• Registration with a trade union is not compulsory in India but those who do join are entitled to certain rights and benefits.india image by giantorre from Fotolia.com
  
  An individual in India is considered a contracted employee of an institution when they have been hired through a contractor (this process can still take place legally without the knowledge or consent of the individual ultimately in charge of the organization). Indian law concerning contracted work is split into different sub-categories, such as working hours and conditions, membership of trade unions, bonus pay and minimum wage requirements.
  
  

Minimum Wage

• The Minimum Wage Act 1948 enforces a minimum wage for contract employment in order to prevent the exploitation of workers through low wages. It required the government to fix the minimum wage to an appropriate level, taking into consideration inflation and interest rates within the country at the time, and with reviews of the rate taking place at least within five years of the last.
  
  

Working Hours

• This section of India's contract labor law is designated under The Factories Act 1948. This establishes the maximum working hours for adults in India, which is 48 hours a week. The act makes it illegal for any adult doing factory labor to work more than 48 hours a week, or more than nine hours a day.
  
  

Payment of Bonuses

• The Payment of Bonus Act 1965 provides guidelines on bonuses for employees of certain organizations. These can depend on either the productivity of the firm in a given period of time or the profit margins. This law also states that employees earning above 3,500 rupees (the currency of India) a month who are employed in any kind of contract work with the organization are entitled to a yearly bonus if they have worked at least 30 full days for the firm. This law excludes employees working in state institutions such as health, education and welfare.
  
  

Trade Union Law

• This law is established under the Trade Unions Act 1926 (with an amended version drafted in 2001). Registration with a trade union is not compulsory in India but those who do join are entitled to all the rights and benefits outlined in the act. This includes compensation in the event of financial loss caused by trade disputes, financial provisions for religious, educational and/or social requirements and allowances for dependants in cases of old age, illness and work-related accidents. Official trade unions are required to always make their financial accounts open for inspection, and their funds must only be used for purposes specified in the act. This includes paying employees' salaries, administrative expenses and legal defense fees.