Mandatory Employee Benefits and Perks Your Employer is Required to Offer

Benefits every employee needs to know

The perfect company for an employee also offers the best employee benefits package. About this attribute of a corporation in India, normally an astute employee tends to ask a couple of questions. They would be –

• When would the employee of the firm be eligible for ‘health-care benefits?
• How much paid time off do the fresh hires receive typically?

Nevertheless, the Indian law gives several provisions to securing the interests of the employees. Even in the absence of specific laws governing private employment in the country, a list of 6 rights seems to be applicable to workers across the country.

Employment Agreement

A written agreement on the employment must be signed between the employer and the employee before the commencement of the work term. This is all about a legal document that contains the job’s terms and conditions. The rights, as well as obligations of either party, are listed on it, which is designed for giving both protection and security.
In India, most private employers are bound by the terms and conditions mentioned in the letter of appointment given to the worker by the company. Here on the appointment letter, they mention everything from healthcare benefits to paid time-offs and so it forms the basis of the agreement between both the parties, enforceable either way under the Indian Contract Act of 1872.
It is hence advisable for the employee to go through the appointment letter thoroughly before signing under it.

Leave of Absence is employee’s right

An employee is generally given the following leaves during the employment course –

• Sick leave is a provision for relieving an employ when he gets sick
• Earned or privilege leave refers to lengthier leave terms often planned by the employees to obtain sanction for which from the management, in advance
• Casual leave is the kind of leave package offered to a worker to take care of exigent or unplanned matters such as a family emergency
• Other leaves offered besides the above-mentioned ones are either paid, unpaid or half paid, provided generally at the discretion of the employer. Good examples for this kind of leave are the bereavement leave and the study leave

Workplace security

Ensuring the protection of the workers from different types of harassment at the company premises while at work is the responsibility of the company; particularly of the female employees (Sexual Harassment of Women at Workplace Act of 2013). This includes all incidents of sexual and mental harassment notwithstanding the stature of the parties involved.
As sexual harassment is punishable in India under the IPC, the law mandates the companies to formulate a policy that prohibits the crime. This policy often comes as part of the service regulations of corporations for providing their workers with a healthy environment for working. Internal complaint committees are set up in all offices, institutions as well as other establishments to reasonably identify such crimes.

Maternity Benefits

Fresh amendments made to the Indian Maternity Benefits Act of 1961 has extended the number of maternity leave days of twelve weeks previously mandated to twenty-six weeks even for those working in the private sector. Besides this, the workers are also entitled to an additional month of paid leave if complications arise during pregnancy, childbirth, premature delivery, miscarriage of pregnancy and tubectomy surgery.
The Indian law mandates no company to employ a female worker in the six weeks following her delivery or miscarriage fate. Dismissing or even discharging her on account of any such an absence has also been made illegal by law. It is significant that pregnant workers discharged or dismissed may still claim the benefits related to maternity from the employer.

Gratuity

Gratuity forms a statutory right of the worker that can just not be denied to them on any ground starting from their being provided with the pension benefits or a provident fund. This refers to a statutory benefit that is paid as a lump-sum amount to the workers that have rendered at least five years of continuous service to a company. This amount is payable to the worker on cessation of employment due to any factor ranging from resignation, demise, retirement or forcible termination, considering the last drawn salary as the parameter of calculation.

Provident Fund

This benefit is better known as the EPF or the Employee’s Provident Fund. It is all about a retirement benefits scheme for all salaried workers managed by the Employee Provident Fund Organization of India. This benefit is available for the employees of any company with a workforce of more than twenty heads.
The law binds both the employee and the company to contribute 12 percent of their basic salary into the provident fund.