India
Fixed-term contracts are permitted. The work must be temporary and have an end date. If a worker continues working past the end date of a fixed-term contract, they will be converted into a permanent contract. If a Worker is terminated before the end of their fixed-term contract, they generally receive 2 weeks of notice and are owed the wages to the end of their contract.
In India, Workers recognize 3 national public holidays in addition to state public holidays. On average, most states recognize about 10 public holidays each year. Workers are entitled to paid days off for public holidays.
Annual vacation entitlements are addressed in the relevant state’s State Shops and Establishments Act (“SEA”). Most SEAs provide for 15 to 20 days of paid leave per year, which accrues over time.
There are two official subcategories of Workers in India. Workmen and Non-Workmen.
Generally last 3 months but may be extended at the discretion of management not to exceed 6 months. During the probationary period, either party may terminate by giving 15 days’ notice.
Regular working hours are regulated under the relevant SEA. Generally, work up to 9 hours per day and 48 hours per week is considered regular hours. Pursuant to the relevant SEA, breaks are paid and generally range from 30-60 minutes every 4 to 5 hours worked.
Any time over the regular working hours are considered overtime, which is generally payable at double the Worker’s wages.
Mandatory bonuses range from 8.33%-20% and are only paid to workers earning less than 21,000 INR per year. The mandatory bonus is to be paid by November 30th of each year.
Workers on engagement for longer than 3 months generally must receive 30 days notice of termination or pay in lieu of notice.
Workers must give one month’s notice to end an employment arrangement. Employers may waive the notice period but if waived, retrenchment compensation is due.
If the Worker is terminated due to a downsizing, layoff, or business closure, they will entitled to severance (“retrenchment compensation”) equal to 15 days’ of pay for each year worked (or a pro-rata portion for work more than 6 but less than 12 months). Gratuity payments are owed to Workers that have continuously been engaged for more than five years of service under an indefinite contract or completed at least one year of service under a fixed term contract upon termination, superannuation (retirement due to age), resignation, or death or disablement due to accident or disease. Gratuity is calculated at a rate of 15 days’ wages for each completed year of service. The 15 days’ wages are calculated by dividing the Worker’s last wages by 26 and multiplying the result by 15. The maximum gratuity payable is statutorily capped.
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