INDIA Law and Practice Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
cific S&E Acts. Under the OSH Code, workers are not permitted to work in any establishment for more than eight hours in a day or 48 hours in a week. Employers are required to obtain prior written consent of a worker and are required to pay overtime wages, generally at twice the ordinary rate of wages. Additionally, state-specific S&E Acts may prescribe separate requirements relating to working hours, overtime and weekly rest periods. In the event of any inconsistency, employers are required to comply with the provisions that are more favourable to the employee. 4.4 Termination of Employment Contracts Termination of individuals classified as workers under the IR Code is principally governed under the IR Code, whereas the termination of non-workers is regulated by the applicable state-specific S&E Acts, read with the terms of employment and the internal company policies. Employees may be entitled to statutory dues and benefits upon termination, including gratu - ity, provident fund, leave encashment and such other social security benefits as may be applicable under the Labour Codes. In terms of the IR Code, termination of a worker for reasons other than disciplinary action, resignation, retirement, non-renewal of fixed-term contract, would ordinarily constitute retrenchment. A worker who has been in continuous service for not less than one year cannot be retrenched unless the worker is provided the prescribed notice or wages in lieu thereof, togeth - er with retrenchment compensation as prescribed under the IR Code. Further, in the case of industrial establishments employing 300 or more workers, pri - or permission of the appropriate government is also required to be obtained prior to any retrenchment. 4.5 Employee Representations There is no general statutory obligation on employ - ers to constitute employee representative bodies or to undertake prior information sharing/consultation with employees or their representatives in relation to ordinary business or management decisions. However, employee representation and consultation rights may arise in relation to employees who quali -
fy as workers under the IR Code. Recognised trade unions or negotiating unions/councils are empowered to represent workers in matters relating to collective bargaining, industrial disputes and matters involving proposed changes to conditions of service. Industrial establishments employing 100 or more workers may be required to constitute a works com - mittee. Such committee comprises representatives of both the employer and the workers engaged in the establishment. The principal function of this commit - tee is to promote and maintain harmonious relations between the employer and the workers. The commit - tee is also required to consider matters of common interest or concern to both parties and endeavour to resolve any material differences of opinion arising in relation to such matters. An individual is taxable in India as a salaried employee if he or she is a resident in India (present for 182+ days in the tax year, or 60+ days in the tax year and 365+ days in the preceding four years); or he or she is a non-resident who receives salary income sourced in India and meets the threshold time limit and other conditions in the applicable treaty of his or her country of residence. Under the default tax regime, salary income is taxed at progressive rates ranging from nil to 30%, with the highest rate applying to income exceeding INR24 lakh (approx. USD25,400 at time of writing). A surcharge is applicable at rates of 10%, 15% and 25% where total income exceeds INR50 lakh (approx. USD53,000), INR1 crore (approx. USD106,000) and INR2 crore (approx. USD212,000), respectively. Employees may alternatively opt for the old tax regime, which permits certain deductions and exemptions but is subject to different slab rates, with the highest rate of 30% applying to income exceeding INR10 lakh (approx. USD10,600). Under the old regime, the rate of sur - charge remains the same, with an additional slab of surcharge at the rate of 37% for income exceed - 5. Tax Law 5.1 Taxes Applicable to Employees/ Employers Direct Tax
444 CHAMBERS.COM
Powered by FlippingBook