05 May 2022

Top 8 Rights of Employee in India

by Sneha
Top 8 Rights of Employee in India

Organizations or workplaces generally consist of people from various backgrounds, areas of expertise, degrees, communities, and cultures. 

Every company assigns specific rights and responsibilities to each employee and every employer that works with them. As every employee contributes to the employer and the organization, it is significant they are aware of their workplace rights in India.

India's constitution provides various privileges and rights to its employees. Understanding these fundamental rights can help create a workplace environment where employees feel friendly and comfortable. Employers who attempt to harm employees' rights could be liable for their actions, and employees may be entitled to bring a lawsuit for damages for breaches of rights. 

Let's take a look at some significant Acts of labor law in India that employees should know:  

1. The Payment of Wages Act

The Act's goal is to protect employees from unnoticed and unethical deductions made by employers from their wages. Employers cannot deduct funds from their employees under this policy and have to pay the reimbursement on time every month. If you leave the firm, you are entitled to receive the salary you earned during that particular month.

The Payment of Wages Act states the timely payment of an employee's remuneration. An employee can approach the Labour Commission or bring a civil suit if that doesn't happen. Those who earn more than eight thousand can take civil action against their employers.

2. Workmen’s Compensation Act

The workmen's compensation act protects initiatives for employee healthcare and safety benefits and pays employees on a legitimate basis. 

In cases of injuries or accidental harm, this act proved helpful for employees and their dependents in claiming appropriate compensation from their employer. It safeguards the rights of employees when they suffer some disability or die in the course of their work due to a workplace accident.

Workman's Compensation Act protects employees from the consequences of accidents occurring on the job under certain conditions as set forth in the act. 

In general, the act strives to ensure that employees have a sustainable quality of life after an accident in their workplace.

3. Payment of Bonus Act

The Payment of Bonus Act of 1965 strives to regulate the amount of bonus to be paid to the workforce in organizations profitability and efficiency. The act applies to all companies in India that employ twenty or more people on any given day of the year. 

The act will benefit people receiving up to Rs.15,000 a month in salary or wages and who are involved in any kind of work. Employees are entitled to the bonus regardless of their skill level, whether they are unskilled or highly skilled, as long as they worked for 30 workdays or more that year.

4. Payment of Gratuity Act

Employees who have served the organization in continuous service for five years are entitled to gratuities. If an organization employs ten employees on a single day in the past 12 months, it is liable for paying the gratuity. 

It is possible for an employee to receive a gratuity based on the completion of employment, such as upon retirement, death or termination.

5. Maternity Benefit Act

The Maternity Benefit Act of 1961 provides protection for women's employment during their pregnancy. Women employees are entitled to 'maternity benefits,' which cover their wages during time off and while taking care of their child. Through the Act, maternal mothers will be able to receive financial assistance and job security during their employment tenure. 

The Act establishes guidelines for paid time off for expecting mothers to care for themselves and their newborn.

6. Employee Provident Fund act

The Act provides for a specific percentage contribution from the employer towards the employee's social security as a result of employee provident funds. 

It serves as a long-term savings and retirement scheme. EPFO is the organization that administers provident funds for employees in India who receive salaries. 

Every organization employing more than 20 people needs to enroll with the EPFO. The act provides you with welfare benefits such as medical and retirement care, housing, education benefits, and financing insurance policies, etc.

7. Industrial Disputes Act

In the event of disputes between employers and employees, this act provides recourse to the employees and rights to employers. 

Under this act, an employee must serve a notice of resignation or retrenchment within the stipulated period, work on certain holidays, and comply with other terms of employment. It establishes the procedures for negotiation and the rules to follow before initiating legal proceedings with employers and employees.

8. Employee State Insurance Act

This act provides that employees can get remedial measures for illnesses, diseases, and injuries sustained at work during working hours. 

The employer must take some percentage of the employee's pay as a deduction for insurance premiums or self-insure employees. Those employed by the company and their families may benefit from this medical insurance scheme.

Also Read: 

Time Management Tips for Employees 

Do’s and Don’ts in professional life