12. SOME IMPORTANT RIGHTS OF PRIVATE EMPLOYEES

 SOME IMPORTANT RIGHTS OF PRIVATE EMPLOYEES

1. EMPLOYMENT AGREEMENT

During the course of employment, being an employee of the company, you are entitled to get a written agreement duly signed by the employer before the actual joining.

Such a written document contains all the important terms and conditions of employment, the rights and duties, and the obligations of both the employer and the employee. Such a well-written agreement binds both parties legally.

Therefore, legal actions can also be pursued in case of any disputes, as mentioned clearly in the agreement.

2. LEAVE

Whether you are working in the public or private sector, each and every employee is entitled to a set of leaves.

As an employee, you can get casual leave (for urgent matters only, like a family emergency), paid leave (no deductions in salary, but can be availed monthly, quarterly, or annually), sick leave (fixed number of sick leaves are allowed), and other leaves which may include unpaid leaves for which the employer can deduct the amount from the salary.

3. Timely Payment of Remuneration

According to the Payment of Wages Act, 1936, each and every employee working in a private sector must be paid within a prescribed time limit after necessary deductions like TDS and provident fund, etc.

There is also a provision to file a suit before the Labour Commissioner if remuneration is not done in a timely manner.

4. MATERNITY BENEFITS

Maternity leave is yet another essential right that is given to a female employee for a period of 26 weeks and is availed during pregnancy or after delivery. Some private companies also allow paternity leave to let the father take care of his newly born baby.

5. GRATUITY

As per the Payment of Gratuity Act 1972, this is a retirement benefit that is paid to an employee at the time of termination, retirement, resignation, or at the death of the employee.

It is usually paid to employees who have completed at least five years of continuous service to the company. Lawyers should take legal action against the employer if the employee doesn’t receive the gratuity amount.

6. PROVIDENT FUND

7.PROTECTION FROM SEXUAL HARASSMENT ETC.


IF EMPLOYER DOES NOT PAY SALARY ON TIME:

EMPLOYER MUST PAY INTEREST IF SALARY IS DELAYED: HC

·         The employer must pay a reasonable interest if a payment, due to the employee, is made late, the Bombay High Court has held.

·         It is common in India for employers to deny salary to employees, especially at the time of firing them.

·         They think that employees have no options or the resources to pursue a case against an employer.

·         India has an entire law on payment of salary called Payment of Wages Act, though it does not apply to all levels of employees.

Section 4 of the payment of wages Act states

Fixation of wage period every person responsible for the payment of wages under Section 3 shall fix periods in respect of which such wages shall be payable. No wage period shall exceed one month

Monthly Salary Distribution Requirements:

·         A person is working in an establishment with a wage not more than one thousand, the wage to the particular person shall be paid before the expiry of the seventh day.

·         A person with the wage of more than one thousand shall be paid before the expiry of the tenth day.

·         If the employee is terminated by the employer the wages earned by him shall be paid before the expiry of the second working day from the day his employment is terminated.

 

What steps can be taken by employee:

If your employer is not paying your salary,

THE EMPLOYEE MUST DO THE FOLLOWINGS:

A) APPROACH LABOUR COMMISSIONER:

If an employer doesn’t pay up your salary: you must approach the labour commissioner. They will help you to reconcile this matter and if no solution is reached labour commissioner will hand over this matter to the court whereby a case against your employer may be pursued. The salary and remunerations will definitely be settled for employees.

B) INDUSTRIAL DISPUTE ACT:

·         An employee can file a suit under Section 33(c) of Industrial Dispute Act, 1947 recovery of money due from an employer.

·         When the salary is due from the employer, the employee himself or any other person authorized by him in writing on his behalf can claim recover money.

·         In case of the employee death, the authorized person or heirs make an application to the labor court for recovery of money due.

·         The court will further issue a certificate on being satisfied that the salary is due and the collector shall proceed to recover the same.

·         If any question arises as to the amount of money due or as to the amount at which such benefit should be computed, it would be computed according to rules under this Act.

Labor Court Time Line:

·         Cases have to be decided by such labour court within period not exceeding Three Months executives & managers etc.

·         IF YOU ARE MANAGER OR EXECUTIVE LEVEL EMPLOYEE, YOU MUST FILE THE CASE AGAINST THE COMPANY IN THE CIVIL COURT UNDER ORDER 37 OF COURT OF CIVIL PROCEDURE. This is faster than civil courts, called a summary suit.

COMPANY IS NOT PAYING WITH A FRAUDULENT OR DISHONEST INTENT:

Employer fraud punishment:

Section 447 of Companies Act, 2013 lays down punishment for fraud.

THE FRAUD EMPLOYER SHALL BE LIABLE FOR IMPRISONMENT NOT LESS THAN 6 MONTHS WHICH MAY EXTEND TO 10 YEARS.

Fine not less than amount involved in fraud which may extend upto three times of the fraud amount.

Subsequent measures can be taken under Section 447 of the Act.

THE EMPLOYEE MUST FILE A CRIMINAL CASE AGAINST THE COMPANY UNDER INDIAN PENAL CODE.