TO: Jason Galvan, HR representative of Bollman Hotels
FROM: Atwood and Allen Consulting
DATE: Feb 10, 2015
SUBJECT: Employment law compliance plan
It is a gold mine of business opportunities to set up a business in the most promising market-India. Congratulation that your company is going to have a big progress of the business scope. Now, How to set up a new market in a foreign country is very important to you. You have many steps to take before that. Before stepping into a new market, it’s better to know well about their culture, competitors, religion and the foremost important one, law. The most striking thing about India is its diversity. They even have 18 official languages. However English is the language of business and commerce and of the higher judiciary. That is good for your company to communicate with local people for sure.
It is not simple to invest and enter foreign markets as regulations and restrictions differ from country to country. However, as with all ventures, there are risks attached to this move and it is not a step to be taken lightly. We will mention some key applicable laws as well as the consequences of noncompliance with those laws that involved in doing business in India for your reference first.
Industrial Employment (Standing Orders) Act, 1946
It applies to every industrial establishment wherein one hundred or more workmen are employed, or were employed on any day of the preceding twelve months. Since your company has approximately 25,000 employees and plan to increase your workforce by 20% in the new country, this law applies to your company. It requires that employers have terms including classification of workmen, working hours, leave, shift working, attendance, wages, productivity goals, and dismissal procedures, approved by a government body.
If the employer do the wrongful exaction, employee could complaints back. All complaints arising out of employment including those relating to unfair treatment or wrongful
References: Delhi Gov (Jan 17, 1983). The Industrial Employment (Standing Orders) Central Rules, 1946. Retrieved from http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Acts+Implemented/The+Industrial+Employment++Act,+1946/The+Industrial+Employment+%28Standing+Orders%29+Central+Rules,+1946 Sumeet Kachwaha (July 21, 2008). India: Doing Business In India - A Legal Overview. Retrieved from http://www.mondaq.com/india/x/56374/Corporate+Commercial+Law/Doing+Business+In+India+A+Legal+Overview