looking for legal expert suggestion on employment legislation

Hello All HR Expert,
I hope you all are having a good Monday.
I am looking for a quick response.

Is there any Indian legislation/laws that underpin an employment contract?

If anyone can help me with the above question, that would be a great help.

Regards,
Richa

Dear Colleague,

As far as India is concerned the Labour Laws are focusing on Social Security, Working Conditions, Safety, Health and Industrial Relations aspects majorly. As far as your specific : Is there any Indian legislation/laws that underpin an employment contract? the answer is partly yes. You may go though the provisions of Industrial Employment Standing Orders Act 1946 and Rules there under which is a tripartite document which covers most of the terms of employment for Workmen class of employees who are majorly covered under Industrial Disputes Act 1947. As far as the Middle / Sernior levels and for thouse who are not workmen, the Terms of Employment is a CONTRACT as entered under the Provisions of INDIAN CONTRACTS ACT 1872. You may have your own CONTRACT OF EMPLOYMENT covering all the terms and conditions. This can be prepared one time with help of a Legal Practitioner and can be used. For some sample models you may go through the below links and it is only suggestive and there are such many more links. What is important is one should not copy paste such agreements but has to make it prepared tailor made as you know well.


https://www.startupindia.gov.in/cont...MENT%20(3).pdf

Dear CiteHR member Ms Richa Thakur,

First of all I welcome your post with reservation that your question is ambiguous inasmuch as it does not explicitly reveal whether you want to have a sample contract format which is legally compliant to Indian laws or you want to know about the laws that govern an employment contract. Having said this, I may state that senior CiteHR expert Dr P. Sivakumar has correctly apprised that Indian Contract Act 1872 governs all contracts, and terms and conditions of workmen are generally covered by Industrial Employment Standing Orders Act 1946.

2. However, I shall with due respect to my seniors, like to be permitted to add that an employer is free to frame the terms and conditions of contract according to the job requirement and the same should be unconditionally accepted by the employee at the time of taking up the employment. Nevertheless it is simultaneously most important to mention that such employment contract must not be in conflict with any law of the Nation eg. Indian Contract Act 1872 and other Acts related to service benefits like Payment of Gratuity Act 1972. Condition about legal jurisdiction of contract must also be provided in the contract for settlement of future disputes, if any. And it is always advisable to get such contract legally vetted or drafted by a legal professional expert in service matters.

Hope this will satisfy your query.

Regards,
Chandra Mani Lal Srivastava
Master Consultant 931551603
Subject Expert in Service Laws, Tender, Works and Contract Management
[Login to view]
New Delhi/17.02.2022/11:56 pm

This might be a question best asked in the CiteLegal forum.

The contract of employment alone is not the determinative factor in Indian Condition. Those who belong to the workmen category acquire certain status on being employee and that status further changes radically on completion of 240 days of continuous service. The workmen category of employees get many statutory protection as per the Indl. Disputes Act 1947 and the Industrial Employment (Standing Orders) Act 1947. The provisions of the employment contract cannot prevail over these statutory provision and the employment contract terms to the extent that they are in dissonance with the aforesaid statutes are null and void. As regards those in the category other than being workers, their service condition is governed by the employment contract and the employees have no rights more than what is vested in them under the employment contract. For instance, discharge simpliciter cannot be applied on the worker category but could be used against a non-worker to get rid of an inconvenient employee.

I may add that our Courts have repeatedly held that any contract, including a contract of employment, could be unconscionable if the parties stand in unequal bargaining power and if a particular term of appointment is because of such unequal bargaining. In such an eventuality, the same could be unenforceable.