Labor laws in India and legal help on employee grievances

Labor Market in India 

Development of any nation is dependent largely on its labor force. And nations’ development is measured by its Gross Domestic Product (GDP). GDP can be defined as the monetary value of all finished goods and services produced in a given time period. This production comes into place with the aid of human entrepreneur, capital, land and labour. However, it is a different issue that the labour force participation index has decreased drastically in the last few years due to implementation of executive actions like demonetization which in turn has led to a slowdown of India’s economy.  Thus we can see that labour is an important part of the process of production which in turn makes it necessary to protect their interests. This is done by enacting laws to protect the interests of labour force like the financial, health conditions, compensatory benefits, workplace essentials and other such provisions. This is done to ensure that the contractor or the employer does not exploit its employees by taking undue advantage. Laws do not just include affirmative laws, and also include the consecutive fines, penalties or punishments that follow as a result of flouting any labour laws. 

What are the major employee grievances?

The major employee grievances that are faced by the employees in an industrial setting are as follows:-

Economic Grievances: In an industrial setting, the employees have a number of economic grievances that can range from wage fixation, overtime and compensatory pay, issues pertaining bonus, revision of wages, discriminatory actions etc. 

Workplace environment:  If the physical conditions at workplace are poor, the production norms are stringent, machinery, tools and equipment are defective or raw material is of poor quality, or if discrimination exists at workplace, these issues might be a cause of employee grievances. 

Supervision Issues: The issues pertaining supervision might arise due to the attitude of the supervisor towards one’s employees, notions of bias, favoritism, caste affiliations, nepotism, religious or regional affiliations etc. 

Work Group or Trade Union Issues: Often the employees find it difficult to adjust with the colleagues and may suffer victimization, or may find it difficult to find their way into the associated trade unions. The victimization can take serious forms like workplace sexual harassment. 

Other Issues:  These might include grievances pertaining violations of required compliances with respect to rules of promotions, transfer, safety precautions and methods, grant of leave, disciplinary rules, medical facilities etc. 

What are some of the major legal issues faced by employees?

Employment Agreement: An employment agreement is a document that stipulates all the terms and conditions of employment and established the rights and obligations of the employer and the employee. Any legal issues can arise if the agreement is not drafted well enough to handle situations arising from breach of any clauses. A well written agreement stipulates the legal course of action that must be taken for any violations. 

Timely Salary: It is the legal duty of the employer to pay his employees salaries on time with proper deductions like TDS, HRA, provident fund etc. Whenever the employer fails to pay timely salaries to his employees, the employee can sue the employer with the help of a lawyer. 

Maternity Benefit:  According to the Maternity Benefit Act of 217, a female employee is entitled to a maternity leave of 26 weeks during  pregnancy and/or after the delivery. This has been done to protect the interest of pregnant women employees in India. In situations or complications arising out of pregnancy like premature birth, miscarriage or medical termination. Any denial of maternity leave by the employer gives way to a legal action against him/her.

Gratuity: At the time of retirement, termination of employment, resignation or employee’s death, certain retirement benefit is paid to the employee under the Payment of Gratuity Act, 1972. This is paid in recognition of the service given by the employee to the organization for at least 5 years of continuous service. In situations where the employer does not pay the gratuity amount to the employee, the employee can sue the employer using the legal course of action. 

Provident Fund: Employees can exercise the option to keep a certain part of their salary in the Employees provident Fund (EPF) where an art is contributed by the employer and is transferred to the account. This right is exercised under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. At times when the employer fails to transfer the amount to EPF, legal issues may arise. 

Notice Period: Where an employer wishes to terminate the employment of an employee, a notice has to be served to the employee to alert them of the impending termination. If an employer fails to provide before termination, the employee can file a complaint using the assistance of a labour law lawyer. 

Protection against Sexual Harassment: It is the duty of the employer to ensure that all the employees at the workplace, especially women employees are protected from any kind of sexual harassment. In the event of any complaint arising, the employer is required to deal with it expeditiously. Additionally, it is the duty of the employer to maintain a workplace policy that prohibits sexual harassment and establish a grievance redressal committee to deal with cases of sexual harassment at the workplace. Complaints can be filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.