Employment Agreement

In India, a relationship of a salaried employer may be express or implicit, written, or oral. However, to avoid any dispute over the terms of employment, it is common to have an employment contract. The (federal) Industrial Employment Act of 1946 (which applies to workers) provides for a probationary period of up to three months. Some states have indirectly incorporated the concept of probation into their local laws, which range from three to six months. Ideally, a probation period should not exceed 240 days, as several legal social assistance laws apply to employees who have worked during this period.

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Hiring documentation is prepared by our Lawyer and sent to the Employer for Review. Once the terms are finalized the draft is printed. This is then sent to the Employer who in turn, presents it to their Employees. The Labour Dispute Act 1947 (applicable to workers) provides that, if certain conditions of service change, notice must be given to the employee. It also prescribes termination requirements for convenience, including notice and compensation.

Key Requirements

Background checks

a) Criminal records?

While criminal background checks can be conducted, this is extremely difficult in practice because criminal records are not digitized and are not consolidated nationally. Therefore, when a criminal background check is required, it is usually done at the police station with jurisdiction over the employee's current place of residence or wherever he or she has lived for a reasonable period.

(b) Medical history?

Employees' medical histories are not readily available because they are not digitized and there is no filing of medical records. The employee's consent is required to disclose medical records to the employer. However, some employers require employees to undergo medical examinations and ask the diagnostic center to send the report directly to the employer. Subject to specific restrictions (for example, pre-employment testing for HIV is not permitted), there is no prohibition of this practice under Indian law.

(c) Drug screening?

Indian law does not prohibit drug screening.

(d) Credit checks?

An individual has the right to obtain information about their credit rating. The employer can also access this information, with the employee's permission and providing the necessary proof of identity. Access to credit rating information is more common in banks and financial institutions

(e) Immigration status?

Indian law does not expressly require an employer to verify a foreigner's immigration status. Indian law does not prevent the employer from verifying whether a foreign employee holds the necessary visa to work in India. If a foreign person with an employment visa wishes to change jobs for another company, he must leave India and apply for a visa again.

Hiring managers are responsible for keeping copies of all relevant documents. When a hiring manager chooses to record only a digital record of a hiring action, these digital files must be recorded securely.

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