INDIA Law and Practice Contributed by: Anshul Prakash, Kruthi N Murthy and Deeksha Malik, Khaitan & Co
adopt) new practices to ensure the seamless flow of work. Hybrid workplaces that offer flexibility to employ - ees to work from both the office and home have now become a standard requirement for most job seekers. To reduce real estate costs, many companies have switched to “co-working” spaces and “hot-desking” practices. Furthermore, with most companies having resumed working from the office (while retaining the hybrid model), employers have been making efforts to take care of the wellbeing of their employees, in order to help them to adjust to this shift. Factors contribut - ing to employees’ ailments have included the stress of additional commuting hours, the expensive cost of living, managing new methods of work, and physical health issues. In India, the Trade Unions Act 1926 provides for the registration of trade unions (which is an optional pro - cess for a trade union); such registration confers on the union certain rights and liabilities which a non- registered trade union does not have. For example, a non-managerial employee who is a party to an industrial dispute can be represented by a registered trade union. Furthermore, a registered trade union can acquire and hold movable and immovable property and can contract, sue and be sued in its name. 6. Collective Relations 6.1 Unions At the state level, however, a few states have made provisions for the recognition of a trade union; for instance, Maharashtra has enacted the Maharash - tra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act 1971, which sets out a procedure that may be followed by a registered trade union to obtain the status of a recognised trade union. Where a state government has not enacted legislation for the recognition of a trade union, an employer may accord its recognition to a union by way of a collective bargaining agreement. A trade union that is both registered and recognised has the right to collective bargaining with an employer, so that if the employer refuses to negotiate with such union on the terms and conditions of employment of the workers being represented, the union can file a
claim before the competent authority alleging unfair labour practices by the employer. 6.2 Employee Representative Bodies In addition to trade unions, the ID Act provides for the constitution of a works committee in an establishment with 100 or more non-managerial employees, in the event that the relevant government issues any specific or general directions to that effect. Such works com - mittees have an equal right of representation of non- managerial employees’ representatives and employ - ers’ representatives, and the right to discuss the terms and conditions of employment of non-managerial employees in an amicable manner. 6.3 Collective Bargaining Agreements In India, collective bargaining agreements are primar - ily the product of a charter of demands and several rounds of negotiations between a particular employer and its employees, who are typically members of a trade union. Collective bargaining agreements are a predominant feature of employment in the manufac - turing sector, although the existence of such agree - ments in the services sector is not uncommon. Collec - tive bargaining agreements can only establish better employment conditions than those prescribed under various employment and labour laws, and therefore these instruments cannot be used to opt out of statu - tory payments, benefits and protections. Collective bargaining agreements typically entail provisions relating to working hours, working conditions (such as health and safety), remuneration (including bonus and yearly increments), leave and holiday entitle - ments, etc. For more details in relation to collective bargaining, please see 6.1 Unions .
7. Termination 7.1 Grounds for Termination
In India, an employer may terminate the services of an employee on two main grounds, either with or without cause.
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