COVID-19 is still prevalent in many countries around the globe, and it seems to have a long-lasting impact on economies of many nations. In the wake of COVID-19 lockdown there are number of employment-related issues faced by both employees and employers. Everyone is interested to safeguard their economic interests. There are many questions about what are the rights and obligations of employers and employees during the time of this lockdown and social distancing. Read on to know more. 

Salaries during Coronavirus Pandemic

An often asked question during this time is, whether employers have a continued obligation to pay salaries or not. As per government, if an employer can afford to pay salaries at the same rate they’ve been doing before lockdown, then they should do so. However, it is also true that for most employers it will be not viable to continue paying salaries because of the nature of the industry. In this case, it is advisable for both parties to decide mutually and come up with a solution. However, any reduction in salaries has to be as per minimum guarantees provided under the law. But as per latest development, some states are looking to suspend minimum pay legislation to help companies recover coronavirus losses. More clarity on this is expected to come in a couple of days.

Also Read: What to do if employer does not pay salary on time

Like we said, it depends on the kind of industry. If an organization can continue rendering services and its employers can work from home, then this way both parties will have to bear losses.

Termination during Coronavirus Pandemic

As mentioned above, termination or layoffs should be avoided as much as possible. And it is advisable to mutually decide the course of action. However, in extreme circumstances employers are permitted to terminate employees. But in order to do so, they would need to follow the mandates provided by law for these actions. 

Insurance Obligations during Covid-19

In the wake of COVID-19 situation, the government has extended the contribution period towards Employees State Insurance or ESI. From March, 2020, a relaxation has been given by government that instead of the usual 15 days’ time period for depositing the ESI Contributions, a more relaxed time period of 45 days is provided. Also, employees have been assured that they will be able to use their Insurance entitlements, even if the illness or death has happened due to COVID-19. The Life Insurance Council of India (LIC), by a press release, has confirmed that all COVID-19 related death claims shall be honored. Similarly, the government has also stated clearly that employees shall be entitled to use their ESI Contribution entitlements for illness or death caused due to COVID-19.

Work from Home option during Coronavirus Pandemic

Following the spread of epidemic, to ensure social distancing norms – all commercial and industrial establishments which are not engaged in giving essential services were instructed to be closed. However, wherever possible employers have a right to ask employees to Work from Home. But remote working environments has their own risks. Employers may end up giving personal access to the Confidential Data and Trade-related secrets of the company. Hence it goes without saying that all clauses of maintaining confidentiality of company data would be strictly applied to all employees who are working from home.

It goes without saying that during this difficult time, as a moral obligation, we all should do whatever is in the favor of humanity and working ethics. We will keep you posted with latest developments of government in this regards.

Hope we Answered Rights of Employees & Employers during Coronavirus Pandemic

Read About : IndiGo announces salary cuts for top management from May amid coronavirus lockdown

The post Rights of Employees & Employers during Coronavirus Pandemic first appeared on Rightsofemployees.com.

As an employer or an employee, you have specific obligations to uphold your employment contract. Even if the contract is verbally implied, both employer and employee are bound by that contract. It can be difficult to get out of an employment contract, but there are ways it can be legally done, which saves you from facing a potential lawsuit for breaching the contract.

No, employment bond is not enforceable.

Many people think it is contract and parties are abide by it. But section 27 of indian contract act 1872 says something different.

Employment bonds are employment agreements with negative covenant. Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation. The Indian courts have held that in the event of a breach of contract by the employee, the employer shall be entitled to recover damages only if a considerable amount of expenditure was borne by the employer. Indian law mandates the employment bonds to be “reasonable” in order to be valid. The term reasonable remains undefined anywhere in the Indian law and therefore the courts have given meaning to “reasonable” depending upon the facts and circumstances of the cases. The proposition which has emerged till now is that conditions stipulated in the contract should be necessary to protect the interest of the employer and compensate the loss caused by breach of contract. Additionally, the penalty or compulsory employment period stipulated should not exorbitant.

How to Challenge the enforceability of Employment Bond?

The validity of Employment bonds can be challenged on the basis of Section27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.

As per the Section 27, any terms and conditions of an agreement which directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid under the Indian law, The employee has right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time.

For an employment bond to be valid under Indian law, it has to be proved that it is necessary for the freedom of trade. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. If an agreement is challenged on the grounds of violating the provision relating to restraint of trade, the onus is on the party supporting the contract to show that restraint is reasonably necessary to protect his interests.

Following are the requirements of a valid employment bond agreement.

1. The agreement must be signed by the parties with free consent.
2. The conditions stipulated must be reasonable and:

• The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer.

1. The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable.

Remedies Available to Employer and Employee

If an employment bond is breached, the employer might be entitled to compensation. The compensation awarded should be reasonable to compensate the loss and should not exceed the penalty, if any stipulated in the contract. The court computes the reasonable compensation amount by computing the actual loss incurred by the employer having regard to all facts and circumstances of the case. Even if the bond stipulates payment of any penalty amount in the event of breach, it does not mean that the employer shall be entitled to receive the stipulated amount in full; the courts shall determine the reasonable amount of compensation to be paid. One interesting question arises, whether the employers are entitled to seek for reinstatement of their employee or obtain restraining order against the employee from joining any competitor or another employer? The Supreme Court while dealing with a similar situation has held that specific performance action cannot be sought for breach of contract of personal service or bond and therefore employer shall not be entitled for reinstatement of their employees as relief in the event of breach of bond. We have witnessed the trend that courts are not willing to grant an injunction against the employees restricting their employment with another employer unless it is necessary for the protection of proprietary interests or trade secrets of the employer.

The court considers the actual expenses incurred by the employer, the period of service by the employee, the conditions stipulated in the contract to determine the loss incurred by the employer to arrive at reasonable compensation amount.

The post How To Break The Contract Of Employment ? first appeared on Rightsofemployees.com.

Wrongful termination is one the most common types of employment dispute. Every year thousands of employees are subjected to wrongful termination, but are completely unaware of the correct legal course against it. Before considering about taking an action against the employer, you need to establish whether the termination was wrongful or not.

Wrongful termination is difficult to prove, because most states have an “at will” policy when it comes to employment. Under this policy, either the employee or the employer may terminate employment at any time without consequence. However, there are illegal reasons to terminate an employee. Winning a wrongful termination suit requires that you produce sufficient facts that you were terminated illegally.

If you are considering suing your employer for wrongful termination, you should first consult an employment attorney. Below are a few steps towards filing a successful claim:

Determine whether you are an at-will employee;

Review your employment contract, which should give your insight on what type of employee you are, for what reasons you may fired, and the steps you need to take to file a complaint;

File a complaint with your human resources department; and

If your filed complaint does not turn out in your favour, speak with your attorney who, if need be, will be able to push forward with your claim.

What can you do?

Start by approaching the human resource department of your company. It will be in a position to explain where you stand legally and will help resolve the issue. You can also lodge a formal complaint directly with the department and should give it adequate time to evaluate your situation and suggest a solution. If you are not satisfied with the response, you can file a court case.
In case of a violation of your contract, you can file a case in a civil court. Cases of mental harassment can be filed in the civil court as well as a criminal court, if you add the charge of criminal intimidation. Consult a lawyer to see if your case can be settled through arbitration or by a labour tribunal as this is easier and more cost-efficient.

If you decide to take the matter to court, ensure that you prepare yourself well for it. Maintain a record of all the incidents that you think were wrong or in violation of your rights. If possible, note down the date and time as well. This will be immensely useful to your lawyer, who will be able to ascertain if you have a case at all. You can use this information even while discussing the matter with the HR team.

Looking toward the future, practice answering interview questions about the termination, and gather references from contacts to bolster your candidacy for jobs. Don’t let this reversal stand in the way of your success.

The post How to Sue an Employer for Wrongful Termination ? first appeared on Rightsofemployees.com.

Even though companies across the world are coming up with people friendly policies, there is always a small section of employees who like to take   advantage of the same. Often employees leave organizations without serving notice in the lure of better chances elsewhere. But this is only a short term advantage. Barring some countries, most good organizations require a ”service or relieving certificate” as proof of employment.

The signed and   stamped ” Letter of Appointment” between and employer and employee is a legally valid document in the court of law. If an appointment letter clearly spells out the conditions of termination and notice, and the employee signs the document, then he/she must abide by the terms. However, most organization have a condition of ”lieu of”. Typically the notice period can be waived ”in lieu of” pay deduction. And most employees exercise that option by negotiating the difference with the other organization. There are always exceptions but no ethical   organization can force an employee to serve the notice unless there is a pressing business need or ”notice pay” refusal from employee or monetary advances provided to the employee.

The Specific Relief Act says that a Contract of Personal Service cannot be enforced in a Court of Law which means that if an employee quits before the Notice period the Employer can only recover the Notice pay. No Employer can force an Employee to complete the Notice period, it is for the employee to complete the Notice period in order to take his full salary and the relieving letter.

You can leave the job by either giving notice or payment in lieu of notice.The Company’s policies and procedures are the supplementary aspects. The constitution of India provides the fundamental right to every person to choose the profession of his choice and any agreement contrary to this is invalid. By putting the clause in service regulation that it is company’s discretion to accept the notice or not is against the provisions of constitution of India. Hence company cannot threaten you by showing this clause. The Company cannot force you to serve the entire notice period.

Also Read:

• How to file Income Tax Returns ( ITR )?

• EPF v/s PPF v/s VPF: Which One is Better?

• HRA Exemption Rules

The post Can Companies Force Employees to Serve Notice Period? first appeared on Rightsofemployees.com.