Employment Rights in India: Salary, Termination and Labour Law Guide
By Advocate Ganta Surya Kiran | 19 Law Chambers, Visakhapatnam | Labour Law
Every worker in India has legal rights — regardless of whether they work in a factory, office, shop, or as a domestic worker. Yet most employees do not know their rights until they face an illegal termination, unpaid salary, or gratuity dispute. This guide explains your core employment rights in India.
Right to Salary — What If Employer Does Not Pay?
Under the Payment of Wages Act, 1936 — wages must be paid on time (by 7th of the following month for establishments with fewer than 1,000 employees). Unpaid wages attract compensation. If your employer does not pay: send a written demand by registered post, file a complaint before the Labour Commissioner or Payment of Wages Authority, and file a civil suit for recovery of dues with interest. Criminal complaint can also be filed under Section 406 IPC (criminal breach of trust) in egregious cases.
Wrongful Termination — Your Rights
For employees covered under the Industrial Disputes Act, 1947: employers with 100+ workers must get government permission before terminating employees. Termination without valid reason or without following due process (show cause notice, enquiry, hearing) can be challenged. Remedies include reinstatement with back pay and compensation. For employees not covered — civil suits for breach of contract and damages are available.
Gratuity Rights
Under the Payment of Gratuity Act, 1972 — employees who have completed 5 years of continuous service are entitled to gratuity on termination, resignation, retirement, or death. Formula: 15 days wages for every completed year of service, subject to maximum Rs 20 lakh. Employer cannot withhold gratuity except for wilful damage to property. File claim before the Controlling Authority (Labour Commissioner) if employer refuses.
Provident Fund (PF) Rights
Under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 — employers must contribute 12% of basic salary to PF. Employees can claim PF withdrawal online through EPFO — epfindia.gov.in. If employer is not depositing PF — file complaint at EPFO Regional Office, Visakhapatnam.
Frequently Asked Questions
Q: Can I be fired without notice in India? Generally no — most employment contracts require notice period (typically 1 to 3 months). Immediate termination without notice requires payment of salary in lieu of notice. For unionised workers under Industrial Disputes Act — retrenchment procedures must be followed.
Q: What is the minimum wage in Andhra Pradesh? Minimum wages in AP are revised periodically by the state government and vary by industry and skill category. Check current AP minimum wages at the AP Labour Department website. Employer paying below minimum wage can be prosecuted under Minimum Wages Act 1948.
Q: Can a woman be terminated for pregnancy in India? No — terminating employment due to pregnancy is illegal under the Maternity Benefit Act 1961. A woman is entitled to 26 weeks paid maternity leave. Violation is a criminal offence.
Also read: Consumer Court Advocates in Vizag | Free Legal Aid in Andhra Pradesh | Best Lawyers in Vizag | External: EPFO — epfindia.gov.in
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