India

India to implement major employment law reforms [Updated]

July 6, 2022July 8, 2022

In September 2020, the Indian Parliament passed three federal employment law codes on social security, industrial relations, and occupational safety, health and working conditions.

Along with the Code of Wages passed in 2019, which has not yet been implemented, the new codes consolidate and simplify existing laws and introduce changes to multiple federal labor laws, including those impacting employers’ retirement benefits costs and liabilities toward gratuity.

While the Indian government hasn’t announced an implementation date yet, the four codes are likely to be made effective by April 2021.

Employment Law

India requires health insurance for all employees

May 28, 2020August 23, 2021

As India emerges from lockdown, companies will be mandated to follow Standard Operating Procedures (SOPs) when returning staff to the active workforce. One of the new requirements issued under the SOPs is to provide health insurance for all employees of […]

Employment Law

The State of Karnataka introduces mandatory paid leave for employees infected with COVID-19

March 20, 2020March 20, 2020

On 5 March 2020, the government of Karnataka in India issued a circular mandating all employers to provide an additional 28 days of employer-paid sick leave to employees who have tested positive for the coronavirus (COVID-19). Key details The new […]

Employment Law

India introduces new rights for transgender people

March 10, 2020March 10, 2020

On 25 November 2019, the Indian parliament passed the Transgender Persons (Protection of Rights) Act (the “Act”) to end discrimination against transgender people in accessing employment, education, healthcare, welfare and housing. The Act was given presidential assent on 5 December […]

Employment Practices

India reduces Employees’ State Insurance contribution rates

October 8, 2019October 8, 2019

On 1 July 2019, the Indian government lowered the rate of contribution required under the Employees’ State Insurance (ESI) Act 1948 to reduce employers’ financial burden and increase employees’ take-home salaries. The ESI contribution rate was reduced from a total […]

Tax

India further increases the standard deduction

April 23, 2019April 23, 2019

The Indian government passed the 2019 interim tax budget, which increased the standard deduction limit from INR 40,000 to INR 50,000. The change took effect on 1 April 2019. The standard deduction was initially introduced in the 2018 tax budget […]

Employment Practices Perquisites

India provides guidelines for setting up and running mandatory daycare facilities

February 1, 2019April 2, 2019

On 1 April 2017, the Maternity Benefit (Amendment) Act, 2017 took effect, increasing paid maternity leave from 12 weeks to 26 weeks for companies with at least 10 employees. The act also required employers with 50 or more employees to […]

Employment Practices Retirement

India’s Gratuity Act enters into force

June 30, 2018August 13, 2019

The Payment of Gratuity Act 2018, which increases the gratuity limit from INR 1 million to INR 2 million, received Presidential assent on 28 March 2018 and came into force on 29 March 2018. (See also January 2018 alert.)