INDIA Law and Practice Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
Personal liability may also arise under other applicable legislation. Indian law recognises the doctrine of piercing the cor - porate veil, although it is applied sparingly and only in exceptional circumstances. Under this doctrine, courts may disregard the separate legal personality of a company and look beyond the corporate struc - ture where it has been used to perpetrate fraud, evade legal obligations, defeat public policy, avoid taxes, circumvent statutory requirements, conceal the true nature of a transaction or otherwise abuse the cor - porate form. In such circumstances, liability may be imposed on the individuals or entities exercising con - trol over the company. The doctrine has developed primarily through judicial decisions and is applied on a case-by-case basis. India’s labour and employment framework comprises both central and state legislation. At the central level, the framework is primarily based on the four Labour Codes, which consolidate and rationalise numerous existing labour laws: • Code on Wages , 2019 : This consolidates laws relating to wages and bonus payments. Key fea - tures include the introduction of a floor wage, a revised definition of wages, equal remuneration for the same work, and powers of the government to fix minimum wages. • Code on Social Security , 2020 : This consolidates social security laws and seeks to extend social security benefits to employees and workers across both organised and unorganised sectors. 4. Employment Law 4.1 Nature of Applicable Regulations • Occupational Safety , Health and Working Condi- tions Code , 2020 (“ OSH Code ”): This consolidates laws relating to occupational safety, health and working conditions. It prescribes employer obliga - tions concerning workplace safety, working hours, leave entitlements and other welfare measures. • Industrial Relations Code , 2020 (“ IR Code ”): This consolidates laws relating to trade unions, indus - trial disputes, grievance redressal, retrenchment, lay-offs, closures, strikes and lockouts.
In addition to the Labour Codes, several other employ - ment-related statutes remain relevant: • Shops and Establishments Acts (“ S & E Acts “): State-specific legislation governing conditions of employment in shops and commercial establish - ments, including working hours, leave, wages, employment of women and young persons, and establishment registration requirements. • Sexual Harassment of Women at Workplace ( Pre- vention , Prohibition and Redressal ) Act , 2013 ( com- monly known as the POSH Act ): This establishes a framework for the prevention and redressal of workplace sexual harassment, including constitu - tion of Internal Committees and implementation of prescribed compliance measures. • Other employment legislation : Additional statutes include the Apprentices Act, 1961, the Rights of Persons with Disabilities Act, 2016 and the Transgender Persons (Protection of Rights) Act, 2019, each of which imposes specific obligations relating to non-discrimination, equal opportunity and workplace inclusion. 4.2 Characteristics of Employment Contracts The Labour Codes mandate the employer to issue an appointment letter to every employee upon appoint - ment in the form prescribed by the appropriate gov - ernment. Employment relationships are typically governed by employment letters and employment agreements setting out the terms and conditions of employment, including the scope of work, working hours, leave entitlements, notice periods, holidays, remuneration, confidentiality obligations, non-compete/non-solicit restrictions, overtime and dispute resolution mecha - nisms. Employment may be for a fixed term or an indefinite term. Fixed-term employment terminates upon expiry of the agreed term, while employment for an indefinite term continues until terminated in accordance with the terms of the employment contract and applicable law. 4.3 Working Time Working hours in India are principally governed under the OSH Code, along with the applicable state-spe -
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