Labour laws in India also known as employment law is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.
There are many labour laws in India relating to labour protection and salaries (renumeration) from the Factories Act to the Miniumum Wages Act, but there are some very basics:
- Wages are regulated by individual contracts according to statutory minimum wage regulations
- The minimum wage varies according to region, industry, age, affiliation and inflation – but the central recommendation is 160 rupees per day
- How many hours it is legal to work is regulated by the Factories Act. Weekly working time according to the Act is 48 hours – with no more than 9 hours per day allowed in overtime.
- In a week the Standard working hours plus overtime may be maximum 60 hours; with a maximum of 50 overtime hours per month.
- Legal holidays required for all: 3 national holidays plus regional holidays. Holiday entitlement is 1 day per worked 20 days
- Sick pay should be paid in case of illness
- Probation period up to three months
- In 2017 paid maternity leave for women working in the organised sector increased from 12 weeks to 26 weeks
The best way to wrap your head around these laws is to get legal advice from an expert in India. M+V can help you understand the situation for your industry.