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HR Laws in India


HR Laws in India

HR laws or human resources laws in India are synonymous with the labour and industrial laws in India. Labour laws in India govern the relationship between employer, employee and the Government and ensure that the rights and obligations of all parties are satisfied. All HR personnel need to know the laws of HR practices in India and ensure there is no violation. In this article, we look at some of the main HR Laws in India that must be abided by all organizations in India. In this article, we look at the important HR Laws in India.

Indian employment laws do not provide rules or procedures for recruiting a person. Hence, it is mostly up to the organization to determine a recruiting, interviewing, screening and hiring procedure. However, it is important to note that during the recruitment, interviewing or hiring process, one should maintain the fundamental rights given to a person, like avoiding discrimination or maintaining the confidentiality of private information of the applicant.

RecruitingNo major rules or procedures. However, the organization must notify the vacancies to local employment exchange, though there is no requirement to appoint any person forwarded by the employment exchange.

Interviewing: There are no regulations against an employer asking for information about the candidate, including personal questions relating to health, race, religion, case, et. c. However, asking such questions is unethical and could lead to discrimination, which is an offence.

Pre-employment Enquiry: There are no regulations or requirements for conducting a pre-employment enquiry. However, it is a common practice for employers to conduct such an enquiry. Employers are required to obtain the employee’s consent by fax/email/letter before carrying out a pre-employment enquiry or background check.

HR Laws of employment offer letters

Indian employment and labour laws do not require an employer to issue an offer letter, except in certain states and certain establishments. However, it is an accepted practice amongst medium and large businesses to provide an offer letter in India. An offer letter is not binding on either party until it is construed as an employment contract and there is a valid offer by one party and an acceptance by another party. Click here to learn about an offer letter format suitable for Indian businesses.

HR Laws of Employment appointment letters

Indian laws have no prescribed standards for providing employment appointment letters. However, having an employment appointment letter with all employees is a good practice. Employment appointment letters in India usually include the following:

  • Name and Address of the Employee
  • Title of Job
  • Job Description
  • Place of Work
  • Date of Commencement of Employment
  • Wage/Salary Details
  • Benefits, if applicable
  • Length of employment contract: fixed or indefinite
  • Leave entitlement
  • Conditions for termination
  • Non-compete
  • Confidentiality
  • Non-solicitation and other restrictive covenants.

Click here for an appointment letter format suitable for Indian businesses.

HR Laws pertaining to termination of employment

Termination of employment could be due to voluntary reason or involuntary reason. If an employee terminates employment based on his/her free will, it is a voluntary reason. If the employer terminates the employee, then it is an involuntary termination. Termination of employment must be as per any prior employment contract entered into by the employee with the business. Also, termination of employment must follow other laws and regulations, which ensure that employees are not unduly harassed.

HR Laws pertaining to workplace health and safety

Central and State Governments place certain duties and obligations on the employer to ensure its employees’ wellbeing, health and safety. The duties of the employers are mandated by various regulations. Hence, all organizations need to maintain a safe and hazard-free work environment.

Do you have more questions about HR or Employment Law? Get in touch with an IndiaFilings Employment Lawyer.