Standardization of Remote Work, Shift to a flexible workplace from a traditional office setting, accelerated by COVID-19 pendemic. Started in technical world and now adopted by various industries.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: Although there is no specific law regarding a remote work practice, such as, work from home, or hybrid mode of working, but there no such law also, that restricts such remote work practice. Now a days the concept of remote work has become very common, which has been accelerated by the pandemic.
Many industries or companies has adopted the hyprid or fully remote work practice, which allows people to work from home or any other place. Such shift has provided many benefits such as increased productivity and reduced overhead cost, but along with the benefits, there are several legal issues faced by both the employer and the employee.
Existing labour laws, focuses on the traditional work practice, but it does not specifically distinguish between the traditional work place and remote work place.
Shift to Remote Work
Although, remote work is not specifically defined or regulated under Indian laws, it refers to employment carried outside the traditional office environment. It basically means working away from the traditional office, such as work from home, or any other location. With rise of Globalization and advancement in internet and technologies, remote work has become common.
Increasing number of IT companies, as well as foreign companies, specially in the software and development sectors, outsourcing their work to hiring Indian employees, which results to rise in the remote work culture. The COVID-19 pendamic further accelerated this shift, as the Government of India and other State Governments issued advisories requesting employers to implement work from home arrangements to minimize in person interaction and curb the virus spread.
ALSO READ: Delhi High Court Serves Notice to BCI | Foreign Law Firms Entry in India
Legal Challenges Faced by Remote Workers
India does not have any existing legislation regulating terms and conditions of employment in remote work, which led to several legal issues faced by the workers.
Lack of clear regulations for remote work
The recent notification by the Ministry of Labour and Employment enforces key provisions of the Occupational Safety, Health and Working Conditions Code, 2020, and the Code on Social Security, 2020. However, these codes overlook remote workers as a distinct category, lacking clear definitions or guidelines for their inclusion. This ambiguity may lead to confusion or misuse, potentially depriving remote employees of essential benefits. For example, while social security benefits could apply, employers might exploit the lack of clarity to reduce wages or benefits. This reflects a legislative gap in addressing the realities of remote work.
Tailoring employment contracts
Employers should update employment contracts to reflect remote work terms, including the designated workplace, availability, working hours, communication protocols, performance expectations, and other remote-specific responsibilities.
Difficulty in monitoring and ensuring productivity
Remote work in India has increased job insecurity, especially due to the lack of uniform regulations and legal protections. Employees face risks like salary cuts, career disruptions, and contract losses. Diverse work cultures and employer discretion over remote policies add to the instability. Reduced supervision in remote setups also creates anxiety for both employers and employees, affecting trust and job continuity.
Addressing work life balance and mental health concerns
The traditional 9-to-5 work model often influences remote work expectations, leading employers to equate longer hours with higher productivity. As a result, remote workers frequently work more than office employees, causing stress and burnout. This “always on” culture can harm mental health and family life. Employers must set clear, reasonable work-hour expectations to protect employee well-being.
Jurisdictional challenges
Remote work complicates compliance with state-specific labour laws, as employers may need to follow regulations based on the employee’s location rather than the company’s, especially for benefits and leave under state laws.
Data privacy
In remote work settings, employers must establish clear data protection policies for handling, storing, and disposing of sensitive data. The IT Act, 2000, doesn’t differentiate between remote and traditional workplaces, creating gaps in data security. Without specific laws, businesses risk liability for data breaches. Aligning internal policies with the upcoming Digital Personal Data Protection Bill, 2022, is essential to ensure compliance and safeguard client information.
Cyber Security
To ensure data security in remote work, employers should promote encrypted network use, implement strict access controls like multi-factor authentication, and require updated security tools on personal devices. They should also address confidentiality challenges in shared living spaces by setting clear privacy expectations.
Legal Framework forRemote Work
There is no specific law relating to Remote work, but the remote work aspect is covered by a number of laws, including the Industrial Employment Standing Orders Act of 1946 and the Contract Labour (Regulation & Abolition) Act of 1970. Also, paid leave, holidays, and working hours provided under Factories Act, 1948 and State-specific Shops and Establishments Acts are same for all the workers or employees, irrespective of place of work.
The Government of India has also introduced several measures to accommodate remote work, specially in context of maternity. The Government has proposed a draft Model Standing Orders, that recognize the nature of work environment by permitting reomote work.
The Maternity Benefit (Amendment) Act, 2017 provides that women can return from maternity leave by providing an option of work from home, if their work responsibilities can be performed remotely. This ensures that they can balance their personal as well as professional responsibility.
The Ministry of Commerce and Industry has introduces amendment to Rule 43A of the Special Economic Zones (SEZ) Rules, 2006 which libralize work from home model for 100% employees of the SEZ unit which extended till 31st December, 2023.
The Model Standing Orders for the Services Sector, 2020 allows employers to permit employees to work from home for specific duration.
In the case of Ayesha Khatun v. The State of West Bengal & Others, Calcutta High Court has emphesised that the ambit of work place should be extended beyond the office premise and include any place that ensures a safe and respectful atmosphere for all employees.
Click Here to Read Our Reports on Remote Employment
Click Here to Read Our Reports on Maternity Leave
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
