Labour Law: Bringing the Gig Economy Inbound.

The New Aggregator Social Security Cess.

India’s booming platform economy, powered by millions of delivery partners, ride-hailing drivers, and freelance gig professionals, has historically operated in a regulatory gray zone, largely excluded from statutory welfare protections. The Code on Social Security permanently changes this relationship by establishing a dedicated social security framework for gig and platform workers. Under this historic mandate, tech platforms and digital aggregators can no longer classify their delivery or service fleets purely as "independent contractors" to entirely avoid social welfare accountability; instead, they face a direct statutory mandate to fund a centralized Social Security Fund.

The financial engine driving this welfare initiative is a mandatory, government-notified Social Security Cess. Tech aggregators operating across ride-sharing, food delivery, logistics, and e-commerce sectors are statutorily required to contribute a prescribed percentage ranging from 1% to 2% of their annual gross turnover into a centralized pool managed by a National Social Security Board. Alternatively, this contribution can be calculated as a percentage of the absolute amounts paid out to their gig workforce, whichever cap is lower. This centralized fund is explicitly dedicated to providing critical safety nets, including health insurance, accident disability cover, maternity benefits, and old-age pensions for unorganized workers.

The administrative burden of this mandate is heavily tied to real-time data compliance and identity mapping. Aggregators must establish continuous data integrations with the Ministry of Labour's centralized platform to ensure every micro-transaction and algorithmic payout dynamically routes the appropriate welfare fractions into the individual worker’s statutory account. This transitions compliance from a retrospective, end-of-year accounting exercise to a live, transactional software requirement that must be embedded straight into the platform's API architecture.

Furthermore, this code alters corporate funding dynamics and investor risk assessments within the technology sector. Venture capital firms evaluating Indian tech startups must now closely scrutinize aggregator compliance histories, as a failure to accurately provision for the social security cess can result in massive, multi-year retroactive tax liabilities and regulatory penalties. The legal definitions of who constitutes a "gig worker" vs. a "platform worker" must be navigated with extreme precision to prevent standard, independent b2b software contractors from being misclassified under the aggregator cess umbrella.

To ensure seamless distribution, the Ministry of Labour is actively scaling a national database matching individual accounts to unique identification metrics via the e-Shram portal. For digital-first businesses and platform enterprises, this regulatory framework introduces structural changes to their core unit economics. Silicon Valley-style platform models must adapt to this localized regulatory environment by building statutory welfare contributions directly into their operational margins and pricing algorithms, rather than viewing gig worker welfare as an optional corporate social responsibility (CSR) activity.

Important Disclaimer: While this article outlines the broad structural changes brought about by India's new Labour Codes, employment law remains highly nuanced and subject to specific state-level notifications and institutional exemptions. Organizations and professionals should always consult a qualified employment lawyer or legal consultant to obtain tailored, detailed advice and to ensure their specific contracts, payroll architectures, and internal policies are fully aligned with the latest statutory updates.

Labor Law - Deconstructing the 4-Day Workweek Option.

Flexibility vs. The 12-Hour Daily Cap.

The 4-day workweek option introduced in the Occupational Safety, Health and Working Conditions (OSH) Code has captured immense public interest, yet its operational realities are deeply misunderstood by the workforce. While professionals frequently search for this provision under the assumption that it constitutes a reduction in the corporate labor week, the statute maintains the national weekly working limit at 48 hours. Therefore, adopting a 4-day model does not decrease overall work volume; instead, it compresses the standard workweek into an intense, highly concentrated operational framework requiring employees to log 12 hours of labor per day.

This 12-hour daily compression creates a sharp operational divide across different sectors of the Indian economy. For knowledge-driven, project-based industries like information technology, Global Capability Centres (GCCs), and design consultancies, a 4-day compressed week can be a powerful tool for talent attraction and workplace flexibility. However, for continuous-presence and safety-critical industries such as manufacturing plants, chemical processing units, and healthcare institutions, maintaining continuous peak human productivity across a 12-hour shift introduces severe risks regarding worker fatigue, operational errors, and physical safety hazards.

From an infrastructure perspective, moving to a 12-hour daily framework forces organizations to completely overhaul their facility management and workplace ergonomics. Cafeteria services, micro-break zones, lighting, and indoor environmental air quality must be optimized to support extended mental and physical engagement. Furthermore, companies must factor in the transport liabilities associated with unusual shift end-times, ensuring that employees are not exposed to extended commutes during high-risk late-night hours.

The policy also presents intricate challenges for cross-border, multi-timezone operations. If an Indian engineering team switches to a 4-day compressed model while their global stakeholders in the US or Europe maintain a standard 5-day cycle, a structural communication gap opens on the fifth business day. Organizations must implement rotating, overlapping team rosters to ensure continuous client-facing coverage, transforming what seems like a simple scheduling option into a complex exercise in workforce modeling and continuous resource planning.

Crucially, the implementation of a 4-day workweek is an operational option, not a top-down government mandate, and it requires explicit, documented bilateral consent between the employer and the employee union or individual worker. Management cannot impose a 12-hour daily schedule unilaterally. HR strategists must design rigid guardrails, including mandatory rest intervals of at least half an hour after 5 continuous hours of work, and weigh the potential risks of employee burnout against the benefits of an extended weekend before executing this policy across the corporate floor.

Important Disclaimer: While this article outlines the broad structural changes brought about by India's new Labour Codes, employment law remains highly nuanced and subject to specific state-level notifications and institutional exemptions. Organizations and professionals should always consult a qualified employment lawyer or legal consultant to obtain tailored, detailed advice and to ensure their specific contracts, payroll architectures, and internal policies are fully aligned with the latest statutory updates.

Lawful Retrenchment, Layoffs & Business Restructuring in India: A Strategic Legal Roadmap for Employers.

Business restructuring, whether due to global cost pressures, automation, mergers, or market slowdown, often necessitates workforce rationalisation. However, in India, retrenchment and layoffs are not purely commercial decisions; they are heavily regulated under the Industrial Disputes Act, 1947 and the Industrial Relations Code, 2020. Employers who fail to align restructuring plans with statutory mandates risk reinstatement orders, back wages, industrial unrest, and reputational damage.

A critical threshold question is whether prior government approval is required. Establishments employing 100 or more workmen (subject to state amendments) may be required to obtain permission before retrenchment, layoff, or closure. Additionally, the “last-in-first-out” principle must be followed unless recorded reasons justify a deviation. Even where prior approval is not mandatory, statutory notice, retrenchment compensation (15 days’ average pay per completed year of service), and notice to the appropriate authority remain compulsory.

Strategic workforce planning also requires classification analysis. Not all employees fall within the definition of “workman.” Managerial and supervisory employees may be governed primarily by contract law rather than labour statutes. A flawed classification approach can later expose the employer to jurisdictional challenges before labour courts.

Equally important is the communication strategy. Poorly managed announcements can trigger union escalation or coordinated legal challenges. Structured separation packages, voluntary retirement schemes (VRS), and negotiated settlements often reduce adversarial proceedings.

Before initiating any restructuring, employers should seek legal review of eligibility thresholds, compensation computation, notice drafting, and risk exposure mapping. Preventive legal strategy can convert a potentially disruptive process into a compliant and defensible transition.

Employment Law - Workplace Safety & Employer Liability.

Workplace safety is no longer confined to factories and construction sites. With the expansion of compliance frameworks under the Occupational Safety, Health, and Working Conditions Code, 2020, employers across sectors, including IT, healthcare, and manufacturing, are legally obligated to provide a safe working environment. Yet, many incidents of workplace injury, unsafe infrastructure, fire hazards, and mental health stress go unaddressed.

In industrial establishments, non-compliance with safety protocols can result in serious accidents, triggering compensation claims and even criminal liability. Employees injured during employment may be entitled to compensation under the Employees' Compensation Act, 1923. However, employers often dispute liability, alleging negligence or procedural non-reporting.

Post-pandemic, psychosocial safety has also emerged as a major concern. Excessive workload, lack of safety mechanisms, and stress-related breakdowns are increasingly forming the basis of legal disputes. Employers ignoring statutory safety committees and reporting obligations face regulatory penalties.

If you have suffered injury or unsafe conditions at work or if you are an employer facing a safety claim, early legal intervention is crucial. Proper documentation, statutory reporting, and strategic handling of compensation claims can significantly influence the outcome.

Employment law and labor law - Wage and Salary Disputes.

Salary disputes remain one of the most common triggers for legal consultation. Delayed salaries, unpaid incentives, arbitrary deductions, and non-payment of overtime frequently violate statutory protections under the Payment of Wages Act, 1936, Minimum Wages Act, 1948, and now the Code on Wages, 2019.

Employers sometimes deduct amounts for notice-period shortfalls, training costs, or alleged damages without a proper legal basis. In many cases, such deductions are unlawful unless supported by contract and statutory compliance. Similarly, withholding full and final settlement after resignation is legally risky for employers.

Bonus disputes, especially in establishments covered under the Payment of Bonus Act, 1965, often arise when eligibility thresholds are ignored. Employees are frequently unaware that a statutory bonus is a legal right, not a discretionary benefit.

If your salary or dues have been withheld, time is of the essence. Legal remedies may include filing a claim before the Labour Authority or issuing a structured legal notice to initiate settlement. An employment lawyer can evaluate whether your claim falls under statutory recovery, civil suit, or labour court jurisdiction

Employment Law in India - Unfair or Wrongful Termination.

In India, termination of employment is not merely a managerial decision; it is a legal act that must comply with statutory protections under the Industrial Disputes Act, 1947, the Industrial Relations Code, 2020, and principles of natural justice. Yet, many employees are terminated abruptly without notice, inquiry, or documented justification. Whether labelled as “performance-based exit,” “redundancy,” or “loss of trust,” such actions often conceal procedural lapses that may render the termination illegal.

A key legal question is whether due process was followed. Was a show-cause notice issued? Was an opportunity to respond provided? Was a domestic enquiry conducted in cases of misconduct? Courts in India have consistently held that even private employers must adhere to fairness and reasonableness, especially where the employee qualifies as a “workman.”

For senior employees and managerial staff, the dispute may shift to breach of contract, wrongful invocation of termination clauses, or denial of contractual severance. Even in cases involving probationers, arbitrary termination can be challenged if mala fide intent is demonstrated.

If you believe your termination was unjust, the remedy may include reinstatement with back wages, compensation, or a negotiated settlement. However, timelines and strategy are critical. Consulting an employment lawyer early can help you assess whether to initiate conciliation, issue a legal notice, or pursue civil remedies before valuable legal rights are lost.

Corporate law - Trade Unions and Collective Bargaining in India.

Recent Legal Developments and Case Law Insights

Trade unions remain the backbone of industrial relations in India, representing workers’ collective voice in negotiating wages, working conditions, and social security. In recent years, both legislative reforms and judicial pronouncements have reshaped the landscape of union rights and collective bargaining, especially in the context of the Industrial Relations Code, 2020 (IRC) and key court rulings.

Legislative Developments

1. Industrial Relations Code, 2020

The IRC consolidates three earlier laws: the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. Its provisions significantly affect union recognition and collective bargaining:

Negotiating Union/ Council Recognition:

• If a single trade union has the support of 51% or more workers, it is recognised as the sole negotiating union.
• If no union crosses this threshold, a negotiating council with representatives from multiple unions (with at least 20% support each) is formed.

Stricter Rules on Strikes:

Workers in all industrial establishments must give 14 days’ prior notice before a strike.

Standing Orders Threshold Raised:

Applicability has been raised to establishments with 300+ workers, giving employers greater flexibility in service rules.

2. Implications for Collective Bargaining

• The IRC aims to streamline negotiations by reducing union multiplicity.
• Critics argue that the 51% threshold is too high, thereby limiting the bargaining power of smaller unions.
• Restrictions on strikes have been criticised as curbing workers’ rights to protest.

Judicial Trends and Case Law

1. Maruti Suzuki Workers Union Case (2022, Delhi High Court)

• The Court upheld the employer’s right to terminate probationary employees engaged in violent protests but emphasised the importance of fair disciplinary procedures.
• Reiterated that while strikes cannot be unrestricted, collective bargaining is a protected right under Indian labour law.

2. ONGC Workers’ Union vs. ONGC (2023, Supreme Court)

• The Court recognised the union’s role in representing contract workers for welfare issues.
• Stressed that contractual workers are not outside the scope of collective bargaining when it comes to safety and statutory benefits.

3. Transport Workers vs. State of Tamil Nadu (2024, Madras High Court)

The Court struck down blanket restrictions on union meetings, holding that the right to association under Article 19(1)(c) of the Constitution includes the right to union activities, subject to reasonable restrictions.

Emerging Issues in Collective Bargaining

1. Unionisation in the Gig Economy:

• Delivery workers and ride-hailing drivers are forming informal unions and collectives.
• Courts and policymakers are grappling with whether such associations qualify as “trade unions” under the law.

2. Women and Trade Union Representation:

New reforms stress the importance of gender inclusivity in union leadership, though women remain underrepresented.

3. Digital Platforms and Collective Action:

Use of WhatsApp groups, online petitions, and digital protests reflects new modes of union activity, challenging traditional legal frameworks.

Policy and Reform Directions

• Lowering Recognition Threshold: Some experts recommend lowering the 51% requirement to 30–35% for recognition as the negotiating union.
• Strengthening Dispute Resolution: Speedier conciliation and labour courts can reduce strikes and lockouts.
• Extending Rights to Gig and Platform Workers: Amendments may be needed to explicitly recognise their right to unionise and bargain collectively.
• Capacity Building: Training union leaders in digital tools, financial literacy, and legal frameworks to modernise union practices.

Conclusion

Recent reforms and rulings illustrate a delicate balance between industrial harmony, worker rights, and employer flexibility. While the Industrial Relations Code, 2020, has streamlined collective bargaining mechanisms, it has also raised concerns about restricting smaller unions and the right to strike. Meanwhile, judicial decisions continue to reinforce the constitutional value of trade unionism as an essential component of Indian democracy.

As India’s workforce evolves with rising contractualization, gig employment, and automation, the future of collective bargaining will depend on how unions adapt to represent not just factory workers but also digital-age labour.

Labour Rights in India - Supreme Court’s Stand on Gig Workers

Supreme Court’s Stand on Gig Workers: A Turning Point for Labour Rights in India.

In a landmark development, the Supreme Court of India has taken up petitions seeking recognition of gig and platform workers as “workers” under Indian labour law, with specific reference to their entitlement to social security benefits. This move comes amid growing debate on the rights of delivery executives, ride-hailing drivers, and other platform-based workers who are currently classified as “independent contractors.”

The case has the potential to reshape employment relationships in India’s rapidly expanding gig economy and could bring millions of workers under the protective umbrella of social security laws.

Background of the Case

• Petitions were filed by worker unions and advocacy groups, arguing that gig workers engaged by companies such as Zomato, Swiggy, Ola, and Uber should be considered “workers” within the meaning of the Employees’ Provident Fund Act, the Employees’ State Insurance Act, and other social security statutes.
• The petitioners pointed out that while platforms exercise substantial control over gig workers (through algorithms, performance ratings, and penalties), they deny any employer-employee relationship to avoid statutory obligations.
• The Supreme Court issued notices to the Central Government, aggregators, and state governments, highlighting the urgent need to clarify the legal status of gig workers.

Key Legal Issues Before the Court

1. Employer-Employee Relationship:

• Whether gig and platform workers can be deemed “employees” under labour laws despite contractual terms labeling them as independent contractors.

2. Right to Social Security:

• Whether gig workers are entitled to benefits such as PF, ESI, maternity leave, gratuity, and accident insurance under existing statutes or new frameworks.

3. Scope of Labour Codes:

• The Code on Social Security, 2020, defines gig and platform workers as separate categories but stops short of recognizing them as employees. The Court must decide if this classification dilutes their rights.

Arguments in Favour of Gig Workers

• Control and Dependency: Platforms dictate pricing, assign jobs, track performance, and impose penalties, which mirrors traditional employment relationships.
• Economic Vulnerability: Gig workers face low wages, a lack of healthcare, and a lack of job security. The right to social security is part of India’s constitutional promise under Articles 21 and 41.
• International Precedents: Courts in the UK (Uber case, 2021) and other jurisdictions have recognized gig workers as “workers” entitled to minimum wage and social security.

Counterarguments from Platforms

• Flexibility vs. Employment: Companies argue that gig workers enjoy freedom to choose work hours and platforms, distinguishing them from employees.
• Business Model Concerns: Imposing social security obligations may raise costs and disrupt the scalability of platform-based services.
• Legislative Competence: Platforms argue that the matter should be addressed by Parliament through policy, not judicial intervention.

Potential Implications of the Ruling

1. For Workers:

• Access to PF, ESI, maternity, and accident benefits.
• Greater bargaining power and recognition as a formal workforce.

2. For Companies:

• Increased labour compliance costs.
• Possible restructuring of contracts and business models.

3. For Policy:

• Clarification of gig workers’ status may push the government to amend the Social Security Code or frame new rules to balance worker rights with platform growth.

Broader Significance

The Supreme Court’s engagement reflects the growing need to modernize Indian labour law to address new forms of employment. Much like the Industrial Disputes Act of 1947 responded to post-independence industrialization, today’s gig economy requires legal frameworks that balance worker protections, technological innovation, and business sustainability.

Conclusion

The Supreme Court’s eventual ruling on gig workers’ rights will set a historic precedent. Recognizing them as “workers” would mark a paradigm shift in Indian labour law, extending long-denied social protections to millions of platform-based workers. At the same time, the Court faces the challenge of balancing labour rights, industry viability, and legislative policy-making.

Regardless of the outcome, this case has already pushed India to confront the future of work and ensure that the workforce powering its digital economy is not left without basic security

India’s Labour Ministry Accelerates Work on a National Database for Migrant Workers.

The Ministry of Labour and Employment has renewed its push to create a comprehensive national database of migrant workers, aiming to ensure targeted delivery of social security benefits, improve portability of entitlements, and provide policymakers with real-time data on one of India’s most vulnerable workforce segments.

This initiative has gained urgency in the aftermath of the COVID-19 pandemic, which starkly exposed the precarious conditions of migrant labourers who lacked access to welfare schemes due to the absence of reliable data.

Background: The Migrant Worker Challenge

India has an estimated 140–150 million internal migrant workers, who contribute significantly to the construction, manufacturing, textiles, transport, hospitality, and domestic work sectors. Yet, they remain:

• Invisible in official statistics due to inter-state mobility and informal employment contracts.
• Excluded from welfare schemes, including Public Distribution System (PDS), health insurance, and social security, since benefits are tied to domicile.
• Vulnerable to exploitation, wage theft, unsafe working conditions, and a lack of grievance redressal.

The Supreme Court of India (2021) directed the government to establish a national database for unorganised workers (NDUW) under the Unorganised Workers’ Social Security Act, 2008, leading to the launch of the e-Shram portal.

The Government’s Current Push

1. Integration with e-Shram Portal:

Migrant workers are being encouraged to register on the e-Shram database, which already has over 29 crore workers enrolled as of mid-2025.

2. Portability of Benefits:

The database will enable “One Nation, One Ration Card” (ONORC) and portability of ESI/EPF benefits across states, ensuring workers do not lose entitlements when they migrate.

3. Skill Mapping:

The portal is expected to include skill profiles of workers, aiding both employment opportunities and targeted skilling initiatives.

4. State Collaboration:

The Labour Ministry is coordinating with state governments to ensure interoperability of state labour records with the central database.

5. Welfare Targeting:

The database will help channelise government welfare schemes, including accident insurance, housing, and healthcare, to the right beneficiaries.

Legal and Policy Implications

• Labour Codes: The initiative aligns with the Code on Social Security, 2020, which emphasises social protection for unorganised and migrant workers.
• Right to Welfare: Access to social security is part of the Directive Principles of State Policy (Articles 38, 39, 41), and this database helps operationalise these constitutional mandates.
• Employer Accountability: Registered employers may eventually be required to declare migrant workers engaged through contractors, strengthening compliance with the Inter-State Migrant Workmen Act, 1979 (until fully subsumed by labour codes).

Benefits of the National Database

1. For Workers:

• Easier access to welfare benefits across states.
• Better job opportunities through skill-matching.
• Recognition and visibility in official systems.

2. For Employers:

• Reliable pool of skilled and unskilled workers.
• Streamlined compliance reporting.

3. For Government:

• Evidence-based policymaking.
• Efficient allocation of welfare budgets.
• Reduced duplication and leakages in schemes.

Challenges and Criticisms

• Digital Divide: Many migrant workers lack smartphones, digital literacy, or Aadhaar linkage, making registration difficult.
• Trust Deficit: Workers fear misuse of personal data, surveillance, or exclusion due to errors.
• Coordination Across States: Migrant labour is highly mobile, requiring seamless state-level cooperation.
• Implementation Gaps: Past schemes for unorganised workers often failed due to bureaucratic inefficiency and lack of awareness.

The Road Ahead

The Labour Ministry plans mass awareness campaigns, facilitation centres at labour chowks, and partnerships with NGOs to drive registrations. If implemented well, the database can become a game-changer for India’s labour governance, transforming how welfare and rights are extended to migrant workers

Maharashtra’s New Labor Law Amendments

Longer Workdays, Wider Exemptions, and Rising Protests

The Maharashtra government has recently introduced significant amendments to state labour laws, sparking heated debates among trade unions, industry representatives, and labour rights activists. These changes—focused primarily on extending working hours and revising the applicability of the Shops and Establishments Act—are being positioned as measures to enhance productivity and attract investment. However, critics argue that they dilute hard-won worker protections and may worsen job conditions for lakhs of employees across the state.

Key Provisions of the Amendments

1. Extension of Working Hours

• Factories: The permissible working hours have been increased from 9 hours to 12 hours a day.

• Shops and Commercial Establishments: Employees can now be asked to work up to 10 hours a day, compared to the earlier cap of 9 hours.

• Weekly Limits: While the daily limit has gone up, the weekly maximum remains at 48 hours, aligning with international standards. This means employers may reorganize shifts to stretch some workdays longer while reducing others.

• Overtime Pay: Any work beyond 9 hours in a day or 48 hours in a week must be compensated at double the ordinary wage rate.

• Written Consent: Employees cannot be compelled to work extended shifts without their written approval, a safeguard introduced to balance flexibility with consent.

2. Changes to Shops and Establishments Act

• Threshold for Applicability Raised: The Act will now cover establishments with 20 or more employees, up from the earlier 10-employee threshold.

• Impact: This change means thousands of small shops and offices employing between 10–19 workers will fall outside the Act’s ambit, thereby escaping regulatory obligations on working conditions, leave policies, and welfare provisions.

Government’s Rationale

The state government has defended the amendments on multiple grounds:

• Ease of Doing Business: Relaxing the applicability of the Shops Act is expected to reduce compliance burdens for small businesses.

• Global Competitiveness: Longer daily work shifts, with flexibility for employers, are seen as aligning India with international work models, particularly in manufacturing hubs.

• Attracting Investments: By allowing operational flexibility, the government hopes to attract more private and foreign investments in Maharashtra’s industrial and commercial sectors.

Trade Union and Worker Concerns

Trade unions across Maharashtra have strongly opposed the changes, calling them a step backward in labour welfare. Their concerns include:

• Worker Exploitation Risks: Longer shifts could lead to fatigue, health issues, and lower productivity over time.

• Dilution of Worker Protections: Raising the Shops Act threshold excludes a significant portion of workers, leaving them vulnerable to arbitrary employer practices.

• Pressure on Consent Clause: Despite the requirement for written consent, workers may feel compelled to agree to extended hours due to job insecurity.

• Impact on Women Workers: Safety concerns around late working hours, especially for women in retail and services, remain inadequately addressed.

Trade unions have announced state-wide protests, and some have threatened legal challenges to the amendments.

Legal and Policy Implications

1. Alignment with Labour Codes: These changes anticipate the implementation of India’s four Labour Codes (particularly the Code on Wages and Occupational Safety, Health and Working Conditions Code), which also provide scope for longer workdays with weekly caps.

2. Potential Judicial Scrutiny: Given India’s constitutional protection of the right to life and dignity under Article 21, challenges may arise over whether such long shifts are reasonable and safe.

3. Precedent for Other States: Maharashtra’s move may encourage other states to adopt similar reforms, especially those competing to attract industries.

The Road Ahead

The amendments reflect the ongoing tug-of-war in Indian labour policy—between promoting business flexibility and safeguarding worker rights. While employers may welcome the reduced compliance and greater operational freedom, workers and unions fear erosion of labour standards. The real impact will depend on how strictly provisions on overtime pay, consent, and workplace safety are enforced.

For policymakers, the challenge lies in striking a balance between economic growth and human welfare. Without strong monitoring and enforcement, these reforms risk becoming a tool for exploitation rather than a means of empowerment.

Law related labor rights in India

Indian labor law is extensive and aims to protect workers' rights and ensure fair treatment. These laws are primarily under the Concurrent List of the Constitution, meaning both the central and state governments can enact legislation. Historically, many of these laws were enacted to address issues like exploitation, poor working conditions, and unequal pay.

Foundational Acts and Codes

The legal framework is based on several key acts and, more recently, four new labor codes that consolidate and simplify many of the existing laws.

Older Acts (many of which are being subsumed by new codes):

• Industrial Disputes Act, 1947: This act is crucial for regulating the relationship between employers and employees. It provides a mechanism for the investigation and settlement of industrial disputes through conciliation, arbitration, and adjudication. It also outlines the rules for strikes, lockouts, layoffs, and retrenchments.
• The Factories Act, 1948: This law focuses on the health, safety, and welfare of workers in factories. It sets standards for working hours (a maximum of 48 hours per week), cleanliness, ventilation, lighting, and a safe working environment. It also includes provisions for adequate breaks and weekly offs.
• Minimum Wages Act, 1948: This act empowers the government to fix minimum wage rates for employees in specific industries. The wages are determined based on factors like the cost of living and the nature of the work. This ensures that no worker is paid a wage below a certain threshold.
• Payment of Wages Act, 1936: This law ensures the timely payment of wages to employees and prevents unauthorized deductions from their salaries. It specifies the period within which wages must be paid (e.g., within the first seven days of the next month).
• Payment of Bonus Act, 1965: This act mandates the payment of a statutory bonus to eligible employees based on the profits or productivity of the company. The minimum bonus is set at 8.33% of the employee's salary.
• Employees' Compensation Act, 1923: This law provides for the payment of compensation to workers and their dependents in case of injuries, diseases, or death sustained during employment.
• Contract Labour (Regulation and Abolition) Act, 1970: This act regulates the employment of contract labor in certain establishments and provides for its abolition in specific circumstances to prevent exploitation. It also makes both the contractor and the principal employer responsible for the welfare of contract workers.
• Trade Unions Act, 1926: This act provides for the registration and regulation of trade unions. It gives workers the right to form and join unions to collectively bargain with employers for better wages and working conditions. Registered unions also receive certain legal protections and privileges.
• Maternity Benefit Act, 1961: This law provides maternity benefits to female employees, including paid leave (up to 26 weeks) and protection from dismissal during pregnancy.

New Labour Codes

In an effort to simplify and modernize the complex web of existing labor laws, the Indian government has introduced four new labor codes. These codes are designed to consolidate and replace a total of 29 existing laws, aiming for a more uniform and streamlined framework. While they have been enacted, their full implementation is still pending.

• Code on Wages, 2019: This code merges four laws, including the Minimum Wages Act and the Payment of Bonus Act. It aims to ensure a universal minimum wage and timely payment to all employees.
• Industrial Relations Code, 2020: This code consolidates the Industrial Disputes Act, Trade Unions Act, and the Industrial Employment (Standing Orders) Act. It focuses on simplifying the process for dispute resolution, making it easier for companies to hire and fire employees, and setting new rules for strikes.
• Code on Social Security, 2020: This code amalgamates nine social security laws, like the Employees' Provident Funds and the Maternity Benefit Act. Its goal is to provide social security benefits to a wider range of workers, including those in the gig economy and the unorganized sector.
• Occupational Safety, Health and Working Conditions Code, 2020: This code combines 13 laws related to workplace safety, health, and working conditions. It mandates that employers provide a safe work environment, adequate facilities, and proper working hours for all employees

Working Hours, Leave, and Attendance: Legal Requirements and Best Practices in India.

Managing working hours, leave entitlements, and attendance is a core responsibility of the Human Resources function. These aspects not only ensure operational efficiency but are also governed by multiple labour laws in India. Non-compliance with statutory provisions can expose organizations to legal claims, penalties, and damage to employee relations. HR professionals need to design policies that comply with the law while meeting business needs.

The regulation of working hours is primarily governed by the Factories Act, 1948, for factories, and the various Shops and Establishments Acts, which are state-specific, for commercial establishments. According to the Factories Act, adult workers cannot be required to work more than 48 hours per week or 9 hours per day, with mandatory rest intervals. Similarly, state-specific Shops and Establishments Acts generally cap working hours at 48–50 hours per week, with daily maximums and weekly off provisions. Employers who fail to comply with these limits may face penalties, including fines and prosecution.

When it comes to leave entitlements, Indian labour law prescribes a minimum number of paid leaves that employers must grant. The Factories Act, 1948 mandates one day of earned leave for every 20 days worked, while state Shops and Establishments Acts often mandate casual leave, sick leave, and privileged leave. In addition, organizations must comply with the Maternity Benefit Act, 1961, which provides 26 weeks of paid maternity leave to eligible women employees. The Paternity Leave policy, though not mandated by law for the private sector, is increasingly being adopted as part of progressive HR practices.

The attendance and overtime provisions are closely linked to legal compliance. The Factories Act and most Shops and Establishments Acts require that any work beyond the prescribed daily or weekly working hours must be compensated as overtime, usually at twice the ordinary wage rate. Courts in India have consistently upheld the right of employees to claim back wages and overtime compensation if denied. The Bombay Shops and Establishments Act (applicable in Maharashtra) is particularly stringent about overtime rules and wage payments for extra hours.

One area of increasing focus is leave for special circumstances. The Maternity Benefit (Amendment) Act, 2017 mandates not only maternity leave but also 12 weeks of leave for adopting and commissioning mothers. Moreover, the Employees’ State Insurance Act, 1948, provides for medical leave and sickness benefits for employees covered under ESI. Failure to grant such leaves can result in labour court cases, compensatory orders, and even criminal liability in some cases.

Attendance management is also legally significant when it relates to unauthorised absence, habitual absenteeism, or misconduct proceedings. Under the Industrial Employment (Standing Orders) Act, 1946, absenteeism without permission can be categorized as misconduct, but termination for such absence must still follow principles of natural justice. Employers are required to issue warning letters, conduct domestic inquiries, and provide an opportunity to the employee to present their case before any disciplinary action is taken.

In the wake of remote work and flexible schedules, the legal framework for working hours and attendance is evolving, but the fundamental obligations around maximum working hours, leave, and employee welfare remain unchanged. Employers must balance flexibility with statutory compliance, ensuring that digital attendance systems, work-from-home policies, and flexible shifts do not violate labour law requirements.

In conclusion, managing working hours, leave, and attendance in compliance with Indian labour laws is essential for legal risk mitigation and employee well-being. HR teams must design policies that reflect statutory entitlements, provide for special leave situations, and enforce transparent attendance norms. Regular legal updates and policy reviews will help organizations stay compliant and foster a fair and productive work environment.

Advisory and Commercial Contracts

  

We provide continued corporate law advisory for our client organizations. We support critical advisory across the life cycle of a corporate from setup, regular business, fundraising, Merger, Acquisition Joint Venture etc.

Along the side, we define the various types of business agreements that your company needs to execute with multiple stakeholders, and we assist our clients with the drafting, negotiation, and execution of these contracts. Additionally, we offer contract evaluation services for third-party contracts presented to our clients.

The firm’s Corporate team is well-equipped and experienced in dealing with concerns relating to trust and society law, partnerships, company legislation, corporate agreements and commercial contracts, deeds, and memorandums of understanding/agreements. For the purpose of developing commercial agreements, our team first conducts a thorough analysis of the agreement’s requirements and scope, as well as a list of potential obstacles to its execution and operation. Following that, following several rounds of meetings and in-depth discussions, we draft a custom agreement that is tailored to the specific business needs of the customer in a certain case.

Generally, the following kinds of agreements are undertaken:

Joint venture agreements

Franchise agreement

Partnership agreement

Collaboration agreement

Co-Founders MOU’s

Commercial Agreements/Contracts/Non-Disclosure Agreements

MOA/AOA, Constitution of Political Party/Company/Trust/NGO.

Compromise / Settlement Deeds

Indemnity bond and other Bonds

Other similar Agreements and MOUs

Services agreements

Sales agreements

Leasing agreements

Product manufacturing,

Distribution agreements

licencing agreements

Other business-specific Agreements and contracts

Term Sheets, and so on.

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Posh Act Support Law Advisor

Posh Act Support Lawyer

To accomplish their duties well, today’s HR teams and Business managers require a variety of training. One such training is labour and employment law training. Employers will benefit greatly from such training in terms of avoiding or at the very least minimizing legal exposure for employment-related disputes.

Such as :

Basic labour and employment laws

Interviewing, selection and hiring

Discipline and discharge

Performance management

Documentation and record-keeping

Discrimination, harassment and retaliation

Attendance and leaves

Disabilities, pregnancy and religious beliefs

Safety and health

Electronic communications and employee privacy

Unionized workforce

Contract Labor deployment and Management

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Business Formation Law Advisor

Business Formation Lawyer 

We help start-ups through all stages of their development, from incorporation to funding. Our startup lawyers help new-age businesses structure their business models to address the obstacles in dynamic, complex business and regulatory environments.

The firm provides legal advice on all relevant Laws. It is critical for the company's success to select the appropriate legal framework for its operations. The structure can have an impact on your long-term tax liabilities, business owner responsibilities, personal liability, asset protection, ongoing costs, and compliance volume.

We take the time to get to know your company, its commercial objectives, and what you want to accomplish as a business’s end aim. This crucial information enables us to identify and implement the most appropriate legal structure for you.

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Best Property Law Advisor in Gurgaon

 

Property Law Advisor 

In India, real estate investing is regarded as a safe and secure investment, but it may also be extremely risky if you don’t understand the Indian property law, rules, and regulations. Property law in India is complicated by the fact that several state governments and the federal govt all have their own land and property laws. Due to insufficient documentation, property verification, payment transaction structure, and license documents, real estate transactions in India can be complicated. We are regarded as one of India’s leading real estate law firms.

We assist clients by examining property chain documentation, a property title deed, calculating risk factors, checking litigation issues, and property registration services at sub-registrar offices. Our experienced lawyers are experts in drafting a variety of legal documents, including builder-buyer agreements,, sale deeds, general and special powers of attorney, lease deeds, and other contract-related forms.

Our office’s experienced lawyers provide comprehensive legal services for property matters. Our Lawyers resolve issues such as illegitimate possession, ancestral property settlement, siblings’ property disputes, harassment by builders, and family disputes over common property, land, and farms.

Our knowledgeable Real Estate Lawyers can help you with harassment cases involving brokers, property agents, landlords, and tenants.

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Employment Law Advisor

 

Employment Law Advisor 

We provide continued employment law advisory for our client organizations. Our specialized lawyers provide advice to our clients w.r.t Policy, Process, Organization restructuring, separation, Reduction in force and other critical decisions. We aim to provide advisory that shall avoid disputes. Also, we provide pre-litigation dispute resolution and defend clients in disputes with employees, unions, works councils and government agencies at tribunals and other platforms.

We advise our clients on the applicability of Labor / Employment laws, their obligations and compliances, and the consequences of non-compliance, as well as issues such as The Employees’ Compensation Act, The Trade Unions Act, The Payment of Wages Act, The Industrial Employment (Standing Orders) Act, The Industrial Disputes Act, The Minimum Wages Act ,The Employees’ State Insurance Act ,The Factories Act, The Plantation Labor Act, The Mines Act, The Employees’ Provident Funds and Miscellaneous Provisions Act, The Working Journalists and Other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, The Working Journalists (Fixation of rates of Wages) Act, The Employment Exchange (Compulsory Notification of Vacancies) Act, The Motor Transport Workers Act, The Maternity Benefit Act, The Payment of Bonus Act, The Contract Labor (Regulation and Abolition) Act, The Payment of Gratuity Act, The Equal Remuneration Act, The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, The Cine Workers Welfare Fund Act, The Dock Workers (Safety, Health and Welfare) Act, The Child and Adolescent Labor (Prohibition and Regulation) Act, The Labor Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, The Building and Other Construction Workers Welfare Cess Act, 1996, state-specific Shops & Establishments enactments, Transgender Persons (Protection of Rights) Act, and others, to name a few, are all applicable in India covering complete hire to retire cycle of employee.

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Employment Policy Design

Employment Policy Design

Employment / HR policies provide written guidance for employees and managers on how to handle a range of employment issues. They play an important role in practically and effectively implementing an organization’s HR strategy. Human resources policies provide the necessary structure many businesses need to sustain the company’s productivity and overall profitability. Our HR policy design services is responsible to review existing policies, identifying gap areas, design policies, programs, and initiatives aligned to HR strategy, the Company’s Value, Vision, Business requirement and law of the land.

We design policies for the complete life cycle of the employee in an organization. Covering areas from Talent Acquisition, Talent Management, Total Rewards and Wellness (. Employee Benefits & Compensation Structuring, Employee Stock Options & Share Plans), Employee Relations, Talent Development, Health and Safety, Administration, Diversity and Inclusion, Code of conduct, Employee Participation, Employee Separation policies (including VRS), Communication policies including social media etc.

This includes the following Stages :

HR Policy Current Stage Audit

Risk and Gap Identification

Identify Policies required based on business requirements and the law of land.

Advisory on identified policies

Provide Required Support w.r.t Industry Insights (without client details) and Best Practices

Drafting, Implementation, Roll out and Communication plan to support. 

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Right of Tenant in case of Eviction suit by Land-Lord

Property Law

 Introduction:  

In India, whenever renting/leasing out of property takes place, there is the involvement of rules/ regulations under the law. Therefore, the involvement of the rent agreement is essential in order to have all the terms and conditions of the tenancy and also list out their rights and obligations. There a valid rental agreement must be in writing and dated and signed by both parties. The agreement must be stamped and registered.

The current trend of landlords filing false and frivolous cases is very common. In most of the cases, it has been noticed that the landlord files a notice of eviction on false grounds i.e. non-payment of rent on time, trivial or minimal changes or developments, and also indulging in private matters of tenants and blindly based on those situations, giving eviction notice.

There are only a limited number of reasons where the landlord can get his property evicted from the tenants such as: when a contract is expired and not renewed, such a situation the landlord can get it evicted within one month of non-renewal, also in the case where the tenant expires, the heirs or dependents can stay only for 5 years, after which it can be evicted by the landlord. In other cases such as, when the landlord is asking for eviction for his own use, also where the tenant fails to pay rent thrice in a year and lastly, in cases where there is subletting or immoral use of property etc. However, the Rent Control Act has remedies for all of the issues faced by either landlords/tenants. 

Rights of Tenant:  

The tenant has a right to legally occupy the premises if he is paying his due rent amount in time and not indulging in any such activity which can cause loss to the landlord. Here is a list of basic rights of the tenants, in which case the landlord cannot forcefully get the premises evicted.

Right against Unfair Eviction: Under the Rent Control Act, the landlord cannot evict their tenant without a valid ground/ reason. Since the states have different rent laws and hence rules of eviction slightly vary.  In some states, the rules of eviction are that the landlords have to approach the Rent Controller Court and get a favourable order for the same.

Right to Fair Rent:  

The landlords cannot charge extra-ordinary rent from the tenants. The landlord has to evaluate the rent of the premises by evaluating the value of the property. In case the tenant feels like the landlord is charging an extraordinary amount, he can approach the Rent Controller Court to seek redressal. For the valuation of the property, it is calculated at 8%-10% of the valuation of the premises, including cost incurred on construction etc.

Essential Services:  

Every tenant has a right to enjoy and receive basic services such as water supply, electricity etc. In any case, these rights cannot be taken away by the tenant even if he fails to pay the rent for the same premise or for some other property. 

Remedy with the Tenant :

The tenants can avail the following remedies:

The tenant should approach the Rent Controller court producing his/her conditions.

On the summons being served to the tenant, he/she can produce the evidence for support.

In those cases, where the tenant can prove that there was a power to sublet given in the agreement itself, then the tenant can save himself from eviction. 

The tenant can also file a suit for an injunction in those circumstances where he cannot immediately vacate the house i.e. medical emergency or staying with old parents. Such a remedy can be used when the landlord wants to get the premises vacated without giving prior legal notice to the tenant.

In cases where the landlord has filed suit for the reason that the rent is unpaid to date, the tenant can ask for the account details of the landlord and submit the rent, for which the acknowledgement receipt will be shared by the landlord.

Conclusion:  

The issue of illegally evicting the tenants from the premises of the landlords has always been of great concern. More generally, the landlord used their power to illegally evict the tenants from the property. Although the ever-changing and dynamic laws have started giving specific protection to the tenants from instances like illegal eviction, or unnecessary harassment by the landlords through cutting down their necessities like water and electricity etc. The law has given specific and limited grounds on which the landlord can evict his tenant; therefore, only if the judge passes an order with respect to the genuity of the grounds mentioned for the eviction, is only then the tenant has to vacate the premises. However, it is always recommended that the tenant must pay his rent on time and if still you think there is barging in on your rights by the landlord, you can approach the jurisdictional Rent Controller.

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Best Law Firm in Gurgaon | Best Law Advisor | kanchan Khatana and Associates

Best Law Advisor

Is one of India’s leading Law firm with its Head Office in Gurgaon, Haryana, India with network offices across India. We are an ISO 9001:2015 certified organization.

Kanchan Khatana and Associates is known for its in depth research skills and strategic advice, coupled with prompt and effective turnaround. Our passionate approach, command over law, knowledge of its processes with years of domain expertise makes us the best Employment law/ Labor Law, Corporate Law, Property Law and Family Law Firm in India .

Over the years, we have built a reputation for high quality work, a positive outlook, and the highest standards of service and ethics. We continues to expand and now, have notably become the Partner of choice. At Kanchan Khatana and Associates, our primary objective is to provide reliable and effective assistance to our customers. The clients benefit from our approach of viewing issues with a 360-degree approach.

Our Aim

Our aim is to provide pragmatic, solution-oriented and technically feasible advice to our clients.

We strive to provide the best, highest quality service to our clients always. By this we mean that everything we do is intended to solve your legal concerns as quickly and efficiently as possible. We focus on providing practical and innovative solutions. We do this by making sure we understand fully your concern, and then focusing on finding the best solution in the shortest possible time.We observe the highest level of professional ethics with an excellent, responsive and timely service to our clients. We are known for our integrity, efficiency, mutual trust and personal responsibility towards our clients.

Address: Level 3, Augusta Point, Golf Course Rd,  Parasnath Exotica, DLF Phase 5, Sector 53, Gurugram, Haryana 122002

Email: contact@kanchankhatanaandassociates.com

Phone: +91-9958484845

Website: Kanchan Khatana and Associates

• Best Employment Lawyer
• Best Advocate in Delhi /NCR
• Top Labor Lawyer
• Best Start up Lawyer
• Best Corporate Lawyer
• HR Consulting Firm
• New Labor Code  India
• Best Divorce Lawyer
• Best Property Lawyer
• New Labor Code  India Consultant
• HR policies