to (gratuity, provident fund and pension); type of contract – permanent or fixed-term; period of notice required for termination of employment; leave entitlement; conditions under which the employer can terminate the contract; and non-compete, confidentiality and non-solicitation provisions, etc. 

 

Written Employment Particulars Under State Laws

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Written Employment Particulars in Andhra Pradesh

No State laws and provisions under this topic.

 

Written Employment Particulars in Maharashtra

For all factory workers:

In case of layoffs, factory owners are expected to inform inspectors about lists of workers and the cause behind the same.

Source: Section 108 of the Maharashtra Factories Rules, 1963

For all workers in Shops and Commercial Establishments:

Employers of an establishment must provide every worker with an identity card which should be shown by the worker on demand by the Facilitator. Such cards should contain the following details: (a) the name of the employer; (b) the name, if any, and the postal address, of the establishment; (c) the name and age of the worker; (d) date of joining, department, nature of work, designation; (e) the signature (with date) of the employer or manager; (f) Blood Group; (g) Aadhaar Card Number.

Source: Section 17 of the Maharashtra Shops and Establishments (Regulation of Employment and conditions of service) Act, 2017

 

Written Employment Particulars in Karnataka

No State laws and provisions under this topic. 

 

Written Employment Particulars in Uttar Pradesh

Every workman should sign the prescribed Form on enrollment.

Every workman should apply for enrolment in Form A-l appended to these orders, and sign a declaration in Form A-II on enrollment.

At the time of taking appointment, every workman should be given an appointment letter in Form A-III.

The name of every workman should be entered on the muster roll, without exception.

Every permanent workman should also be provided with a departmental ticket in Form-B showing his number who could show it to any person authorized by the Manager to inspect it.

The act also specifies essential card holding mandates for all categories of workers.

If a workman loses his ticket or card at any point of time during employment or fails to deliver his ticket or card at the end of the employment or becomes unable to be understood, he would be charged Re 1 for the ticket or card.

Source: Section 4, U.P. Industrial Employment Model Standing Orders, 1991

A workman remaining absent without leave for a period exceeding eight days at a stretch, without sufficient reason, should be deemed to have abandoned the job.

He should be entitled to be retained in the list of substitutes, if he has not voluntarily cleared his dues from the employer.

Source: Section 12, U.P. Industrial Employment Model Standing Orders, 1991

 

Written Employment Particulars in Rajasthan

For Minimum Wage Employees:

Every employer is to maintain a register of wages containing gross wages of each worker for a period, deductions, wages actually paid and the rate of wages.

Source: Section 27 of the Rajasthan Minimum Wages Rules, 1959

For Construction Workers:

Employers will maintain a muster roll; register of wages, deductions, overtime, fines, advances; combined register of wages-cum-muster roll with respect to each building worker they employ. The employer should take the signatures/thumb impression of building workers under register of wages or wage-cum-muster roll.

Source: Section 68 of the Rajasthan Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2009

 

Written Employment Particulars in Tamil Nadu

For construction workers:

Building and construction establishment employers ought to maintain registers of persons employed, muster of wages, deductions, overtime, wage books, and service certificates. All registered concerning workers should be authenticated by signatures, or thumb impressions of the workers.

Source: Tamil Nadu Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2006

 

Written Employment Particulars in Gujarat

The employer of a shop or an establishment should furnish to every worker an identity card.

Source: Section 17, Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019

 

Written employment particulars in West Bengal

For all factory workers:

In case of layoffs, factory owners are expected to inform inspectors about lists of workers and the cause behind the same.

Source: Section 91, West Bengal Factories Rules, 1958

 

Fixed Term Contracts

Indian labour Law allows hiring fixed term contract workers for tasks of permanent nature. There is no maximum length of fixed term contracts provided under the labour laws.

Employment of contract labour is allowed under the Contract Labour (Regulation and Abolition) Act, 1970. The Central Government (or Provincial Government) may, after consultation with the Central Board or a State Board, prohibit, employment of contract labour in any process, operation or other work in any establishment while considering the following factors:

(a) whether the process, operation or other work is incidental to, or necessary for the activity that is carried on in the establishment: (b) whether it is of perennial nature, it is of sufficient duration having regard to the nature of activity carried on in that establishment; (c) whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto; (d) whether it is sufficient to employ considerable number of whole-time workmen.

sources: §1&10 of the Contract Labour (Regulation And Abolition) Act, 1970

 

Non-Standard Workers' Rights on Employment Contracts - Platform workers

Under the currently applicable legislation in India, the platform workers are not employed by the platform. These workers use the platform to perform specific tasks, to which they can give substance in their own way, as long as it matches with the rules of the platform and the pre-arranged expectations of the people or organisations they are providing services for. Both parties, worker and platform, can terminate the agreement directly, at any given moment. Such service agreements are regulated under the Indian Contract Act 1872.

Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA Act”) regulates the engagement of contract labour through third-party contractors to do specific tasks in connection with the work of an establishment. The digital labour platforms can be interpreted as contractors under the CLRA. If this happens, it would require digital platforms to obtain a license and comply with requirements under the Act. Similarly, it would require contractors to ensure certain rights to the contract labour, i.e., platform workers as are available to the regular workers.

 

Fixed Term Contracts Under State Laws

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Fixed Term Contracts in Andhra Pradesh

No State laws and provisions under this topic.

 

Fixed Term Contracts in Maharashtra

For all apprentices:

In case of employment of apprentices, the employer would be mandated to pay one month's pay as compensation if they fail to execute the contract. On the contrary, the guardian/apprentice is liable to pay the same amount as compensation for failure to execute the contract from their end.

Source: Section 3 of the Apprentices (Maharashtra Amendment) Act, 2017

 

Fixed Term Contracts in Karnataka

No State laws and provisions under this topic. 

 

Fixed Term Contracts in Uttar Pradesh

Out of the total strength of an establishment, 80 per cent of the posts should be permanent. The employer should fill at least 80 percent of the permanent vacancies not reserved for probationers out of substitutes on seniority-cum-category basis. This must be done within six months from the date of the post falling vacant.

Source: Section 13, U.P. Industrial Employment Model Standing Orders, 1991

 

Fixed Term Contracts in Rajasthan

No State laws and provisions under this topic.

 

Fixed Term Contracts in Tamil Nadu

For workers in Industrial Establishments:

Any employee of industrial establishments in Tamil Nadu, having been with an organization for a continuous period of 480 days, will be considered to be a permanent employee. Periods of leaves, sickness, maternity leave, strikes, lockouts are to be calculated in the 480 days, as days of earning full wages.

Source: Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981

 

Fixed Term Contracts in Gujarat

No State laws and provisions under this topic.

 

Fixed term contracts in West Bengal

No State laws and provisions under this topic.

 

Probation Period

Under section 2 of the Model Standing Order, probation period is usually 6 months however it can be extended by a by a period of three months at a time at the discretion of management. The maximum probation period can't exceed two years. A person is employed as a probationer generally to fill a permanent vacancy in a post. If a permanent employee is employed as a probationer in a new post he may, at any time during the probationary period, be reverted to his old permanent post.

Source: §2 of the Model Standing Orders

 

Probation Period Under State Laws

Andhra Pradesh

Maharashtra

Karnataka

Uttar Pradesh

Rajasthan

Tamil Nadu

Gujarat

West Bengal

 

Probation Period in Andhra Pradesh

No State laws and provisions under this topic.

 

Probation Period in Maharashtra

For all employees of Private Schools:

Private schools hiring new employees should prove the absence of a qualified eligible existing employee for the said position. Persons employed in private schools (other than assistant teachers) will be on a probation period for two years. Assistant teachers in private schools must be on a probation period for three years. Upon completion of the three year period, assistant teachers would be confirmed as teachers.  

 

Probation Period in Karnataka

The Model Standing Orders under the Karnataka Industrial Employment (Standing Orders) Rules, 1961 specify the probationary workers. The maximum probation period is three months.

https://uncovered.complyindia.com/wp-content/uploads/StandingOrders/Karnataka%20Model%20Standing%20Order.pdf 

 

Probation Period in Uttar Pradesh

All appointments for a safety officer at a factory should be made on a permanent basis. Selected candidates would initially be placed on a period of probation for one year except in cases of appointments of temporarily caused vacancy from a permanent job holder being on leave or not working for any other reason.

Source: Section 4,U.P. Factories (Safety Officers) Rules, 1984

A permanent workman employed as a probationer in a new occupation may, at any time during his probationary period, be reverted to his old permanent post by a written order, signed by the employer.

Such a probationer may also, at any time during the said probationary period, seek reversion to his old permanent post by making an application therefore in writing.

A probationer should retain his legal rights against assets and seniority in his old permanent post as long as he is not made permanent in his new occupation.

Seven days before the date of expiry of probationary period the workman should be informed in writing that he has been confirmed or his probationary period has been extended further.

In case no order has been communicated to the workmen or extending the period of probation or terminating the services for unsatisfactory performance, the workman should be deemed to have been confirmed on the post from the date the probationary period expired.

The probationary period lasts for a period of six months which can be further extended to six months more.

Probationer means a provisionally employed workman working to fulfil a permanent post and has not satisfactorily completed his probationary period in that occupation.

Source: Section 3, U.P. Industrial Employment Model Standing Orders, 1991

 

Probation Period in Rajasthan

No State laws and provisions under this topic.

 

Probation Period in Tamil Nadu

No State laws and provisions under this topic.

 

Probation Period in Gujarat

No State laws and provisions under this topic.

 

Probation Periods in West Bengal

No State laws and provisions under this topic.

 

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