LEGAL HELP FOR HR
Scope of Work

1. Employment Contracts: The employer is required to enter into appropriate types of agreements in order to engage the workforce in India. The employment contract plays a pivotal role in the Employer-Employee arrangement in India. Employment contract serves as a base for all terms & future arrangements between the Employee & Employer. Most likely in India, employment contracts will be for an indeterminate period of time. However, it is also feasible to have employment contracts that are either project-specific or for a fixed period, depending on the necessities of the companies.

a. Apprenticeship Agreements: The Apprentice Act, 1961, An Apprentice is novice or a beginner. To be more precise a person who is learning trade by being employed in it for an agreed period is called Apprentice.

The Apprentices Act was enacted in 1961. The Apprentices Act has amongst others two important objectives, E.g.,promotion of new manpower skills and improvement/refinement of old skills through theoretical and practical training in number of trades and occupations.

It is now a statutory obligation on the part of every employer covered under the act to train a prescribed number of persons. Therefore, Apprenticeship is a sort of job training. The act defines the technician (Vocational)apprentice who holds or is undergoing training in order that he may hold a certificate in vocational course involving two years of study after completion of the secondary stage of school education recognized by all India Council and undergoes apprenticeship training in any such subject filed in any vocational course as may be prescribed.

c. Non Competition Restrictions: An agreement in restraint of trade has been defined as "one in which a party agrees with any other party to restrict his liberty in the future to carry on trade with other persons who are not parties to the contract in such a manner as he chooses".4 As an exception to this general rule, agreements under which one party sells his goodwill to another, while agreeing not to carry on a similar business within specified local limits, are valid, provided such agreements appear to the court to be reasonable. Article 19 (g) of the Constitution of India clearly provides every citizen the right to practice any profession, trade or business. This is not an absolute right and reasonable restrictions can be placed on this right in the interest of the public, the courts have always been weary of upholding such restrictions and have kept the interpretation of this provision flexible so as to ensure that principles of justice, morality and fairness are aptly applied, depending upon the facts and circumstances of each case.

d. Non Solicitation of Employees and Customers: A non-solicitation clause prevents an employee or a former employee from indulging in business with the company's employees or customers against the interest of the company. For example, an employee agrees not to solicit the employees or clients of the company for his own benefit during or after his employment.

e. Non Disclosure of Confidential Information & Trade Secrets: The employee is mandated to take reasonable steps to keep all the confidential information in confidence except and to the extent when disclosure is mandatory under any law in force. The employee further agrees that he shall not discuss or disclose the confidential information of the company to any person or business unrelated to the company.

f. Non Poaching Agreements: Whilst non-compete, non-solicitation and nondisclosure agreements deal with the employer employee relationship, a fourth class of restrictive agreement which are often signed by the parties is the non-poaching agreement which is executed between two employers. In an age of constantly evolving specialized industries and niche talent pools, employers often tend to invest a very large amount of human capital into their employees. If these employees subsequently join direct competitors, it can result in substantial economic loss for the ex-employer. A non-poaching agreement therefore enforces guidelines to be followed in cases of lateral hiring. This type of agreement essentially considers the case wherein two organizations/companies agree not to solicit or 'poach' the employees of their direct competitors -Non-poaching agreement per se does not contravene section 27 of the Contract Act as it does not restraint an employee from seeking and/or applying for any job/employment. What this class of agreement does instead is it simply mandates that one competitor should seek the consent of the other before hiring that other competitors' employee/s.

2. Employment Termination & Downsizing: India does not envisage an "at-will' employment relationship. We therefore advise clients on strategies for employment termination, downsizing and reduction in force. This includes advising on applicable labour laws and employment laws, apart from guidance on regulatory requirements mandated for employers. We understand that the interest of the employer should be well secured in the event of termination of the employee's employment, for which purpose we ensure that clauses on confidentiality, post employment non-solicitation, data protection are adequately drafted.

3. Labour Laws:
a. Employees Provident Fund & Miscellaneous Provisions Act, 1952
b. Contract Labour Act, 1970
c. Employers Liability Act, 1938
d. Equal Remuneration Act, 1976
e. Personal Injuries Act, 1962
f. Industrial Dispute Act, 1947
g. Workmen's Compensation Act (Amed, 2009)
h. Liabilities of Directors and Officers of Companies under Labour Laws.. etc

4. Drafting Policies - checklist & updation of "ICC" (Internal Complaints Committee):
Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The checklist can be used by employers, HR professionals and consultants to quickly check whether an organization is compliant with anti-sexual harassment law in India. Each entry has been kept brief for quick reference - wherever necessary. The Sexual Harassment Act requires an employer to set up an 'Internal Complaints Committee' ("ICC") at each office or branch having more than 10 employees of any gender. The government is in turn required to set up a 'Local Complaints Committees' ("LCC") at the district level to investigate complaints regarding sexual harassment from establishments where the ICC has not been constituted on account of the establishment having less than 10 employees or if the complaint is against the employer. The Sexual Harassment Act, 2013 also sets out the constitution of the committees, process to be followed for making a complaint and inquiring into the complaint in a time bound manner.

5. H.R Policies/ Manual
An employee handbook or employee manual is a booklet that contains information on an organization's policies and procedures. It is an excellent resource that presents all the information which employees need to know about their work and workplace. Thus, it facilitates the smooth functioning of a workplace. There are several reasons why an employee handbook should be in use. Some of them are as follows:

  • Employee manuals bring in uniformity across the organization. They set guidelines for everyone to follow and categorically state the consequences of violating these rules. Employee manuals inform employees of statutory laws regarding workplace behavior with colleagues and the management. Thus, they help prevent workplace conflicts and legal disputes.
  • With a well-planned and written handbook, you can save your managers' time. They need not explain the same policies every time a new employee joins or answer the same questions over and again.
  • Employee manuals publish information on an organization's policies about holidays, leave, work hours, overtime work and pay procedure, dress code, performance reviews, salary or pay revisions and recreational breaks. They present information on orientation and training policies and termination or relieving procedures. This helps employees know a lot about the kind of treatment they can expect in the organization, thus, building their confidence.
  • Employee handbooks help communicate to the employees about the Company's expectations of them. You can convey performance parameters and benefits that employees receive on reaching those parameters. Policies about promotion or demotion should be included. This will help them gain clarity on their job responsibilities and reduce the start-up time.
  • Employee handbooks present the organization's policies on using the Company's as well as personal gadgets and other equipment within its premises. Some organizations have restrictions on the use of information and communication devices, most importantly, mobile phones. Handbooks should include the terms and conditions for the use of these devices and the sites the employees are not expected to visit etc.
  • Employee handbooks publish the Company's policies on employee safety measures and procedures to handle occupational accidents or hazards.

6. Employment Litigation:
While a few years back employment litigation was not very prevalent, the scenario is undergoing rapid change in India. We have represented several clients in employment litigation cases. Our service includes advising clients on the litigation strategy, drafting and issuing legal notices, responding to legal notices, drafting claim documents representing the clients before labour courts and high courts, and coordinating with local counsel to pursue litigation in the appropriate courts across India.

7. Legal Enforcement of Restrictive Covenants

a. Legal Notice/Actual Notice: Notice is the legal concept in which a party is made aware of a legal process affecting their rights, obligations or duties. Actual notice is a law term, used most frequently in civil procedure. It is notice (usually to a defendant in a civil proceeding) delivered in such a way as to give legally sufficient assurance that actual knowledge of the matter has been conveyed to the recipient. Personal service, that is, physically handing something to an individual, is usually considered the least-disputable method of giving actual notice.

b. Enforcement of Undertaking based on clauses of the Agreement: The Employer can seek enforcement of undertaking or encashment of cheque based on clauses of the agreement

c. Civil Injunction/Specific Performance & Damages: Initiate civil suit seeking injunction/specific performance of contract as well as damages. While damages are a remedy that an employer may seek for breach of employment contract, including breach of confidential agreements, the same requires trial and evidence. Therefore, the employer once again would require only injunction under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure, 1908 ('CPC') at the interim stage or initially if they apprehend that premature departure of an employee could cause injury to the employer.

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