Is it necessary under Indian employment laws to have Employment Agreement between the Company and its Sr. Executives? If so, should it be stamped?

Is it necessary under Indian employment laws to have Employment Agreement between the Company and its Sr. Executives? If so, should it be stamped?

Although the terms of employment of the Executives are not governed by statute or statutory rules under Indian employment laws, it is essential to have an Employment Agreement between the Company and it’s Senior Executives. The provisions of Indian Contract Act shall be applicable since the terms of employment are required to be decided by way of agreement. Recent trends show that the Senior Executives leave their jobs without notice and sometimes even join competitors…

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Components forming part of Wages for deciding contribution under Provident Fund Act, effect of splitting salary into components/allowances and its effect on Contribution under Provident Fund Act

Components forming part of Wages for deciding contribution under Provident Fund Act, effect of splitting salary into components/allowances and its effect on Contribution under Provident Fund Act

I. Components forming part of wages under the Provident Fund Act Section 6 of the Provident Fund Act in India provides for “Contribution”. The Section reads as under; ‘The Contribution which shall be paid by the employer to the Fund shall be twelve per cent of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees (whether employed by him directly or by or through…

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Heat allowance for workers during the summer months

Heat allowance for workers during the summer months

In the midst of soaring temperatures, the union representative’s of factory workers at Renault Nissan, Chennai are demanding for heat allowance to deal with the hotter months of the summer. What is a heat allowance? Similar to a hardship allowance that people working in hostile conditions are entitled, Section 2(22) of the Employee State Insurance Act defines ‘wages’ as meaning: “All remuneration paid or payable in cash to an employee, if the terms of the…

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Employees of E-Commerce market place approach Labour Department against unfair labour practices.

Employees of E-Commerce market place approach Labour Department against unfair labour practices.

The Indian e-commerce ecosystem is brimming with fierce competition and to keep up, an internet marketplace giant is looking to crack down underperformers. Based on their performance of the last six months, 200 employees of its customer care wing have been identified for the “Performance Improvement Plan” or “PIP”. Employees have been given a choice to either resign immediately; or undergo the PIP and if unsuccessful be terminated. An employee opting for a PIP is…

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What’s appropriate behavior at the workplace, and what’s not?

What’s appropriate behavior at the workplace, and what’s not?

In light of the burgeoning number of sexual harassment cases being filed lately, the new law on the subject and the recent resurfacing of the issue concerning allegations against a senior journalist, we thought it prudent to compile a few behavioral pointers for male bosses from various sources and enlist them here; No Suggestive/Explicit Talk: Avoidance of sexually explicit language at workplace or saying/writing things even distantly suggestive is taboo. While people may not object…

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Sexual Harassment and Labour Laws in India – The Vishaka Perspective

Sexual Harassment and Labour Laws in India – The Vishaka Perspective

The Hon’ble Supreme Court of India, in its judgment in Vishaka v. State of Rajasthan, laid down certain guidelines to effectively deal with sexual harassment of female employees at the workplace. The guidelines are 12 in number, and may be considered the law on the subject until statutory provisions are made in that regard. In the past many companies have faced the wrath of government authorities, NGOs, political parties, the media and the courts for…

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Supreme Court Decides On Jurisdiction For Termination Of Employee

Supreme Court Decides On Jurisdiction For Termination Of Employee

The Supreme Court in Nandram vs M/s Garware Polyster Ltd, decided upon an important point of jurisdiction of the Labour Court when deciding the termination of an employee. The Appellant/Complainant was an employee in Aurangabad and was later transferred to Pondicherry. Due to the closing down of the Pondicherry establishment, the management decided to terminate his services. The Labour Courts of both, the place where the decision to terminate and the place where the termination…

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Breach u/s 25-G & 25-H of the Industrial Disputes Act 1947 would not arise if worker has voluntarily abandoned the service

Breach u/s 25-G & 25-H of the Industrial Disputes Act 1947 would not arise if worker has voluntarily abandoned the service

All India Institute of Medical Sciences v. Jitender Kumar Name of the Case: All India Institute of Medical Sciences v. Jitender Kumar (LPA no. 496 of 2013) Judge & Court: Honorable Mr. Justice Pradeep Nandrajog Honorable Ms. Justice Pratibha Rani in the High Court of Delhi Date of reservation: 4th March 2015 Date of judgment: 17th March 2015 Name of the Parties: All India Institute of Medical Sciences (Appellant) Jitender Kumar (Respondent) Prior history of…

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Bombay Shops and Establishments Act, 1948

Bombay Shops and Establishments Act, 1948

Chapter: PreliminarySection 1: Short title extent and operation (1) This Act may be called the Bombay Shops and Establishments Act 1948. [(2) It extends to the whole of the State of Maharashtra] (3) It shall in the first instance come into force in the local areas specified in Schedule I: [Provided that, on the commencement of the Bombay Shops and Establishments (Extension and Amendment) Act, 1960, Mah.XXVI of 1961, all the provisions of this Act…

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Benefits to Contract workers vis-à-vis Permanent Workers

Benefits to Contract workers vis-à-vis Permanent Workers

The Hon’ble Madras High Court in the matter of Airport Authority of India vs. Authority under Contract Labour (R & L Central Rules), Writ Petition No.8591 of 2002, decided on 14.06.2011; held that where the workmen employed by a Contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment the wage rates, holidays, hours of work and other condition of service of the contractor,…

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