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The employees can be hired through giving advertisements in newspapers, HR recruiting firms or through any private arrangement</p> <p>The terms of the employment, either on contract basis or permanent employee basis would be governed by the contract between the organisation and the employee.</p> <p>There are no laws as to how much an organisation should pay to any professional. It solely depends upon the agreement between the employee and organisation. </p> <p>However, the issues related to removal, termination, payment of minimum wages, workmen compensation etc are governed by the labour laws in India, irrespective of Service contract between the two. Most important thing to be noted here is that these laws would apply only to those employees who falls in the category of &ldquo;Workman&rdquo; under Labour laws. Any employee whose duties is of managerial nature or has power of managerial nature is not a workman under labour laws and hence issues mentioned above in his employment would entirely be governed by the Employment Agreement and not by any Labour Law. </p> <p>&nbsp;</p> <h1>Firing </h1> <p><font style="text-align:justify"><em>Termination / Retrenchment of workmen / employees in India: </em></p> <p>The laws relating to the termination or retrenchment of workmen / employees in India is mainly governed by Industrial Disputes Act. This is a central Act and is applicable to whole of India.</p> <p>Industrial Disputes Act;</p> <p>Object: To make provisions for the investigation and settlement of industrial disputes.</p> <p>Applicability: This act is applicable to disputes between employer and workmen engaged in an industry arising as a result of discharge, dismissal, retrenchment or termination of an employee. Industry as defined in this Act means any business, trade, manufacture, or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen.&nbsp; The definition of Industry includes institutions owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic services. </p> <h1>Workman</h1> <p>A Workman means any person employed in an industry to do any manual, unskilled or skilled, technical, operational, clerical or supervisory work for hire.&nbsp; This definition does not include a person who is employed mainly in a managerial or administrative capacity, in which case all the disputes between the employer and a person in such a position shall be governed by the terms and conditions of the contract between them.&nbsp; A person employed in a supervisory capacity drawing wages exceeding Rs. 1600/- per mensem (month) or if he exercises such duties or has such powers which are of managerial nature is not a workman.</p> <h1>Retrenchment / Termination</h1> <p><font style="text-align:justify">Retrenchment / Termination: Means the termination by the employer of the services of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include voluntary retirement, termination as per the expiry of the employment contracts, or termination on ground of continued ill-health.</p> <p>Notice: No Workman can be terminated without a notice of atleast 30 days in writing indicating the reasons of termination or salary in lieu of notice period and compensation for the termination.</p> <h1>Remedies Available to workman</h1> <p>: <strong>The workmen who have been Laid-off or retrenched may approach the appropriate authorities for re-employment / reinstatement or compensation</strong></p> <p>&nbsp;</p> <h1><font style="text-align:justify">Authorities under this Act</h1> <p><font style="text-align:justify">Authorities under this Act: The disputes under this act may be referred to the following authorities:</p> <ol> <li>Works Committee; </li> <li>Conciliation Board;</li> <li>Arbitration (following a written agreement)</li> <li>Courts of Inquiry; </li> <li>Labour Courts;</li> <li>Tribunals;</li> <li>National Tribunal.</li> </ol> <h1>Employees in managerial or administrative post</h1> <p>&nbsp;</p> <p>:: Such employees shall be governed by the written contract between themselves and their employers and not by the provisions of Industrial Dispute Act. </p> <h1>EMPLOYMENT CONTRACT</h1> <p>&nbsp;</p> <p>In India employment contract is similar as we see in any country all over the world. The Employment contract would contain details of Employer, Employee, working terms &amp; conditions, allowed leaves, termination and dispute settlement, but any clause should not be in contradiction to Indian laws.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Employment agreement can have arbitration clause in it, but such arbitration clause can only be in Employment agreement who do not fall in the category of &ldquo;workmen&rdquo; under Industrial Dispute Act.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In Employment agreements of workmen if you wish to arbitration clause then it would be as per the provisions of Industrial Dispute Act and not like commercial arbitration. </p> <p></p> <h1>NOTICES, WORK HOURS, LEAVES, OVERTIME</h1> <p><font style="text-align:justify">There are State Acts also which regulates certain working terms &amp; conditions of employees. These are applicable to both Managerial person and Workmen as well. For example if the company is in Mumbai then Bombay Shops and Establishments Act would apply and if the company is in New Delhi then New Delhi Shops and Establishments Act would apply. </p> <p>Here we are dealing with Bombay Shops and Establishments Act for reference.</p> <h1>Bombay Shops and Establishments Act</h1> <p>:<b>&nbsp;Object</b>: This Act intends to the regulation of conditions of work and employment in shops, commercial establishments, etc. </p> <p><b>Application:</b> This Act shall apply to shops, commercial establishments, residential hotels, restaurants, etc. A commercial establishment means an establishment which carries on the business, trade or profession and includes a charitable or other trust whether registered or not (whether for purposes of gain not).</p> <p><strong>1&nbsp;&nbsp;&nbsp; Notice of termination: </strong>No employee who is continuous employment for not less than a year shall be terminated without a notice of atleast 30 days or wages in lieu of the notice period.</p> <p>Where an employee has worked for less than a year but more than three months, a notice of atleast fourteen days is required or wages in lieu of the notice period.&nbsp; </p> <p><strong>Penalty: </strong>If an employer or manager fails to comply with the provisions of this Act, he shall, on conviction be liable to pay fine which shall not be less than fifty rupees and which may five hundred rupees. </p> <p>2 Opening and Closing hours of the Commercial establishment: No office shall open on any day before 8:30 a.m. and after 8:30 p.m. </p> <p><strong>3&nbsp;&nbsp;&nbsp; Daily and weekly hours of work: </strong>No employee shall be required to work for more than nine hours a day and forty-eight hours a week. Further, any employee may be required to work for any period in excess of the limit fixed, if such period does not exceed six hours in any week.</p> <p><strong>4&nbsp;&nbsp;&nbsp; Leave: </strong>Every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise for a period of not more than five days. </p> <p>Where an employee who has been employed for not less than two hundred forty days during a year shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days. Provided that such leave may be accumulated to a maximum period of forty-two days.<strong></strong></p> <p>Further, the leaves as mentioned above shall be inclusive of any holiday on which the commercial establishment is closed. </p> <p><strong>Additional holidays: </strong>Apart from the leaves mentioned above, an employee is entitled to additional leaves on 26th January, 1st May, 15th August and 2nd October every year.</p> <p><strong>5&nbsp;&nbsp; Pay during leave: </strong>An employee who has worked during his leave shall be entitled to be paid at the rate equivalent to the average of daily wages in the preceding three months, exclusive of his earnings in respect of overtime.</p> <p><strong>6&nbsp;&nbsp;&nbsp; Overtime: </strong>Where an employee is required to work in excess of the limit of hours of work, he shall be entitled to wages at the rate of twice his ordinary rate of wages.<strong> </strong></p> <p>7&nbsp;&nbsp;&nbsp; Sick or Casual leave: Every employee shall be eligible for a sick leave or casual leave for not less than 12 days in a year. </p> <h1>BONUS, GRATUITY, EMPLOYEES STATE INSURANCE </h1> <p><font style="text-align:justify">The following Acts provide for benefits other than the salary of the employees:</p> <p>Payment of Bonus Act:</p> <p><strong>Object: </strong>This Act aims to provide for the payment of bonus to persons employed in certain establishments on the basis of profits or on the basis of production or productivity and related matters.<strong></strong></p> <p><strong>Applicability: </strong>This Act shall apply to every factory and every other establishment in which <strong><em>twenty or more persons are employed</em></strong> on any day during an accounting year. An employee means any person employed on a salary or wage not exceeding three thousand and five Hundred rupees per month in any industry to do any manual, unskilled or skilled, supervisory, managerial, administrative, technical or clerical work for hire or for reward. This Act shall also be applicable to a foreign company within the meaning of section 591 of the Companies Act, 1956.</p> <p>Minimum Bonus: A minimum bonus of 8.33 percent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, shall be payable to every employee, whether or not the employer has any allocable surplus </p> <p><strong>Computation of Bonus: </strong>The amount of bonus to be paid shall be calculated according to the allocable surplus of profits, the procedure for which is prescribed in the Act for computation. </p> <p><strong>Maximum Bonus: </strong>where in an accounting year, the allocable surplus exceeds the amount of the minimum bonus, the employer shall pay an amount proportional to the salary or wages to a maximum of twenty percent of such salary and bonus. Festival and customary bonus is the option of the employer.</p> <p><strong>Year from which Bonus is payable: </strong>Any other establishment shall start giving bonus in the five years, following the year in which the establishment sells goods or provides services. A newly set up establishment is required to pay bonus from the fifth accounting year following the accounting year in which the employer derives profit. The procedure for the computation of bonus for the years following such fifth year is laid down under the Act. </p> <p><strong>Reference of disputes: </strong>Any dispute which arises between the employer and the employee shall be deemed to be an industrial dispute within the meaning of Industrial Disputes Act and the same shall be resolved according to the procedures laid down in the said Act.</p> <p><strong>Penalty:</strong> Payment of statutory bonus i.e. as the matter of right. Non-payment of bonus can give rise to an Industrial Dispute. If any person who is incharge of the company fails to comply with the provisions of the Act shall be punishable with imprisonment, which may extend upto six months, or with fine, which may extend upto Rs. One Thousand or with both. </p> <p><strong>Payment of Gratuity Act:</strong><br /> &nbsp;<br /> Object: The main object of this Act is to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, etc. or other establishments as notified by the Central Government. This Act would not apply to your organisation. Hence it is not compulsory to private organisation to give any gratuity to employees. It is at their discretion. </p> <p><strong>Employee&rsquo;s State Insurance Act:</strong></p> <p>Object: This Act has been enacted to provide certain benefits to the employees in case of sickness, maternity, employment injury and other related matters.</p> <p>Applicability: This Act shall apply mainly to all factories. It may apply to any other establishment, industry, commercial, agriculture or otherwise only on receiving a six months notice from the appropriate government.</p> <p>An Employees State Insurance Corporation is set up for the benefit of the employees and the employer has to contribute to such Corporation, a sum of money on behalf of an employee for their benefits as provided for in the Act. </p> <p><strong>Equal remuneration Act, 1976:</strong><u></u></p> <p>Object: This Act provides for the equal remuneration to men and women workers and for the prevention of discrimination, on the ground of sex, against women in the matter the employment and other related matters. </p> <p><strong>DISCLAIMER</strong></p> <p>Statements and opinions expressed in articles, reviews and other materials herein are those of the authors; the editors and publishers.<br /> While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. 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class="displayblock blue12">India: The changing face of legislation</span></td></tr> <tr><td><img src="uk.jpg"/ height=50 width=50></td><td>CONTRARY TO GENERAL BELIEF, INDIAN legislation is not archaic, stubborn and hostile</td></tr> <tr><td colspan=2><a href="A.html">read more</a></td></tr> <tr><td class="padtb10" colspan="2"><img src="images/divider_news.gif" alt="" /></td></tr> <tr><td colspan=2><span class="displayblock blue12">Private equity: global money in Indian industry</span></td></tr> <tr><td><img src="vijay_goel.jpeg"/></td><td>S A SEPARATE ASSET CLASS, PRIVATE equity has grown remarkably over the past few years....</td></tr> <tr><td colspan=2><a href="B.html">read more</a></td></tr> <tr><td class="padtb10" colspan="2"><img src="images/divider_news.gif" alt="" /></td></tr> <tr><td colspan=2><span class="displayblock blue12">Indian hospitality: the industry, regulations and incentives</span></td></tr> <tr><td><img src="vijay_goel.jpeg"/></td><td>HOSPITALITY IS ONE OF THE 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class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img1.jpg" /></td> <td> <span class="black15">Vijay Goel</span><br /> <br /> <span class="arialblack11">Founder of <br /> <strong>Web</strong>: <a class="bluelink" href="www.singhania.com">IEBF<br /> www.singhania.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img2.jpg" /></td> <td> <span class="black15">Lord Mackenzie</span><br /> <br /> <span class="arialblack11">Lord Mackenzie of <br />Framwellgate Chairman<br /> <strong>Web</strong>: <a class="bluelink" href="www.haymarketco.com"><br />www.haymarketco.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img3.jpg" /></td> <td> <span class="black15">Lord Raj Loomba</span><br /> <span class="arialblack11">Founder Chairman of <br />Rinku Group plc,<br />Founder-Loomba Trust.<br /> <a class="bluelink" href="www.rinku.co.uk">www.rinku.co.uk</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img4.jpg" /></td> <td> <span class="black15">Dr.Rami Ranger</span><br /> <br /> <span class="arialblack11">Sun Mark Ltd<br /> <strong>Web</strong>: <a class="bluelink" href="www.sunmark.co.uk"><br />www.sunmark.co.uk</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img5.jpg" /></td> <td> <span class="black15">Lord G.K.Noon</span><br /> <span class="arialblack11">Boss of utilities<br /> giant Centrica & Asian <br />food G.K.Noon<br /> <strong>Web</strong>: <a class="bluelink" href="www.centrica.co.uk"><br />www.centrica.co.uk</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img6.jpg" /></td> <td> <span class="black15">S. Jagadeeshan</span><br /> <span class="arialblack11">Former Minister,<br />High Commission of<br />India,London<br /> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img7.jpg" /></td> <td> <span class="black15">Saroj Poddar</span><br /> <br /> <span class="arialblack11">X-Chairman of <br />Gillette India Ltd<br /> <strong>Web</strong>: <a class="bluelink" href="www.poddarheritage.com">www.poddarheritage.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img8.jpg" /></td> <td> <span class="black15">Pushpendrasinh <br />Jhala</span><br /> <br /> <span class="arialblack11">CEO,Nivid Technology<br />Solutions Co-Founder-IEBF<br /> <strong>Web</strong>: <a class="bluelink" href="www.nivid.net">www.nivid.net</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img9.jpg" /></td> <td> <span class="black15">Nikhil Gandhi</span><br /> <br /> <span class="arialblack11">Group Chairman, SKIL<br /> Infrastructure Ltd. Group<br /> <strong>Web</strong>: <a class="bluelink" href="www.skilgroup.co.in"><br />www.skilgroup.co.in</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img10.jpg" /></td> <td> <span class="black15">Marsha Singh</span><br /> <br /> <span class="arialblack11">MP House of<br /> Commons London<br /> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img11.jpg" /></td> <td> <span class="black15">Manoj Prasad</span><br /> <span class="arialblack11">CEO &<br /> Managing Partner,<br /> Signature Capital PTE.; <br /> <strong>Web</strong>: <a class="bluelink" href="www.signatureamc.com"><br />www.signatureamc.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img12.jpg" /></td> <td> <span class="black15">Mohit Burman</span><br /> <br /> <span class="arialblack11">Managing Director,<br /> Dabur India<br /> <strong>Web</strong>: <a class="bluelink" href="www.dabur.com">www.dabur.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img13.jpg" /></td> <td> <span class="black15">Lord King</span><br /> <br /> <span class="arialblack11">Lord King of<br /> West Bromwich<br /> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img14.jpg" /></td> <td> <span class="black15">Kishore Lulla</span><br /> <span class="arialblack11">Chairman and Chief <br />Executive Officer, <br />Eros International Plc</br> <a class="bluelink" href="www.erosentertainment.com">www.erosentertainment.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img16.jpg" /></td> <td> <span class="black15">Jayant Thaker</span><br /> <br /> <span class="arialblack11">Chairman,<br /> Thaker Properties<br /> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img17.jpg" /></td> <td> <span class="black15">H.P. Kanoria</span><br /> <br /> <span class="arialblack11">Chairman, Srei Group<br /> <strong>Web</strong>: <a class="bluelink" href="www.srei.com"><br />www.srei.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img18.jpg" /></td> <td> <span class="black15">Dr Geoffrey <br />Clements</span><br /> <span class="arialblack11">MD& India <br />Director,Commonwealth <br />Business School<br /> <strong>Web</strong>: <a class="bluelink" href="www.cbs.ac">www.cbs.ac</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img19.jpg" /></td> <td> <span class="black15">Deepak Puri</span><br /> <span class="arialblack11">Chairman& MD<br />Moser Baer India<br /> Ltd.<br /> <strong>Web</strong>: <a class="bluelink" href="www.moserbaer.in"><br />www.moserbaer.in</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img20.jpg" /></td> <td> <span class="black15">Kamal Syed</span><br /> <br /> <span class="arialblack11">Member of <br />European Parliament<br /> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img21.jpg" /></td> <td> <span class="black15">Subodh Agarwal</span><br /> <br /> <span class="arialblack11">Euromax Capital<br /> <strong>Web</strong>: <a class="bluelink" href="www.euromaxcapital.com"><br />www.euromaxcapital.com</a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img22.jpg" /></td> <td> <span class="black15">Jeh Wadia</span><br /> <br /> <span class="arialblack11">Managing Director,<br /> GOAIR AIRWAYS<br /> <strong>Web</strong>: <a class="bluelink" href="www.goair.in ">www.goair.in </a></span> </td> </tr> </table> </div> <div class="contentdiv"> <table border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td class="imgpad" valign="top" width="80"> <img alt="" class="style1" src="images/img23.jpg" /></td> <td> <span class="black15">G P Hinduja</span><br /> <br /> <span class="arialblack11">MD of<br /> Hinduja Group<br /> <strong>Web</strong>: <a class="bluelink" href="www.hindujagroup.com"><br />www.hindujagroup.com</a></span> </td> </tr> </table> </div> </div> <div id="paginate-slider1" class="pagination"> </div> <script type="text/javascript"> featuredcontentslider.init({ id: "slider1", //id of main slider DIV contentsource: ["inline", ""], //Valid values: ["inline", ""] or ["ajax", "path_to_file"] toc: "#increment", //Valid values: "#increment", "markup", ["label1", "label2", etc] nextprev: ["Previous", "Next"], //labels for "prev" and "next" links. 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