i) er receiving compensation under the Voluntary Retirement Scheme (VRS), if the workers want to challenge the same by raising an industrial dispute, they will have to deposit the amount received towards VRS. ii) Non-provision of proper facilities under the Factories Act for the workers is an offence attracting the penalty and imprisonment under the said Act. Further, the employer would still be held liable by a court for his previous acts/omissions, even if the employer starts following the applicable laws during the pendency of the litigation.
The Union Cabinet has cleared the Model Shops and Establishment 2016. Some of the main features of the Bill are as follows: (a) It is applicable to establishments employing ten or more workers except manufacturing units; (b) It provides the freedom to establishments to operate 24*7 and 365 days per year; and (c) women can be employed during night shifts, provided, that there are provisions of shelter, restrooms for ladies, adequate protection of their dignity and transportation, etc.
In May of 2016, the Central Government amended the Employee Pension Scheme 1995 and provided an option to the employee, wherein he/she may defer the receipt of such pension until attaining the age of 60, in which case such employee’s basic wages must be increased by 4% every year between the ages of 58 and 60, subject to a maximum increase of INR 600 per month.
i) Notice of retrenchment under the Industrial Disputes Act is mandatory to be sent to the appropriate government by the employer, within 3 days from the date the notice is given to the workman. ii) Dismissal from service of one employee out of four, involved in commission of fraud, is not justified only on the ground that the other three have been put to face criminal trial or they have been obeying his request for consequential steps or he was a kingpin of the whole transaction. Dismissing one employee out of four involved in commission of fraud amounts to his discrimination. iii) A labour court in Chennai has reinstated an employee employed in the information technology sector, by ruling that an employee in the information technology is a “workman” under the Industrial Disputes Act. The Court ruled on the simple interpretation of the definition of “workman” under the said Act, which states that any person employed in any industry, who performs any manual, skilled, unskilled, technical, operational, clerical or supervisory work for hire or reward is a “workman”.
i) The Central Government has proposed to amend Contract Labour (Regulation & Abolition) Central Rules to ensure minimum monthly wages of INR 10,000 to the country’s contract workers. ii) The Central Government is considering amending the Employees’ Provident Fund and Miscellaneous Provisions Act to ensure that the Act is also applicable to such establishments that employ 10 employees. Currently, the threshold for the Act to apply is any establishment with 20 employees.
As reported in April 2016, the Central Government had, on February 10, 2016, notified amendments to the Employees’ Provident Funds Scheme. Following protests from employees of various sectors, the Central Government withdrew these amendments to the Act via a notification dated April 19, 2016. The original provisions of the Act remain valid and include: (a) the employee can still re-register with the Employees Provident Fund Organization as a “new member” upon taking a new employment; (b) employees who are migrating outside India or taking up employment abroad can still withdraw their full Provident Fund accumulations prior to leaving India; and (c) an employee can still, after 2 months following the cessation of his/her employment, make a full withdrawal of all Provident Fund accumulations.
i) The employer cannot dismiss an employee for fraud when the other three employees who were also involved in the act were not punished. ii) No court can reduce the quantum of penalty/fine as prescribed under the Employees’ State Insurance Act for violation of the provisions of the Act by the employer.
The State Government of Tamil Nadu has permitted all shops and establishments to be open for a whole year i.e. 365 days starting from February 25, 2016, by granting an exemption under the Tamil Nadu Shops and Establishment Act, 1947 (the “Act”). This exemption shall be effective until February 24, 2017. However, this exemption has […]
On February 1, 2016, the Central Government notified amendments to the Employees’ Provident Funds Scheme. These changes will take effect from May 1, 2016, and may be summarised as follows: (a) members (i.e. employees) of the Provident Fund were earlier allowed to withdraw their full Provident Fund accumulations at the time of retirement after attaining […]
i) An employee can file a petition challenging his termination in a State where he was appointed and the registered office of the employer is situated, even though, he was terminated in another State. ii) Under the Industrial Disputes Act, the Government has the power to decide whether an industrial dispute should be referred to […]