Employment issues in India is divided in two areas i.e. one faced by employer and the other faced by the employee. The common problem faced by the employers is their employees joining competing organizations which is regulated by Indian Contract Act, 1872. Under the respective Act, non-competition restrictions which are restraint in trade are unenforceable post termination regardless of the agreements. The concept of reasonable restriction is not recognized because of which even reasonable non-competition agreements is not enforceable regardless of agreements being provided. Other problems which are usually faced by employer are recovery of training costs and clauses related to garden leave post termination employment. Labour laws like Factories Act, 1948 and other established laws of different states lays down working hours, number of overtime hours, etc. Therefore, it acts as a challenge for the employers in cases where they have fixed hours to achieve greater efficiency while managing their workforce.
The employers send legal notices to employees although the clauses of non-competition are unenforceable post termination of employment. Hence, the employees receive legal notices from their previous employers in which the employees spend their resources in defending such legal battles. In order to protect themselves the employees must be careful and ensure that they hold no confidential information of their previous employers. The employees’ right need to be protected such as fair compensation, right to privacy, freedom of discrimination, etc. It is the employers’ duty to make their employees aware of their right to compensation.
Under Indian Constitution in 7th Schedule the labour matters falls in the Concurrent list which gives power to both the Central government as well as the respective State governments. A plethora of Central and State laws have been introduced as a result of it, with respect to employment, wages, etc., some of the labour laws being industry specific. The employers as well as employees therefore have to comply with several emploment laws. IT sectors are most prone to challenges under the Indian Labour law because of their excess workforce. Companies which have their industries in various States have to comply with the law of every State and service matters in order to avoid legal proceeding.
Manufacturing companies and large companies have trade unions which are sometimes backed by political party and are very often interested in protection of employees’ interests. The one example of this can be seen in the case of Maruti Suzuki Manesar riots where the trade union of workers agitated a violence in which the Manager Awanish Kumar Dey lost his life due to asphyxiation. A fire broke out in the campus due to instigation and many other got injured. In 2017 the court convicted 31 workers for the violence and punishment were given. All these are the issues which need to be addressed. Help can be sought from specialized Labour Lawyers or online legal advice can also be sought from various legal sites for organizations which are running short of time. These laws are intended to ensure safe and healthy work environment.
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