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Rights Of An Employee In Public Limited Company

Employees are entitled to paid time off, including vacation, sick leave, and other types of leave. An employee is eligible for 12 days of paid vacation for every 240 days worked. To know more about an employee’s rights in a Public Limited Company, read this blog.

Employees have the right to a safe and healthy workplace and should be informed of the protections afforded by law and the Constitution. Likewise, if you are an employer, you should know that you have a duty under the law and the Constitution to ensure these conditions are met for every employee you hire. Listed below are all the public limited company employment areas regulated by legislation.

The Employment Contract

When an employee is hired, the employer must provide them with a written employment contract. The agreement specifies the employee’s classification, hours worked, employer’s expectations, what constitutes a dispute and conflict, potential outcomes should a dispute emerge, and the types of leave to which the employee is entitled. 

The parties to the agreement hope it will facilitate communication and understanding between themselves before starting employment. In addition, the prospective worker has the right to complete transparency before signing on the dotted line. Therefore, it is crucial to have a mutually beneficial employment contract in place before starting a new job.

Paid promptly and reasonably

Fair and reasonable remuneration is the fundamental aim of delivering service for an employee. Equal compensation for equal effort is guaranteed under Article 39(d) of the United States Constitution. Fair and timely payment of wages is required by law as stipulated by the Equal Remuneration Act and the Payment of Wages Act. 

An employee not being paid by the terms of their employment contract may seek help from the Labour Commissioner and initiate legal action to recover back pay. It is against the law to pay an employee less than the minimum wage in their state.

Savings account

Employees may choose to have a portion of their pay deposited into their EPF accounts by their employers by the Employees’ Provident Funds & Other Provisions Act, 1952. The Retirement Fund Organisation manages employer and employee contributions (EPFO).

Prescribed time for giving a resignation notice

Whenever an employer decides to let an employee go, they must provide advance notice so that the worker may make appropriate arrangements. If an employer wants to fire an employee, they must give them a reasonable amount of notice beforehand. If an employee has been terminated without just cause or proper notice, they may choose to see a labour attorney about filing a claim for wrongful termination.

Bonus

Any business that has been in operation for at least five years and has 20 or more workers in just about any accounting year must pay a bonus to its workers under the Bonus Payment Act 1965. 

Payments will be made if there are exactly 20 workers or fewer when the incentive is given out. Bonuses are paid out to all employees who have worked at least 30 days in either accounting year, regardless of whether or not they earn more than ₹21,000 a month. 

Time on the job and extra pay

Every employer must ensure that their workers are provided with a clean, safe, and healthy space to do their jobs. The rights of employees and non-workmen are safeguarded by the Factories Act and the Shop & Establishment Acts (in each state). 

Overtime pay is twice the standard rate if an employee works more than 9 hours a day and 48 hours a week, as mandated by current legislation. A woman employee has the option of working from 6 am -7 pm. 

This might be extended until 9:30 pm, with prior approval, extra compensation, and a secure means of transportation. In addition to the weekly day off, the law requires no and over 12 hours of labour per day and mandates a half-hour break every six hours. Underage labourers may only put in 4 – 5 hours a day.

An employee is eligible for several various types of leave, such as:

  • Each company’s take-home pay policy must be drafted by state laws and regulations governing employee leaves of absence. At least seven holidays, including federal and state celebrations, are provided by each state. This kind of leave is set aside if an employee suddenly has to take care of something important at home or in the community. It is common for corporations to provide employees with up to three days of unscheduled time off each month. You may use your casual days for medical reasons if you do not have any sick days
  • Employees are entitled to paid time off in observance of the country’s three national holidays: Republic Day (January 26), Independence Day (August 15), & Gandhi Jayanti (October 2) (October 2). The corporation may or may not observe other federal, state, or religious holidays
  • Privilege leaves, also known as earned leaves, are vacation days that an employee earns and may use in the current and subsequent calendar years. You may save up to three years’ worth of unused privilege time. If workers have no remaining sick days, they may use these instead. Now of termination, an employee is entitled to receive payment for any unused earned leave
  • If an employee, shows up to work on a day that is not a part of their scheduled time off, they may be eligible for compensatory leave
  • If an employee doesn’t have any unused vacation days but would still want to take a day off, they may do so, but the compensation for that will be withheld from the next month’s paycheck. However, at the purpose of public company’s management, the worker may be eligible for paid leave.

Payment during pregnancy in Public Limited Company

An eligible female employee is granted 26 weeks of maternity/pregnancy leave, which may be used at any time throughout the employee’s pregnancy and immediately after the birth of her child. With the passage of the Maternity Benefit Act 2017, the rights of working mothers in India have been protected. 

In the event of a miscarriage, early delivery, and medical termination of the pregnancy, the mother is also entitled to take time from work. The private sector in India is also enabling fathers to take time off to care for their newborns by providing paternity leave.

Conclusion

Vakilsearch has been an all-in-one resource for businesses and startups needing a lawyer, chartered accountant, or company secretary since 2011. We have played a pivotal role in helping entrepreneurs navigate India’s complex legal landscape.

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