Chapter- 3 Provisions Relating to Employment

10. Types of employment:

(1) An employer may engage a labour in any type of the following employment:

(a) Regular employment,

(b) Work-based employment,

(c) Time-based employment,

(d) Casual employment,

(e) Part-time employment.

Explanation: For the purpose of this Section, –

(1) “Regular employment” means employment of any type whatever other than that set forth in clauses (b), (c) and (d).

(2) “Work-based employment” means employment that the employer provides or has provided specifying any particular work or service for performance.

(3) “Time-based employment” means employment that the employer provides or has provided to the labour specifying a certain period on the condition that the labour has to provide any service or perform any work within that period.

(4) “Casual employment” means employment that the employer provides or has provided to the labour on the condition that the labour has to provide any service or perform any work, for seven days or less within a period of one month.

(5) “Part-time employment” means employment that the employer provides or has provided to the labour on the condition that the labour has to perform a work in thirty-five hours or less than thirty-five hours in a week.

(2) If there arises a question as to whether any employment is regular or not, it shall be determined as prescribed on the basis of the nature of the work, notwithstanding anything contained in the employment contract.

11. Prohibition on employment without entering into employment contract:

(1) No employer shall employ a person without entering into an employment contract.

(2) Notwithstanding anything contained in sub-section (1), it shall not be necessary to enter into an employment contract in writing for a casual employment.

(3) While entering into an employment contract pursuant to sub-section (1), remuneration, benefits to be received by the labour, conditions of employment and other matters as prescribed shall be set out in such a contract.

12. Employment relationship to be established:

(1) Where the employer enters into an employment contract with a labour or employs a labour verbally or engages a worker on casual employment, the employment relationship between the employer and the employee shall be established, or in the case of the casual employment, such relation is established from the date or time when the labour is employed or he or she provides the service.

(2) Where there arises a dispute as to whether the employment relationship has existed between an employer and a labour, such a dispute shall be settled by the Office.

(3) Where the dispute referred to in sub-section (2) is also included in any issue that is sub judice in the Department or a Court, such a dispute shall also be settled by the Department or Court.

(4) For the purpose of sub-section (2), the Office may give an order to the employer to submit any evidence or document relating to the employment which remains in his or her custody, and if the employer does not submit such evidence or document in pursuance of the order, the employment relationship between the employer and the labour shall be deemed to have been established.

13. Provision relating to probation period:

In entering into an employment contract with a labour, the employer may so enter into the contract that he or she remains in a probation period for six months, and terminate the employment contract with the labour if his or her work is not satisfactory during the probation period. After the end of the probation period of a labour in respect of whom the employment contract has not been so terminated, the employment relation shall ipso facto be deemed to be valid.

14. Continuity of existence of the employment relationship despite change in ownership:

(1) In the case of a change in or transfer of ownership of any work or business or any part thereof of any employer or hand over of such a work or business to another person for its operation or creation of a new enterprise or business as a result of the merger of two or more enterprises or businesses, the employment relationship of the labour working in such an enterprise or business the ownership of which has been so changed or transferred or which has been so handed over to the other person for its operation or in the enterprise or business which has been merged shall continue to exist.

(2) For the purpose of sub-section (1), the employer who so undertakes the ownership or acquires the ownership by way of transfer or undertakes responsibility to operate the work or business or, in the case of a merger of businesses or enterprises, the new enterprise or business created from such merger or, in the case of the transfer of the ownership and liability of a project in accordance with the prevailing law relating to private investment in the building and operation of infrastructures, the enterprise undertaking such ownership and liability shall bear the liability under this Act or the rules framed under this Act or the collective agreement, if any, entered into. Provided that if any agreement on interim management has been made between the previous employer, new employer and union of the concerned enterprise, the provisions of the agreement shall apply.

15. Continuity of existence of employment relationship during the period held in reserve:

(1) If any special circumstance arises in the workplace, the employer may suspend the work and hold the worker in reserve.
Explanation: For the purpose of this Section, “special circumstance” means a situation involving the shortage of electricity, water, raw materials or lack of financial resources or inability to reach the workplace or work or operate the workplace because of the occurrence of any situation beyond control.

(2) Where any labour is held in reserve pursuant to sub-section (1), the employment relationship between such an employer and worker shall continue to exist.

(3) Any employer employing ten or more labours may hold the labour in reserve for a period not exceeding fifteen days, pursuant to sub-section (1). Provided that if it is necessary to hold in reserve for more than the said period, the employer shall consult with the authorised trade union or labour relation committee.