Human Resource serves as the backbone of every sector of the economy in India. In 2012, there were around 487 million workers in India, the second largest after China. This means that Employment in India is an ever-growing dimension of the Indian economy.
But while employment provides a job and a way of living to millions of people in India, it can also be the centre of various employment issues and problems that might lead to harassment and exploitation of employees.
Employment Issues at a glance
Employment issues in India are being divided into two areas i.e. one faced by the employer and the other faced by the employee.
One of the common problems faced by the employers is their employees joining other competing organizations in lieu of better wages which is regulated by the Indian Contract Act, 1872. Under the employment agreement employees are restrained to work in competing organizations while serving as an employee. But even in the presence of this non-competition clause, many employees work in competing organizations. Other problems which are usually faced by the employers are the recovery of training costs and clauses that come into play post-termination of an employee.
Further, labour laws like Factories Act, 1948 and other laws of different states lay down working hours, a number of overtime hours and other provision to safeguard the interest of employees. However, these laws serve as a challenge for employers in cases where they have fixed hours to achieve greater efficiency while managing their workforce.
On the employees’ end, employers often send legal notices to employees although the clauses of non-competition are unenforceable post-termination of the employee. Hence, the employees are faced with mental agony and the cost involved in defending their cases. Other issues like remuneration withheld/bonus/PF/ maternity leave/unfair termination/ etc. often cause stress and confusion in an employees’ life.
The employees’ right is another aspect that is needed to be protected. These issues include fair compensation, right to privacy, freedom of discrimination, etc.
Laws governing employment issues
Labour matters under the Indian Constitution falls in the Concurrent list which gives power to both the Central government as well as the respective State governments to frame laws, as a result of which several laws have been framed to protect both employers and employees.
The employers, as well as the employees, therefore, have to comply with several employment laws. IT sectors are most prone to challenges under the Indian Labour law because of their excess workforce. Companies which have their industries in various States have to comply with the law of every State and service matters in order to avoid legal proceeding.
Manufacturing companies and large companies have trade unions which are sometimes backed by political party and are very often interested in protection of employees’ interests.
All these are the issues which need to be addressed under the employment issues.
The solution to employment issues
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