Employment contracts are fundamental in defining the
relationship between employers and employees and outlining the
terms of employment such as role, compensation, dispute resolution,
duties, termination, etc. Ensuring that effective dispute
resolution mechanisms are provided in the employment agreement is
crucial as most of the employment disputes in India arise from
conflicts over the terms of employment or in case of termination,
wherein employees claim illegal termination.
The key legislation in India which regulates employee disputes
is the Industrial Disputes Act, 1947 ("ID
Act"). Special national tribunals, labour courts and
other mechanisms have been set up under the ID Act for resolution
of employee disputes. Other statues such as the Payment of Gratuity
Act, 1972, Payment of Wages Act, etc. also provide for special
courts for resolution of employee disputes.
