Country Guides
Employee Rights in India
Employee rights in India
Employees in India are entitled to timely payment of wages, statutory social security through EPF/EPS and, where eligible, ESI, as well as safe and dignified workplaces under the PoSH Act, equal remuneration, maternity benefits, and statutory leave and holidays, while “workmen” also receive additional protections under the Industrial Disputes Act in cases of retrenchment or closure.
Right to wages
The Payment of Wages Act, 1936, requires that employees be paid on time and in money rather than in kind, and prohibits any unauthorised deductions from their wages.
Right to form unions
Article 19(1)(c) of the Constitution of India gives everyone the right “to form associations or unions”.
Fair dismissal
India does not have an “at-will” employment system. Employees cannot be terminated without a valid reason, such as misconduct or repeated absences. Under the Industrial Disputes Act, companies employing more than 100 workers must seek government approval before terminating employees or closing down operations. The law also specifies formal procedures for termination and retrenchment, particularly for “workmen,” a category that typically includes employees in operational, clerical, or manual roles.
Employee protections in India
Protection against child and forced labour
Article 23 of the Indian Constitution prohibits trafficking and forced labour, while Article 24 bans the employment of children under 14 years of age in factories, mines, or other hazardous occupations.
Job security in India
Job security is a key aspect of Indian labour law, as terminating a “workman” employed for more than a year requires government permission, valid grounds for dismissal, and a minimum two-month waiting period before approval is granted.
Non-managerial workmen are protected under the Industrial Disputes Act, which requires due process for termination on grounds of misconduct, notice and compensation equal to 15 days’ average pay per completed year in cases of retrenchment, and in some situations, prior government approval, depending on the state and establishment size. By contrast, managerial staff are primarily governed by their employment contracts and state Shops & Establishments laws.
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