Sunday, December 14, 2014

IT Employees:Basic Understanding Of Labour Law!

   IT Sector around 8-9% contribution to Indian GDP and holding around 2 million young minds,a stabilizing industry. In Stabilizing phase,Corporate always take decision to lay off employees and implement anti-labour policy for profit maximization. During 2008 recession, more than thousand technocrats committed suicide according to national crime record. 1 in every 20 IT professionals contemplates suicide. Over 30% of IT Professions addicted to Narcotic drugs. Too avoid such situation in lay off phase, Employee should know basic knowledge in protective labour laws.It's always better to fight back for your right's  rather than losing life.

Is Service Bond Valid?

   According to Indian Law, Service Bond is illegal. Bonded labour not only illegal but punishable by Indian law. Indian court even ruled out orders that service bond illegal and against fundamental rights. No Company can threaten a employee with service bond for ransom or work. A service bond  can hold legal only under the condition if employer trainees a employee in grooving and enhancement. Grooving in the sense not training a employee in java,c,c++,testing etc.Even under such condition contract becomes invalid if contract is one sided. The basic law hold against service bond or bonded labour:

Article 23-Indian Constitution-Fundamental Rights-Right against exploitation-Which prohibits all form of forced labour,human traffic and child labour.
Section 27,Indian Contract Act,1872-Agreement in restraint of trade void. - Every agreement
by which any one is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void.
Section 383-389 of Indian Penal Code-(Deal with Extortion)-  if any person or institute holds back any document or any use any legal document or threatens any legal suits or actions and thus forces a person to perform any act against his wishes or which is illegal or wrong as per the statute of Law of the land.The minimum punishment under this act is 2 two years.

Is Trade Union Illegal?

   According to Indian Law,Trade Union activity legal. All Corporate company established in India under Indian Companies Act,2013(Previously Indian Company Act,1956). Corporate were never exempted from any labour law of the land. Except in SEZ, all other locations employee of organization can organize as a union. No HR or Project head can stop a employee from organizing as a union. Company can't act against trade union formation its criminal procedure for fundamental right's violation.The basic law for trade union formation,regulation and monitoring is:

The Trade Union Act,1926-It enables registration of a trade union of a organization with government. The Registered trade union with more than 30% of employee support act as a recognized official trade union of the organization. Trade Union is a collective force of employee to voice for salary bargaining, lay off, Working hours,employee concern etc.Registered trade union can call for employees strike.
Article 19(1)(C)-Indian Constitution- Fundamental Right to form association or union.

Is Sexual Harassment Legal in Corporate Culture?

  The most cornered section in IT sector would be lady associates working among majority male associates. Sexual Harassment may look like culture in corporate but criminal offence on Indian law. The problem in Sexual Harassment cases many female associates never know they were harassed. The law protect women at workplace is:

Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013-It provides protection for the women employees at work place. A un-welcome physical conduct,demand sexual favor,showing pornography, sexual verbal or non verbal behavior & sexually colored remarks would be considered as sexual harassment. A employer with more than 10 women employee should have a internal compliant committee. Members of the committee should be a senior women employee in same organization(Presiding officer), two women right's employee in organization,one ngo/association for women's right.Half the committee should be filled with women.
Sexual Harassment cases should be addressed by this committee not by HR's. The Internal Compliant committee maintain secrecy of compliant details and order for IPC case against the harasser. The Employer violating the law and no internal compliant committee would be fined.

Note:-Every female associate have right to know your internal compliant committee in your organization.

Is Lay Off(Hire-Fire Concept) Legal in India?

  Indian corporate companies comes under Indian companies act,2013. So layoff process can't take place without government approval. There is a loop hole in layoff process which most of corporate use to skip government monitoring or approval. Most companies under layoff process ask employee to resign rather termination from organization. Only if company terminates a huge employee bunch would be considered as a layoff process by law. The law protects employee from corporate lay off process is:


Industrial Disputes Act, 1947- A company with more than 300 employees need to get prior approval from government for layoff process or retrenchment.50% of the basic and dearness allowance should be paid for period of layoff. A registered trade union can act on the part of employee negotiation with employer.

Note:-Never resign your job forced by a employer,ask them to terminate you. It gives chance for legal proceeding.

Day To Day Legal Law: 

  The various act governs your day to day activity in organization based on Indian labour laws. The labour laws are:

The Factories Act,1948/Shops And Establishment Act,1953- Its act for safety,health and welfare of the workers.

Working Hour- Employee cant work more than 9 hours a day or 48 hours a week. 30 minutes interval after 5 hours of work. Inclusive of interval/breaks work time can't go excess of 10.5 hours(Including overtime).
Overtime Wages-Employee works more than 9 hours/day or 48 hours/week then double wages need to be paid.
Leave- Every 20 calender days a day leave must be granted.

Maternity Benefit Act,1961- It enable payed leave for women during pregnancy,delivery and post-child birth.

Other Acts:

The Minimum Wages Act, 1948,The Payment of Gratuity Act, 1972 ,The Payment of Wages Act, 1936  

Process to Fight Back:

        The violation of any labour right's employee have all right's to move out of companies administrative/management for external labour organization. The various forum to complaint about any labour law violations are:


  • Labour Commissioner
  • Labour Court
  • Labour Tribunal

   Reading this article is not matter but voice out against labour violation.HR are not your ultimate boss and your company policy not law of land. All Court will dismiss your company policy placed in court.

Source: Labour Ministry, ILO,National Crime Record,Nasscom,Indian Constitution, Indian Penal Code. 

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  2. A service bond can hold legal only under the condition if employer trainees a employee in grooving and enhancement. Grooving in the sense not training a employee in java,c,c++,testing etc.Even under such condition contract becomes invalid if contract is one sided. The basic law hold against service bond or bonded labour:

    ReplyDelete
  3. The basic law hold against service bond or bonded labour:

    ReplyDelete
  4. Industrial Disputes Act, 1947- A company with more than 300 employees need to get prior approval from government for layoff process or retrenchment.50% of the basic and dearness allowance should be paid for period of layoff. A registered trade union can act on the part of employee negotiation with employer.

    ReplyDelete
  5. According to Indian Law, Service Bond is illegal. Bonded labour not only illegal but punishable by Indian law. Indian court even ruled out orders that service bond illegal and against fundamental rights. No Company can threaten a employee with service bond for ransom or work. A service bond can hold legal only under the condition if employer trainees a employee in grooving and enhancement. Grooving in the sense not training a employee in java,c,c++,testing etc.Even under such condition contract becomes invalid if contract is one sided. The basic law hold against service bond or bonded labour:

    ReplyDelete
  6. According to Indian Law, Service Bond is illegal. Bonded labour not only illegal but punishable by Indian law. Indian court even ruled out orders that service bond illegal and against fundamental rights. No Company can threaten a employee with service bond for ransom or work. A service bond can hold legal only under the condition if employer trainees a employee in grooving and enhancement.

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