India:What are the main points to consider if an employer wants to unilaterally change the terms and conditions of employment?

What are the main points to consider if an employer wants to unilaterally change the terms and conditions of employment?

There are special rules that apply to employees falling within the definition of "workman" under the ID Act. Where an employer wishes to change the conditions of employment (for example, wages, working hours and so on) of an employee who falls within the definition of a workman, the employer must give either 21 or 42 days' notice of the change in the prescribed form (the length of notice depends on which jurisdiction in India the employee is located in). The employee can then either agree to the change, or object to it and raise an industrial dispute. Where an objection is raised, the dispute must be resolved by the relevant tribunal and the change cannot be made until the dispute is resolved.

The ID Act only applies to an employee who is a "workman", defined as any person employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. Persons employed principally in a managerial or administrative capacity, or those employed in a supervisory capacity earning more than INR10,000 per month, are excluded from its application. Also note that (except in West Bengal) sales employees are not treated as "workmen" under the ID Act if their main and substantial work consists of canvassing for customers, building up sales and promoting business. However, though all the sales promotion employees are excluded from labour protection, currently medical/pharmaceutical representatives are extended the protection of the ID Act as a result of the Sales Promotion Employees (Conditions of Service) Act, 1976.

For employees not covered by the ID Act, the employment contract will determine whether or not unilateral changes can be made by the employer.