Labour Law Primer for Multinational Companies in India

Labour Law Primer for Multinational Companies in India

With increasing trade relations between India and the World, cross-border movement of employees from and out of India has increased quite considerably. In India, employees enjoy the protection of diverse laws and regulations.

The business model of the companies is increasingly service centric and it is essential for employers to have the most efficient human resource and to grant them their legal rights and entitlements. However, in a country like India, the complex legal regime usually leave the employers facing typical issues related to interpretation of the large number of labour and employment laws governing the industry. These issues prove even more challenging when one of the parties involved is a foreign national.

Hence, this primer highlights the basic requirements of labour laws both from the perspective of Indian and foreign nationals employed in India. While throwing light on the appointment/ secondment of foreign nationals by Indian employers, the primer covers issues like taxation, working conditions, various social security benefits, issues related to termination of employees, importance and enforceability of non-solicitation clauses, retrenchment, various statutory registrations etc. With increasing concern for the security of female employees, employers have also been conferred with the duty to ensure protection against sexual harassment of women at the workplace.

Further, the primer also addresses the most common concern of all employers while entering into employment contracts, like the enforceability of clauses related to confidentiality, competition, poaching employees and soliciting clients. Keeping this in view, the primer would discuss the common controversies that arise from clauses in employment contracts and the caution that should be kept in mind in drafting an enforceable employment contract.

The key object is to enable the employers to familiarize themselves with the vast labour law regime of India.

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Comments (4)

  1. Sanjit Bal says on 12 Sep 2018

    Has Head Office of MNC working in India accountable for non payment of Wages to local employees for months together (Backlog) when local management has shown inability to pay out the back log citing non funding by Head Office??

    • PRIYANKA MALIK says on 29 Mar 2020

      The head office of carlson Wagon-lit travel is not in India. Recently Fareportal has thrown out 500 employees due to cvoid. These mnc really misuse the hire and fire Rule. Oyo has chucked out 5000 employees. There is no job security in Travel mnc. I was asked to leave in 2019 from CWT and I was s

  2. Priyanka Malik says on 21 Jul 2019

    I want to know if company asks and forces an employee to leave the organization and unnecessarily blaming employee is there any law regarding job security in Delhi NCR mnc.

    • Priyanka Malik says on 21 Jul 2019

      I mean if manager wants to chuck out the employee of the team so he blames the performance issue of the employee and give vague reasons and not giving work to the employee saying that we as a team are not confident enough. This all happened in 4 months. So is there any job security for labour like us working in mnc in India , is there any law regarding this that company cannot ask you to leave or cannot fire you before 6 months.

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