Hire & Pay Employees in India 🇮🇳

According to the Constitution of India, labor is categorized under the concurrent list, granting authority to both the Central and respective State Governments to create legislation on this matter. The remaining legislative powers are held by the Centre. As a consequence, numerous laws at both the central and state levels have been established to safeguard the rights of workers and enhance employment prospects. It is important to note that the following information should be considered as general guidelines, and it is advisable to seek professional legal services when engaging in employment activities in India.

• The standard workweek in India is limited to 48 hours. 
• The maximum number of working hours per day cannot exceed 9 hours. 
• The total work period, including breaks, should not go beyond 10 ½ hours per day. 
• Any work that surpasses the weekly or daily limit is considered overtime. 
• Employers are required to compensate overtime work at a rate of at least double the employee’s regular wages. 
• The new labor codes permit a maximum of 125 extra hours of overtime per quarter on top of the 48-hour workweek (previously capped at 50 hours). 
• Employees must have a rest break of at least half an hour after working continuously for 5 hours. 
• Companies are now allowed to implement a 4-day workweek with extended working hours (up to 12 hours) per day under the new codes.
• The standard workweek in India is 5 days, typically from Monday to Friday.

Overtime is capped at eight hours a week or 150 hours a year and is paid at 125% of the standard rate.

India’s national floor level minimum wage is INR 1780 daily or INR 15,340 monthly.

There are no legal requirements regarding the duration of probation periods, but it is customary in the industry for probation periods to typically last between 2 and 6 months.

The employment relationship may come to an end through various means:

• Voluntary termination by the employee (resignation)
• Retirement in accordance with the terms of the employment contract 
• Non-renewal or expiration of the employment contract
• Dismissal of the employee for serious misconduct (such as theft, fraud, etc.)
• Collective dismissal for economic reasons (such as bankruptcy, restructuring, etc.).

In India, there is no set minimum or maximum notice period required before resignation. Typically, companies enforce notice periods ranging from 15 days to 6 months, as illustrated in the recent Supreme Court ruling on employment notice periods in the case of Air India Express Ltd. v. Gurdarshan Kaur Sandhu, (2019).

In India, eligibility for severance pay is determined by a combination of factors including employment terms, company policies, and the grounds for termination. While not universally required by law, there are specific situations in which employees may be entitled to seek severance pay.