Labour Law

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The Pursuit of Satisfaction

Growing up, we all had those moments where we would pick up a pencil, start drawing a picture, and then, after looking at our work, we’d grab an eraser and start over. We weren’t satisfied. Each stroke felt important, and the final result had to reflect the picture we had in our minds.

This memory from childhood has a powerful lesson for our professional lives as well. True work satisfaction doesn’t come from external validation or what others think about your efforts; it comes from within. It’s about being proud of what you’ve created, knowing you’ve given your best, and feeling content with the outcome.

Let me share a simple analogy. Imagine you’re building a project at work. You might revise it countless times, tweaking and reworking it to get closer to perfection. Just like the sketch, the process may be tedious, but each iteration brings you closer to a result you are truly proud of. The more you refine, the more the satisfaction grows—not from praise, but from knowing that you did justice to your skills and expectations.

It’s essential to pause and ask yourself:
◼ Are you satisfied with what you've delivered?
◼ Have you achieved the best possible outcome you envisioned?

The Pursuit of Satisfaction The Pursuit of SatisfactionGrowing up, we all had those moments where we would pick up a pencil, start drawing a picture, and then, after looking at our work...

Are Your Warehouse Operations Compliant? 📦
As e-commerce continues to boom, the role of warehouses has evolved from simple storage facilities to dynamic hubs of activity involving assembly, assortment, and packing/repacking of goods. For employers, understanding whether their warehouse operations fall under the Factories Act or the Shop and Establishment Act is crucial for compliance and employee welfare.
I've written an article that delves into this issue, helping employers determine which legislation applies to their warehouses based on the nature of their operations. It's essential reading for anyone involved in logistics, warehousing, or compliance management.
🔍 Check out the article to ensure your warehouse operations are on the right side of the law and to safeguard your business and employees

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This comprehensive guide outlines the steps required for new startup businesses in India to ensure compliance with labour laws, which are essential for maintaining a legally compliant workplace and ensuring employee welfare. Employers must navigate both central and state-specific labor laws, consulting legal experts to avoid pitfalls. The guide emphasizes the importance of identifying the correct government authority, adhering to employment and service regulations, and understanding applicable labour laws.

Key steps include identifying the appropriate regulatory body for the type of business and its location, complying with the Shops and Establishments Act and the Factories Act, and consulting with labour law consultants to understand central and state laws. Employers must also prepare a standard compliance checklist to track tasks and deadlines, maintain accurate documentation, and set up a review mechanism for auditing compliance.

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Death Benefits for family members under ESI and EPF

- Newly introduced, Dependent Benefit to family members of employees covered under ESI who succumbed to Covid-19 likewise employment injury.

Funeral Benefit under ESI - An amount of Rs. 15,000/ is payable to the dependents or to the person who performs last rites.

Scheme - The family can claim the EDLI benefit from EPFO to the tune of 2.5 lakh (min assured) to max 7 lakhs

-Spouse & Children Pension under the EPS, and in cases of death of employee, the min 10 years of service and contribution is not applicable.

ESI Dependent Benefit extended even in cases of death of employee due to Covid-19

Under ESI scheme, Dependent Benefit is paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards.

Now, as per the press release from PMO, even in cases of fatalities due to Covid-19, the Insured Persons dependent family are entitled to this dependent benefit.

This is valid from 24.03.2020 till 24.03.2022

If you know anyone who was an employee insured under ESI and expired due to Covid-19 in the above said period, kindly advise their family members to get in touch with local ESIC office or employer to avail this benefit.

Therefore, Shops and establishments registered under the Act in Karnataka can remain open 24*7 on all days for 3 Years once this notification is duly published in the Official

Gazette and in compliance with the conditions prescribed therein. Violation of any statutory provision or any of the abovementioned conditions shall attract penal action against the

employer/manager as laid down under the Act and Rules framed thereunder. Attached with this Alert is a copy of the notification for your perusal.

The Kamataka Shops and Commercial Establishments Act, 1961 (Act"), under Sec. 11(1) provides that no establishment shall on any day, be opened earlier than and closed later than such hours as may be fixed by a notification issued by the State Government i.e. Morning before 6 AM and night after 8 PM. Further. Sec. 12(1) provides for every establishment to remain closed for one day of the week.

Now, in exercise of the powers conferred by the abovementioned provisions, the Government of Karnataka, vide. notification no. E-LD 4 LET 2019 (P) dated 2nd January, 2021 has permitted all Shops and Commercial Establishments in Karnataka employing ten or more persons to be open on 24*7 basis on all days of the year for a period of 3 years from

the date of publication of this notification in the Official Gazette subject to Sec. 12(3) of the Act which states that every employee in an establishment shall be given at least one whole day in a week as a holiday for rest.

Important Provisions of the Notification
1
Additional staff: The Notification requires employers to appoint additional staff in a manner that every employee can take a day off every week on a rotational basis. The employer is also required to display the details of every employee at a conspicuous place in the shop / commercial establishment (including details of the employees who are on leave). The requirement of having adequate staff flows from Section 12(2) of the Karnataka Shops and Commercial Establishments Act, 1961 (Karnataka S&E Act), which requires the state government to ensure, while allowing 24x7 operations, that the establishment employs additional staff for meeting the requirement of one-day off for each employee.

2.

Payment of wages: The Notification requires employers to credit the wages (as well as overtime pay) payable to the employees to their savings account in accordance with the Payment of Wages Act, 1936.

3.

Working hours: The working hours of any employee must not exceed 8 hours in any day and 48 hours in any week. Further, the period of work including overtime must not exceed 10 hours in any day (as opposed to 10½ hours per day as set out in the Previous Notification) and 50 hours in a continuous period of 3 months (as opposed to 57 hours per week as set out in the Previous Notification).

The latter part is likely to cause confusion since a period of work equal to 50 hours in 3 months would essentially contradict the provisions of Karnataka S&E Act as well as the Notification itself considering that an employer may require an employee to work up to 48 hours every week. This appears to be a drafting error as a similar period of 50 hours in 3 months is also provided in Karnataka S&E Act as the total overtime period (not the total period of work), and a clarification in this regard should be expected from the state government.

4.

Employment of women employees in night shifts: The Notification provides that women employees should not be allowed to work beyond 8 PM in normal circumstances, although they may be so engaged upon their written consent and subject to adequate arrangements for their safety and dignity.

5.

Arrangements for women employees: For women employees employed in shifts, the employer must, as per the Notification, provide transportation facility, and a notice to this effect must be exhibited at the main entrance of the establishment. The Notification also mandates setting up of an internal committee in accordance with Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

6.

General arrangements for employees: Employees must be provided with facilities such as restroom, washroom, safety lockers, among other basic amenities.

It may be noted that the Notification has been issued in exercise of the powers of the state government under the Karnataka S&E Act. The Notification may, therefore, not be relevant as regards persons occupying positions of management or those engaged in preparatory or complementary work, who have been kept out of the purview of the Karnataka S&E Act.

MINISTRY OF LABOUR AND EMPLOYMENT

NOTIFICATION

New Delhi, the 18th May, 2020
S.O. 1513(E).—Whereas due to Covid-19 pandemic, lockdown Is in force across the country and the Central Government after making necessary inquiry is satisfied that to provide liquidity in the hands of
employers and employees, there arises a need to amend the notification of the Government of India in the
Ministry of Labour published in the Gazette of India, Extraordinary, Part II, section 3, sub-section(ii) vide
number S.O. 320(E), dated 9th April, 1997;

Therefore, in exercise of powers conferred by first proviso to section 6 of the Employees’
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government, after
making aforesaid inquiry, hereby makes the following amendments in the said notification number S.O.
320 (E) dated the 9th April, 1997, namely:-

In the said notification, in SCHEDULE II, after clause (iv), the following clause shall be inserted,
namely:-

“(v) Any establishment, other than Central Public Sector Enterprises and State Public Sector
Enterprises and other establishments owned by, or under the control of the Central Government or
the State Government, as the case may be, in respect of wages payable by it for the months of May,
June and July, 2020”.

Provided that this clause shall not be applicable to the establishments eligible for relief under the
Pradhan Mantri Garib Kalyan Yojana guidelines issued by the Employees’ Provident Fund Organization
vide its Office Memorandum No.C-1/Misc./2020-21/Vol.II/Pt. dated 9th April, 2020 ”.

[F. No. S-35019/01/2020-SS-II)

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, section 3,
sub-section (ii) vide S.O. 320 (E), dated 9th April, 1997.

vol.ii

10 labour laws every Indian employee should know.

According to the United Nations, India has the largest youth population and stands at a point where the dream of becoming the super economy seems a possibility now. With mixed viewpoints of different people, labour laws and reforms has always been a topic of controversy which no one wants to discuss. When the scenario is such, it becomes all the more important for both the parties employers as well as the employees in both organized and un-organized sectors to be well aware about the laws and right for both existing and the on-going reforms.

Labour laws and its reforms has always been a topic of debate and concern since past many years. In this article we have listed some of the important acts that every citizen of India should know.

*The Factories Act, 1948*

This act was established to prevent any kind of exploitation on the factory workers by the owners and was created to defend the rights and interest of the employees. As per this law, it is mandatory to assure some sort of working conditions fixed by both the employers or the factory owners for the employees. It is clearly mentioned that the maximum working hours should not be more than 48 hours per week. And one weekly holiday is a must to be provided to any employee.

*The Employees Provident Fund Act, 1952*

The Employees Provident Fund (PF) 1952 is to sanction a type of social security to the employees. This particular Act is applicable for every employee who works in a factory or any other establishment whether organized sector or un-organized one, wherein they get welfare such as medical care, housing, retirement pension, benefits of education and financing insurance policy etc.

*Maternity Benefit (Amendment) Bill 2017*

Maternity Benefit Act was established in 1961 to benefit expecting mothers and later amendments were made in 2017 to provide more benefits to the expecting employee. The act was made to protect employment of the women employee during the time of maternity and provides her with ‘maternity benefit’ i.e full paid absent from work – to let take care of her child and herself for 26 weeks. Along with this, some more claws have been added like maternity leave for adoptive and commissioning mothers, work from home option, crèche facility and employee awareness at the time of appointment.

*The Apprentices Act , 1961*

Under this act, one is allowed to take casual leave of 12 days, medical leave of 15 days and certain other leaves of 10 days in a year (which are paid). And one is just required to work for 42 or 48 hours a week. This is to ensure there is a work-life balance for the employees.

*The Workmen’s Compensation Act, 1923*

This act proves to be helpful for the employees injured in an accident. The Workmen’s Compensation Act 1923, was established to provide financial protection to the workers as well as their dependents in the form of compensation, in the case of sudden accidental injury.

*The Payment of Gratuity Act , 1972*

Gratuity is nothing but a cumulative part of the salary received by the employees. The company has to provide its employees a set amount as a gratitude for the services performed by them during their tenure with the company.

It is one of the retirement benefits that the company gives to their employees at the time of leaving the company. But to become eligible for this, they have to complete at least one year of service to get the benefit of gratuity in case of his or her death.

*The Payment of Wages Act, 1936*

It aims at providing financial assurance of payment of wages or salary without any sort of deductions. As per this act, the employer has not right to take away the money he is entitled to pay. And, not only the assurance, but timely imbursement of wages is also mentioned in this act. Every employee should know that, even if he/she is terminated from the services they are qualified to take their salary for that particular month.

*The Industrial Disputes Act ,1947*

As the name suggests, this act was made to protect the employees who has dispute with their employers. No employer can throw the employee out just like that, he has to provide a notice of at least 6 weeks before they terminate you from the service.

*The Payment of Bonus Act, 1965*

As a component of profit or productivity, the Payment of bonus Act 1965 makes it mandatory for employers to provide bonus to the employees. If the employee has worked for at least 30 working days in that particular year, he or she is entitled to receive the bonus. Also, if you are not given the same, you can claim your rightful bonus in that same year.

*The Employees State Insurance Act (ESIC) , 1948*

This act protects benefits for the workers who are sick and got injured somehow while they were working or on duty. ESIC is a self-financing security form and a health insurance scheme for all workers. This scheme provides medical benefit for the employees and their families.

It also provides dependents’ benefit for the dependent family member in case of death due to any sort of employment injury. In such case, the employers should deposit the money each month in the employee’s A/C. Also, they should grant leave to the protected (insured) employees based on their medical certificates. And, the employer is entitled to cover the expenditures in case of funeral or any other sort of tragedy that happened with their employees while on duty.

Amendment in the Contract Labour (Regulation and Abolition) Act, 1970

Minister of Labour & Employment has decided to amend the Contract Labour (R&A) Act, 1970. A Preliminary Draft of the Contract Labour (R&A) Amendment Bill, 2017 has been issued.

The ministry is seeking suggestions/comments/inputs of all the concerned statkeholders..Please see the Bill and submit your suggestions/comments/inputs as mentioned in the notification.

*CALCULATION OF BONUS POST AMENDMENT*

*CRITERIA*

*Eligibility Limit*

The eligibility limit has been raised from Rs.10000 to Rs.21000/-. The employees who draw a salary upto Rs.21000 per month would be eligible for bonus.

*Calculation of Bonus*

The wage ceiling for calculating bonus has been raised from Rs.3500 to Rs.7000 per month or the minimum wage for the sceduled employment, whichever is higher

*EXAMPLES OF CALCULATION*

1) *If Basic Salary is less than 7000 & also less than Min Wages*

Karan is working as Accounts Clerk in one of the Pharma Company at Mumbai. His basic salary is 6800/- per month. The minimum wage in Maharashtra for Skilled Category for Pharma is Rs.10164/-

*Calculation of Bonus*

Basic Salary x 20% = Bonus p.m.

6800 x 20% = 1360 (16320 p.a.)
6800 x 8.33% = 566 ( 6792 p.a.)

*Here, the basic salary is less than Rs.7000 hence we have considered the actual basis salary of Rs.6800 for calculating the bonus. So the ceiling of Rs.7000 or higher the minimum wagrs is not apllicable in this case*

*EXAMPLE 2*

*If Basic Salary is higher than Rs.7000 but less than Min Wages*

Rajendra is working as Stores Officer in one of the Chemical Fertilizer Company at Mumbai. His basic salary is 8500/- per month. The minimum wage in Maharashtra for Skilled Category for Chemical Fertilizer Company is Rs.6903/-

*Calculation of Bonus*

Basic Salary x 20% = Bonus p.m.

7000 x 20% = 1400 (16800 p.a.)
7000 x 8.33% = 583 ( 6996 p.a.)

*Here, the basic salary is more than 7000 and also min wages hence we have considered Rs7000 basis for calculating the bonus. So the ceiling of Rs.7000 is higher than the minimum wages, hence 7000 criteria is apllicable in this case*

*EXAMPLE 3*

*If Basic Salary is higher than 7000 & also higher than Min Wages*

Vivek is working as Sales Officer in one of the Bank at Delhi. His basic salary is 15000/- per month. The minimum wage in Delhi for Skilled Category in Shops & Commercial Estt. is Rs.12662/-

*Calculation of Bonus*

Basic Salary x 20% = Bonus p.m.

12662 x 20% = 2532 (30384 p.a.)
7000 x 8.33% = 1055 ( 12660 p.a.)

*Here, the basic salary is more than 7000 and also higher than min wages hence we have considered the min wage of Rs.12662 basis for calculating the bonus. So the ceiling of Rs.7000 is not apllicable since min wages are higher, hence 12662 criteria is apllicable in this case*

Hope the above examples will help you to understand the calculation.

*CURRENT STATUS*

*VERDICT BY HIGH COURTS*

About 12 out of 16 High Courts have given stay on retrospective effect on implementation of amendment. High Courts include Bombay, Karnataka, Allahabad, Madras, Kerala, Punjab ,Haryana, Rajasthan, Gujarat, Madhya Pradesh, Calcutta and Andhra Pradesh have also passed ad interim orders staying the retrospective operation of the Amendment Act.

The Govt has initiated action to move the matter in Supreme Court against the stay orders given by 12 High Courts. Hope we will get the clarity on it very soon before Diwali when majority companies pay Bonus to their employees.

*AMENDMENTS TO THE MATERNITY BENEFITS ACT 1961*

*NOTIFICATION NOT YET RELEASED*

Dear All

This refers to the amendment in Maternity Benefits Act 1961.

Please note that the bill pertaining to amendment in this act has been approved by the parliament however it is pending for further process. Official Gazettes are released after getting consent from President. We can expect release of Gazette any moment.

*Amendments to the Maternity Benefit Act, 1961*

The maternity benefit Act 1961 protects the employment of women during the time of her maternity and entitles her of a ‘maternity benefit’ – i.e. full paid absence from work – to take care for her child.

*APPLICABILITY*

The act is applicable to all establishments employing 10 or more persons. The amendments will help 1.8 million (approx.) women workforce in organised sector.

*AMENDMENT HIGHLIGHTS*

1) *Increase Maternity Benefit from 12 weeks to 26 weeks for two surviving children and 12 weeks for more than two childern*

2) *12 weeks Maternity Benefit to a ‘Commissioning mother’ and ‘Adopting mother’*

3) *Facilitate’Work from home’*

4) *Mandatory provision of Creche in respect of establishment having 50 or more employees*

5) *every establishment shall intimate in writing and electronically to every woman at the time of her initial appointment about the benefits available under the Act.*

Post release of Gazette, we need to amend our existing Maternity Leave for implementation. You may keep the draft of amended policy ready so that it would help you to implement the amendment immediately.

Thanks

Notification calling objections from all citizens for increasing ESI Wages limit from Rs. 15000 pm to Rs. 21000 pm is published by Govt giving 30 days time from 6.10.2016 to call for objections if any. thereafter the said Notification will be considered for implementation.