Navigating the Legal Landscape: Digital Contracts and Electronic Signatures in Contract Law

In an era marked by rapid technological advancements, the legal landscape is continuously evolving to adapt to new modes of conducting business. One notable transformation has been the increasing prevalence of digital contracts and the use of electronic signatures. This article delves into the legal implications and challenges posed by these innovations in the context of contract law.

Legal Recognition of Electronic Signatures:

One of the key milestones in the acceptance of digital contracts is the legal recognition of electronic signatures. Many jurisdictions around the world have enacted legislation acknowledging the validity and enforceability of contracts signed electronically. The United States, for instance, implemented the Electronic Signatures in Global and National Commerce (ESIGN) Act in 2000, providing a legal framework for electronic signatures in interstate commerce.

Challenges and Concerns:

1. Security and Authentication:

• A major concern surrounding electronic signatures is ensuring the security and authenticity of the signatory. Questions arise about how to verify the identity of the person behind the electronic signature and whether the process is susceptible to fraud.

2. Consent and Intent:

• Traditional contracts often involve a physical act like signing a paper document, which inherently implies the intent to be bound by the terms. In the digital realm, demonstrating the same level of intent and consent becomes crucial for upholding the validity of contracts.

3. Regulatory Compliance:

• Different industries and sectors may have specific regulatory requirements governing the use of electronic signatures. Complying with these regulations while ensuring a seamless digital signing process can be challenging.

4. Record-Keeping and Audit Trail:

• Maintaining an accurate and tamper-proof record of electronic signatures is vital. Establishing an effective audit trail becomes essential for evidentiary purposes in case of disputes or legal challenges.

5. Cross-Border Recognition:

• The global nature of many business transactions raises questions about the cross-border recognition of electronic signatures. Harmonizing international standards and ensuring mutual recognition among jurisdictions is an ongoing challenge.

Benefits of Digital Contracts and Electronic Signatures:

Despite the challenges, the adoption of digital contracts and electronic signatures brings about several advantages:

1. Efficiency and Expediency:

• Digital contracts streamline the contract creation and signing process, significantly reducing the time required to finalize agreements.

2. Cost Savings:

• The shift from paper-based to digital contracts results in cost savings associated with printing, postage, and storage.

3. Accessibility and Remote Collaboration:

• Digital contracts facilitate remote collaboration, allowing parties to sign documents from different locations, fostering a more accessible and flexible working environment.

Conclusion:

The exploration of digital contracts and electronic signatures in the realm of contract law signifies a transformative shift toward efficiency and convenience. While challenges exist, ongoing efforts in legislation and technology aim to address these concerns and further solidify the place of digital contracts in the legal landscape. As businesses increasingly embrace these innovations, the legal community must stay vigilant in adapting and refining the framework governing electronic signatures to ensure their continued reliability and security in the modern era.

Employment Law Training and Law Advisory

To accomplish their duties well, today’s HR teams and Business managers require a variety of training. One such training is labor and employment law training. Employers will benefit greatly from such training in terms of avoiding or at the very least minimising legal exposure for employment-related disputes.

Such as

• Basic labor and employment laws
• Interviewing, selection, and hiring
• Discipline and discharge
• Performance management
• Documentation and record-keeping
• Discrimination, harassment, and retaliation
• Attendance and leaves
• Disabilities, pregnancy, and religious beliefs
• Safety and health
• Electronic communications and employee privacy
• Unionized workforce
• Contract Labor Deployment and Management

Employment Law Advisory

We provide continued employment law advisory for our client organizations. Our specialized lawyers provide advice to our clients regarding Policy, Process, Organization restructuring, separation, Reduction in force, and other critical decisions. We aim to provide advisory that shall avoid disputes. Also, we provide pre-litigation dispute resolution and defend clients in disputes with employees, unions, works councils, and government agencies at tribunals and other platforms.

We advise our clients on the applicability of Labor / Employment laws, their obligations and compliances, and the consequences of non-compliance, as well as issues such as The Employees’ Compensation Act, The Trade Unions Act, The Payment of Wages Act, The Industrial Employment (Standing Orders) Act, The Industrial Disputes Act, The Minimum Wages Act, The Employees’ State Insurance ActThe Factories Act, The Plantation Labour Act, The Mines Act, The Employees’ Provident Funds and Miscellaneous Provisions Act, The Working Journalists and Other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, The Working Journalists (Fixation of rates of Wages) Act, The Employment Exchange (Compulsory Notification of Vacancies) Act, The Motor Transport Workers Act, The Maternity Benefit Act, The Payment of Bonus Act, The Contract Labour (Regulation and Abolition) Act, The Payment of Gratuity Act, The Equal Remuneration Act, The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, The Cine Workers Welfare Fund Act, The Dock Workers (Safety, Health and Welfare) Act, The Child and Adolescent Labour (Prohibition and Regulation) Act, The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, The Building and Other Construction Workers Welfare Cess Act, 1996, state-specific Shops & Establishments enactments, Transgender Persons (Protection of Rights) Act, and others, to name a few, are all applicable in India covering complete hire to retire cycle of employee.

Labor laws in India with Penal clauses i.e. Imprisonment

Labor laws in India are designed to regulate employment relationships, protect workers' rights, and ensure fair and equitable treatment of employees. Many labor laws in India have provisions for penal clauses, which outline penalties and consequences for employers who violate these laws. Here are some key labor laws in India with penal clauses:

Industrial Disputes Act, 1947:

This law governs the resolution of industrial disputes and layoffs. It includes provisions for penalties in case of illegal strikes, lockouts, or unfair labor practices.

Penalties can include fines or imprisonment for both employers and employees involved in illegal strikes and lockouts.

Employees' Provident Funds and Miscellaneous Provisions Act, 1952:

This act regulates the establishment and management of the Employees' Provident Fund (EPF) scheme. It ensures that employers contribute to the EPF for their employees.

Penalties for non-compliance include fines and imprisonment for employers who fail to deposit contributions or submit required documentation.

Employees' State Insurance Act, 1948:

The ESIC Act provides for the establishment of the Employees' State Insurance Corporation, which provides medical and cash benefits to employees and their families.

Penalties include fines for employers who do not register with ESIC or fail to contribute their share to the fund.

Minimum Wages Act, 1948:

This act sets the minimum wage rates that employers must pay to workers in certain scheduled employments. Non-compliance can lead to penalties.

Penalties can include fines and imprisonment for employers who pay less than the prescribed minimum wages.

Payment of Gratuity Act, 1972:

This law mandates the payment of gratuity to employees who have completed at least five years of continuous service with an employer.

Penalties include fines and imprisonment for employers who fail to pay gratuity as required.

Factories Act, 1948:

The Factories Act regulates the conditions of work in factories. Violations of safety, health, and welfare provisions can lead to penalties.

Penalties may include fines and, in some cases, imprisonment for employers who do not comply with safety regulations.

Child and Adolescent Labor (Prohibition and Regulation) Act, 1986:

This act prohibits the employment of children in certain hazardous occupations and regulates the working conditions for adolescents.

Penalties include fines and imprisonment for employers who employ children or violate the regulations.

Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (PoSH Act):

This act aims to prevent and address sexual harassment in the workplace. Employers are required to comply with its provisions and create a safe environment.

Penalties for non-compliance can include fines and legal action against employers.

It's important to note that the specific penalties and consequences under these labor laws can vary depending on the severity of the violation and the specific provisions of each law. Employers are encouraged to comply with all labor laws to avoid legal consequences and ensure fair treatment of their employees. Employees who believe their rights have been violated can file complaints with the appropriate labor authorities.

Employment Law - Discrimination Related to Indian Laws

Discrimination in remuneration, whether during recruitment or employment, is prohibited under several Indian laws that aim to ensure equality and protect the rights of different groups. Here's an elaboration on each of the mentioned acts:

Equal Remuneration Act, 1976:

The Equal Remuneration Act of 1976 ensures that men and women receive equal pay for equal work. It prohibits discrimination in remuneration on the grounds of gender. This means that employers are required to provide the same remuneration to both male and female employees if they perform the same or similar work.

Rights of Persons with Disabilities Act, 2016 (Disabilities Act):

The Disabilities Act aims to protect the rights of persons with disabilities. It prohibits discrimination on the grounds of disability in various aspects, including employment. Employers cannot discriminate against individuals with disabilities in terms of remuneration or any other employment-related benefits.

Maternity Benefit Act:

The Maternity Benefit Act prohibits discrimination against women on the basis of maternity status. This act ensures that women employees are not denied employment opportunities or remuneration benefits due to pregnancy or maternity leave. Employers are required to provide maternity benefits to eligible female employees.

Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (HIV/AIDS) Act, 2017:

This act prohibits discrimination against individuals with HIV and/or AIDS. Employers cannot discriminate in terms of remuneration or employment opportunities based on an individual's HIV status. Furthermore, it forbids the requirement for HIV testing as a precondition for employment.

Transgender Persons (Protection of Rights) Act, 2019:

This act seeks to protect the rights of transgender persons. It prohibits discrimination in employment that results in unfair treatment, denial of employment, or termination solely on the basis of an individual being transgender. Employers are required to provide equal employment opportunities to transgender individuals, including fair remuneration.

Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (PoSH Act):

While this act primarily addresses sexual harassment against women in the workplace, it also indirectly impacts remuneration. Discrimination in remuneration on the grounds of gender can be considered a form of harassment. The PoSH Act emphasizes the creation of a safe and non-discriminatory work environment for women.

It is essential for employers to comply with these acts to ensure that they do not engage in discriminatory practices related to remuneration. Violations of these acts can lead to legal consequences, including fines and penalties. Employees who believe they have been subjected to discrimination can file complaints with the appropriate authorities and seek redressal under the relevant legislation.

In summary, these Indian laws collectively work to prohibit discrimination in remuneration on various grounds, including gender, disability, maternity status, HIV/AIDS status, and transgender identity, thereby promoting equality and fairness in the workplace

Employment Law - Steps for if your employer is not providing you with a relieving letter

If your employer is not providing you with a relieving letter, it can be concerning, as this document is often necessary for various purposes, including future job applications. Here are steps you can take to address the situation:

1. Communicate Clearly: Initiate communication with your former employer in a polite and professional manner. Send an email or letter explaining your request for a relieving letter and the importance of having it for your future endeavors.

2. Follow Company Procedures: Review your employment contract or company policies to see if there are any specific procedures or timelines for obtaining a relieving letter. Ensure that you have complied with these requirements.

3. Contact HR: Reach out to your company's HR department or the relevant HR personnel responsible for handling employee records and documentation. Request their assistance in obtaining the relieving letter.

4. Provide Notice: If your company has any outstanding issues with you, such as notice period completion, dues, or return of company property, address these issues promptly. Clearing any outstanding matters may facilitate the issuance of the relieving letter.

5. Mention Legal Rights: Politely remind your employer that, in many jurisdictions, employees have the legal right to receive certain documents upon termination, including relieving letters. Refer to any applicable labor laws or regulations that support your request.

6. Escalate Gradually: If your initial attempts to obtain the relieving letter do not yield results, consider escalating the matter within the organization. Speak to higher-level managers or supervisors who may have the authority to issue the letter.

7. Consult Legal Advice: If your employer continues to withhold the relieving letter without valid reasons, consider seeking legal advice. A labor attorney can help you understand your rights and may be able to send a legal notice to your former employer requesting the letter's issuance.

8. Documentation: Keep records of all your communications and interactions related to the request for the relieving letter. This includes emails, letters, and notes from any conversations. This documentation can be valuable if you need to pursue legal action.

9. Alternative References: In the absence of a relieving letter, you can use alternative references, such as colleagues, supervisors, or other documents (like appointment letters or payslips), to demonstrate your work experience and employment history to potential future employers.

10. Seek External Mediation: Depending on your jurisdiction, you may have access to labor boards or government agencies that can mediate disputes between employees and employers. Explore this option if necessary.

Remember that the specific steps you take may vary depending on your location and the circumstances of your employment. It's crucial to remain professional and patient throughout the process while advocating for your rights. Consulting with a legal expert is advisable if the situation remains unresolved or becomes contentious.

Employment Law - If your employer doesn't release pending dues in India, you can take the following steps

If your employer doesn't release pending dues in India, you can take the following steps:

1. Check Employment Contract: Review your employment contract to understand the terms and conditions related to payments, notice periods, and dues. Ensure you have clear documentation of the dues owed.

2. Send a Reminder: Politely remind your employer about the pending dues through written communication, such as an email or a formal letter. Include details of the outstanding amount and request a specific date for payment.

3. Contact HR or Payroll: If your company has an HR or Payroll department, reach out to them for assistance. They may be able to expedite the process or provide information about the status of your dues.

4. Labour Commissioner: In India, you can file a complaint with the local Labour Commissioner's office. They can mediate between you and your employer to resolve payment disputes.

5. Labour Court: If the issue persists, you can file a case in the labor court. You may need to engage a lawyer experienced in labor law for this process. Be prepared to provide evidence of your employment and the outstanding dues.

6. Collective Action: If multiple employees are facing similar issues with the same employer, consider joining together to address the matter collectively. This can increase your bargaining power.

7. Stay Persistent and Document: Keep detailed records of all communication, including emails, letters, and payment receipts. Persistence and a well-documented case can be crucial in resolving the issue.

Remember that Indian labor laws can be complex and vary depending on the state and industry. It's advisable to seek legal counsel early in the process to ensure you take the appropriate steps for your specific situation.

How does government do PF inspections?

The government conducts Provident Fund (PF) inspections in India to ensure that employers are complying with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and its associated rules and regulations. These inspections are typically carried out by officials from the Employees' Provident Fund Organization (EPFO). Here's an overview of how PF inspections are conducted:

1. Selection and Notice:

• The EPFO selects establishments for inspection based on various criteria, including the size of the workforce, the nature of the business, and the frequency of previous inspections.

• Employers may receive advance notice of the impending inspection, specifying the date, time, and purpose of the visit. In some cases, surprise inspections may also occur.

2. Verification of Records:

• During the inspection, EPFO officials review the employer's records and documentation related to Provident Fund contributions and compliance.

• Key documents reviewed include payroll records, attendance registers, contribution statements, employee registers, and other relevant records.

3. Interviews and Interactions:

• EPFO inspectors may interview employees to verify details related to their PF accounts, contributions, and awareness of their rights.

• Employers may also be interviewed to clarify any discrepancies or provide additional information.

4. Physical Verification:

• Inspectors may conduct physical verification of the workplace to ensure that all eligible employees are covered under the PF scheme and that the working conditions are compliant with the law.

5. Compliance Assessment:

• Based on the findings of the inspection, EPFO officials assess the level of compliance with PF regulations. This includes evaluating whether contributions have been made accurately and on time and whether all eligible employees are covered.

6. Notice of Non-Compliance:

• If violations or non-compliance issues are identified during the inspection, the employer may be issued a notice specifying the areas of non-compliance and the corrective actions required.

7. Penalties and Actions:

• Employers who fail to address identified non-compliance issues may face penalties, fines, and legal actions, as specified under PF regulations.

8. Appeal Process:

• Employers have the right to appeal against any adverse findings or penalties imposed during the inspection. They can follow the established appeal process to seek a resolution.

9. Follow-Up Inspections:

• In cases of significant non-compliance or persistent violations, follow-up inspections may be conducted to ensure that the necessary corrective actions have been taken.

It's important for employers to cooperate fully with PF inspectors during the inspection process. Non-compliance with PF regulations can result in penalties, fines, and legal actions, so addressing any issues identified during inspections promptly is advisable.

Employers should also proactively ensure compliance with PF regulations to minimize the likelihood of violations and potential penalties. This includes maintaining accurate records, making timely contributions, and regularly reviewing PF guidelines for any updates or changes.

Compliance with the Employees' Provident Fund (EPF) in India

Compliance with the Employees' Provident Fund (EPF) in India is essential for employers to ensure that their employees receive retirement benefits. The EPF is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, of 1952. Here are the key aspects of compliance for employers with regard to EPF:

1. Registration:

• Employers are required to register with the Employees' Provident Fund Organization (EPFO) within one month of employing the first eligible employee. This includes obtaining an Employer Identification Number (EPF code).

2. Eligibility and Coverage:

• All establishments employing 20 or more employees are generally required to provide EPF coverage. However, certain establishments with fewer employees can also opt for voluntary coverage. It's essential to determine eligibility and cover all eligible employees.

3. Employee Contribution:

• Employers are responsible for deducting the employee's share of the EPF contribution (currently 12% of the employee's basic wages plus dearness allowance) from their salary and depositing it into their EPF account.

4. Employer Contribution:

• Employers are required to contribute an equal amount to the EPF account of the employee. This contribution includes 3.67% toward the EPF and 8.33% toward the Employee Pension Scheme (EPS). The remaining 0.5% goes to the Employees' Deposit Linked Insurance (EDLI) scheme.

5. Administrative Charges:

• Employers are also responsible for paying administrative charges to the EPFO, which are currently 0.5% of the employee's monthly wages.

6. Declaration and Nomination Forms:

• Employers should ensure that all new employees fill out the necessary declaration and nomination forms for EPF and EPS. These forms provide details about the employee's family and nominees for benefits.

7. Monthly Contribution Deposit:

• Employers are required to deposit the total EPF contributions (employee and employer shares) along with administrative charges by the 15th of the following month. This can be done electronically through the EPFO's online portal.

8. Record Maintenance:

• Employers must maintain accurate and up-to-date records of employees' EPF contributions, wages, and other relevant details. These records should be retained for a specific period (usually seven years).

9. Annual Returns and Reporting:

• Employers should submit annual returns, including details of contributions and new employees, to the EPFO. This helps in maintaining compliance and updating records.

10. Transfer of Accounts:

• In case an employee changes jobs, their EPF account should be transferred to the new employer. Employers should facilitate this process.

11. Nomination and Withdrawals:

• Employers should guide employees on the nomination process and assist them with EPF withdrawals for specific purposes like retirement, marriage, education, etc.

12. Inspection and Audits:

• Employers should be prepared for inspections and audits conducted by EPFO officials to ensure compliance with EPF regulations.

13. Penalties and Legal Consequences:

• Non-compliance with EPF regulations can result in penalties, fines, and legal actions against the employer. Ensuring compliance is crucial to avoid such consequences.

It's essential for employers in India to stay informed about changes in EPF regulations and to maintain proper records and documentation to facilitate compliance. Regularly checking with the EPFO and using their online portal for various transactions can help employers stay on top of their EPF responsibilities.

How does government do ESIC inspections

The Employees' State Insurance Corporation (ESIC) in India conducts inspections to ensure compliance with ESIC regulations. These inspections are carried out by ESIC officials to verify that employers are adhering to the provisions of the ESIC Act. Here's how the government typically conducts ESIC inspections:

1. Pre-Inspection Notice:

• ESIC authorities may provide advance notice to employers about an impending inspection. This notice is usually issued in writing and includes the date, time, and purpose of the inspection.

2. Inspection Team:

• An inspection team comprising ESIC officials and inspectors is assigned to carry out the inspection. The team may include officials from various departments, such as compliance, finance, and legal.

3. Document Verification:

• During the inspection, the team will review the employer's records and documents related to ESIC compliance. This may include:

• Employee records, including attendance and salary/wage details.

• Payroll records to verify deductions and contributions made to ESIC.

• Register of employees eligible for ESIC benefits.

• Contribution statements and challans showing timely payment of contributions.

• Any other documents related to ESIC compliance.

4. Interviews and Interactions:

• Inspectors may conduct interviews with employees to verify their awareness of ESIC coverage and benefits.

• Employers may also be interviewed to clarify any discrepancies or seek additional information.

5. Physical Verification:

• Inspectors may physically visit the workplace to assess the working conditions, check attendance records, and ensure that all eligible employees are covered under ESIC.

6. Reporting and Findings:

• After the inspection, ESIC officials compile their findings, including any non-compliance issues or violations observed during the inspection.

7. Compliance Assessment:

• Based on the findings, ESIC authorities assess the level of compliance with ESIC regulations. This includes evaluating whether contributions have been made accurately and on time and whether all eligible employees are covered.

8. Notice of Non-Compliance:

• If violations or non-compliance issues are identified during the inspection, the employer may be issued a notice specifying the areas of non-compliance and the corrective actions required.

9. Penalties and Actions:

• Employers who fail to address identified non-compliance issues may face penalties, fines, or legal actions, as specified under ESIC regulations.

10. Appeal Process:

• Employers have the right to appeal against any adverse findings or penalties imposed during the inspection. They can follow the established appeal process to seek a resolution.

It's important for employers to cooperate fully with ESIC inspectors during the inspection process. Non-compliance with ESIC regulations can result in penalties, fines, and legal actions, so addressing any issues identified during inspections promptly is advisable.

Employers should also proactively ensure compliance with ESIC regulations to minimize the likelihood of violations and potential penalties. This includes maintaining accurate records, making timely contributions, and regularly reviewing ESIC guidelines for any updates or changes.

What are key aspects of compliance for ESIC for employer - Employment Law

The Employees' State Insurance Corporation (ESIC) is a social security organization in India that provides medical, cash, and various other benefits to employees and their families. Employers are responsible for ensuring compliance with ESIC regulations. Here are the key aspects of compliance for employers with regard to ESIC:

1. Registration:

• Employers with a certain threshold of employees are required to register under ESIC. Registration should be done within 15 days of becoming liable to register. The employer is responsible for registering both themselves and their employees.

2. Contribution:

• Employers are required to deduct a certain percentage of the employee's salary (currently 1.75% of the wages) and contribute an equivalent amount to ESIC. Employees also contribute a percentage of their wages (currently 0.75%). These contributions must be deposited on a monthly basis.

3. Coverage:

• Employers should ensure that all eligible employees are covered under ESIC. This includes all employees earning below a specified wage threshold (as of my knowledge cutoff in September 2021, was Rs. 21,000 per month).

4. Record Maintenance:

• Employers are required to maintain records of employees, including their wages, contributions, and other relevant details. Records should be kept for a specific period (usually five years) and should be available for inspection when required.

5. Filing and Documentation:

• Employers must file monthly and annual returns and other required documentation with ESIC authorities. These filings include details of contributions, new employees, and other relevant information.

6. Employee Communication:

• Employers should inform their employees about ESIC coverage, contributions, and benefits. This ensures that employees are aware of their rights and entitlements.

7. Timely Payments:

• Contributions to ESIC should be made on time. Delayed payments may result in penalties and interest charges.

8. Compliance Audits:

• Employers should be prepared for compliance audits conducted by ESIC authorities. Ensuring accurate record-keeping and timely filings can help during such audits.

9. Changes in Employee Status:

• Employers should promptly inform ESIC about any changes in the status of employees, including new hires, resignations, terminations, or changes in wages.

10. Legal Compliance:

• Employers should stay updated with any changes in ESIC rules and regulations to ensure ongoing compliance with the law.

11. Penalties for Non-Compliance:

• Non-compliance with ESIC regulations can result in penalties, fines, and legal actions. It's essential for employers to take their ESIC obligations seriously.

12. ESIC Inspections:

• Employers should cooperate with ESIC inspections and provide the necessary information and documentation when requested by ESIC authorities.

13. Dispute Resolution:

• In case of any disputes or grievances related to ESIC, employers should follow the established dispute resolution mechanisms.

Please note that ESIC regulations may have evolved or changed, so it's advisable to refer to the latest guidelines and notifications from ESIC for the most up-to-date information.

Important Legal Aspects for Employee and Employer under the payment of gratuity act India

The Provision of Gratuity Act is a contractual reward given to workers who have worked for at least five years on an ongoing basis. Based on the length of his complete employment, which is a lump sum charged to an employee. The gratuity payment is payable to an employee following cessation of employment (either by dismissal, death, retirement, or termination, etc.) on the basis of the calculation of the last drawn salary. It is applicable where ten or more persons are employed or were employed, on any day of the preceding twelve-month

An employee who has worked for no less than five years shall be entitled to gratuity for his retirement or retirement or resignation, or for his death or injury. Where the cessation of the employment of any person is due to death or injury, a pre-requisite of completion of continuous service of five years shall not be required. In the event of an employee's death, the gratuity owed to him shall be paid to his nominee or, in the absence of that appointment, to his heirs.

The gratuity shall be due on termination of employment to an employee after undertaking continuous service for no less than five years. A person shall be said to be in continuous employment for a span of time whether he has been in continuous employment for that period which requires activities that may be disrupted due to sickness, injury, leave, a departure from duty without leave, lay-off, strike or lock-out or termination of employment not due to the negligence of the employee, whether such continuous or interrupted service has been done or not.

Gratuity is calculated at 15 days' wages last drawn by the employee for each completed year of service. The monthly Basic Salary is divided by 26 and multiplied by 15. In computing a completed year of service the period in excess of six months shall be taken as a full year. 

Gratuity = Monthly salary / 26 x 15 days x No. of years of service. 

The maximum amount of gratuity payable under the Act is Rs.20 Lacs.

The Payment of Gratuity (Amendment) Act, 1987 has prescribed provisions for compulsory insurance for the employer’s liability for payment towards the gratuity under the Act from LIC under the LIC Act,1956, or any other prescribed Insurer.

Each employee who has completed one year of service is required to make a nomination for the purposes of gratuity in case of his death. There can be more than one nominee. (Form F). Nominees may be changed at any time by the employee, by giving written notice to the employer. (Form H). If no nomination has been made, it shall be paid to the legal heirs of the deceased employee.

In the execution of any decree or order of any civil, income, or criminal case, no gratuity due under the Act shall be liable for attachment. However, if the employee has agreed to a deduction as a gratuity from the balance owed, the amount would be restored.

eSignature Legality in India in corporate and commercial contracts

The Information Technology Act of 2000 ("ITA"), the Indian Contract Act of 1872 ("ICA"), and the Electronic Signature or Electronic Authentication Technique and Procedure Rules of 2015 ("ESEATPR") all recognise electronic signatures as valid legal documents in India.

 

The ITA, the ICA, the ESEATPR, the Indian Stamp Act of 1899, and the pertinent state stamp acts are the pertinent legislation and regulations pertaining to the usage of electronic signatures in India. These laws provide the framework for:

 

What "electronic signatures" are accepted by the government of India;

What paperwork or agreements cannot be made electronically;

What requirements all contracts, including those using electronic signatures but not in compliance with the ITA's officially recognised standards, must satisfy; and

Whether stamp duty is required to be paid on a specific electronic transaction.

 

A contract cannot be denied enforceability solely because it was executed electronically, according to the ITA, as long as it satisfies the requirements of a legal contract under the ICA.

Section 10 of the ICA lists the prerequisites for a legal contract. These components are listed below:

 

It is entered into by persons who are legally able to do so; it results from their free will (i.e., a valid offer and acceptance); it provides for reciprocal consideration between the parties; and it does not call for the performance of any illegal acts.

An electronic signature, according to the ITA, is "authentication of any electronic record by a subscriber by means of the electronic technique specified in the Second Schedule and includes digital signature."

 

According to the ITA, a "digital signature" is the "authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3 [of the ITA]."

 

An "electronic signature" must meet certain requirements to be lawfully accepted under the ITA.

 

"Reliable" behaviour 

 

Utilise a method of authentication listed in the Second Schedule to the ITA.

 

An electronic signature is considered “reliable” if:

·       The signature creation data or the authentication data are, within the context in which they are used, linked to the signatory or to the authenticator and to no other person;

·       The signature creation data or the authentication data were, at the time of signing, under the control of the signatory or the authenticator and of no other person;

·       Any alteration to the electronic signature made after affixing such signature is detectable;

·       Any alteration to the information made after its authentication by electronic signature is detectable;

·       There is an audit trail of steps taken during the signing process; and

·       The digital signer certificates are issued by a Certifying Authority recognized by the Controller of Certifying Authorities appointed under the IT Act.

·       The Second Schedule provides that an “electronic signature” or electronic record can be authenticated by using either of the following methodologies:

·       Aadhaar e-KYC services, or

·       A third-party service by subscriber's key pair-generation, storing of key pairs on hardware security modules and creation of digital signature provided that the trusted third party providing such services shall be offered by any of the licensed Certifying Authority.

·       To create a digital signature, a user obtains a digital certificate from a licensed Certifying Authority.

Indian Contract Act of 1872: Acceptance and Role of Acceptance

According to Section 2(h) of the Indian Contract Act, of 1872,  the definition of acceptance states that “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted”. A proposal, when accepted, becomes a promise and creates mutual obligations and rights between the contracting parties.

Types of Acceptance

• Expressed acceptance: If the acceptance is written or oral.
• Implied acceptance: If the acceptance is shown by conduct
• Conditional acceptance: When a person to whom an offer has been made tells the offeror that he or she is ready to accept the offer with certain changes made to the condition of the offer.

Legal rules relating to acceptance

In order to create a valid acceptance, there are some legal rules that must be

followed: 

• Acceptance must be unqualified and unconditional.
• The acceptance must be expressed in some usual and reasonable manner
• Acceptance of an offer is the acceptance of all its terms
• Communication of acceptance must be made by the acceptor or his agent
• Acceptance may be expressed or implied
• Mental acceptance is no acceptance
• Acceptance of the general offer need not be communicated
• A mere answer to a question can neither constitute an offer nor an acceptance

Modes of acceptance 

There are two modes by which acceptance can happen, they are following as

1. Communication of acceptance by an action – This includes verbal or written communication. So, this will also cover texting, emails, and phone calls.

2. Conveying acceptance through conduct – The offeree may do this by acting in a way that suggests acceptance. For instance, you are required to pay the fare with conduct as you board a bus.

Indian Contract Act of 1872: What makes a Contract Legal

According to Section 2(h) of the Indian Contract Act, of 1872, a contract is defined

as an agreement between two or more people that is rendered legally enforceable and that establishes and specifies the duties of the parties. The statement “every agreement and promise enforceable by law is a contract” is attributed to Sir F. Pollock. Two essential components:

An agreement

Enforceable by law.

The following components make up a contract:

Offer: Section 2(a) of the Indian Contract Act of 1872 states that a proposal is made when one person expresses to another his readiness to perform an act or refrain from performing one in order to get the approval of the other party. Acceptance is defined as the expression of assent to the offer made by the

offeror in Section 2(b) of the Indian Contract Act, of 1872. This acknowledgment demonstrates that the proposal is indeed approved.

Promise: A person makes a proposal when he or she indicates their willingness to do or not do something. The proposal turns into a promise after the promisee accepts it.

Agreement: The legal, mutually binding commitment made between private parties is referred to as an agreement.

Contract: According to Section 2(h) of the Indian Contract Act of 1872, a contract is a legally binding agreement.

Dealing with Employee Grievances per Indian Law

Gripes at work are unavoidable. In fact, it's been stated that having a complaint gives one's life meaning. Unresolved complaints are similar to loose cannon balls in a ship; if not handled properly, they can sink the vessel.

In India, the employer is required to implement particular grievance redressal systems at the workplace under several central and state-specific labour regulations. Here is a brief overview of numerous legal processes that HR managers should be aware of and can include in their HR policies and practises:

According to section 9C of the Industrial Disputes Act, 1947 of India (IDA), each employer who employs at least 20 workers must establish a Grievance Redressal Committee (GRC) to settle disputes resulting from worker grievances. The GRC should have a maximum of six members, with equal representation from both the managerial class and the working class.

In order to handle disputes arising out of individual worker grievances relating to non-employment, terms of employment, or conditions of service, the industrial establishment shall have one or more GRCs, according to the draught Industrial Relations Code, 2019 that has been tabled in Lok Sabha. It also suggests expanding the GRC to include ten members in total.

According to Section 3 of the IDA, the labour authorities may direct the creation of a Works Committee (WC) in a workplace with at least 100 employees. The WC must advocate for actions that ensure and uphold amity and goodwill between the employer and its employees, and to that degree, it must offer commentary on issues of shared interest or concern. Additionally, it ought to make an effort to resolve any significant disagreements within the business.

The Sexual Harassment of Women at Company (Prevention, Prohibition and Redressal) Act, 2013 of India (POSH Act) mandates the creation of an internal complaints committee (IC) at every company with at least 10 employees. The IC must look into allegations of workplace sexual harassment of women and make suggestions to the employer. According to the Code of Civil Procedure from 1908, the IC is granted the same authority as a civil court and has a three-year term limit. The statute gives the IC 90 days to finish its investigation and an additional 10 days to publish its report.

The Maternity Benefit Act: An Overview

The Maternity Benefit Act of 1961 must be complied with by factories, mines, and plantations. The Act applies to all businesses that have more than 10 employees working each day throughout the previous 12 months. Additionally, it applies to every shop and other establishment in the concerned Indian state. Additionally, this Act applies to specific facilities and businesses. It must be followed in order to maintain the goodwill of the workforce.

Every organization must abide by this Act, and the workers must receive a number of benefits. The outcome is that the employees get the best care and their health is maintained. The health of employees is essential since it promotes the growth of the company.

The following are the major conditions required to fulfill in order to claim maternity benefits −

• The employee (women) must have worked for the establishment for at least 80 odd days in the previous 12 months in order to be eligible to receive benefits under this Act.

• The Act also protects women who miscarry, in addition to public hospitals, nursing homes, schools, and other businesses.

• A woman is entitled to a maximum of six weeks of paid leave if her pregnancy ends in miscarriage or she has an abortion. If she delivers the baby earlier than expected, the earnings will be paid 48 hours after the birth certificate is shown.

• Women were granted 12 weeks of maternity leave under the terms of the Maternity Benefit Act of 1961. The Maternity Benefit (Amendment) Act of 2017 has raised the leave term from 12 to 26 weeks, nevertheless.

• The 26−week maternity leave period can be divided into up to 8 weeks of leave before the expected delivery date and the remaining leave following childbirth.

• Up to two children may be granted the 26−week maximum maternity leave duration. The 12−week leave period applies to mothers who have more than two children. According to the act, a woman is not obligated to work for six weeks after a miscarriage, unless the miscarriage was caused by a medical termination of the pregnancy. Surrogate moms and mothers who have adopted a child under three months old are also eligible for 12 weeks of leave.

Section 3 Definitions

Section 4 Employment of, or work by, women is prohibited during certain periods.

Section 5 Right to payment of maternity benefit.

Section 7 Payment of maternity benefit in case of death of a woman.

Section 8 Payment of medical bonus.

Section 13 No deduction of wages in certain cases.

Section 18 Forfeiture of maternity benefits.

Section 21 Penalty for contravention of Act by the employer.

All about Overtime Payment Rules in India

Factory: Factories Act, 1948

• Weekly Limit - Maximum 48 hours a day.

• Daily limit - Maximum 9 hours a day.

• Interval - No work for more than 5 hours without an interval. 

• Spread over - Working hours including interval periods not more than 10.5 hours.

• Overtime limit - Daily work time inclusive of overtime shall not exceed 10 hours which is 60 hours on a weekly basis. Overtime hours cannot exceed 50 hours in a quarter (3-month period).

As per Section 59 of the Factories Act, 1948, a person is entitled to be paid overtime wages twice his ordinary rate of wages in case he/ she is required to work for more than 9 hours a day or more than 48 hours in a week. The wages mentioned here are equivalent to the basic wages along with allowances but do not include any bonus or other overtime wages. In case a worker is paid on a ‘piece rate’ basis, the time rate will be calculated on the basis of the previous month and the amount of overtime wages will be calculated accordingly. 

Shop/ Establishment: Shops and Establishments Act of States/ UTs

• Daily working hours may range from 8-10 hours

• Weekly working hours cannot exceed 48 hours

• Overtime may range from 10-11 hours on a daily basis (1 to 3 hours)

• No continuous (break-free) work for more than 5 hours in one go

• Weekly limit of 50-60 hours

• Quarterly limit of 50-150 hours

• Spread over a limit of 10-14 hours

Depending upon the rate fixed by states or union territories, employees are paid for overtime hours apart from fixed working hours in the shops or establishments. In some states, the overtime amount is twice the usual working hours. Here again, the employee overtime rate is calculated for basic + allowances (not including any bonus).

 Mines Act, 1952

• Daily Working Hours - 9 hours a day above ground/ 8 hours a day under the ground

• Weekly hours - Maximum 48 hours a week

• Overtime - If a person works for more than a fixed time (above or below the ground), he/ she is entitled to overtime wages twice the ordinary rate

• The payment will be equivalent in case of employee works on a piece rate

• There is a work hour limit of a maximum of 10 hours a day inclusive of overtime

As per the overtime payment rules in India, it is calculated on basic salary. It may also include dearness or any other allowance. But it may be noted that labor law on overtime in India excludes any bonus or other such incentive while deciding or calculating overtime payment rules. In any case, the overtime payment rules do not regard the gross salary. But if there is no statutory obligation and the employer wishes to reward the hard-working employees voluntarily, overtime payment rules in India do not restrict the same. In such a case, whether overtime is paid on basic or gross in India is the employer’s choice.

Shop and Establishment Act and employment Law

The Shop and Establishment Act governs the state's active shops and commercial establishments. The Shop and Establishment Act (the "Act") is unique to each state. The Act's general requirements, however, apply to all 50 states equally. The Shop and Establishment Act is put into effect by the labor departments of the individual states.

According to the Act, a shop is commonly defined as a place where items are sold, either retail or wholesale, or where consumers get services. As part of the trade or business, it also comprises offices, godowns, storerooms, and warehouses.

Generally speaking, a commercial establishment is any business, financial institution, trading company, insurance agency, or office-based service. Hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment and amusement facilities are included. However, the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951 regulate factories and industries, which are not covered by the Act.

The shops and businesses covered by the Act are obligated to submit an application for registration under the applicable state Act. A Shop and Establishment Registration Certificate or Shop Licence ("Certificate") is required by the Act for all businesses and establishments, including those run entirely from home.

The Act, among other things, regulates the following matters-

• Hours of work, annual leave, weekly holidays.
• Payment of wages and compensation.
• Prohibition of employment of children.
• Prohibition of employing women and young persons on the night shift.
• Enforcement and Inspection.
• The interval for rest.
• Opening and closing hours.
• Record keeping by the employers.
• Dismissal provisions.