Employment Conditions in India
Employment in India is governed by a mix of central and state laws that set out minimum conditions for fair and lawful work. Employers must provide written employment terms, regulate working hours, ensure rest and leave, and comply with statutory registration and reporting requirements.
Key employment conditions include:
- Written terms: Employers are expected to provide clear written contracts outlining wages, benefits, notice periods, and other key conditions of employment.
- Working hours: Lawful working hours are generally capped at 40 to 48 hours per week, with a maximum of 9 hours per day. Employers must also provide a weekly rest day.
- Leave and holidays: Employees are entitled to paid leave (earned/privilege leave, sick/casual leave), three national holidays, and state-notified festival holidays. Maternity leave is set at 26 weeks, and adoption/commissioning leave is 12 weeks.
- Payslips and wage payments: Under the Payment of Wages Act, 1936, employees must be paid in money (not in kind), and payslips are issued regularly. Salaries are generally paid monthly by the last working day.
- Social security registration: Employers must register eligible employees with the Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI) schemes, and make the required contributions.
- Policies and workplace requirements: Employers must implement workplace policies on areas such as Prevention of Sexual Harassment (PoSH), leave entitlements, and data protection. They must also maintain statutory registers and returns, and display notices as required under state law.
- Remote work: Remote work is lawful in India, but employers are advised to adopt a written remote work policy covering eligibility, working hours, equipment, reimbursements, and data security.
