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Read: Every Corporate Professional in India Must Know about these 5 Laws
Published : Apr 5, 2023, 12:34 pm IST
Updated : Apr 5, 2023, 12:34 pm IST
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For Representation Purpose Only
For Representation Purpose Only

Payment of Gratuity Act, 1972 provides for the payment of a fixed sum

NEW-DELHI: In the recent times, many cases have come to the fore of employees approaching court to seek justice. Last year, IT company Infosys was summoned by the Union Labor Commissioner and later by the Karnataka Labor Department over non-compete clauses in its employment agreements. A Chennai court has ordered Tata Consultancy Services to reinstate an employee sacked in 2015 and pay him full salary and benefits for seven years.

There are other examples that show how awareness of certain laws helped corporate professionals not only demand justice, but also set an example for other companies to avoid bullying. Indian labor laws do not clearly define salaried employees. However, the Industrial Disputes Act of 1947 referred to an "employee" as any person, including an apprentice, engaged in "manual, unskilled, skilled, technical, operational, clerical or supervisory work" in an industry.  

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The Payment of Gratuity Act, 1972 provides for the payment of a fixed sum to an employee on termination of employment on retirement, resignation, death or disability due to accident or disease, after continuous service of at least five years. In case of death, the gratuity should be paid to the nominee/heir of the deceased employee. The Act also has penal provisions that every employee should be aware of.

Under the Maternity Benefit Act 1961, employers cannot employ women in any capacity for six weeks immediately after childbirth or abortion. Most importantly, employers are liable to pay maternity benefits at the average daily wage rate for the immediate period of absence including the day of delivery and the next six weeks. However, to claim the benefit, the employee must have worked at least 160 days in the 12 months immediately preceding the expected delivery.

The Employees' State Insurance Act of 1948 ensures employees and provides financial assistance in the event of injury. The Employees State Insurance Corporation administers the Employees State Insurance Scheme, which provides basic medical and financial assistance to employees and their families and covers sickness, employment injury or maternity benefits.
 

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Location: India, Delhi, New Delhi

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ROZANA SPOKESMAN

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