Any organization that wants to establish its own service rules/employment policy must get approval from Chief Inspector of Labour after having it drafted by an employment lawyer. The Chief Inspector will approve the organogram of the organization and validate the Service Rule.
The Service Rule must be compatible with the Labour act or else it will not get the approval. It is also mandatory for the employer to issue appointment letters under the Labour Act. The Labour Rules makes it mandatory that the appointment letter must contain certain information such as salary, other financial benefits, applicable rules etc. The Rules makes it mandatory that a Labour, who continuously works for a year, must receive two festival bonuses in every year. The Rules provide detailed guidelines regarding provident fund. New additions include provisions related to selection of nominee, management of the fund, activities of the trust for managing provident fund. The Rules detailed the provisions related to holidays. It also clarifies the provisions related to compensatory weekly holiday.
There are potential loopholes in the labour service rules that provides employer the opportunity to cheat the employees with minimum bar, which is unreasonable. For instance, the bonus shall not be more than a basic salary but it does not explicitly state any minimum proportion. This can be overcome by making the service rule more specific and appropriate by stating explicitly the standard parameters.
However, there are quite a few gaps in the labour laws but at least we are moving towards right track. Moreover, new amendment of labour laws made the provisions more flexible and feasible.