Contracts and Dismissals

Last year (2020), the Indian Parliament combined 25 labour laws into three codes, i.e., the Social Security Code, the Code on Industrial Relations and the Code on Occupational Safety, Health and Working Conditions. The Code on Wages, enacted in 2019, also amalgamated four relevant labour laws.

The Four new Labour Codes were supposed to be effective from 01 April 2021 however considering the rise in COVID cases and the potential impact of the new Codes on per employee costs for enterprises, the Government has delayed implementation of new Codes to a future date. The Central and State Governments have yet to notify the rules. The new legal provisions will be effective only, once notified.

Currently Applicable Provisions

Most workers in the platform economy are not regarded as employees. If they do not have an employment contract, the law essentially sees them as independent contractors who provide services to the platform or to the platform's users. However, when they perform their duties full-time and have to abide by the rules of the platform, a judge can conclude the workers are actually employed. The draft Code on Social Security 2019 defines a gig worker as "a person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship"

Written Employment Particulars

There is no provision in the above labour law that requires an employer to provide a written statement of particulars to a newly hired employee. However, a written appointment letter or employment contract is signed between the employer and the worker as a matter of practice.

The written document may contain the following information: name and address of the employer; name and address of the employee; title of the job or nature of work to be performed by the employee (or job description); place of work and hours of work; and probation, if any, and its term, etc. The employers may also incorporate the following information into employment contract: option of the employer to transfer an employee from one office to another branch office, affiliate, etc.; date of commencement of employment; wages or salary details (overtime wages); any benefits that an employee is entitled to (gratuity, provident fund and pension); type of contract – permanent or fixed-term; period of notice required for termination of employment; leave entitlement; conditions under which the employer can terminate the contract; and non-compete, confidentiality and non-solicitation provisions, etc.