Awaiting your next job contract? Don't miss the remote work rules

India Inc’s quest to bring employees back to office after the pandemic has been arduous. Now, companies are enlisting law firms to draft watertight contracts that leave no room for ambiguity.

New employment agreements specify the number of hours that a remote employee must stay “available" in front of the laptop or on calls. Some companies include the office address as their only workplace, besides adding confidentiality conditions to restrict remote work. At the same time, they are easing the leave policy to soften the blow by including breaks to take care of pets and prepare for weddings.

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"Clients are making sure that work from home is not assumed by employees as a matter of right. Attendance at the office cannot be perceived as kind of an interim arrangement, and employers sense that insistence on working from home can lead to instances of habitual absenteeism," said Anshul Prakash, partner, employment labour & benefits at law firm Khaitan & Co. The companies, he said, are setting out the eligibility for employees who can be allowed to work from home.

Employees got hooked on to remote work during the pandemic and incentives nudging them to return to the office have yielded mixed results. Remote logins require even more approvals than before. India’s largest software services provider Tata Consultancy Services Ltd has linked salary hikes to office attendance. Those not opting to work from the office have received lower salary hikes. LTIMindtree Ltd decided to deduct leaves for those not regular at the workplace.

Not working for managers

"The employment policies are getting changed because the freedom to let employees decide is not working out for managers. They need guardrails," said the HR head of an IT firm who did not want to be named. Although the firm has remote work options, the executive said some of these clauses have been adopted from US firms.

"There are different contracts for those working remotely in the US, where hours during which the employee has to be available are mentioned," the HR head said. “After the pandemic, these contracts started coming into India."

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It is not just working hours but even leaves are getting more defined as different generations in the workforce have a diverse outlook towards benefit. To the existing categories of sick, casual, maternal and privilege leaves, some firms are adding paternal, pet-parenting, adoption, IVF treatment and menstrual leaves, besides sabbatical policies.

"Certain clients have even considered providing marriage preparedness leave where an employee will be given some time to prepare for his or her wedding, which could include flexible working hours, and the option to work from hometown for some time," Prakash of Khaitan & Co. said.

Overtime concerns

Companies are also concerned that the time employees work beyond their regular hours could be claimed as overtime pay. Law firms have asked their clients to require employees to seek prior approval to work more than the regularly scheduled hours to comply with the overtime provisions, where applicable.

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Deepti Thakkar, leader of employment and HR laws at Nishith Desai Associates, said, the law firm has seen clauses around excessive working hours. “Managers have a responsibility to ensure that working hours are kept within reasonable limits and will monitor working hours for this purpose," Thakkar said. “Workers themselves also have a duty to ensure that they are not working excessive hours and inform their manager directly if they consider that they may be doing so."

Data protection clauses

While no-poaching pacts are informal, companies are inserting data protection clauses in contracts. According to Thakkar, such a clause typically states: "Accessing company information from outside of the home country is strictly prohibited unless specifically arranged. When travelling, please check with the compliance and security teams before your trip for guidance."

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According to law firms, most of their US-based clients that provide information technology and consulting services from India have already started incorporating the clauses in their policies. There are other companies who do not include these conditions in the job contracts but inform the employees separately since such changes fluctuate based on management decisions.

"Most companies we serve do not explicitly outline leave policies or hybrid/remote work arrangements in their employment contracts," said Sunil C, Country Manager for Adecco India. “Instead, these details are usually communicated to employees after they join the company."