Introduction
Under section 2(68) of the Companies Act 2013, a private company is a company whose articles of association restrict the transferability of shares and prohibit subscription by the public. With the exception of sole proprietorships, private companies must not have more than 200 members and a minimum paid-up share capital of Rs 1 Lakh. Thanks to a 2005 amendment which removed this requirement, private companies can now have any amount of minimum paid-up capital.
To form a private company, submit an application to the Registrar of Companies, along with a completed Memorandum of Association and other required documents. The memorandum should include the name of the society, its purpose and objectives, and the areas of responsibility of its members. The Companies Act also sets out requirements for name, articles of incorporation, member information and transfer of shares.
Private companies enjoy many advantages and exemptions over public companies, including not having to prepare annual reports, the appointment of independent directors, the requirement of only two directors, and higher director compensation.
Who is a workman Under the Industrial Disputes Act, 1947
In accordance with the Industrial Disputes Act 1947 (ID Act). Individuals working for the army, navy, air force or police, and individuals primarily engaged in managerial or administrative, supervisory duties and earning more than INR 6,500 per month are excluded of this definition. The courts have interpreted this definition and identified several determinants to determine whether a person is a worker. This note discusses some of the key elements of Article 2(s) and how courts interpret them below.
A person employed solely in managerial or supervisory positions is not considered a worker within the meaning of the statute law. To qualify for the exception, a person must be in a managerial position, earning more than INR 6,500 per month in wage income and primarily performing managerial duties. This includes the authority and responsibility to hire and fire new employees, grant employees time off, and participate in company policies. Supervisors who earn less than $6,500 a year and want a raise can also file a labour dispute.
The court has not yet defined who is qualified for “manual and manipulative work”. Technical jobs require specific applications of mental effort, while physical, administrative and operational jobs are often associated with manual labour. Courts sometimes deviate from strict interpretations that exclude additional creative works. Although salespeople may use tactics to convince customers, they are not considered creative or imaginative.
The status law makes no distinction between casual, daily, permanent, part-time, full-time, or permanent workers. If a person meets the requirements of Section 2, they are both bound by the Act. Hours worked are not taken into account.
Remedies Available to Private employees
Rights of private employees
The most important message of this article is that when employees join a company, they have the right to enter into an employment contract and are legally and constitutionally protected by certain things, as well as the right to a healthy work environment. The main objective of the agreement is to clarify the conditions of employment for the employer and the employee before the start of work. When starting a new job, it’s crucial to have a contract and make sure it’s fair.
Under the Factories Act, workers have a number of basic rights related to health and safety in the workplace. It is the responsibility of the employer to ensure that these necessities are provided and, if necessary, appropriate safety equipment must be provided. The Workers Compensation Act sets out the types of compensation that must be paid if an employer does not provide a safe and healthy work environment.
Employees have the right to resign with notice if their work is unsatisfactory or if they are unsuitable for the job. The trial period usually lasts six months and can be extended for another three months. The extension cannot exceed two years.
The Sexual Harassment of Women in the Workplace (Prevention, Prohibition and Redress) Act 2013 protects women at work. It requires companies with 10 or more employees to set up internal complaints committees to deal with complaints of sexual harassment. The committee should include a senior employee, two other team members who are committed to women’s safety, and a representative from a nongovernmental organization (NGO). Physical touching and advances, requests for sexual favours, sexual comments, displays of pornography and any other unwelcome physical, verbal or non-verbal behaviour of a sexual nature are considered violations of the law. However, many multinationals and Indian companies continue to flout the law.
Under the Minimum Wage Act 1948, every employee in India is entitled to a minimum wage that enables them to support themselves and obtain basic necessities. Any salary lower than the minimum salary violates Article 23 of the Constitution. Different minimum rates may be established for different types of services, job categories, locations and employers. The different minimum wages for each state in India in 2018 can be found here.
Employee resignation and follow-ups
Employees are encouraged to give at least two weeks’ notice before quitting. For positions that are more difficult to fill or with high notoriety, they must give at least one month’s notice. A resignation acceptance letter will be delivered to the employee within two days of the verbal resignation. The notice period begins when the employee gives formal notice to their supervisor or HR. Employees can ask the company to rescind their resignation pending confirmation from HR, but such requests should generally be avoided.
Employees are encouraged to notify their immediate colleagues and managers of their intention to resign as soon as possible. There should never be any form of forced resignation (or constructive dismissal). Employees who have recently left the company are interviewed upon departure to provide their thoughts on company procedures, policies, and culture. Recruiters are responsible for conducting exit interviews with recently departed employees; they are completely voluntary and do not cause any problems for the employee. To improve business, HR will conduct exit interviews.
Remedies
Under the Contract Labour (Regulation and Abolition) Act and the Shops and Establishments Act 1953, contractors are required to pay every employee they employ. If the contractor fails to pay all wages or arrears resulting from the contracted labour services, the principal employer assumes responsibility. If an employer violates any legal provision or state government regulation, a fine of up to Rs. Rs 2 lakh may be charged.
The Minimum Wage Act of 1948 and the Payment of Wages Act of 1936 are two important pieces of legislation that govern and regulate the wages paid by employers to their employees. The latter ensures that wages are paid on time, while the former seeks to establish a minimum wage. Section 33C of the Labour Disputes Act deals with the recovery of money owed to employees. If monetary calculations are necessary, the decision is taken by the labor court.
Section 447 of the Companies Act provides penalties for fraud, allowing employees to sue.
The employer’s prison sentence ranges from six months to ten years. The total amount of recovery corresponds to three times the amount not initially paid by the employer. Employees may also initiate criminal proceedings as per the guidelines of the Indian Penal Code.
Legal notices must be sent to the employer’s secretary. If the employer does not pay after receiving the legal notice, the employee can go to the police and file a fraud complaint with all the evidence. If the complaint is unsuccessful, the employee can appeal to the Labor Court.
Case laws
Delhi High Court in Inderjeet Singh Sidhu v. Indian unions have said employers are prohibited from making changes to key terms of employment in job postings after an employee is appointed. Inderjeet Singh Sidhu, chief operating officer of the New Delhi-based FACT Engineering and Design Organization (FEDO), was placed on probation for six months after taking office. However, for personal reasons, the claimant sent an e-mail to the FCLT requesting the termination of his employment relationship, so he received a reminder notice of the amount to be notified. The petitioner filed a motion for an order, which the court dismissed by ruling against the motion and ordering its dismissal.
HC observed that the petitioner had a job before joining FCLT but left because he preferred to work in the New Delhi office. HC also said FACT Rule 36-A requires employees to resign from the FCLT on three months’ notice or be paid three months’ salary in lieu of the notice period. HC granted the petition without demanding payment of the amount of the notice and ordered FCLT to release the petitioner from any unpaid debt. Notice clauses in employment contracts can place an unfair burden on employees due to power imbalances. The court ruled that in this case, the requirement to give notice or make payment had been changed.
Conclusion
Employers and employees have the right to protect themselves when they enter into and are bound by contracts of employment. In addition to the basic protections provided by various laws regarding employee working conditions, hours of work, maternity leave, etc., employees also have certain rights after termination. White-collar workers are self-employed, while blue-collar workers are better off because their dismissal is subject to strict regulations. Therefore, it is vital that the government enacts strong laws to protect employees and themselves from exploitation by their employers.
