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These sections will introduce you to the fundamentals of labour law in india




Minimum wage requirements exist as advised by the State Governments on an ongoing basis for most categories of employment

• Discrimination is prohibited in terms of equal pay for equal work for men and women as well as within categories of workmen

• Wages are governed by negotiations between the employer and a) individual employees b) employee’s representatives on behalf of employees collectively

Salaries can be raised based solely on performance for managers.

• This is theoretically possible for workmen as well but if a large component of a workman’s pay increase is performance based, infringement of ‘Equal Pay for Equal Work’ statutes might occur

• Non-statutory bonuses or special payments can be made without affecting future salary increases

• Geographical transfer of employees are determined by the contract of employment but are difficult to implement at worker level

• Employee working hours and rest intervals cannot exceed maximum caps but are subject to employer’s prerogative in terms of organisation in shifts or working patterns

• Leave provisions are set by the state and provide for earned leave, sick leave and casual leave entitlements, as well as rules regarding accumulation and encashment of leave

• An employee can be required to work overtime  

• Overtime hours have maximum caps and the premium rate for overtime is normally twice the normal wage

• State laws also provides for weekly holidays as well as a fixed number of national and festival holidays.

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