Employees of an organization are its most valuable assets. An organization may have all the resources. But, it cannot run without its employees. Therefore, it is important to retain well-performing employees within the organization. This is where employee benefits come in. Employee benefits are the facilities and rewards that an organization provides to its employees. They are in addition to the regular salary or wages paid to employees.
Purpose of Employee Benefits
These benefits have the following purpose:
Retain employees and motivate better performance.
Provide Job Satisfaction as well as job security.
Promote equality at workplace.
Provide fair as well as adequate remuneration.
Types of Employee Benefits
In India, employees are entitled to the following benefits:
Employees' Provident Fund and State Insurance
Pension Plans and Gratuity
Leave Encasement and Bonus
Overtime Payment and Minimum Wage
If you are an Employee
If your workplace is covered by one or more of the above Acts, you are entitled to the following:
Gratuity at the rate of 15 days' wages for each completed year of service.
Contribution by the employer for employee insurance as well as provident fund.
Periodic payments in case of sickness, miscarriage or disability.
Minimum bonus of 8.33 percent of basic salary or wage.
Payment for overtime hours and leave encashment.
Wages at the minimum rate.
Maternity benefits such as paid leaves, nursing breaks as well any pregnancy related illness.
However, please note that the benefits available to you will depend on various factors. Some such factors are the laws applicable to your organization, number of employees, and your own eligibility to receive the above benefits.
If you are an Employer
As an employer, you need to provide the above benefits to your employees. But in certain cases, you will not be obligated for payment of above benefits:
Deliberate negligence by the employee.
Morally unacceptable behavior of employee.
Absence on ground of strike or leave (for insurance and medical benefits)
Riotous or violent behaviour.
Misuse or destruction of office property.
Fraud or theft.
This means that you can legally refuse to provide employee benefits to an employee on the above grounds.
How PocketLawyer Can Help?
Are you an employee who needs the employee benefits due to him or an employer who wants to know more about them? We, at PocketLawyer can help. We will connect you with expert professionals. These professionals are experts in employment laws. You can post your requirement
and they will assist you with the entire legal process at affordable prices.