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Employee Misclassification – Remedies Under Labour Codes in India

  Misclassification of Employees as Contractors – Remedies and Compliance Under Labour Codes A growing compliance challenge in India is the misclassification of employees as “contractors” or “consultants” to avoid statutory benefits like PF, ESI, gratuity, and bonus. The Code on Wages, 2019 and Code on Social Security, 2020 provide clear protections to prevent such practices. Legal Framework Under Labour Codes Code on Wages, 2019: Defines “employee” broadly, covering anyone doing skilled, unskilled, manual, supervisory, or technical work. Code on Social Security, 2020: Extends PF, ESI, gratuity, and maternity benefits to all employees, regardless of contract labels. Judicial Precedent: Courts have repeatedly held that the substance of the relationship (control, supervision, integration into business) matters more than the contract title. Step‑by‑Step Solution for Employees [FREE] Identify Misclassification: Check if you are treated like a regular employee (fixed hours, repor...

Gratuity Non‑Payment – Remedies Under the Social Security Code, 2020

  How to Resolve Non‑Payment of Gratuity – Remedies Under the Social Security Code, 2020 Gratuity is a statutory benefit that rewards long‑term service. The Social Security Code, 2020 consolidates gratuity provisions from the earlier Payment of Gratuity Act, 1972 , ensuring employees continue to enjoy protection with updated compliance mechanisms. Legal Framework Under the Code Applicability: Establishments with 10 or more employees . Eligibility: Employees completing 5 years of continuous service (except in cases of death or disability, where gratuity is payable regardless of service length). Formula: 15 days’ wages × years of service , based on last drawn salary (basic + DA). Timeline: Gratuity must be paid within 30 days of becoming due. Interest: Delayed payment attracts statutory interest. Special Provision: Fixed‑term employees are entitled to gratuity pro‑rata , even if service is less than 5 years. Step‑by‑Step Solution for Employees [FREE] Check Eligibility: Conf...

Bonus Non‑Payment – Remedies Under the Code on Wages, 2019

  Resolving Non‑Payment of Bonus – Remedies Under the Code on Wages, 2019 Bonus payments are one of the most common disputes between employers and employees. The Code on Wages, 2019 consolidates provisions of the earlier Payment of Bonus Act, 1965 , ensuring statutory bonus rights continue with updated compliance mechanisms. Legal Framework Under the Code on Wages Applicability: Establishments with 20 or more employees . Eligibility: Employees earning up to ₹21,000 per month . Quantum of Bonus: Minimum 8.33% of wages , maximum 20% of wages , depending on allocable surplus. Timeline: Bonus must be paid within 8 months of the close of the accounting year. Records: Employers must maintain audited accounts to calculate allocable surplus. Step‑by‑Step Solution for Employees [FREE] Check Eligibility: Confirm your salary and establishment size meet Code criteria. Request Clarification: Submit a written query to HR citing Sections 26–29 of the Code (bonus provisions). File Grievan...

Layoffs and Retrenchment – Labour Law Solutions in India

  How to Handle Layoffs and Retrenchment – Employee Remedies and Employer Compliance Layoffs and retrenchment are among the most sensitive labour law issues in India. The Industrial Relations Code, 2020 (IR Code), effective from 21 November 2025 , has modernized the rules, raising thresholds and introducing new protections such as the Worker Re‑Skilling Fund. Legal Framework Under the IR Code Layoff: Temporary inability to provide work due to shortage of raw materials, breakdown of machinery, or similar reasons. Retrenchment: Permanent termination of service for reasons other than disciplinary action. Threshold for Prior Permission: Establishments with 300+ workers must obtain prior government approval for retrenchment, layoff, or closure. Establishments with 50–299 workers must follow notice and compensation rules but do not need prior approval. Compensation: Retrenched employees with at least one year of service are entitled to 15 days’ average pay for every completed year o...

Contract Workers and Regularization – Labour Law Solutions in India

Contract Workers and Regularization – Legal Remedies and Employer Obligations Contractual employment is widely used in India, especially in manufacturing, IT, and service sectors. However, disputes often arise when workers expect regularization after years of service, while employers insist on continuing contractual arrangements. Legal Framework The Contract Labour (Regulation and Abolition) Act, 1970 governs contract labour. If contract labour is engaged in core activities and the principal employer exercises direct supervision, courts may treat them as regular employees. Supreme Court rulings (Steel Authority of India v. National Union, 2001) clarified that automatic regularization is not guaranteed, but illegal or sham contracts can be struck down. Step‑by‑Step Solution for Workers [FREE] Check Nature of Work: Determine if your role is part of the company’s core activity or peripheral services. Gather Evidence: Collect proof of direct supervision by the principal employer (attend...

Wage Delay or Non‑Payment – Employee Remedies Under Labour Law

  How to Resolve Wage Delay or Non‑Payment Issues in India Delayed or unpaid wages are among the most frequent labour law disputes. The Code on Wages, 2019 and state rules provide clear protections to ensure employees receive timely payment. Legal Framework Section 17 of the Code on Wages, 2019 mandates that wages must be paid within seven days of the wage period for establishments with less than 1,000 employees, and within ten days for larger establishments. Upon termination, wages must be paid within two working days . Non‑payment or delay attracts penalties, including fines and possible imprisonment for repeated violations. Step‑by‑Step Solution for Employees [FREE] Check Employment Contract: Verify wage cycle and due dates mentioned in your appointment letter or HR policy. Raise Internal Complaint: Submit a written request to HR or management citing Section 17 of the Code. File Grievance with Labour Inspector: Approach the local labour inspector or file a complaint under...

Employment Rights with Temporary Disability Certificates – RPWD Act India

  Employment Rights with Temporary Disability Certificates – RPWD Act Explained One of the most common challenges faced by candidates with disabilities is employer rejection based on the type of disability certificate. Many HR managers mistakenly assume that only permanent certificates are valid for employment. The Rights of Persons with Disabilities Act, 2016 (RPWD Act) makes it clear that temporary certificates are equally valid during their period of issue . Legal Framework The RPWD Act recognizes 21 categories of disabilities, including temporary conditions. Disability certificates may be issued as permanent or temporary , depending on medical assessment. Section 20 of the RPWD Act prohibits discrimination in employment against persons with disabilities. Recent Updates (2025–2026) The Ministry of Social Justice clarified that temporary certificates are valid for employment benefits and cannot be grounds for rejection. Delhi High Court (2025) ruled that denying employment base...

Accident Insurance for Gig Workers – Social Security Code Compliance

  Accident Insurance Rights for Gig Workers Under the Social Security Code Gig workers viz. delivery partners, ride‑hailing drivers, and freelancers face unique risks, especially accidents during work. The Code on Social Security, 2020 recognizes gig and platform workers and provides a framework for accident insurance coverage. Legal Framework Section 2(35) of the Code defines gig workers as individuals outside traditional employment relationships. Aggregator companies (food delivery apps, ride‑sharing platforms, etc.) are required to contribute to social security funds. Accident insurance schemes are part of the benefits envisioned under the Code. Recent Updates (2025–2026) Delhi Government (2025): Directed quick‑commerce platforms to provide mandatory accident insurance for delivery partners. Rajasthan Pilot Scheme: Enrolled gig workers for accident insurance with partial state funding. Court Cases: High Courts are examining whether denial of accident insurance violates const...

POSH Act Compliance for External Workplaces – HR Guide

  POSH Act Compliance for External Workplaces – Handling Harassment Beyond the Office The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) is often misunderstood as applying only within office premises. In reality, the law covers any workplace‑related environment , including client meetings, vendor sites, training programs, and business travel. Legal Framework Section 2(o) of the POSH Act defines “workplace” broadly, including any place visited by the employee during the course of employment. Internal Committees (ICs) are empowered to hear complaints even if the respondent belongs to another organization. Recent Delhi High Court rulings (2025) confirmed that ICs cannot dismiss complaints merely because the incident occurred outside the employer’s premises. Step‑by‑Step Solution for Employees [FREE] File Complaint with IC: Submit a written complaint to your employer’s Internal Committee within 3 months of the incident. Provide Co...

PF Non‑Payment by Employer – How Employees Can Claim Their Rights

  Steps to Resolve PF Non‑Payment – Employee Remedies Explained The Employees’ Provident Fund (EPF) is one of the most important social security benefits for workers in India. Both employer and employee contribute monthly, ensuring retirement savings and financial security. However, disputes often arise when employers fail to deposit contributions with the Employees’ Provident Fund Organisation (EPFO). Legal Framework Under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 , employers must deposit both their contribution and the employee’s deducted share into the EPF account. Non‑payment or delayed payment is a statutory offence, attracting penalties and possible prosecution. Employees have the right to check their PF balance through the EPFO portal or UMANG app. Step‑by‑Step Solution for Employees [FREE] Verify PF Balance: Log in to the EPFO portal or UMANG app using your UAN to confirm whether contributions are missing. Raise Internal Query: Write to HR or a...

How to Claim Overtime Wages – Code on Wages, 2019

  How to Claim Overtime Wages Under the Code on Wages, 2019 Overtime wages remain one of the most common disputes between employees and employers. Many workers are asked to stay beyond scheduled hours but are not compensated fairly. The Code on Wages, 2019 provides clear rules on overtime pay, ensuring employees are protected. Legal Framework Section 14 of the Code on Wages, 2019 mandates that employees working beyond prescribed hours must be paid at twice the ordinary rate of wages . The definition of “wages” includes basic pay, dearness allowance, and retaining allowance, but excludes bonuses and certain allowances. State rules under the Code specify maximum working hours (generally 8 hours per day, 48 hours per week). Step‑by‑Step Solution for Employees [FREE] Document Hours Worked: Maintain a personal record of extra hours, including emails, attendance logs, or supervisor instructions. Check Company Policy: Review HR manuals or appointment letters to see if overtime is ment...