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Labour Act, Section 5 (Employment Contract)

Labour Act, Section 5 (Employment Contract)

According to section 5 of the Labour Act, an appointment letter shall be issued by an employer upon hiring an employee. Further, as per Rule 19 of the Labour Rules, the appointment letter should contain the following information:

  • name of the worker;
  • name of the worker’s parents;
  • name of the worker’s spouse (if applicable);
  • present and permanent addresses of the worker;
  • designation of the worker;
  • type of work to be undertaken by the worker;
  • date of worker joining the establishment;
  • class of the worker;
  • wages or pay scale (wages or salary and the rate of the increase of annual salary, if any);
  • other payable financial benefits (house rent, medical expenses, education, food, conveyance, festival and attendance allowances and gratuity, if any); and
  • a statement that the conditions of appointment will be governed by the establishment’s existing service rules (if any) and the existing Labour Act.

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