Labour law - A Step Towards Inclusive Labour Protection.

Delhi Drafts Social Security Rules for Gig and Platform Workers.

The Government of Delhi has released draft rules under the Code on Social Security, 2020, extending for the first time a structured framework of welfare measures to gig and platform workers. With the rapid growth of the digital economy, ride-hailing, food delivery, and e-commerce logistics, India’s urban workforce is increasingly dependent on platform-based jobs. However, this segment has remained largely outside traditional labour protections. Delhi’s move signals a shift towards formal recognition and welfare coverage for gig workers.

Background: The Gig Economy in India

India’s gig and platform economy is among the fastest-growing globally:

• Over 7.7 million gig workers were estimated in 2020-21, projected to reach 23.5 million by 2030 (NITI Aayog).
• Gig workers typically operate as independent contractors for companies like Ola, Uber, Zomato, Swiggy, Amazon, and Urban Company.

Their biggest challenges include:

• Lack of minimum wage guarantees
• No health or accident insurance coverage
• No access to provident fund (PF), ESI, or maternity benefits
• Income volatility due to algorithmic management and a lack of bargaining power

The Code on Social Security, 2020, recognised gig and platform workers as a distinct category, mandating governments to frame welfare schemes. Delhi is one of the first states to issue concrete draft rules.

Key Provisions of the Draft Rules

1. Registration of Workers:

Gig and platform workers can self-register on the e-Shram portal or through facilitation centres to avail social security benefits.

2. Welfare Schemes:

• Health and Accident Insurance coverage under the Employees’ State Insurance (ESI) framework or equivalent schemes.
• Maternity and Disability Benefits for eligible workers.
• Skill Development and Reskilling initiatives to enhance employability.

3. Funding Mechanism:

The draft rules propose contributions from:

• Aggregators/Platforms: A small percentage of annual turnover (similar to provisions in the Code).
• Government Subsidy: To supplement contributions and ensure sustainability.

4. Grievance Redressal:

Establishment of nodal officers and help desks for handling worker complaints, disputes with platforms, and delays in benefit delivery.

5. Inclusion of Delivery Partners and Drivers:

The rules specifically recognise drivers, delivery partners, and logistics workers as eligible beneficiaries.

Why This Move Matters

1. Formal Recognition: Gig and platform workers are, for the first time, formally covered by labour welfare frameworks in Delhi.
2. Welfare Security: Access to health insurance, accident coverage, and maternity benefits can reduce economic vulnerability.
3. Corporate Accountability: By mandating aggregator contributions, the government ensures that platforms share responsibility for worker welfare.
4. Model for Other States: If effectively implemented, Delhi’s framework could inspire other states to follow suit.

Challenges and Concerns

1. Implementation Hurdles: Many gig workers lack awareness or digital literacy to register for schemes.
2. Resistance from Platforms: Companies may resist additional financial contributions, citing higher operational costs.
3. Coverage Gaps: Questions remain around whether part-time gig workers or multiple-platform workers will be fully covered.
4. Monitoring Compliance: Strong regulatory oversight will be required to ensure platforms actually contribute to welfare funds.

Comparative Perspective

Delhi’s draft rules come at a time when other states, such as Rajasthan and Karnataka, have also announced or piloted welfare measures for gig workers. However, Delhi’s approach emphasises:

• Integration with the e-Shram portal (centralised database)
• Defined contribution model for aggregators
• Urban worker focus, given the high concentration of gig employment in Delhi NCR

The Road Ahead

For Delhi, the key task will be ensuring enforcement and awareness. Registration drives, digital literacy campaigns, and close collaboration with worker unions will be essential. In the long run, effective implementation could set a national benchmark for gig worker welfare. 

A New Model for Transparency and Worker Welfare.

In a landmark move, the Government of Uttar Pradesh has announced the creation of the UP Outsource Service Corporation Ltd., aimed at improving transparency, accountability, and welfare for outsourced employees across the state. This initiative seeks to address long-standing challenges faced by contractual and outsourced staff regarding job security, timely payments, and access to statutory benefits such as the provident fund (PF) and the employee state insurance (ESI).

Why Outsourced Workers Need Reform

Outsourced workers form a significant part of India’s workforce, particularly in government departments, public sector undertakings, and private establishments. They are typically employed through contractors, often facing:

• Delayed or irregular payments of wages
• Denial of statutory benefits like EPF, ESI, and maternity leave
• Lack of social security provisions, including accident or death compensation
• No grievance redressal mechanisms to address exploitation

In Uttar Pradesh, which employs thousands of outsourced workers in essential services, the absence of safeguards has long been criticized by trade unions and labour rights activists.

Key Features of the UP Outsource Service Corporation

1. Centralized Oversight:

The corporation will act as the nodal body for managing outsourced employment contracts across government departments and certain public services.

2. Transparency in Recruitment:

Outsourced staff will be recruited and placed through the corporation, reducing reliance on third-party contractors and minimizing corruption or favoritism.

3. Guaranteed Benefits:

• EPF and ESI coverage for all eligible workers
• Maternity leave benefits for women employees
• Funeral assistance in case of employee death
• Skill development and training programs to enhance employability

4. Timely Wage Payments:

Workers are promised monthly wages ranging between ₹16,000 and ₹20,000, paid directly into their bank accounts to prevent delays or deductions.

5. Social Security Measures:

In addition to statutory benefits, the corporation will provide welfare schemes and emergency financial support.

Government’s Objectives

The UP government has positioned this initiative as a win-win for both workers and employers:

• For Workers: Provides dignity, regularity of pay, and social security, reducing exploitation in outsourced contracts.
• For Employers (Departments): Ensures compliance with labour laws and reduces the administrative burden of managing outsourced staff.
• For the State: Enhances Uttar Pradesh’s image as a labour-friendly state, potentially attracting investments by showing commitment to fair employment practices.

Reactions from Stakeholders

• Worker Unions: Many trade unions have cautiously welcomed the move, while demanding clarity on implementation and coverage across sectors.
• Private Contractors: Some contracting agencies fear the reform will shrink their role and business model, as the state takes direct control of outsourced labour.
• Policy Experts: Labour law experts have called this a progressive experiment, but warn that the corporation must remain efficient and corruption-free to achieve its goals.

Legal and Policy Implications

1. Labour Law Compliance:

By ensuring EPF, ESI, and other statutory benefits, the corporation aligns with India’s Code on Social Security, 2020, and addresses chronic gaps in outsourced employment.

2. Reduced Litigation:

Workers often approach labour courts for delayed wages or denied benefits. The corporation could reduce such disputes by ensuring timely compliance.

3. Precedent for Other States:

If successful, the model may inspire other states to establish similar corporations to regulate outsourced workforces.

Challenges Ahead

While the initiative is ambitious, several challenges remain:

• Ensuring universal coverage of all outsourced workers, including those in remote areas
• Preventing bureaucratic delays in approvals and payments
• Balancing cost implications for government departments that may need to allocate higher budgets for worker benefits
• Setting up an effective grievance redressal system to handle worker complaints promptly

The Road Ahead

The UP Outsource Service Corporation represents an innovative attempt to bring dignity and fairness to outsourced employment—a sector often plagued with informality and exploitation. If implemented effectively, it could redefine how contractual labour is managed in India, bridging the gap between labour welfare and administrative efficiency.

Labour Rights and State Authority.

Chhattisgarh Terminates NHM Employees for Strike Participation - A Test Case for Labour Rights and State Authority.

The Chhattisgarh government recently terminated the services of 25 employees under the National Health Mission (NHM) for continuing an indefinite strike despite repeated notices to return to work. The move, justified by the administration under the “no work, no pay” policy, has stirred debate around labour rights, essential services, and the limits of collective bargaining in India’s public healthcare sector.

Background of the Dispute

• The NHM employees in Chhattisgarh, including contractual health workers and support staff, went on strike pressing demands for better pay scales, regularisation of services, and improved working conditions.
• The government partially accepted some of the demands but ordered employees to return to duty, citing the essential nature of healthcare services.
• When several employees continued to defy the order, 25 staff members were terminated, with the government warning of further action against non-compliance.

Legal Framework Involved

1. Essential Services Maintenance Act (ESMA):

Healthcare is treated as an essential service, where strikes can be restricted to ensure the uninterrupted delivery of public services.

2. No Work, No Pay Principle:

Recognised in Indian labour jurisprudence, this principle allows employers (including the state) to withhold wages if employees abstain from work without authorisation.

3. Contractual Employment Issues:

Most NHM staff are employed on a contractual basis. Unlike permanent government employees, they lack strong protections under service rules, making them more vulnerable to termination.

Government’s Justification

The Chhattisgarh government defended its decision on three primary grounds:

• Continuity of Essential Services: Public health facilities cannot afford disruptions, especially in rural areas where NHM staff form the backbone of service delivery.
• Partial Acceptance of Demands: Officials argued that, since some demands had already been met, continued strike action was unjustified.
• Administrative Discipline: Allowing prolonged defiance would set a precedent for other contractual or essential service employees.

Concerns Raised by Workers and Unions

Trade unions and employee associations have strongly criticised the government’s action:

• Suppression of Collective Bargaining: Termination, rather than dialogue, signals a punitive approach to legitimate worker grievances.
• Job Insecurity: Contractual workers already face precarious conditions; termination without due process deepens insecurity.
• Workers’ Rights vs. Public Interest: While ensuring healthcare delivery is crucial, workers argue that their long-standing demands for fair wages and regularisation cannot be ignored indefinitely.

Broader Implications for Labour and Employment Law

1. Strikes in Essential Services: The case underscores the tension between workers’ right to protest and the state’s duty to maintain uninterrupted essential services.

2. Need for a Balanced Framework: Labour law reforms must balance workers’ rights to collective action with citizens’ rights to essential services.

3. Contractualisation Debate: The heavy reliance on contractual workers in critical sectors like healthcare raises questions about job security and fair labour standards.

The Road Ahead

For Chhattisgarh and other states, this episode offers critical lessons:

• Dialogue Mechanisms: Establishing structured negotiation platforms between the government and contractual workers could help prevent such confrontations.
• Policy Reforms: Long-term reforms must address issues of regularisation, fair pay, and job security for NHM staff.
• Judicial Intervention: The terminated employees may approach labour courts or high courts, potentially setting legal precedents on the treatment of contractual staff in essential services.

Labor Law - Gujarat Achieves 100% Boiler Safety Inspections.

A Milestone in Industrial Safety and Labour Welfare.

In August 2025, the Government of Gujarat announced that it had completed 100% inspection of all registered boilers and economizers in the state under the Boiler Act, 2025. This achievement, covering nearly 24,000 boilers and 675 economizers, underscores the state’s commitment to industrial safety, worker welfare, and effective regulatory oversight. Importantly, Gujarat reported zero boiler-related fatalities in the last three years, setting a benchmark for industrial states across India

What Are Boilers and Why Do They Matter?

Boilers are integral to industries such as textiles, chemicals, pharmaceuticals, and food processing. They generate steam or heat for manufacturing processes. However, boilers are also high-risk equipment, prone to accidents if not properly maintained, inspected, or operated. Boiler explosions can cause catastrophic damage to life, property, and the environment—making rigorous inspections a legal necessity.

The Boiler Act, 1923 (as amended and modernized into the Boiler Act, 2025) mandates periodic inspections, certification, and adherence to safety standards. Gujarat’s full compliance demonstrates both administrative efficiency and a proactive approach to industrial safety.

Key Highlights of Gujarat’s Achievement

1. 100% Coverage:

Every registered boiler and economizer in the state has been inspected within the prescribed timelines.

2. Digital Monitoring:

The government used technology-driven platforms to track inspection schedules, compliance records, and renewals, minimizing administrative delays.

3. Zero Fatalities:

Gujarat reported no boiler-related deaths in the last three years, a remarkable achievement in a state with a high density of industrial operations.

4. Capacity Building:

Regular training of boiler inspectors and technical staff helped improve the quality of inspections and reduce the risks of oversight.

5. Industry Collaboration:

The initiative was implemented in partnership with industrial associations, ensuring awareness and compliance among factory owners.

Government’s Rationale and Objectives

The Gujarat government highlighted three main objectives behind prioritizing boiler safety:

• Worker Protection: Ensuring the health and safety of lakhs of workers employed in industries dependent on boiler operations.

• Ease of Doing Business: Streamlined, digital-first inspections reduce delays and make compliance easier for industries.

• Sustainable Industrial Growth: By preventing accidents, the state fosters an environment of trust and stability, attracting further investments.

Impact on Labour and Employment Law

1. Strengthened Workplace Safety Norms:

The achievement aligns with India’s Occupational Safety, Health, and Working Conditions Code, 2020, which emphasizes the importance of preventive safety measures.

2. Reduced Employer Liability:

Employers who comply with boiler regulations face fewer risks of prosecution under the Factories Act or tort law for negligence.

3. Model for Other States:

Gujarat’s success could encourage other industrial states, such as Maharashtra, Tamil Nadu, and Karnataka, to adopt similar digital-first, compliance-focused frameworks.

Concerns and Critical Perspectives

While the announcement is widely celebrated, labour experts raise some cautionary points:

• Inspection Quality vs. Quantity: Completing 100% inspections is commendable, but ensuring the depth and rigor of each inspection is equally important.

• Unregistered Units: Some small-scale units may still be operating boilers without registration, which remains a blind spot.

• Worker Awareness: Safety is not just about compliance by employers but also about training workers in handling boilers and reporting early warning signs.

The Road Ahead

To sustain its achievement, Gujarat will need to:

• Continue annual inspections without backlog.
• Enhance predictive safety systems using AI and IoT for real-time monitoring of boilers.
• Expand worker training programs in safety and emergency preparedness.
• Conduct surprise inspections to discourage non-compliance in smaller factories.

Rajasthan’s Labour Law Reform: Night Shifts for Women and Flexible Work Hours in Factories.

Rajasthan has taken a bold step in labour law reform by introducing the Factories (Rajasthan Amendment) Bill, 2025, which permits women to work night shifts and allows flexible working hours across industrial units. The move, while projected as progressive and business-friendly, has sparked debate among policymakers, employers, and worker representatives about its implications for gender equality, safety, and labour rights.

Key Features of the Amendment

1. Night Shifts for Women

• Women employees in factories can now work between 7 PM and 6 AM, provided they give their written consent.

• Employers must ensure safe transportation, adequate security measures, and sanitary facilities for women working late hours.

• The law makes it mandatory for factories to provide a safe workplace free of sexual harassment, linking the reform to compliance with the POSH Act, 2013.

2. Flexible Working Hours

• The daily working limit has been raised from 9 hours to 12 hours, subject to the weekly cap of 48 hours.

• Overtime beyond these limits requires double wages.

• Employers can redistribute shifts, allowing longer workdays on some days and shorter ones on others, thereby introducing a degree of flexi-time in factory operations.

3. Paid Holidays and Leave

• The amendment provides for paid holidays in line with national standards and expands leave entitlements to support worker welfare.

Government’s Justification

The Rajasthan government has justified these reforms on multiple grounds:

1. Women’s Economic Empowerment: By allowing women to work night shifts, the government aims to open up opportunities in manufacturing, textiles, IT-enabled services, and export-driven industries.

2. Industrial Competitiveness: Flexible shifts and longer permissible workdays are seen as essential for aligning Rajasthan’s labour policies with global production models.

3. Investment Promotion: The reforms are expected to attract domestic and foreign investment, particularly in 24/7 production industries like garments, electronics, and pharmaceuticals.

Concerns Raised by Unions and Experts

Despite the progressive intent, trade unions and labour rights experts have flagged several concerns:

• Safety Risks: Even with legal safeguards, ensuring real-time safety for women working at night—especially in semi-urban and rural factory locations remains a challenge.

• Consent Pressure: Women workers may feel obliged to consent to night shifts due to job insecurity, undermining the spirit of voluntary choice.

• Health Implications: Long and irregular shifts may increase fatigue, stress, and long-term health issues for workers.

• Risk of Tokenism: Without parallel efforts to increase women’s participation in the workforce, such reforms may remain underutilised.

Comparative Context

• Other States: States like Tamil Nadu and Karnataka have already allowed women to work night shifts, especially in IT/ITES sectors, with strong safety requirements. Rajasthan’s move extends this facility to a wider range of factory-based industries.

• Central Labour Codes: The Occupational Safety, Health and Working Conditions Code, 2020, also allows women to work night shifts subject to safety conditions. Rajasthan’s amendment aligns state law with this central framework.

Legal and Policy Implications

1. POSH Act Compliance: Employers will need to strengthen Internal Committees (ICs) and grievance redressal mechanisms for women working late hours.

2. Infrastructure Investments: Businesses may face additional compliance costs in providing transport, surveillance, and other safeguards.

3. Gender Inclusion Push: If implemented well, the amendment could boost women’s participation in traditionally male-dominated manufacturing sectors, enhancing diversity.

The Road Ahead

Rajasthan’s reform is a double-edged sword. On the one hand, it has the potential to empower women economically and make industries more competitive. On the other, without strict enforcement and robust support systems, it risks creating unsafe and exploitative work conditions.

To make the amendment truly effective, the government and employers must:

• Ensure safe, reliable, and affordable transport for women employees.

• Establish gender-sensitive workplace infrastructure.

• Enforce transparent consent processes for night shifts.

• Run awareness campaigns to educate women about their rights.

Maharashtra’s New Labor Law Amendments

Longer Workdays, Wider Exemptions, and Rising Protests

The Maharashtra government has recently introduced significant amendments to state labour laws, sparking heated debates among trade unions, industry representatives, and labour rights activists. These changes—focused primarily on extending working hours and revising the applicability of the Shops and Establishments Act—are being positioned as measures to enhance productivity and attract investment. However, critics argue that they dilute hard-won worker protections and may worsen job conditions for lakhs of employees across the state.

Key Provisions of the Amendments

1. Extension of Working Hours

• Factories: The permissible working hours have been increased from 9 hours to 12 hours a day.

• Shops and Commercial Establishments: Employees can now be asked to work up to 10 hours a day, compared to the earlier cap of 9 hours.

• Weekly Limits: While the daily limit has gone up, the weekly maximum remains at 48 hours, aligning with international standards. This means employers may reorganize shifts to stretch some workdays longer while reducing others.

• Overtime Pay: Any work beyond 9 hours in a day or 48 hours in a week must be compensated at double the ordinary wage rate.

• Written Consent: Employees cannot be compelled to work extended shifts without their written approval, a safeguard introduced to balance flexibility with consent.

2. Changes to Shops and Establishments Act

• Threshold for Applicability Raised: The Act will now cover establishments with 20 or more employees, up from the earlier 10-employee threshold.

• Impact: This change means thousands of small shops and offices employing between 10–19 workers will fall outside the Act’s ambit, thereby escaping regulatory obligations on working conditions, leave policies, and welfare provisions.

Government’s Rationale

The state government has defended the amendments on multiple grounds:

• Ease of Doing Business: Relaxing the applicability of the Shops Act is expected to reduce compliance burdens for small businesses.

• Global Competitiveness: Longer daily work shifts, with flexibility for employers, are seen as aligning India with international work models, particularly in manufacturing hubs.

• Attracting Investments: By allowing operational flexibility, the government hopes to attract more private and foreign investments in Maharashtra’s industrial and commercial sectors.

Trade Union and Worker Concerns

Trade unions across Maharashtra have strongly opposed the changes, calling them a step backward in labour welfare. Their concerns include:

• Worker Exploitation Risks: Longer shifts could lead to fatigue, health issues, and lower productivity over time.

• Dilution of Worker Protections: Raising the Shops Act threshold excludes a significant portion of workers, leaving them vulnerable to arbitrary employer practices.

• Pressure on Consent Clause: Despite the requirement for written consent, workers may feel compelled to agree to extended hours due to job insecurity.

• Impact on Women Workers: Safety concerns around late working hours, especially for women in retail and services, remain inadequately addressed.

Trade unions have announced state-wide protests, and some have threatened legal challenges to the amendments.

Legal and Policy Implications

1. Alignment with Labour Codes: These changes anticipate the implementation of India’s four Labour Codes (particularly the Code on Wages and Occupational Safety, Health and Working Conditions Code), which also provide scope for longer workdays with weekly caps.

2. Potential Judicial Scrutiny: Given India’s constitutional protection of the right to life and dignity under Article 21, challenges may arise over whether such long shifts are reasonable and safe.

3. Precedent for Other States: Maharashtra’s move may encourage other states to adopt similar reforms, especially those competing to attract industries.

The Road Ahead

The amendments reflect the ongoing tug-of-war in Indian labour policy—between promoting business flexibility and safeguarding worker rights. While employers may welcome the reduced compliance and greater operational freedom, workers and unions fear erosion of labour standards. The real impact will depend on how strictly provisions on overtime pay, consent, and workplace safety are enforced.

For policymakers, the challenge lies in striking a balance between economic growth and human welfare. Without strong monitoring and enforcement, these reforms risk becoming a tool for exploitation rather than a means of empowerment.

Law related labor rights in India

Indian labor law is extensive and aims to protect workers' rights and ensure fair treatment. These laws are primarily under the Concurrent List of the Constitution, meaning both the central and state governments can enact legislation. Historically, many of these laws were enacted to address issues like exploitation, poor working conditions, and unequal pay.

Foundational Acts and Codes

The legal framework is based on several key acts and, more recently, four new labor codes that consolidate and simplify many of the existing laws.

Older Acts (many of which are being subsumed by new codes):

• Industrial Disputes Act, 1947: This act is crucial for regulating the relationship between employers and employees. It provides a mechanism for the investigation and settlement of industrial disputes through conciliation, arbitration, and adjudication. It also outlines the rules for strikes, lockouts, layoffs, and retrenchments.
• The Factories Act, 1948: This law focuses on the health, safety, and welfare of workers in factories. It sets standards for working hours (a maximum of 48 hours per week), cleanliness, ventilation, lighting, and a safe working environment. It also includes provisions for adequate breaks and weekly offs.
• Minimum Wages Act, 1948: This act empowers the government to fix minimum wage rates for employees in specific industries. The wages are determined based on factors like the cost of living and the nature of the work. This ensures that no worker is paid a wage below a certain threshold.
• Payment of Wages Act, 1936: This law ensures the timely payment of wages to employees and prevents unauthorized deductions from their salaries. It specifies the period within which wages must be paid (e.g., within the first seven days of the next month).
• Payment of Bonus Act, 1965: This act mandates the payment of a statutory bonus to eligible employees based on the profits or productivity of the company. The minimum bonus is set at 8.33% of the employee's salary.
• Employees' Compensation Act, 1923: This law provides for the payment of compensation to workers and their dependents in case of injuries, diseases, or death sustained during employment.
• Contract Labour (Regulation and Abolition) Act, 1970: This act regulates the employment of contract labor in certain establishments and provides for its abolition in specific circumstances to prevent exploitation. It also makes both the contractor and the principal employer responsible for the welfare of contract workers.
• Trade Unions Act, 1926: This act provides for the registration and regulation of trade unions. It gives workers the right to form and join unions to collectively bargain with employers for better wages and working conditions. Registered unions also receive certain legal protections and privileges.
• Maternity Benefit Act, 1961: This law provides maternity benefits to female employees, including paid leave (up to 26 weeks) and protection from dismissal during pregnancy.

New Labour Codes

In an effort to simplify and modernize the complex web of existing labor laws, the Indian government has introduced four new labor codes. These codes are designed to consolidate and replace a total of 29 existing laws, aiming for a more uniform and streamlined framework. While they have been enacted, their full implementation is still pending.

• Code on Wages, 2019: This code merges four laws, including the Minimum Wages Act and the Payment of Bonus Act. It aims to ensure a universal minimum wage and timely payment to all employees.
• Industrial Relations Code, 2020: This code consolidates the Industrial Disputes Act, Trade Unions Act, and the Industrial Employment (Standing Orders) Act. It focuses on simplifying the process for dispute resolution, making it easier for companies to hire and fire employees, and setting new rules for strikes.
• Code on Social Security, 2020: This code amalgamates nine social security laws, like the Employees' Provident Funds and the Maternity Benefit Act. Its goal is to provide social security benefits to a wider range of workers, including those in the gig economy and the unorganized sector.
• Occupational Safety, Health and Working Conditions Code, 2020: This code combines 13 laws related to workplace safety, health, and working conditions. It mandates that employers provide a safe work environment, adequate facilities, and proper working hours for all employees

Employee Grievance Redressal & Workplace Harassment: Legal Compliance and Best Practices in India

A robust grievance redressal mechanism and a strong policy framework for addressing workplace harassment are essential components of responsible and legally compliant Human Resource management. In India, both statutory law and judicial precedents have made it mandatory for organizations to ensure that employees have a safe, respectful, and grievance-free work environment. Failure to establish such mechanisms can expose employers to legal action, employee disengagement, and reputational harm.

The cornerstone of grievance management in India is derived from the Industrial Disputes Act, 1947 (ID Act), which mandates the establishment of Grievance Redressal Committees in organizations employing 20 or more workers. The Act provides that every industrial establishment must have a committee to resolve individual grievances in a time-bound and impartial manner. Even in workplaces where the ID Act is not applicable, organizations are encouraged to establish internal grievance mechanisms as part of good HR practice and in alignment with the principles of natural justice.

One of the most significant legal developments in grievance redressal has been the introduction of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013—commonly known as the POSH Act. This law requires every employer with more than 10 employees to establish an Internal Committee (IC) to address complaints of sexual harassment. The law outlines detailed procedures for filing complaints, conducting inquiries, and taking action, all while ensuring confidentiality and a fair hearing for both parties. Failure to comply with the POSH Act can result in penalties, cancellation of business licenses, and judicial action.

Apart from sexual harassment, organizations must address other forms of workplace misconduct, such as bullying, discrimination, mental harassment, and victimization. The Equal Remuneration Act, 1976 (now merged into the Code on Wages, 2019) and the Rights of Persons with Disabilities Act, 2016 require employers to prevent discriminatory practices based on gender, disability, or other protected grounds. Grievances arising from such issues must be handled with sensitivity, neutrality, and in compliance with legal standards.

Grievance redressal also intersects with disciplinary procedures under the Industrial Employment (Standing Orders) Act, 1946, which mandates that misconduct and disputes must be addressed through a fair and transparent inquiry process. Many Indian courts, including in cases such as Punjab National Bank vs. Kunj Behari Misra (1998 AIR 2713), have held that employees must be allowed to be heard before any adverse action is taken. An effective grievance redressal system not only fulfills legal requirements but also helps prevent escalation to labour courts or tribunals.

Workplace harassment, including sexual harassment, is increasingly being viewed not only as an HR issue but as a human rights concern. The Supreme Court of India, in the landmark Vishaka v. State of Rajasthan (AIR 1997 SC 3011) case, laid the foundation for the POSH Act by establishing guidelines for preventing sexual harassment, highlighting the employer’s obligation to create a safe workplace. Modern workplaces are expected to go beyond minimum legal compliance by fostering a culture of respect, zero tolerance for harassment, and providing multiple channels for grievance reporting, including anonymous systems.

In conclusion, a legally compliant and ethically sound framework for grievance redressal and harassment prevention is essential for every organization. HR professionals must ensure that policies are clearly communicated, committees are properly trained, and grievances are handled promptly and fairly. Proactive compliance not only reduces the risk of legal challenges but also strengthens employee trust, retention, and organizational culture. In today’s world, respecting employee dignity is not just a legal obligation—it is a business imperative.

Legal Compliance and Best Practices in India

Disciplinary Action and Termination: Legal Compliance and Best Practices in India

Handling disciplinary actions and termination of employment is one of the most sensitive aspects of Human Resource management. It requires not only careful consideration of organizational interests but also strict adherence to employment laws and principles of natural justice. Improper disciplinary action or termination can expose employers to legal disputes, reputational damage, and financial liabilities. In India, labour and employment laws provide a well-defined framework that governs how such actions must be carried out.

The primary legal framework governing termination and discipline is the Industrial Disputes Act, 1947 (ID Act), which applies to "workmen" as defined under the Act. Under this law, terminations can be categorized into dismissal for misconduct, retrenchment, or discharge. The Act mandates that any termination of a workman who has completed 240 days of continuous service requires compliance with the principles of natural justice, proper enquiry, notice, and retrenchment compensation where applicable. Failure to comply can result in orders for reinstatement with back wages or substantial compensation.

For employees outside the scope of the ID Act, such as managerial or supervisory staff, employment is governed primarily by the terms of the employment contract and applicable Shops and Establishments Acts (which vary by state). Termination clauses must be carefully drafted in the appointment letter or employment contract, specifying notice periods, severance pay, and grounds for termination. Courts in India, through various judgments, have emphasized that even in the case of contractual employees, arbitrary dismissal without due process can be challenged under civil law or constitutional provisions.

Disciplinary action must also comply with the Industrial Employment (Standing Orders) Act, 1946, wherever applicable. This Act requires that employers clearly define acts of misconduct and the corresponding disciplinary procedures. Misconduct such as absenteeism, insubordination, or workplace harassment must be handled through a domestic enquiry—a fair hearing where the employee is informed of the charges, allowed to present their defense, and the enquiry officer records findings objectively. The Supreme Court in Workmen of Firestone Tyre & Rubber Co. v. Firestone Tyre & Rubber Co. (1973 AIR 1227) held that adherence to proper enquiry procedures is essential, and lack of due process can render the dismissal invalid.

In cases of termination due to misconduct, such as theft, fraud, or harassment, it is also essential to comply with laws such as the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH). If the disciplinary action relates to sexual harassment, it must be routed through the Internal Committee (IC) and follow the procedures outlined in the POSH Act, including investigation, reporting, and fair hearing. Termination without following the POSH process in such cases can be declared illegal and discriminatory.

Additionally, retrenchment and layoffs require compliance with Sections 25F and 25N of the Industrial Disputes Act, 1947, including providing notice, offering compensation, and notifying labour authorities. The Payment of Gratuity Act, 1972, also mandates payment of gratuity for employees who have completed five years of continuous service, regardless of the reason for termination, unless dismissed for proven misconduct involving moral turpitude.

Courts in India have consistently ruled in favor of employees when procedural fairness is not followed. For example, in D.K. Yadav vs. J.M.A. Industries Ltd. (1993 AIR 412), the Supreme Court held that even in private employment, the principles of natural justice apply, and arbitrary dismissal without hearing is unconstitutional.

In conclusion, disciplinary action and termination must be carried out with legal compliance, fairness, and due process. HR professionals must ensure that every step—from issuing show-cause notices to conducting enquiries and serving termination letters—follows legal protocols and ethical standards. Training managers on disciplinary procedures, maintaining proper documentation, and seeking legal counsel in complex cases are crucial to minimizing legal risks while upholding organizational discipline.

Working Hours, Leave, and Attendance: Legal Requirements and Best Practices in India.

Managing working hours, leave entitlements, and attendance is a core responsibility of the Human Resources function. These aspects not only ensure operational efficiency but are also governed by multiple labour laws in India. Non-compliance with statutory provisions can expose organizations to legal claims, penalties, and damage to employee relations. HR professionals need to design policies that comply with the law while meeting business needs.

The regulation of working hours is primarily governed by the Factories Act, 1948, for factories, and the various Shops and Establishments Acts, which are state-specific, for commercial establishments. According to the Factories Act, adult workers cannot be required to work more than 48 hours per week or 9 hours per day, with mandatory rest intervals. Similarly, state-specific Shops and Establishments Acts generally cap working hours at 48–50 hours per week, with daily maximums and weekly off provisions. Employers who fail to comply with these limits may face penalties, including fines and prosecution.

When it comes to leave entitlements, Indian labour law prescribes a minimum number of paid leaves that employers must grant. The Factories Act, 1948 mandates one day of earned leave for every 20 days worked, while state Shops and Establishments Acts often mandate casual leave, sick leave, and privileged leave. In addition, organizations must comply with the Maternity Benefit Act, 1961, which provides 26 weeks of paid maternity leave to eligible women employees. The Paternity Leave policy, though not mandated by law for the private sector, is increasingly being adopted as part of progressive HR practices.

The attendance and overtime provisions are closely linked to legal compliance. The Factories Act and most Shops and Establishments Acts require that any work beyond the prescribed daily or weekly working hours must be compensated as overtime, usually at twice the ordinary wage rate. Courts in India have consistently upheld the right of employees to claim back wages and overtime compensation if denied. The Bombay Shops and Establishments Act (applicable in Maharashtra) is particularly stringent about overtime rules and wage payments for extra hours.

One area of increasing focus is leave for special circumstances. The Maternity Benefit (Amendment) Act, 2017 mandates not only maternity leave but also 12 weeks of leave for adopting and commissioning mothers. Moreover, the Employees’ State Insurance Act, 1948, provides for medical leave and sickness benefits for employees covered under ESI. Failure to grant such leaves can result in labour court cases, compensatory orders, and even criminal liability in some cases.

Attendance management is also legally significant when it relates to unauthorised absence, habitual absenteeism, or misconduct proceedings. Under the Industrial Employment (Standing Orders) Act, 1946, absenteeism without permission can be categorized as misconduct, but termination for such absence must still follow principles of natural justice. Employers are required to issue warning letters, conduct domestic inquiries, and provide an opportunity to the employee to present their case before any disciplinary action is taken.

In the wake of remote work and flexible schedules, the legal framework for working hours and attendance is evolving, but the fundamental obligations around maximum working hours, leave, and employee welfare remain unchanged. Employers must balance flexibility with statutory compliance, ensuring that digital attendance systems, work-from-home policies, and flexible shifts do not violate labour law requirements.

In conclusion, managing working hours, leave, and attendance in compliance with Indian labour laws is essential for legal risk mitigation and employee well-being. HR teams must design policies that reflect statutory entitlements, provide for special leave situations, and enforce transparent attendance norms. Regular legal updates and policy reviews will help organizations stay compliant and foster a fair and productive work environment.

Employment Contracts and Appointment Letters: Legal Imperatives in India

An employment contract or appointment letter forms the foundation of the employer-employee relationship. In India, while employment contracts are not always mandatory under a single statute for all sectors, they are crucial for establishing clarity, protecting legal rights, and minimizing disputes. The importance of this document lies not just in operational efficiency but also in ensuring compliance with various employment laws and judicial precedents.

Under the Indian Contract Act, 1872, any agreement between two parties—including employment agreements—must fulfill the essentials of a valid contract: free consent, lawful consideration, the competency of the parties, and a lawful object. An employment contract creates enforceable obligations between the employer and the employee, making it a critical legal document. Without a formal agreement or appointment letter, organizations may find themselves vulnerable to claims of wrongful termination, underpayment, or denial of statutory benefits.

The Shops and Establishments Acts—which vary by state—require employers to provide employees with appointment letters that clearly specify the nature of employment, wage rates, working hours, and leave entitlements. In cities like Delhi and Mumbai, the respective Shops and Establishments Acts specifically mandate the issuance of appointment letters to employees within prescribed timelines. This is further reinforced by judicial pronouncements where courts have ruled in favor of employees in disputes arising from oral appointments or absence of written agreements.

An appointment letter must also account for the provisions of various labor welfare statutes. For example, wages and working hours mentioned must comply with the Code on Wages, 2019 and the Factories Act, 1948 or applicable Shops and Establishments Acts. Leave policies, particularly maternity leave, must align with the Maternity Benefit Act, 1961. Additionally, termination clauses must reflect the requirements of the Industrial Disputes Act, 1947, especially in cases where the employee qualifies as a ‘workman’ under the Act. Ignoring these legal requirements can render clauses in the contract void or open to challenge in court.

The importance of clear probation clauses in appointment letters has also been recognized by Indian courts. In K.K. Ahuja vs. V.P. Shukla & Ors., AIR 1991 SC 1824, the Supreme Court underlined that unless the terms of probation are clearly defined, disputes over confirmation or termination could arise, leading to unnecessary litigation. Employers are advised to clearly state the duration of probation, conditions for confirmation, notice period, and grounds for termination to avoid ambiguity.

Termination clauses deserve special attention from a legal standpoint. The Standing Orders Act, 1946 (for industrial establishments) and Shops and Establishments Acts require that termination procedures, notice periods, and disciplinary actions must follow principles of natural justice and statutory provisions. Failure to incorporate fair termination procedures may lead to wrongful dismissal claims or even reinstatement orders by labor courts.

Finally, it is essential to include compliance clauses related to Prevention of Sexual Harassment (POSH), confidentiality, intellectual property, and data protection in employment contracts. Courts in India have increasingly recognized the enforceability of such clauses, provided they do not contravene fundamental rights or statutory labor protections.

In conclusion, drafting comprehensive and legally compliant employment contracts and appointment letters is not a mere administrative formality but a legal necessity. HR professionals must collaborate with legal teams to ensure these documents reflect statutory obligations, judicial guidance, and the organization’s policies. A well-crafted appointment letter protects both the employer and the employee, establishes trust, and significantly reduces the likelihood of future legal disputes.

Recruitment and Selection: Legal Frameworks and Compliance in India

In today’s competitive business environment, recruitment and selection processes are not only strategic for organizational success but also highly sensitive to legal considerations. Hiring the right talent involves more than evaluating qualifications and experience—it requires strict adherence to India’s employment laws to ensure fairness, equality, and compliance. Non-compliance with legal mandates during the hiring process can expose organizations to risks, including litigation, penalties, and reputational damage.

One of the fundamental legal principles governing recruitment in India is the Equal Remuneration Act, 1976, which mandates equal pay for men and women performing the same or similar work. Although the Code on Wages, 2019 has now subsumed this Act, the core principle remains: employers cannot discriminate based on gender in matters of recruitment, pay, or promotions. Additionally, organizations must comply with the Rights of Persons with Disabilities Act, 2016, which prohibits discrimination in employment against individuals with disabilities and encourages inclusive hiring practices. Failure to comply with these laws can lead to claims of unfair employment practices, damages, and legal scrutiny.

Furthermore, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) has indirect implications for recruitment. Organizations are required to maintain a safe and respectful workplace, which begins right from the hiring stage. Employers must ensure that the recruitment process, including interviews and onboarding, is free from any form of harassment or bias. For example, asking inappropriate questions or making gender-based assumptions during interviews can violate both legal and ethical standards.

Another legal cornerstone is the Indian Constitution’s Article 16, which guarantees equality of opportunity in matters of public employment. While Article 16 applies primarily to government bodies, its spirit influences fair hiring practices across sectors. Private employers are increasingly expected to implement transparent, merit-based selection processes that avoid any form of discrimination on the basis of caste, religion, gender, or disability. In addition, state-specific Shops and Establishments Acts often prescribe minimum working conditions and obligations that employers must communicate at the time of issuing offer letters.

A critical but sometimes overlooked compliance requirement is the obligation to issue formal appointment letters or employment contracts under the Indian Contract Act, 1872. Every employee should receive a written document clearly defining job roles, compensation, benefits, working hours, leave policies, and termination clauses. The absence of such documentation not only creates confusion but may also result in legal disputes over employment terms, which can be costly for employers.

In recent years, courts have reinforced the importance of fairness in recruitment. For example, in the case of Union of India vs. N. Murugesan & Ors. (2008) 7 SCC 435, the Supreme Court emphasized the necessity of transparent and non-arbitrary recruitment processes in public employment. Although this case pertains to government recruitment, its principles—transparency, fairness, and adherence to rules—are equally relevant to private sector hiring.

In conclusion, recruitment and selection are not just operational HR processes; they are legally significant activities that shape an organization’s compliance landscape. Companies must ensure that their hiring practices comply with applicable labor laws, uphold principles of equality and non-discrimination, and are transparent and well-documented. HR professionals must be trained not only on how to attract and select talent but also on how to do so within the boundaries of the law. By integrating legal compliance into hiring, organizations can mitigate risks, strengthen their employer brand, and build a diverse and equitable workforce.

Drafting and Implementing an Effective POSH Policy: Legal Requirements, Best Practices, and Risks of Non-Compliance

The Prevention of Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 ("POSH Act") was enacted to ensure a safe and dignified working environment for women. This legislation mandates that every organization with more than 10 employees must formulate a comprehensive POSH Policy and establish an Internal Committee (IC) to address complaints of sexual harassment. Failure to comply with the Act or mishandling complaints can not only damage the organization’s reputation but also lead to costly litigation and judicial intervention.

This article outlines the key legal aspects of drafting a POSH Policy, the correct process for handling complaints, the legal risks of improper implementation, and case laws that highlight these issues.

II. Drafting a Legally Sound POSH Policy

1. Scope and Applicability:

• The policy must clearly state that it applies to all employees, interns, consultants, and visitors, regardless of position or tenure.
• It should cover both physical office premises and virtual/remote work environments.

2. Definition of Sexual Harassment:

The policy must align with Section 2(n) of the POSH Act and include examples of physical, verbal, non-verbal, and cyber harassment.

3. Roles and Responsibilities:

Clear definition of the role of the employer, management, the Internal Committee, and employees in preventing and addressing harassment.

4. Constitution of Internal Committee:

• The policy should specify the composition, qualifications, and tenure of IC members as per Section 4 of the Act.
• Emphasis on gender diversity and independence in the committee.

5. Complaint Mechanism:

A step-by-step guide on how an aggrieved woman can file a complaint.

Clarify the need for a written complaint under Section 9.

6. Conciliation Process:

Include provisions for voluntary conciliation under Section 10 before formal inquiry, ensuring that no monetary settlement is made.

7. Inquiry Procedure:

Set out timelines, confidentiality, fair hearing principles, cross-examination, and rights of both parties.

8. Protection Against Retaliation:

The policy must assure protection from victimization, intimidation, or retaliation against any party.

9. False or Malicious Complaints:

A balanced provision warning against false complaints, without discouraging genuine grievances.

10. Training and Awareness:

Mandate periodic POSH awareness and training for all employees and IC members.

III. Implementing the POSH Process Correctly

1. Awareness:

Conduct regular training sessions and display the POSH Policy prominently.

2. Access to Internal Committee:

Ensure employees know how to reach the IC confidentially and without fear.

3. Time-bound Inquiry:

Complete inquiries within the statutory 90-day period.

4. Documentation

Maintain detailed, confidential records of complaints, proceedings, and decisions.

5. Follow-up Action:

Implement IC recommendations swiftly and fairly.

IV. Legal Risks of Non-Compliance and Mishandling POSH Cases

1. Violation of Fundamental Rights:

Mishandling or ignoring complaints can lead to Article 21 (Right to Life and Dignity) violations.

2. Breach of Natural Justice:

Denial of fair hearing, bias, or failure to follow due process exposes organizations to judicial review.

3. Reputational and Financial Damage:

Media scrutiny, employee distrust, and potential compensatory damages can follow.

4. Penalties Under the Act:

As per Section 26, non-compliance can lead to fines and even cancellation of business licenses.

V. Key Judicial Precedents

1. Dr. Kali Charan Sabat v. Union of India & Ors. (2024, MP High Court):

Held that conciliation under Section 10 must be mandatorily offered before formal inquiry if the complainant is open to it. Failure to do so can render the proceedings invalid.

2. Abraham Mathai v. State of Kerala & Ors. (Kerala HC):

Reaffirmed that a written complaint is mandatory for initiating an inquiry. Oral or anonymous complaints cannot be the sole basis for action unless there are exceptional circumstances.

3. Malabika Bhattacharjee v. Internal Complaints Committee, Vivekananda College (Supreme Court):

Stressed that confidentiality is paramount, and any breach can lead to legal action and reputational damage.

VI. Conclusion and Recommendations

Drafting and implementing a legally compliant POSH Policy is not merely a statutory obligation but a cornerstone of workplace dignity and organizational culture. Employers must:

• Draft detailed, legally accurate policies.

• Constitute and train an impartial Internal Committee.

• Follow fair, transparent processes, strictly adhering to legal timelines.

• Maintain confidentiality and prevent retaliation.

Failure to do so can result in judicial intervention, fines, reputational loss, and erosion of employee trust. Organizations must view POSH compliance as both a legal and ethical imperative, essential for a safe, respectful, and productive workplace.

Understanding Leave Laws for Employees in India: A Complete Guide.

In India, every working professional is entitled to certain types of leaves for rest, health, family, or other personal reasons. Leave laws in India are governed by both central and state-specific labor laws, which aim to strike a balance between employee welfare and employer requirements. Knowing your leave rights helps you stay compliant and ensures fair treatment at the workplace.

In this blog, we’ll explore the types of leaves, applicable laws, and key employee rights under Indian labor law.

Types of Leaves Under Indian Labor Laws

Earned Leave (EL) or Privilege Leave (PL):

• Eligibility: Typically available after completing a certain number of days of employment (e.g., 240 days in a year).
• Accrual: Usually 1.25 to 2 days per month, depending on state rules and company policies.
• Carry Forward: Unused ELs can often be carried forward to the next year.
• Encashment: Many companies allow encashment of unused ELs during employment or at resignation/retirement.

Casual Leave (CL):

• Purpose: For sudden, unforeseen circumstances like family emergencies, short travel, or minor illness.
• Allotment: Typically 7 to 10 days per year.
• Accrual: Usually granted monthly or quarterly.
• Carry Forward: Generally not allowed; unused CLs lapse at year-end.

Sick Leave (SL):

• Purpose: For health-related issues.
• Allotment: Usually 6 to 12 days per year, depending on state laws.
• Requirement: Employers may ask for a medical certificate for absences over 2-3 days.
• Carry Forward: Allowed in some states, with a cap.

Maternity Leave:

• Act: Governed by the Maternity Benefit Act, 1961.
• Duration: 26 weeks for the first two children, 12 weeks for the third and beyond.
• Eligibility: Female employees must have worked for at least 80 days in the 12 months prior to delivery.
• Additional Provisions: Includes benefits like nursing breaks and work-from-home options (where applicable).

Paternity Leave:

• Law: Not mandatory under Indian labor law, but some companies offer 7–15 days as part of their HR policies.
• Trend: Growing awareness is leading many organizations to include paternity leave in their benefits package.

Bereavement Leave:

• Purpose: Leave granted in the event of a death in the immediate family.
• Law: Not mandated, but offered by many employers as a gesture of compassion.

Leave Without Pay (LWP):

• When Applied: When all paid leaves are exhausted.
• Impact: May affect salary, bonus, and benefits depending on the company’s leave policy.

Key Leave Laws and Regulations in India

• Factories Act, 1948 – Governs leave entitlements for factory workers.
• Shops and Establishments Act (State-wise) – Regulates leave policies for employees in shops, offices, and commercial establishments.
• Maternity Benefit Act, 1961 – Covers maternity leave and related benefits.
• Industrial Employment (Standing Orders) Act, 1946 – Requires employers to define and publish leave rules.

State-Specific Variations

Leave rules under the Shops and Establishments Act vary from state to state. For example:

• In Maharashtra, a Minimum of 21 days of earned leave annually.
• In Delhi: 15 days of earned leave with carry-forward up to 45 days.
• In Karnataka, 18 days of earned leave and 12 days of sick leave.

Employers must comply with the respective state laws in addition to central regulations.

Employer’s Role in Leave Management

Employers are required to:

• Maintain a leave register.
• Ensure fair and consistent leave policy implementation.
• Notify employees about their leave entitlements.
• Avoid penalizing employees for availing of legitimate leaves.

Many companies also use HR software to manage leave balances, automate approvals, and ensure legal compliance.

Conclusion

Understanding leave laws in India is essential for both employees and employers. While the law provides a framework, company-specific policies may offer additional benefits. As a working professional, being aware of your rights ensures you can plan time off without fear or uncertainty. As an employer, following proper leave law practices builds a healthier and more engaged workforce.

Wages Law for Labour in India: Your Right to Fair Pay

Wages are the foundation of a worker’s livelihood. In India, the government has established robust wage laws to ensure that workers, particularly those in unorganised or low-paying jobs, receive fair and timely compensation. These laws protect workers from exploitation and promote social justice and economic equality.

In this blog, we’ll explore the key provisions of Wage law in India, focusing on the Code on Wages, 2019, and what every employer and employee should know.

What is Wage Law?

Wage law in India refers to the rules and regulations that govern:

• Minimum wages
• Payment of wages
• Equal pay for equal work
• Timely and full payment to workers

The aim is to ensure that every worker is paid fairly and on time, regardless of the nature of work or industry.

Introduction to the Code on Wages, 2019

The Code on Wages, 2019, is one of the four new labour codes introduced by the Indian government to simplify and unify complex labour laws. It consolidates four previous laws:

1. The Payment of Wages Act, 1936
2. The Minimum Wages Act, 1948
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976

Key Provisions of the Code on Wages

1. Minimum Wages for All Workers

• The law ensures a minimum wage for all employees, whether in the organised or unorganised sector.
• Earlier, minimum wage laws applied only to scheduled employment. Now, it applies universally.

2. National Floor Wage

• The central government will fix a national floor wage.
• States cannot set minimum wages lower than this benchmark.

3. Equal Remuneration

• The code ensures equal pay for equal work for men and women.
• It prohibits gender-based wage discrimination.

4. Timely Payment of Wages

Employers must pay wages:

• Before the 7th of the following month (for monthly wage earners)
• Before the 10th day (for weekly wage earners)
• On the last working day (for daily wage earners)

5. Mode of Payment

• Wages must be paid in cash, currency notes, by bank transfer, or electronically.
• Cash payments are allowed only in special cases.

6. Deductions

• Only authorised deductions (like PF, taxes, fines, or loan repayments) are allowed.
• Total deductions should not exceed 50% of total wages.

Who is Covered?

The Code on Wages applies to:

• All employees in the public and private sectors
• Gig workers, platform workers, and contractual labour
• Workers across industries, from factories to shops and startups

Importance of Wage Law for Labourers

• Protects from exploitation by ensuring fair pay
• Reduces inequality between formal and informal sector workers
• Improves the quality of life for low-income workers
• Promotes industrial peace by resolving wage-related disputes

Penalties for Non-Compliance

Employers who fail to comply with wage law provisions can face:

• Fines
• Penalties
• Imprisonment in cases of severe violations

Challenges in Implementation

• Lack of awareness among workers about their wage rights
• Informal sector employers often bypass wage laws
• Inconsistent enforcement by local authorities
• Delays in rolling out the new wage code across states

Conclusion

India’s wage laws are designed to protect the dignity and rights of every worker. With the Code on Wages, 2019, the government has taken a big step toward simplifying wage regulation and promoting fairness. However, effective implementation and awareness among workers are key to making these laws truly impactful.