HR laws in India

Last Updated at: Nov 04, 2019
HR laws in India

Human Resource team of the company plays an important role relating to employment. This team recruits, hires and trains employees. They also look after the employee’s problems and the benefits for them. There are HR laws that are applicable to all the employees, right from the top position to the subordinate position.

  1. Recruitment, selection, training and development

The Article 16 of Indian constitution says that equal opportunity should be given to all citizens relating to employment. Also, it states that the employee should not be discriminated under any grounds. This is applicable to public employment. Article 24 states that the children aged below 14 should not be recruited/ employed.  A private sector establishment around 25 or more must inform vacancy under Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, Some of the common labour laws in India.

  1. Employee appraisal

It is also the responsibility of the HR department to track the performance of all employees. Employees who perform well have to be duly recognised by the organization by providing appreciation and promotions. In case of performance deficiency, HR should intimate it to the concerned employee within the particular timeframe so that employees can do improve and do their best. This was held in Baidhyant Mahaputra v. State of Orissa case.

  1. Compensation and Rewarding
  • Payment Of Wages Act,1936

As per the Payment of Wages Acts there should be no delay in paying the employees. Once the recruitment processes are done, including training the organization should ensure the workers get their due on the correct dates and time periods as per the agreement. The salaries of the employee are governed as per the industry standard. Equal bargaining power is given to the HR and the employee. This act states that even if the employee is terminated, he is entitled to get salary for the month he worked. The deduction mentioned in the act is fines, deduction for damage/ loss, deduction from recovery of loans etc.

  • Workmen Compensation Act,1923

This act provides financial support to the employees and their family members when the employee is injured. When an employee is met with accident and or gets injured or becomes disable during the course of employment, the compensation should be given under Workmen Compensation Act. Even if the person works across the sea, he is eligible for getting compensation under this act. If the employer is unable to give compensation, it is declared as a criminal offense.

  •  Payment Of Bonus Act, 1965

The bonus should be given compulsorily to the workers whose salary is not more than Rs. 21,000 irrespective of the kind of work he does. If an employee has worked for a minimum of 30 days in a particular year, he is entitled to get bonus for that particular financial year. The employee has a period of one year to claim the bonus. As per Section 10 of this act, the minimum bonus payable is 8.33%

  •  Payment Of Gratuity Act,1972

It is a retirement benefit. Every employee is entitled to get the payment of gratuity. It is a part of salary received as gratitude for the service performed during the course of employment. The Section 4 of the act says that the maximum amount of gratuity should not exceed Rs.3, 50,000.

  •  The Employees Provident Fund Act,1947

It is a social security for the employees. Every person working in the factory/ industry is eligible for this fund. The main purpose is to ensure the rights of older people. The employee will get benefits like housing, education benefits, retirement pension etc.

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  1. Healthy, Safety and Welfare measures
  • The Factories Act,1948

It is mandatory for every employer to provide a safe working environment This act is formed to protect the rights and interest of the employees. The employer has to give proper sanitation, good ventilation. There must be a fire extinguisher in all the working places. It also reduces the maximum working hours to 48 hours for a week. Section 11 to 20 deals with health measures, Section 21 to 50 deals with safety and welfare of the employees. The employees should be given a weekly holiday.

  • The Maternity Benefit Act, 1961

The main object of this act is to protect the dignity of the motherhood.  Every pregnant woman is entitled to get this benefit if she has worked in the organisation for 80 days. When she resumes the work, per the law she has to do only light work for 10 weeks. If the employer fails to give this benefit he will be prisoned.

  • Sexual Harassment Act,2013

HR is the first person to receive the complaints relating to harassment in the workplace. As he is responsible for providing safe environment for working women. He has to create awareness programmes for the employers relating to the issues of sexual harassment in workplace. He should declare the harassment as misconduct and should take severe action against the person.

  1. Industrial relation:

Industrial dispute Act, 1947 was introduced for bringing in peace between the employer and employee. It deals with disputes such as lockout by employer, strikes by employees, layoff and retrenchment. It says that before firing a worker, the employer has to sent 6 weeks prior notice stating the reason for withdrawing the employement.