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Obligations Of The Parties

Under various labour legislation, both the employer and employee have various statutory obligations to each other. Apart from the statutory obligations, there are certain principles peculiar to the contract of employment: cooperation, care and fidelity which are at the root of the employment relationship.

Employer and employee must cooperate to facilitate the performance of their mutual obligations under the contract of employment. The important general obligations of the employers and employees are discussed in the following paragraphs.

Employers’ obligations to the employee

The employer’s obligations to the employees are:

to provide each employee a copy of the service rules and a copy of Standing Orders, (if any).

to provide each employee a copy of the appointment letter or employment contract.

to pay the wages/salary on time.

to communicate any change in terms of service in writing to the employee.

to pay bonuses to eligible employees, under the provisions of the Bonus Act of 1965.

to deposit its contribution to the provident fund and the ESI along with the contributions of the employee.

to ensure security of staff and tools while on duty.

to provide tools that are functional.

to comply with the provisions of the employment contract and Standing Orders if the employer wishes to terminate the services of the employee.

to indemnify employees against expenses and liabilities incurred in the course of employment.

Employees’ obligations to the employer

The employee’s obligations to the employer are:

to perform the job peacefully and carefully.

to obey the orders of superiors.

to safeguard the assets of the Company, which are in possession.

to account for all monies and property received in the course of employment.

to inform and take permission for his future leave, so that the employer can make alternate arrangements.

to observe the employment contract or service rules applicable.

to give notice to the employer of an intention to leave the organisation as per the employment contract or service rules.

Terms implied by legislation and the courts.

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