Employment Contracts

In the Constitution of India from 1950, articles 14-16, 19(1)(c), 23-24, 38, and 41-43A directly concern labour rights. Article 14 states everyone should be equal before the law, article 15 specifically says the state should not discriminate against citizens, and article 16 extends a right of “equality of opportunity” for employment or appointment under the state. Article 19(1)(c) gives everyone a specific right “to form associations or unions”. Article 23 prohibits all trafficking and forced labour, while article 24 prohibits child labour under 14 years old in a factory, mine or “any other hazardous employment”.

Articles 38-39, and 41-43A, however, like all rights listed in Part IV of the Constitution are not enforceable by courts, rather than creating an aspirational “duty of the State to apply these principles in making laws”.Article 38(1) says that in general the state should “strive to promote the welfare of the people” with a “social order in which justice, social, economic and political, shall inform all the institutions of national life". In article 38(2) it goes on to say the state should “minimise the inequalities in income” and based on all other statuses. Article 41 creates a “right to work”, which the National Rural Employment Guarantee Act 2005 attempts to put into practice. Article 42 requires the state to “make provision for securing just and human conditions of work and for maternity relief”. Article 43 says workers should have the right to a living wage and “conditions of work ensuring a decent standard of life”. Article 43A, inserted by the Forty-second Amendment of the Constitution of India in 1976,creates a constitutional right to codetermination by requiring the state to legislate to “secure the participation of workers in the management of undertakings”.

Employment contracts

Among the employment contracts that are regulated in India, the regulation involves significant government involvement which is rare in developed countries. The Industrial Employment (Standing Orders) Act 1946 requires that employers have terms including working hours, leave, productivity goals, dismissal procedures or worker classifications, approved by a government body.

Employment contract together with the need to put in efforts in producing goods and services imposes duties (including ancillary duties) and obligations on the part of the employees to render services with the tools provided and in a place and time fixed by the employer. And in return, as a quid pro quo, the employer is enjoined to pay wages for work done and or for fulfilling the contract of employment. Duties generally, including ancillary duties, additional duties, normal duties, emergency duties, which have to be done by the employees and payment of wages therefor. Where the contract of employment is not fulfilled or work is not done as prescribed, the principle of ‘no work no pay’ is brought into play.

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