People in the know of the matter say that they are unlikely to be implemented before the 2024 general elections. These four codes together form a consolidated version of 29 central labor laws. These include the Wage Code, 2019; Industrial Relations Code, 2020; Occupational Safety, Health and Working Conditions Code, 2020; and the Social Security Code, 2020. These four Samhitas have been equally praised and criticized.

These labor codes are one of the most important economic reforms undertaken by the Modi government. Critics see them as controversial and anti-labour, while those seeking free labor policies say these codes will promote growth and employment and eliminate outdated laws to keep up with a rapidly changing economy. The major changes made in these include major rules like firing of workers without the approval of the government, declaration of strike by the union, permission for women to work in night shift.

According to experts, three major reasons are preventing these codes from being implemented. First, some states are yet to publish rules regarding these. Second, talks between the Union labor ministry and the unions have stalled, and third, the Center is keen to involve all stakeholders in the process. This is because the Modi government had to withdraw the agricultural laws in 2021, the Center does not want such a situation.

Ten trade unions opposed them

A forum of 10 trade unions, barring the RSS-affiliated BMS, urged Labor Minister Bhupendra Yadav to repeal the four labor codes, saying they were anti-labour. Currently, 31 states have published draft rules under the Wage Code, while 26 states have come out with draft rules on the Occupational Safety Code. Preliminary procedures on the Industrial Relations Code have been completed by 28 states. Similarly, 28 states have published draft rules on social security legislation.

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In the new labor law, a provision of four days of work and three days of leave will be given. According to the Labor Ministry, more than 31 states have accepted it. Most of the states have also made rules for this. According to sources, some states have raised objections on certain points, for which discussions are being held. However, it is not yet clear when the government will bring this law, but soon the new law will be implemented.

With the coming of the new labor law, employees will get three days off in a week. Employees must work 48 hours a week. During this, half an hour’s leave will also be available twice. If the company implements a 12-hour work shift, then it will have to give employees three days off in a week.

No night shift without the consent of women employees

Under the new law, if an employee had to take long leave, then he had to work for at least 240 days in a year, but now leave can be taken after working only 180 days. Women employees will not be forced to work in night shift without their consent.

PF and gratuity will be deducted more-

According to the new draft rules, the basic salary will be 50 percent or more of the total salary. With the increase in basic salary, the amount deducted for PF and gratuity will increase. In such a situation, after the implementation of the new rules, the salary will be less in the hands of the employee, but provident fund and gratuity will be more.

Final settlement in two days

After the new labor law comes, the full and final payment of the employees will be done in just two days. In case of leaving the job or getting fired from the job, all the money related process will be settled in just two days. At present it takes 45 days to complete the final payment.

If the negotiations between the union and the employer on any issue fail, it will be informed to the government and the matter will be sent to the tribunal. Employees will not be able to go on strike till the final decision is taken. In this, mass leave has also been kept in the category of strike.

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Prime Minister Narendra Modi recently said that flexible work places and flexible working hours are the needs of the future.

3 days off

After the implementation of the new labor code, the most talked about change is the three-day weekly off. In the new labor code, there is a provision of three holidays and four days of work. However, the working hours will increase. After the implementation of the new labor code, you will have to work for 12 hours in the office. In total, you will have to work 48 hours in a week. After this you will get three days weekly off.

There will be a big change regarding the holidays

Apart from this, there will also be a big change regarding the holidays. Earlier, it was necessary to work at least 240 days in a year to take long-term leave in any institution. But under the new labor code, you were required to work 180 days. But under the new labor code, you will be able to take long leave after working for 180 days (6 months).

In hand salary will come down

After the implementation of the new wage code, take home salary i.e. in hand salary will be less in your account than before. The government has made a provision in the new rule that the basic salary of any employee should be 50 percent or more of his total salary (CTC).

If your basic salary is higher, then PF contribution will increase. With this provision of the government, employees will get a hefty amount at the time of retirement. Along with this, the Gratuity money will also get more. This will make their future financially strong.

equal wages to men and women

Union Labor Minister Bhupendra Yadav recently said that we have rationalized old laws and considered occupational safety and wage standards to ensure fair wages for both men and women. He said that 29 different Acts have been converted into four new labor codes.

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But no date has been fixed for this. According to media reports, the central government can implement the new labor laws from October 1. It was already being discussed to implement it from July 1. Let us know below how these laws are going to affect the employees.

Will have to work 48 hours in 1 week

According to the New Labor Code 2022, employees will have to work 48 hours in a week. Employees will have to work 12-12 hours in the office for 4 consecutive days. During this 12 hours, they will get half an hour leave twice a day. But the good thing is that after working for 4 days 12-12 hours, the employees will also be given 3 days leave. Let us tell that for a long time this complaint of the employees was coming out that due to work they are not able to give time to the family. This will remove this problem.

PF of employees will increase

In the new Labor Code, it has been taken care that the contribution in PF will be increased so that people doing jobs in private sector do not face any shortage of retirement money. After the implementation of these laws, 50 percent or more of the basic salary will be contributed to the PF. Secondly, this means that your in hand salary will be reduced. But there is no need to worry, your money will remain in PF account. The employees’ gratuity will also increase as compared to earlier.

Full and final settlement will be done in 2 days

According to the information, if the employee leaves the job or is sacked, then the company will have to do full and final settlement in 2 days. At present, companies take time up to 45 days. It is worth noting that the new Labor Code has been passed by the Parliament. In such a situation, just waiting for when it will be implemented.

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The Central Government has passed these new laws in the Parliament. Many states have not yet ratified the new code; Due to which the implementation is getting delayed, because labor is a subject of the Concurrent List of the Constitution, and it cannot be implemented without the ratification of the states.

According to the government, so far 31 states and union territories have published the draft rules under the Code on Wages, 2019.

The new labor code, which will come into force soon, will affect the working hours, take-home pay and leave conditions of employees. The Wage Code mandates that full and final settlement of wages and dues should be completed within two days from the last working day of the employee.

Similarly, companies can increase the working hours of employees if needed. In such a situation, they will have to give extra leave.

The in-hand pay of employees is also going to be impacted as the new wage code states that the basic pay should be at least 50 per cent of the gross pay.

This will increase the contribution of both the employee and the employer to the provident fund.

This labor code, passed by Parliament in 2019, replaces 29 central labor laws.

Four new codes on wages, social security, labor relations, occupational safety, health and working conditions were to be implemented from July 1.

The new law emphasizes that full and final payment of wages must be made to the company within two days of the last working day of the employee after he resigns, removes or is dismissed from the job. Presently, companies are following a period of 45 days to 60 days for complete and final settlement.

The new labor law provides that where an employee has been – (i) removed or dismissed from service; or (ii) has been retrenched or has resigned from service, or has become unemployed by reason of the closure of the establishment, the wages payable to him shall be paid within two working days. be their expulsion, dismissal, retrenchment or, as the case may be, their resignation. Must be settled within two days.

However, the states are allowed to frame guidelines for the time period for complete and final settlement. Provident fund and gratuity are not part of salary and are covered under different laws.

Increased working hours

Under the new wage code, companies are allowed to increase the working hours of employees from 9 hours to 12 hours.

However, they will have to give one day extra leave. Therefore, in case of increase in working hours, employees will work only four days in a week instead of the current 5.

Employees will get 3 days weekly off. This continues with a minimum requirement of 48 hours of work every week. If an employee works more than 48 hours a week, the employer must pay overtime.

Take-home salary will be reduced

The new labor law, once implemented, will affect the take-home pay of employees. However, his retirement amount will increase.

As per the law, the basic salary of the employee should be 50% of the gross salary. This will lead to reduction in take-home pay and increase in retirement savings as provident fund contribution by both employer and employee will increase.

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New Labor Code may be implemented in the country soon. The government is preparing to make big changes for the employed people. However, the government has said that at present no time has been fixed for its implementation. The central government wants all the states to implement the new labor code together. But till now the governments of all the states have not finalized the draft on their behalf. If the new labor code can be implemented in the coming months, then people working in the private sector will get many benefits.

Four new labor codes

Minister of State Rameshwar Teli had told in Parliament recently that most of the states have sent their draft rules on four labor codes. Rest of the states are working on the process of preparing it. The new labor codes are related to Wage, Social Security, Industrial Relations and Occupational Safety.

change in salary structure

If the new labor code is implemented with all the four changes, then people doing private jobs under the new wage code will get many benefits. Firstly, there will be a change in their salary structure. After the implementation of the new wage code, in hand salary will be less than before.

The government has made a provision in the new rule that the basic salary of any employee should be 50 percent or more of his total salary (CTC). If your basic salary is higher, then your contribution to FIF fund will be higher than before

This provision of the government will benefit the employees at the time of retirement, when they will get a hefty amount. Along with this, the Gratuity money will also get more. This means that your future will be financially strong.

weekly off

Under the new labor code, there is a provision for four days of work and three days of leave in a week. This means that you will have to go to the office four days a week and will get three days of weekly off. However, your working hours in the office will increase. After the implementation of this rule, if you opt for a three-day weekly holiday, then you will have to work 12 hours in the office. That is, you have to work 48 hours a week. After this you will get three days weekly off.

Change in the rule of long leave

Apart from this, there will be a big change regarding long holidays. Earlier, it was necessary to work at least 240 days in a year to take long-term leave in any institution. But after the implementation of the new labor code, any employee can take long leave after working 180 days (6 months).

full and final

Regarding full and final settlement, it has been said that employees will be paid their salary within two days of leaving the job, dismissal, retrenchment and resignation from the company. At present, most of the rules are applicable on the payment and settlement of wages. However, this does not include resignation.

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When will the new labor code be implemented? This question is booming in the mind of most of the employed. This code, which came into force from 1 April 2021, is being carried forward continuously. There are many speculations. But, the government has not given any formal deadline yet. However, according to sources in the Ministry of Labor, planning is underway to implement it from October 1, 2022. With the coming of the new wage code, there will be many changes. Let us know what is the update for you…

New Wage Code will be implemented in phases

If sources are to be believed, the New Wage Code can be implemented from October. But, it will not be implemented directly. It will be implemented in a sequential manner. Meaning the notification will be issued for this before October 1, 2022. It will be deemed to be applicable from 1 October 2022. But, the states have been relaxed in this. States can also implement a slight delay at their level. However, the final deadline will be worked out.

New wage code may be implemented from October

If sources are to be believed, the central government is ready to notify the New Wage Code. The central government does not want to issue notifications without the consent of the states. Therefore, the states will have the freedom to implement it in different phases. The draft rules are almost ready. New Wage Code can be implemented from October 2022.

What is the New Wager Code?

The government has made 4 new codes by combining 29 central labor laws. These include the Industrial Relations Code, Code on Occupational Safety, Health and Working Conditions Code (OSH), Social Security Code and Code on Wages. But, the biggest change is in the definition of ‘wage’. It has been expanded. The new labor code is aimed at consolidation. 50% of the salary will be directly included in the wages. Let us tell you, new laws related to labor reforms have been passed by the Parliament. Now to implement them.

How will the salary structure change?

According to the New Wage Code Act 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced. With the implementation of the New Wage Code, the salary structure of the employees will change completely. The ‘Take Home Salary’ of the employees will decrease, because by increasing the Basic Pay, the PF of the employees will be deducted more, that is, their future will be more secure.

Rules of holidays, pension and working hours will change

According to EPFO ​​board member and Bharatiya Mazdoor Sangh general secretary Virjesh Upadhyay, social security is very important for employees. There are many important aspects to this. There is to be a change in the rules on important issues like working hours of employees, annual holidays, pension, PF, take home salary, retirement.

There will also be a change in PF, Gratuity

Contribution to gratuity will also increase along with Provident Fund. Take home salary will definitely decrease but the employee will get more amount on retirement. The New Wage Code 2022 will also be applicable for the employees of the unorganized sector. The rules related to salary and bonus will change and there will be equality in the salary of employees working in every industry and sector.

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New Labor Code Update:  Minister of State for Labor Rameshwar Teli has given his answer by implementing the New Wage Code in the Lok Sabha. He has told that many states have presented their drafts. The states have put forth your side on the four labor codes. Let’s know the latest updates.

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23 states have adopted a pre-published draft of the new Labor Code law. But the rest of the states have not adopted it yet. The central government wants all the states to implement this labor code together. The government has made these codes to bring four big changes for the employed people.

Four new codes

The effect of the new labor code will be visible from Weekly Holidays to In Hand Salary. The new labor codes are related to Wage, Social Security, Industrial Relations and Occupational Safety.

3 days off in a week

In the new labor code, provision has been made for four days of work and three holidays in a week. But the working hours of the employees in the office will increase. This means that you may have to work in the office for 12 hours, not 8 or 9 hours. An employee will have to work 48 hours throughout the week. But you will get three days of weekly off.

Big change regarding holidays

Another major change has been made regarding holidays in the new labor code. At present, an employee is required to work at least 240 days in a year to take long leave in any institution. But in the new labor code, it has been reduced to 180 days (6 months).

cut in hand salary

After the implementation of the new wage code, you will get less take home salary i.e. in hand salary in your account. The government has made new rules regarding pay rolls. A provision has been made in the new wage code that the basic salary of an employee should be 50 percent or more of his total salary (CTC). Now if your basic salary increases, then your contribution to PF fund will also increase. In such a situation, more money will be deposited in PF than before. In this way, the employees will get a huge amount at the time of retirement.

Full and final in 48 hours

Provision has also been made in the new Wage Code regarding Full and Final Settlement. Employees will be paid their salaries within two days of leaving the job, dismissal, retrenchment and resignation from the company. At present, most of the rules are applicable on the payment and settlement of wages. However, this does not include resignation.

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Discussions and discussions on the determination of these four codes are still going on. Ignore speculations.

Ministry is in touch with states and industries

Another official said, “These are structural reforms and the ministry is balancing labor welfare on one hand and ease of doing business on the other.” The Union Labor Ministry is in touch with states, industries and other stakeholders. The progress so far is good, but it is not going to be implemented on July 1.

Is the ministry going to implement the labor law from Friday (July 1)? In response, a spokesperson of the ministry said – “No.”

There are plans to implement four labor codes

Officials of the Ministry of Labor and Employment said that a formal announcement will be made once the process is completed and the rules will be implemented, but there are no such plans immediately.

India has subsumed 29 central labor laws into four codes on wages, social security, occupational health and industrial relations. Parliament had approved the Code on Wages in August, 2019, the remaining three were passed in September, 2020. But none have been implemented so far.

far-reaching changes

Labor codes are expected to bring far-reaching changes for employers and employees. They offer wide flexibility in recruiting, implementing short term work contracts. Together they can bring flexibility in being fired and they can make it difficult to strike in the industry.

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Actually, it is being claimed in many media reports that the new wage code will be applicable from July 1, but till now no such announcement has been made by the government officially. And the biggest thing is whenever a policy is implemented, its notification is issued at least 15 days in advance. Therefore, there is no question of its implementation from 1st July. But it can be implemented soon. Let us know that after its implementation, who will be in profit and who will be in loss?

What is in the new wage code?

According to the Wage Code Act, 2019, the basic salary of an employee cannot be less than 50% of the cost of the company (CTC). At present, many companies reduce the basic salary and give more allowances from above so that the burden on the company is reduced. Let us know about its provisions.

Salary structure will change completely

With the implementation of the Wage Code Act, 2019, the salary structure of the employees will change completely. Employees’ (Take Home Salary) will decrease, because by increasing Basic Pay, employees’ PF will be deducted more, that is, their future will be more secure. Contribution to PF as well as Gratuity will increase. That is, take home salary will definitely decrease but The employee will get more amount on retirement.

Take home salary will decrease, retirement will improve 

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What changes will the new wage code bring?

After the implementation of the new wage code, the take home salary i.e. in hand salary will come less than before. The government has made a provision in the new rule that the basic salary of any employee should be 50 percent or more of his total salary (CTC). If the basic salary is higher, then the PF contribution will increase. With this provision of the government, employees will get a large amount at the time of retirement. Along with this, the gratuity money will also get more. This will make their future financially strong. According to the new law, 48 hours of work will have to be done in a week. Meaning the work is not to be reduced, but instead of 5 days, you will have to go to work for 4 days.

Final settlement within two days of leaving the job

There is also talk of big changes regarding the holidays. Earlier, it was necessary to work at least 240 days in a year to take long-term leave in any institution. But under the new labor code, you will be able to take long leave after working for 180 days (6 months). Apart from this, about full and final settlement in the new Wage Board, it has been said that employees will be paid their salary within two days of leaving the job, dismissal, retrenchment and resignation. At present, most of the rules are applicable on payment and settlement of wages, but these do not include resignation.

What is the latest update?

The Narendra Modi government at the Center wants to implement it for the last 2 years. But due to lack of consensus and changes in the drafts, it is getting delayed. It is all set to be implemented in the year 2022, although the date is not final yet. There are reports about the New Wage Code that it can be implemented from July 1. Let us tell you that this is completely misleading. The government has not made any such announcement yet. Whenever a policy is implemented, its notification is issued at least 15 days in advance. In such a situation, it is not possible to implement it from July 1.

Date has already been extended

The date of implementation of the new wage code has been changed several times in the past as well. The date of implementation was first kept as 1 April 2021, then it was further extended to July 2021. After that, even after fixing the date of October 2021, it could not be implemented. Explain that four labor codes are to be implemented in the New Wage Code. At present, the discussion on the draft inputs of the state is going on. A total of 26 states have filed drafts. It is discussed that some changes are being made in the new labor laws. Modi government can once again change the salary structure under the new labor code. For your information, let us tell you that the new Labor Code has been passed by the Parliament in 2019.

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New labor law will be implemented

The new labor law is expected to come into force from July 1, after the implementation of these new laws, there will be a big change in the work culture in the country. From working hours to wages in hand, all this is likely to change when the new law comes into force.

But four day work does not mean less work. If the working day is reduced, the working hours will increase. Employees must complete 48-hour working hours in a four-day week. This means they are expected to put in 12 hours instead of working eight hours every day.

Under the new code, take-home pay is expected to come down, as employee and employer’s provident fund (PF) contributions will increase. The PF contribution is required to be in the ratio of 50 percent of the gross salary. According to the new labor code, the eligibility requirement for leave has been reduced from 240 working days to 180.

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A male Government servant (including an apprentice) with less than two surviving children, may be granted Paternity Leave by an authority competent to grant leave for a period of 15 days, during the up to 15 days before, or up to six months from the date of delivery of the child.

During such period of 15 days, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. The paternity Leave may be combined with leave of any other kind.

The paternity leave shall not be debited against the leave account. If Paternity Leave is not availed of within the period such leave shall be treated as lapsed.

NOTE:- The Paternity Leave shall not normally be refused under any circumstances.

Paternity Leave for Child Adoption:-

A male Government servant (including an apprentice) with less than two surviving children, on valid adoption of a child below the age of one year may be granted Paternity Leave for a period of 15 days within a period of six months from the date of valid adoption.

During such period of 15 days, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. The paternity leave may be combined with leave of any other kind.

The Paternity Leave shall not be debited against the leave account. If Paternity leave is not availed of within the period specified in sub-rule (1) such leave shall be treated as lapsed.

Note:- “Child” for the purpose of this rule will include a child taken as ward by the Government servant, under the Guardians and Wards Act, 1890 or the personal law applicable to that Government servant, provided such a ward lives with the Government servant and is treated as a member of the family and provided such Government servant has, through a special will, conferred upon that ward the same status as that of a natural born child.

Source:- CENTRAL CIVIL SERVICES (LEAVE) RULES, 1972 4[43-A,5[43-AA.

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Checking the Status

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COVID-19 is still prevalent in many countries around the globe, and it seems to have a long-lasting impact on economies of many nations. In the wake of COVID-19 lockdown there are number of employment-related issues faced by both employees and employers. Everyone is interested to safeguard their economic interests. There are many questions about what are the rights and obligations of employers and employees during the time of this lockdown and social distancing. Read on to know more. 

Salaries during Coronavirus Pandemic

An often asked question during this time is, whether employers have a continued obligation to pay salaries or not. As per government, if an employer can afford to pay salaries at the same rate they’ve been doing before lockdown, then they should do so. However, it is also true that for most employers it will be not viable to continue paying salaries because of the nature of the industry. In this case, it is advisable for both parties to decide mutually and come up with a solution. However, any reduction in salaries has to be as per minimum guarantees provided under the law. But as per latest development, some states are looking to suspend minimum pay legislation to help companies recover coronavirus losses. More clarity on this is expected to come in a couple of days.

Also Read: What to do if employer does not pay salary on time

Like we said, it depends on the kind of industry. If an organization can continue rendering services and its employers can work from home, then this way both parties will have to bear losses.

Termination during Coronavirus Pandemic

As mentioned above, termination or layoffs should be avoided as much as possible. And it is advisable to mutually decide the course of action. However, in extreme circumstances employers are permitted to terminate employees. But in order to do so, they would need to follow the mandates provided by law for these actions. 

Insurance Obligations during Covid-19

In the wake of COVID-19 situation, the government has extended the contribution period towards Employees State Insurance or ESI. From March, 2020, a relaxation has been given by government that instead of the usual 15 days’ time period for depositing the ESI Contributions, a more relaxed time period of 45 days is provided. Also, employees have been assured that they will be able to use their Insurance entitlements, even if the illness or death has happened due to COVID-19. The Life Insurance Council of India (LIC), by a press release, has confirmed that all COVID-19 related death claims shall be honored. Similarly, the government has also stated clearly that employees shall be entitled to use their ESI Contribution entitlements for illness or death caused due to COVID-19.

Work from Home option during Coronavirus Pandemic

Following the spread of epidemic, to ensure social distancing norms – all commercial and industrial establishments which are not engaged in giving essential services were instructed to be closed. However, wherever possible employers have a right to ask employees to Work from Home. But remote working environments has their own risks. Employers may end up giving personal access to the Confidential Data and Trade-related secrets of the company. Hence it goes without saying that all clauses of maintaining confidentiality of company data would be strictly applied to all employees who are working from home.

It goes without saying that during this difficult time, as a moral obligation, we all should do whatever is in the favor of humanity and working ethics. We will keep you posted with latest developments of government in this regards.

Hope we Answered Rights of Employees & Employers during Coronavirus Pandemic

Read About : IndiGo announces salary cuts for top management from May amid coronavirus lockdown

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There are various categories that can be covered under the purview of harassment at workplace against the employees due to which the employees have to suffer humiliation & Mental Torture (Mental Harassment) and are often exploited by their respective supervisors.

These are the key area of focus in this article. So far there are only some State laws which deal with Mental harassment, however, there have been a persistent call for framing national law on Mental harassment.

The most vulnerable to this plight are the subordinates in offices. This is a scenario in private as well as public sector. Most of the bullying is done by seniors, hierarchy plays a key role. To achieve targets supervisors have to force the employees to labor hard especially the young workers have to face most of the harassment due to higher expectations. Bullying and harassment at workplace lead to terrible effect on the health and well being and performance of the employees. In India, there is no special legislation against bullying at workplace.

Non- Sexual Harassment– Majority of the people believe in the common notion that harassment at workplace can be sexual only. But this is not the case in reality as the following different types can be categorized under types of Non-Sexual Harassment.

1. Harassment on the basis of- Race, Sex, Religion and National Origin.
2. Harassment on the basis of age.
3. Harassment on the basis of disability.
4. Defamation- To defame is to damage the reputation or image of the person
5. Criminal History- An employee may be harassed for his previous criminal record, whose penalty he has already suffered.
6. Citizenship Status- A person belonging to a different nationality may become subject to harassment.
7. Racial Harassment- Discrimination on the basis of race.
8. Harassment due to different Political Beliefs- Though minor issue but can lead to harassment of the employee by the employer or fellow employees.
9. Sexual Orientation and Marital Status.
10. Stalking.

Examples include leaving repeated or alarming messages on voice mail or e-mail, following people home, or approaching co-workers to ask for personal information.

11. Hostile Workplace Harassment.
12. Bullying by the supervisor.

Laws against harassment
Indian labour laws cover a large number of acts under its purview and since labour laws are covered under the concurrent list of the Seventh Schedule of the Constitution of India, so both central and state governments have jurisdiction to pass their own laws on relations between the labourers and relating to issues of the employment.

1. HARASSMENT BY DEDUCTION OF UNREASONABLE WAGES BY EMPLOYER

Payment of Wages Act, 1936 is intended to be a remedy against the unreasonable and unauthorized deductions made by the ‘Employer’ or unjustified delay in payment of wages.

Section 5 of the Act specifies the Time of payment of wages- Timely payment of wages should be made. If manpower is less than 1000, then 7^th day of the month and if more than 1000, then 10^th day of the month.

Section 7-13 defines the Deductions- No unreasonable and unauthorized deductions should be made from the wages.

2. HARASSMENT BY SEX DISCRIMINATION

Employees can be harassed by not following the Principle of Equal Pay for Equal Work. According to Article 39(d) of the Constitution and Section 2(h) of the Equal Remuneration Act 1976  it is the duty of the employer that every employee should receive same remuneration for similar nature of work.

3. HARASSMENT BY DEFAMATION

Section 499 of the IPC defines the Defamation if it is a Criminal Wrong. Otherwise in civil cases defamation can be included under the Law of Torts.

4. HARASSMENT BY UNREASONABLE CLAUSES IN THE EMPLOYMENT AGREEMENTS

Dismissal Regulation

Industrial Disputes Act 1947

Chapter 5A: LAY OFF AND RETRENCHMENT

This Chapter lays down that a 30 to 90-day notice period applies in order to terminate ‘workmen’ (as defined in the Industrial Disputes Act, 1947) – that is, employees whose role is not primarily supervisory, administrative or managerial) for convenience.

5. DISCRIMINATION ON GROUNDS OF PREGNANCY AND DISABILITY

According to Maternity Benefit Act, 1961 it is unlawful and unauthorized on the part of the lawyer to discharge or dismiss women when she absents herself from work within the provision of this act.

Section 24A of The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 guarantees no discrimination in employment.

10 signs that you’re being bullied at work

Others in your work group are receiving preferential treatment top projects, travel perks and free time. Meanwhile, you find that most of your requests along the same lines are denied without reasonable explanation.

Your progress goes unseen
Say you’ve been given a directive with certain objectives, an ultimate goal and a deadline. You work hard and with focus only to find out, that suddenly there’s a change in direction on the project. Your progress is not celebrated or applied to the new project, but not even taken into account.

All your decisions are questioned
So you are constantly bombarded by excessive micro-managing? You don’t feel like your intuition or decisions are being trusted, and you can’t explain why.Your boss and others hover over you much more than telling you what to do (and what not to do). You get the sense that you are wrongly perceived as incompetent and your decision-making capability is greatly reduced as a result.

You are socially alienated
All of a sudden, you’re excluded from meetings you once attended. Your colleagues tend to discuss work prior to your arrival and you are left with absolutely no clue what to do. Besides, you are not marked on important mails. Co-workers tend to avoid you and keep interaction to a minimum. You may also find that you’re no longer invited to post work drinks with your teammates.

You often feel targeted
Often, when you make a comment, suggestion or disagree with someone’s opinion, you’re responded to with a plethora of responses by others. It doesn’t matter whether you’re right -the gang mentality is determined to prove you wrong.

Your health is failing
Mentally, you’re drained and your energy is zapped. You’re sleeping more and getting out of bed is a real task for you. Exercising and socialising with your folks is a chore. Bullying can lead to depression, anxiety, panic attacks and mood swings. There are physical symptoms such as increased blood pressure, rapid heart beat, and loss of appetite (or excessive eating).

Have experienced verbal spat
You’re subjected to negative, abusive language -reprimanded often in front of the entire office. Verbal abuse can also be more subtle than loud insults.You may find that you are being joked around with in a way that makes you feel uncomfortable and small, and that too can be verbal bullying.

Your work is publicly diminished
Your dedication to your job is not acknowledged by your boss or they give credit to others (for your hard work) in a public setting such as a meeting.

Face unnecessary criticism
It seems that in the eyes of your boss, you are ineffective and unprofessional. Feedback is always provided in the form of criticism and delivered in a way to make you feel awful about yourself. There’s no effort to provide guidance.

Presented unreasonable obstacles
So does the boss man purposely throw roadblocks in front of you to prevent you from successfully completing a project? Now, this is a major act of bullying.

CONCLUSION

Thus we see that Indian Labour Laws not only takes Sexual Harassment, Mental Harassment At Workplace into consideration  but also all other types of harassment that can happen at the workplace as stated above. Certain acts have been laid down by the government governing every issue to protect the interest of the employees and workmen in almost every sector of the industry.

Still, in India a worker can seek redressal under different provisions provided under the constitution of India, IPC, and C.P.C. The Indian Constitution under various articles provides labor rights. Though not in evident form but indirectly various articles protect the labour rights. For instance, Article 14 of the Indian Constitution lays down the concept of Equality before law. In the case of Mewa Ram v. A.I.I. Medical Science , the Supreme Court, held that.

“the doctrine of ‘equal pay for equal work’ is not an abstract doctrine. Equality must be among equals, unequal people cannot claim equality.”

Indian constitution through various articles21, 23, 24, 38, 39, 39-A, 41, 42, 43, 43-A and 47 provides an idea of what conditions should be provided by the employers.However, some of these articles do not have binding effect which at instances hinders justice. Part 4 of the constitution talks about the duty of the state to promote social welfare and to make effective provisions for securing the right to work, providing education and public assistance in cases of employment, etc., which is subject to limits of its economic capacity, to make special provisions for just and humane condition of work and for maternity relief, etc.

In the case of Consumer Education and Research Centre v. Union of India.

“Right to life includes protection of the health and strength of the worker is a minimum requirement to enable a person to live with human dignity. The right to human dignity, development of personality, social protection, right to rest and leisure are fundamental human rights to a workman assured by the Charter of Human Rights, in the Preamble and Arts.38 and 39 of the Constitution.”

Hope we answered on how to deal when Facing Mental Harassment from Boss at Workplace

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What to do if employer does not pay salary on time:

Employer must pay interest if salary is delayed: HC

The employer must pay a reasonable interest if a payment, due to the employee, is made late, the Bombay High Court has held.

Whether the service contract of the employee provides for payment of interest is immaterial, said the division bench of Justices Anoop Mohta and C L Pangarkar.

Petitioner Yuvraj N Rodye was working with the Maharashtra State Electricity Board since 1975.

In 1989, Royde became entitled for arrears of salary from August 1975 onwards.

However, for no justifiable reason, the payment was delayed. It was only in September 1994 that he was told to collect his dues.

He received the amount, but applied for getting interest for the period of delay.

It is quite common in India for employers to deny salary to employees, especially at the time of firing them. They think that employee’s have no options or the resources to pursue a case against an employer. In reality, there are several things an employee can do that can land an employer in real trouble. However, the knowledge regarding the same is not available in public domain and lawyer’s advice come costly.

There are several legal process that can be followed by an employee to recover salary or wages. The first step that we recommend is sending a good notice from a credible lawyer  who has a track record of doing such matters. However, before we tell you more about that, let us get you introduced to some basic concepts in Indian labour laws that deal with the issues of non-payment of wages or salary.

India has an entire law on payment of salary called Payment of Wages Act, though it does not apply to all levels of employees. It usually applies to low-wage blue caller workers.

Let’s see what the Payment of Wages Act has to say in this matter.

Section 4 of the payment of wages Act states – 

Fixation of wage period every person responsible for the payment of wages under Section 3 shall fix periods in respect of which such wages shall be payable. No wage period shall exceed one month.

Monthly Salary Distribution Requirements:

• A person is working in an establishment with a wage not more than one thousand, the wage to the particular person shall be paid before the expiry of the seventh day.
• A person with the wage of more than one thousand shall be paid before the expiry of the tenth day.
• If the employee is terminated by the employer the wages earned by him shall be paid before the expiry of the second working day from the day his employment is terminated.

What steps can be taken by employee:

If your employer is not paying your salary, you can get these remedies.

A) Approach Labour Commissioner:

If an employer doesn’t pay up your salary, you can approach the labour commissioner. They will help you to reconcile this matter and if no solution is reached labour commissioner will hand over this matter to the court whereby a case against your employer may be pursued.

B) Industrial Dispute Act:

• An employee can file a suit under Section 33(c) of Industrial Dispute Act, 1947 recovery of money due from an employer.
• When the salary is due from the employer, the employee himself or any other person authorized by him in writing on his behalf can claim recover money.
• In case of the employee death, the authorized person or heirs make an application to the labour court for recovery of money due.
• The court will further issue a certificate on being satisfied that the salary is due and the collector shall proceed to recover the same.
• If any question arises as to the amount of money due or as to the amount at which such benefit should be computed, it would be computed according to rules under this Act.

You may also Like : How to Sue an Employer for Wrongful Termination ?

Labour Court Time Line:

Cases have to be decided by such labour court within period not exceeding Three Months provided that where the presiding officer of a labour court considers it necessary or expedient so to do, he may for reasons to be recorded in writing, extend such period by such further period as may he think fit. These are few things on What to do if employer does not pay salary on time

What about executives, managers and those who earn above INR 18,000 a month?

If you are manager or executive level employee, you can file a case against the company in the civil court under order 37 of Court of civil procedure. This is faster than the usual slow procedure in civil courts, called a summary suit. It is quite effective, but should not be pursued as a first resort. There are easier things at your disposal as well. Out of 100 cases, maybe 5-7 requires such effort. However, many lawyers are quick to jump to this. Before opting for this, ask your lawyer to exhaust other means.

What if company is not paying with a fraudulent or dishonest intent?

If an employee is affected by the company’s fraudulent activities, then he may seek some strong actions.

The following remedies would be available in such cases:

Employer Fraud Punishment:

• Section 447 of Companies Act, 2013 lays down punishment for fraud.
• Person shall be liable for imprisonment not less than 6 months which may extend to 10 years.
• Fine not less than amount involved in fraud which may extend upto three times of the fraud amount.
• Subsequent measures can be taken under Section 447 of the Act.
• An employee can also file a criminal case against the company under Indian Penal Code.

First Step To recover unpaid salary

Step 1: We strongly recommend sending a legal notice enumerating all the actions that you may take from a credible lawyer. Before going to a lawyer, ensure that they have some track record in doing such work.

Step 2: If this does not work, approaching police for a cheating case, where there is enough evidence for such fraud, is critical. At this stage, it is important to prepare a detailed case file to give to police, and your lawyer should assist you in this. A majority of such complaints are not accepted due to weak drafting and lack of prima facie evidence. This is where a good lawyer can make a lot of difference.

Step 3: Where criminal case is not an option, or does not produce results, we recommend going for a summary suit or labour court, as the case may be. In our experience of handling such matters in large numbers, we can say that not more than 10% of such disputes need to go to this stage if the matter was handled well in earlier stages. Challenge is that lawyers are more comfortable and earns more money at this stage, so if they don’t have your interest in mind they might hurry to this stage.

Important things to keep in mind when you are trying to recover your unpaid salary

The notice is a very important psychological tool, and getting the salary in less time is a psychological game. If the employer understands the consequences quickly, he will settle before you need to go to court, which keeps costs low as well. However, only a few lawyers do this kind of work because it may not be very profitable for them.

There are many cases in India where employer does not pay salary for a month or couple of months and easily get away with the same. A good example is of Kingfisher Airlines. When it shut down its operations, many workers were not paid their dues.

Hope we were able to answer the question What to do if employer does not pay salary on time

Complete story : Employer must pay interest if salary is delayed: Bombay HC

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As an employer or an employee, you have specific obligations to uphold your employment contract. Even if the contract is verbally implied, both employer and employee are bound by that contract. It can be difficult to get out of an employment contract, but there are ways it can be legally done, which saves you from facing a potential lawsuit for breaching the contract.

No, employment bond is not enforceable.

Many people think it is contract and parties are abide by it. But section 27 of indian contract act 1872 says something different.

Employment bonds are employment agreements with negative covenant. Under the Indian Law, the employment agreements with negative covenants is valid and legally enforceable if the parties agree with their free consent i.e. without fraud, coercion, undue influence, mistake and misrepresentation. The Indian courts have held that in the event of a breach of contract by the employee, the employer shall be entitled to recover damages only if a considerable amount of expenditure was borne by the employer. Indian law mandates the employment bonds to be “reasonable” in order to be valid. The term reasonable remains undefined anywhere in the Indian law and therefore the courts have given meaning to “reasonable” depending upon the facts and circumstances of the cases. The proposition which has emerged till now is that conditions stipulated in the contract should be necessary to protect the interest of the employer and compensate the loss caused by breach of contract. Additionally, the penalty or compulsory employment period stipulated should not exorbitant.

How to Challenge the enforceability of Employment Bond?

The validity of Employment bonds can be challenged on the basis of Section27 of the Indian Contract Act. Section 27 of the Indian Contract Act, 1872 prohibits any agreement in restraint of trade and profession. Any agreement in trade and profession according to Section 27 is void.

As per the Section 27, any terms and conditions of an agreement which directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid under the Indian law, The employee has right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time.

For an employment bond to be valid under Indian law, it has to be proved that it is necessary for the freedom of trade. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. If an agreement is challenged on the grounds of violating the provision relating to restraint of trade, the onus is on the party supporting the contract to show that restraint is reasonably necessary to protect his interests.

Following are the requirements of a valid employment bond agreement.

1. The agreement must be signed by the parties with free consent.
2. The conditions stipulated must be reasonable and:

• The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer.

1. The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable.

Remedies Available to Employer and Employee

If an employment bond is breached, the employer might be entitled to compensation. The compensation awarded should be reasonable to compensate the loss and should not exceed the penalty, if any stipulated in the contract. The court computes the reasonable compensation amount by computing the actual loss incurred by the employer having regard to all facts and circumstances of the case. Even if the bond stipulates payment of any penalty amount in the event of breach, it does not mean that the employer shall be entitled to receive the stipulated amount in full; the courts shall determine the reasonable amount of compensation to be paid. One interesting question arises, whether the employers are entitled to seek for reinstatement of their employee or obtain restraining order against the employee from joining any competitor or another employer? The Supreme Court while dealing with a similar situation has held that specific performance action cannot be sought for breach of contract of personal service or bond and therefore employer shall not be entitled for reinstatement of their employees as relief in the event of breach of bond. We have witnessed the trend that courts are not willing to grant an injunction against the employees restricting their employment with another employer unless it is necessary for the protection of proprietary interests or trade secrets of the employer.

The court considers the actual expenses incurred by the employer, the period of service by the employee, the conditions stipulated in the contract to determine the loss incurred by the employer to arrive at reasonable compensation amount.

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It is not the constitution of the establishment as to whether it is a public limited company, private limited company, cooperative society, partnership or proprietory form that decides the working hours, leaves and other service conditions of the employees but it is the labour laws applicable to the kind of business being transacted that decides these matters.

Different Acts have set out different rules pertaining to hours of work and the spread over of work with slight changes as applicable to the respective state. Shops and Establishments Act being a state Act is confined only to that state whereas the other Acts are central Acts and will be similar in many respect subject to state rules attached thereto.

Laws Lined Up for 2018                   

Enhancement of the gratuity ceiling: The Payment of Gratuity Act, 1972 (“Gratuity Act”) entitles employees who have been in continuous employment for a period of 5 years to gratuity at the rate of 15 days wages for every year of continuous service, capped at INR 10,00,000. The Payment of Gratuity (Amendment) Bill, 2017 (“Gratuity Bill”) was introduced in the Lower house of Parliament (Lok Sabha) on December 18, 2017 with a view to allow the Government the discretion to (i) prescribe the gratuity ceiling, and (ii) the period of maternity leave that would deemed to constitute continuous service.  It is anticipated that the Gratuity Bill will be passed by the Lower house in the next session of Parliament and that the ceiling is likely to be enhanced from INR 10,00,000 to INR 20,00,000.

Consolidation of Labour Laws: As part of its election manifesto, the current Government had promised to review the Indian employment laws to reduce the multiplicity of employment legislations and keep the legislations in sync with the requirements of the evolving labour market. In furtherance of the same, the Government has sought to consolidate 44 central employment laws into 4 labour codes:

1. Labour Code on Industrial Relations — Consolidating the Industrial Disputes Act, 1947, the Industrial Employment (Standing Orders) Act, 1946 and the Trade Unions Act, 1926;
2. Labour Code on Social Security and Welfare — Consolidating social security laws such as the Employees Provident Funds and Miscellaneous Provisions Act, 1952, the Employees State Insurance Act, 1948, Maternity Benefit Act, 1961, the Employees Compensation Act, 1923, etc.;
3. Code on Wages — Consolidating the Minimum Wages Act, 1949, the Payment of Wages Act, 1936, Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976; and
4. Labour Code on Occupational Safety, Health & Working Conditions.

The code that is likely to come into effect soon is the Code of Wages, 2017 (“Wage Code”). It is anticipated that the Government was working towards having the Wage Code passed in the lower house (Lok Sabha) of Parliament in the budget session and this might be taken up in the next session of Parliament.

National Employment Policy: The Government of India has proposed the introduction of a National Employment Policy to address the growing rate of unemployment in India. The proposed aim of the National Employment Policy is to create a comprehensive action plan to ensure that quality jobs are created across various sectors. It appears that this would be done by incentivizing employers to hire, by allowing relaxations in employment law compliances or bearing a part of the cost for social security payments.

LGBTIQ Rights: The Supreme Court of India, in its landmark judgment in August 2017, observed that the right to privacy and the protection of sexual orientation lie at the core of the fundamental rights guaranteed by Articles 14, 15 and 21 of the Indian Constitution. Further, the Supreme Court on January 8, 2018, stated that it would review its position on Section 377 of the Indian Penal Code, 1860, i.e., the criminalization of sexual intercourse between consenting adults of the same sex. With respect to transgender persons, the Transgender Persons (Protection of Rights) Bill, 2016, inter alia, seeks to prohibit the discrimination of transgender persons in terms of employment, healthcare services and access to facilities.

Law Governing Factories: Amendments to the Factories Act, 1948, has been in the pipeline for the past two years. The amendments are primarily aimed at allowing the state government to increase the number of overtime hours that employees can work and prescribe rules in relation to exemptions that could be given to various categories of employees. These measures would allow flexibility to State Governments to undertake initiatives to encourage the development of industries.

Changes to the Law on Contract Labour: The Government has released a draft bill for the amendment of the law governing the engagement of contract labour in India – the Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA”). The bill primarily intends to exclude workers who are regularly employed in the establishment of the contractor from the definition of the term ‘contract labour’ for the purposes of the CLRA.

2018 Budget Proposals to Provident Fund Contributions: The Finance Minister in his 2018 Budget speech has proposed that the Government will make provident fund contributions of 12 percent of wages for new employees for a period of three years and reduce the mandatory contribution limit from 12 percent to 8 percent for women employees for the first three years of employment. We would, however, have to wait for amendments to be made to the Employees Provident Funds and Miscellaneous Provisions Act, 1952, and allied schemes, to understand the manner in which these proposals will be implemented.

Most Indian employment laws were drafted primarily for traditional models of workforce engagement in sectors such as manufacturing and infrastructure. These laws are failing to keep pace with the needs of new and emerging sectors that are driven by cutting edge technology, increased automation and creative forms of workforce engagement, including gig/on-call working. While the above reforms are much needed, standing at the threshold of the artificial intelligence revolution, India needs to relook at its employment laws to ensure that businesses are not constrained, innovation and entrepreneurship are encouraged and employee rights are not compromised.

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Wrongful termination is one the most common types of employment dispute. Every year thousands of employees are subjected to wrongful termination, but are completely unaware of the correct legal course against it. Before considering about taking an action against the employer, you need to establish whether the termination was wrongful or not.

Wrongful termination is difficult to prove, because most states have an “at will” policy when it comes to employment. Under this policy, either the employee or the employer may terminate employment at any time without consequence. However, there are illegal reasons to terminate an employee. Winning a wrongful termination suit requires that you produce sufficient facts that you were terminated illegally.

If you are considering suing your employer for wrongful termination, you should first consult an employment attorney. Below are a few steps towards filing a successful claim:

Determine whether you are an at-will employee;

Review your employment contract, which should give your insight on what type of employee you are, for what reasons you may fired, and the steps you need to take to file a complaint;

File a complaint with your human resources department; and

If your filed complaint does not turn out in your favour, speak with your attorney who, if need be, will be able to push forward with your claim.

What can you do?

Start by approaching the human resource department of your company. It will be in a position to explain where you stand legally and will help resolve the issue. You can also lodge a formal complaint directly with the department and should give it adequate time to evaluate your situation and suggest a solution. If you are not satisfied with the response, you can file a court case.
In case of a violation of your contract, you can file a case in a civil court. Cases of mental harassment can be filed in the civil court as well as a criminal court, if you add the charge of criminal intimidation. Consult a lawyer to see if your case can be settled through arbitration or by a labour tribunal as this is easier and more cost-efficient.

If you decide to take the matter to court, ensure that you prepare yourself well for it. Maintain a record of all the incidents that you think were wrong or in violation of your rights. If possible, note down the date and time as well. This will be immensely useful to your lawyer, who will be able to ascertain if you have a case at all. You can use this information even while discussing the matter with the HR team.

Looking toward the future, practice answering interview questions about the termination, and gather references from contacts to bolster your candidacy for jobs. Don’t let this reversal stand in the way of your success.

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Even though companies across the world are coming up with people friendly policies, there is always a small section of employees who like to take   advantage of the same. Often employees leave organizations without serving notice in the lure of better chances elsewhere. But this is only a short term advantage. Barring some countries, most good organizations require a ”service or relieving certificate” as proof of employment.

The signed and   stamped ” Letter of Appointment” between and employer and employee is a legally valid document in the court of law. If an appointment letter clearly spells out the conditions of termination and notice, and the employee signs the document, then he/she must abide by the terms. However, most organization have a condition of ”lieu of”. Typically the notice period can be waived ”in lieu of” pay deduction. And most employees exercise that option by negotiating the difference with the other organization. There are always exceptions but no ethical   organization can force an employee to serve the notice unless there is a pressing business need or ”notice pay” refusal from employee or monetary advances provided to the employee.

The Specific Relief Act says that a Contract of Personal Service cannot be enforced in a Court of Law which means that if an employee quits before the Notice period the Employer can only recover the Notice pay. No Employer can force an Employee to complete the Notice period, it is for the employee to complete the Notice period in order to take his full salary and the relieving letter.

You can leave the job by either giving notice or payment in lieu of notice.The Company’s policies and procedures are the supplementary aspects. The constitution of India provides the fundamental right to every person to choose the profession of his choice and any agreement contrary to this is invalid. By putting the clause in service regulation that it is company’s discretion to accept the notice or not is against the provisions of constitution of India. Hence company cannot threaten you by showing this clause. The Company cannot force you to serve the entire notice period.

Also Read:

• How to file Income Tax Returns ( ITR )?

• EPF v/s PPF v/s VPF: Which One is Better?

• HRA Exemption Rules

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Where to access PF statement from
At the end of the financial year, the employer shares the PF statement with the employees after receiving them from the Employees’ Provident Fund Organisation (EPFO). Even employees of un-exempted organisations can view it by accessing www.epfindia.com or by clicking here. For employees of exempted organisations, the PF statement is made available by the employer generally though the company’s Intranet. The provident fund for the former is managed by a private trust while the latter is managed by the EPFO itself.

Here are few important things that are shown in a PF statement:

Basic details: The PF statement carries the name and address of the establishment along with the establishment ID. You will also find details such as the name of the employee, date of birth, date of joining the organisation, and so on.

PF Account number: The first thing to check on your PF statement is your PF number. For an un-exempted organisation, the PF number is an alphanumeric representing the state, regional office, establishment, and the PF member code. The PF account number is represented differently for exempted organisation and is completely numeric.

Here’s a sample PF number (un-exempted organisation) and what it shows:
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Sample PF number: MH BAN 0057885 000 0000691

* MH represents the state, i.e., Maharashtra

* BAN represents the regional office, i.e., Bandra

* The next 7 numbers, i.e., 0057885 represents the establishment ID

* The next 3 numbers are establishment extension ID. It can be 000 if no extension is provided.

* The last 7 numbers, i.e., 0000691 represents the member (employee) ID.

UAN number: Unlike the PF account number that is generated every time the employee joins a new organisation, universal account number (UAN) is a unique 12 digit number and is mandatory for all employees to have it. All PF numbers, i.e., member IDs will get linked to the UAN. On switching jobs, furnish the UAN to your new employer which helps in managing the PF account better.

Opening balance: The statement will show the opening balance under both the employee – employer columns. The opening balance represents the total of contributions (employee and employer columns) plus the interest earned in the previous financial year.

Monthly contributions: The PF statement/passbook will show the break-up of employee’s and the employer’s month-wise contribution in rupees. The portion that goes towards EPS (Employees’ Pension Scheme) is also shown separately. Even though both employee and employer contribute 12 percent equally, the contributions are not same. Click
here to know why.

Voluntary Provident Fund: An employee is allowed to contribute more than the mandatory 12 percent towards PF, which is shown under the ‘Voluntary Provident Fund’ column. The employee’s voluntary contributions are shown separately. Remember, the employer is not supposed to match VPF contribution and thus may show no figure.

Interest: The interest earned on the employee’s and the employer’s contributions are credited to the PF account once a year. The interest earned is calculated on the monthly running balances in the account. The PF statement will carry the interest rate on which the calculations are based upon as declared by the government.

Withdrawals: Any withdrawals that you have made during the year will also be shown and accounted for accordingly. Click here to know, under which circumstances one can ask for an advance from the EPFO.

Closing balance: The closing balance will represent the total of employee contributions plus interest earned and the total of employer contributions plus interest earned. Such balances will become the opening balance for the next financial year.

epf withdrwal rules

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So what’s the best way to draft salary structures?  To answer this, we’ve put together a table of the common components that make up a salary.  We’ve also added recommended amounts to each component that should assist you in drafting an ideal salary structure.

*Note 1: The PF Employer Contribution also bears additional administrative charges
*Note 2: Feel free to use components like Child Hostel and Child Education; since they are small, we have ignored in our structure

For higher income employees:

• You can use Mobile, Driver Salary, Books and Periodicals and Car Maintenance
• You can set these amounts based on what you think the expenses of that employee would be, keeping in mind the exemption limits for Driver’s Salary and Car Maintenance.

Structuring Salaries is an inevitable task for every HR and Payroll professional. Despite the importance of the activity, professionals are often uninformed of the technical and best practices of a drafting a complete and efficient salary structure.

1) Basic Salary + Dearness allowance

The Basic component is the primary component and the core of the salary structure.  It is usually the largest component of the CTC making up for 40-45% of the total CTC.   The basic plays an important role in defining the salary as other components like Provident Fund, Gratuity and ESIC are dependent on it.

Dearness Allowance (DA) was introduced as part of the salary as a means to reduce the burden of inflation on salaried employees.  This amount is usually set to about 5% of the total CTC and like the Basic component it also has an effect on PF, ESIC etc.

You should keep the following in mind while setting the amounts for Basic and DA:

1. If it’s too high, it will increase the tax liability of the employee since this component is fully taxable. It also affects the liability of the employer since higher contributions would be required for PF, ESIC etc.
2. If it’s too low, then you may not be able to meet the minimum wage norms set by the respective state government. Since minimum wages are updated regularly, you would run the risk of falling below the recommended wage limit.

2) House Rent Allowance (HRA)

The House Rent Allowance, as the name suggests is a component that employees can leverage if they are living in rented accommodations.  The amount that you can claim as tax deduction under HRA cannot be more than 50% of your basic in a metro or 40% of your basic in a non-metro.  Hence, depending on where your workplace is located, this salary component will usually be set at 40% or 50% of the basic salary.

1. When Should Employee declare the amount to get Tax benefit
   At the beginning of new financial year along with your other tax saving plans (like LIC,PPF, Loan , etc), before 25th April’ 2018 employees need to declare their details with their employer for FY 2018-2019.
2. When should Employee submit actual proof to HR     
   
   Usually by the end of the financial year employees need to submit their tax saving documents with their concern HR. Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

3) Leave travel allowance (LTA)

Leave travel allowance (LTA) remunerates employees for their travel within the country.  This component is widely used by employers due to the tax benefits associated with it.  An employee can claim tax benefits for the fare expenses paid for his/her family when they take a holiday.  However, there are restrictions to what you can claim as tax benefits:

1. Only fare expenses are covered: Only the travel fare expenses can be claimed. Stay and food on your trip aren’t covered.
2. Travel must be within India: If you travel to a foreign country, the expenses aren’t tax deductible.  Only travel within the country is covered.
3. What counts as family: Immediate family that are mainly dependant on the employee are covered under LTA.
4. When Should Employee declare the amount to get Tax benefit
   At the beginning of new financial year along with your other tax saving plans (like LIC,PPF, Loan , etc), before 25th April’ 2018 employees need to declare their details under ‘Tax Declaration’ tab enter the Tax Saving Plans for FY 2018-2019.
5. When should Employee submit actual proof to HR 

Usually by the end of the financial year employees need to submit their tax saving documents with their concern HR.Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

4) Conveyance Allowance

Note: With the introduction of standard deduction, exemption on Conveyance allowance has been removed effective April 2018 onwards. Employees don’t need to collect or submit any Conveyance proof.

5) Medical Allowance

Note: With the introduction of standard deduction, exemption on Medical allowance has been removed effective April 2018 onwards. Employees don’t need to collect or submit any Medical proof.

6) Child Education Allowance

This component is paid out towards tuition fees of employees’ children and is tax deductible up to Rs. 100 every month for a maximum of two children. Hence, this amount is usually set to not more than Rs. 2,400 a year for an employee.

1. When Should Employee declare the amount to get Tax benefit
   Provide the count of children to your concern HR, for availing tax benefit on Education Allowance.
2. When should Employee submit actual proof to HR
   Usually by 15th January’ 2019 employees need to submit their tax saving documents with their concern HR.

Resigned Employee : At the time of Exit employee should ensure to provide their actual tax saving proofs to concern HR before the FnF settlement gets finalised or else excess tax will be recovered from the settlement amount.

7) Special Allowance

Special allowance is the balancing component of the salary structure.  It is usually used by organisation as the leftover of the CTC when the rest of the components have been paid out.  This component is fully taxable and is also taken into account for the calculation of Provident Fund.

Deductions:

Deductions are elements of the salary that are part of the CTC but are deducted from the in-hand salary that employees receive. Let’s take a deeper look at some of the most common salary deductions and what they mean.

1) Provident Fund

Provident Fund (PF) is calculated at 12% of Basic + DA + Special Allowance.  The employer and the employee both make an equal contribution of 12% each.  This is applicable to companies who have 20 or more employees on their payroll.   If an employee’s Basic + DA + Special Allowance are less than Rs. 15,000 then it is mandatory for Provident Fund to be deducted.  Other employees can opt out by filling form 11 or can choose to have PF deducted on the ceiling of Rs. 15,000 which would be Rs. 1,800 monthly.

2) Employees State Insurance Corporation (ESIC)

Deductions towards ESIC are mandatory for employees whose gross salary is not more than Rs. 21,000.  It is only applicable in companies where there are 20 or more employees within the Rs.21,000 gross salary bracket.  Employees have to make a contribution of 1.75% of the gross salary and employers have to make a contribution of 4.75% of the gross salary.

3) Professional Tax

Professional tax is the tax levied by Governments of certain states on salaried employees. The states where professional tax is applicable are Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

The amount of profession Tax that is deducted varies from state to state where they are applicable.

4) Labour Welfare Fund

Labour Welfare Fund, as the name suggests, is a contribution made by salaried employees for the benefit of the labour class.  This contribution is applicable in the states of Karnataka, West Bengal, Maharashtra, Andhra Pradesh, Kerala, Goa, Delhi, Punjab, and Haryana & Madhya Pradesh.

The contribution amount varies from state to state and is relatively small. The employer and the employee both make contributions and the employer pays approximately twice the employee contribution. The payments are made semi-annually in the months of June and December.

Like Professional Tax, Labour Welfare Fund contributions also vary from state to state where they are applicable.

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1. Leave is the right of all employees 

Generally, an employee is given the following leaves during the course of his or her employment:

1. 1. Casual Leave: This is provided to an employee to take care of urgent or unseen matters like a family emergency; for example, employees can apply for casual leave to attend a parent-teacher meeting called for by their child’s school.
2. Sick Leave: Sick leave is provided when an employee gets sick.
3. Privilege or Earned Leave: Privilege or earned leaves are long leaves that are planned for in advance.
4. Other Leaves – Apart from the above mentioned leaves, there are some other paid, unpaid or half-paid leaves which are provided at the discretion of the company. Study leave and bereavement leave are two such examples.

Medical Certificate for one-day sick leave

Usually, when a sick leave exceeds beyond two or three days, depending upon the company policy, employees are requested to submit a medical certificate to sanction the leave. However, in the case of one-day sick leave, an employer should not ask for a medical certificate.

In one of its judgements, the Supreme Court mentioned that an employee will not necessarily seek medical attention if he or she is ill for just a day.

Encashment Leave

An employee can take encashment leave while quitting service, superannuation, discharge, dismissal or death. Leave encashment should be as per average daily wages of an employee.

Leave during notice period

An employee can take leave during notice period, provided it is for a genuine reason like maternity, health issues, etc.

The Delhi High Court, in one of its judgement, said that an employee can take leave during the notice period if nothing is mentioned in the appointment letter which bars the employee from taking leave during the notice period, if he has leave to his credit and is entitled to the same.

2. Protection from sexual harassment at the work place

It is the responsibility of the employer to ensure that his/her employees, especially female employees, are protected while at work. All incidents of sexual harassment – regardless of how big or small they are or who is involved – require employers or managers to respond quickly and appropriately. Just because someone does not object to inappropriate behaviour in the workplace, it does not mean that they are consenting to the behaviour.

The employees are provided with the right to go on a strike without giving a notice, however if the said employee is a public utility employee, then he would be bound by the prohibitions laid down in the Industrial Disputes Act 1947, Section 22(1) lays down certain conditions on Strikes by public utility employees, the conditions includes giving out prior notice to the employer six weeks before going on such strike.

9. Right to Equal Pay for Equal Work

Understanding your rights as an employee is the first step.

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No adult shall be employed or allowed to work about the business of an establishment for more than nine hours on any day or 48 hours in any week and the occupier shall fix the daily periods of work accordingly.

Provided that during any period of stock taking or making of accounts or any other purpose as may be prescribed, any adult employee may be allowed or required to work for more than the hours fixed in this section, but not exceeding 54 hours in any week subject to the conditions that the aggregate hours so worked shall not exceed 150 hours in a year.

Provided further that advance intimation of at least three days in this respect has been given in the prescribed manner to the Chief Inspector and that any person employed on overtime shall be entitled to remuneration for
such overtime work at twice the rate of his normal remuneration calculated by the hour.

Also Read :

• How to Check Your PF Statement
• Can Companies Force Employees to Serve Notice Period?
• How to Sue an Employer for Wrongful Termination ?

The post Working Hours in Office first appeared on Rightsofemployees.com.

For most employees, House Rent Allowance (HRA) is a common component of their salary structure. Although it is a part of the salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRAgets exempted under Section 10 (13A) of the Income-tax Act, 1961.

The amount of HRA exemption is deductible from the total income before arriving at a taxable income. This helps the employee save tax. Remember, the HRA received is fully taxable if an employee is living in his own house or if he does not pay any rent.

Who can avail HRA?
The tax benefit is available only to a salaried individual who has the HRA component as part of his salary structure and is staying in a rented accommodation. Self-employed professionals cannot avail the deduction.

Click here to use our HRA Calculator 

How much is exempted?
The exemption for HRA benefit is the minimum of:
i) Actual HRA received

1. ii) 50% of salary if living in metro cities, or 40% for non-metro cities; and
   iii) Excess of rent paid annually over 10% of annual salaryFor calculation purpose, the salary considered is ‘basic salary’. In case ‘Dearness Allowance (DA)’ (if it forms a part of retirementbenefits) and ‘commission received on the basis of sales turnover’ is applicable, they too are added to compute the minimum HRA exemption available.The tax benefit is available to the person only for the period in which the rented house is occupied.Example of HRA calculation
   Let’s say an individual, with a monthly basic salary of Rs 15,000, receives HRA of Rs 7,000 and pays Rs 8,400 rent for an accommodation in a metro city. The tax rate applicable to the individual is 20 percent of his income.

   To avail HRA benefit, the least of the following amount (yearly) is exempted, rest is taxable:
   i) Actual HRA received = Rs 84,000
   ii) 50% of salary (metro city) = Rs 90,000 (50% of Rs 1,80,000)
   iii) Excess of rent paid annually over 10% of annual salary = Rs 82,800 (Rs 1,00,800 – (10% of Rs 1,80,000))

   It shows that of Rs 84,000 actually received as HRA, Rs 82,800 gets tax exemption and only the balance of Rs 1,200 gets added to the employee’s income, on which a tax of Rs 240 ( 20 per cent slab ) gets payable.

   Documents
   HRA exemptions can be availed only on submission of rent receipts or the rent agreement with the house owner.

   It is mandatory for the employee to report the Pan Card of the ‘landlord’ to the employer if the rent paid is more than Rs 1,00,000 annually.

   Special cases
   There could be special scenarios in claiming HRA tax benefit, such as:

   Paying rent to family members
   The rented premises must not be owned by the person claiming the tax exemption. So if you stay with your parents and pay rent to them then you can claim that for tax deductions as HRA. However, you cannot pay rent to your spouse. As, in the view of the relationship, you are supposed to take the accommodation together. Thus, these transactions can invite the scrutiny from the Income -tax Department.
   
   
   
   Even if you are renting the house from your parents, make sure you have documentary evidence as proof that financial transactions regarding your tenancy takes place between you and your parent. So keep a record of banking transactions and rent receipts because your claim can get rejected by the tax department if they are not convinced by the authenticity of the transactions. Recently, there has been an instance in which the HRA claim of a salaried taxpayer was rejected by the Mumbai income tax appellate tribunal because the claim for HRA did not appear genuine to the tax officials.

   Also Read: For tax relief, you need proof of rent paid to kin

   Also Read: 10 things to do so that HRA claim does not get rejected

   2. Own a house, but staying in a different city
   One can avail the simultaneous benefit of deduction available for the home loan against ‘interest paid’ and ‘principal repayment’ and HRA in case your own home is rented out or you work in another city.

   Individuals who don’t get HRA but pay rent
   There may be some employees who might not have HRA component in their salary structure. Also, a non-salaried individual might be paying rent. For them, Section 80 (GG) of the Income-tax Act offers help.

   An individual paying rent for a furnished/unfurnished accommodation can claim the deduction for the rent paid under Section 80 (GG) of the I-T Act, provided he is not paid HRA as a part of his salary by furnishing Form 10B.

   How much
   The least of the following is available for exemption from tax under Section 80GG:
   (i) Rent paid in excess of 10% of total income
   (ii) 25% of the total of the total income*
   (iii) Rs 5,000 per month

   *Under this section, the total income is calculated as gross total income minus long-term capital gains, the short-term capital where Securities Transaction Tax (STT) has been paid and deductions available under Sections 80C to 80U, except Section 80GG.

   Conditions
   While claiming a tax deduction, one must remember that the individual himself or his/her spouse, or minor child, or as a member of the Hindu Undivided Family (HUF) must not own any accommodation. Also, if the individual owns any residential property at any place and earns rent from it then no deduction is allowed.

   One can avail the simultaneous benefit of deduction available for the home loan against ‘interest paid’ and ‘principal repayment’ and HRA in case your own home is rented out or you work in another city. However, the same is not available in case of Section 80GG.

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Regular working time may not exceed 40 hours per week.

Where necessary with regard to the nature of the work or the working conditions in general
working time may amount to an average of 40 hours per week for a period of at most four
weeks.
Monday is considered the first day of the week, unless another arrangement is in place at the workplace. on-call time may be claimed up to a maximum of 48 hours per employee over a period of 4 weeks or 50 hours per calendar month. The time during which an employee performs work on behalf of the employer is not considered on-call time.

Overtime

‘Overtime’ means working time in excess of regular working time.

When calculating overtime, compensatory rest periods or other rest periods that are scheduled
during the employee’s regular working time or on-call time shall be treated as regular hours
worked or time spent on call. Act (2000:766).

When there is a special need to increase the number of hours worked, overtime may
be worked up to a maximum of 48 hours per employee over a period of four weeks, or 50
hours over a calendar month, with a maximum of 200 hours over a calendar year(general
overtime)

Overtime in excess of general overtime may be worked up to a maximum of 150
hours per employee over a calendar year if there are special grounds for doing so and no other
reasonable solution has been possible (extra overtime).
Together, extra overtime and general overtime may not exceed 48 hours per employee over aperiod of four weeks, or 50 hours over a calendar month.

Total working time

Section 10b The total working time per every seven day period may amount to an average of
at most 48 hours during a reference period of at most four months. When calculating the total
working time, annual leave and sickness absence during times when the employee would
otherwise have worked shall be treated as hours worked. Act (2011:740)

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Paid Vacation / Annual Leave

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What does law say about the pension policy for employees?

In India there is an Act called as The Employees’ Pension Scheme, 1955 which is applicable to all factories and other establishments to which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies. This Scheme is meant for members of the Provident Funds subscribing to Employees’ Provident Fund Scheme, 1952 or any scheme exempted thereunder. The pension policy is introduced as a social policy to the employees to survive their livelihood after the age of retirement. This is a social benefit by which the employees do not need to worry about their sustenance in their later stage of live.

What are the eligibility criteria for availing this facility of pension?

There are two forms of membership availability under the scheme:

• • Membership of the scheme under The Employees’ Pension Scheme, 1955 is compulsory for – All Provident Fund subscribers including those employed in Exempted Establishments contributing to the Employees’ Family Pension Scheme 1971, and – To all new entrants to the Provident Funds Scheme, 1952 from November 16, 1995 onwards, automatically become members of the Employees’ Pension Scheme.

• Membership under the scheme is also available on Optional basis – Existing members of exempted and un-exempted Provident Fund Scheme as on November 15, 1995 who are not members of the Family Pension Scheme, 1971. – Members of the Family Pension Scheme, 1971 who left employment between April 1, 1993 to November 15, 1995 whether they have withdraw their benefits of not. – Beneficiaries of Family Pension Scheme, 1971 who have died on or after April 1, 1993.

What are the benefits available to members under this Scheme?

The benefits that are provided to the members under the Employees’ Pension Scheme, 1995 are:

• Pension Payment for life on Retirement/Superannuation.
• Pension Payment for life on invalidation during employment.
• Lump sum amount payment to the member by way of commutation of Pension upto one third pension amount on optional basis.
• Capital return in option formula basis upon cessation of members pension payment.

What are the benefits available to family members upon death of the member?

The benefits that are provided to the family members upon the death of the member are as follows:

• • Payment of pension to spouse for life or until remarriage.
  • Payment of pension to children (two at a time) till they attain the age of 25 years additionally along with pension payment to spouse. For total and permanently.
  • Orphan Pension to children at higher rate upon cessation of Pension Payment to spouse.
  • To Nominee / Dependant parents for life in case member is unmarried or having no eligible family member.

What are the causes of death that are covered under the scheme for members for eligibility for payment of pension after death?

The scheme covers members death risk unconditionally – irrespective of whether such death occurs:

• While in service.
• Away from employment and not contributing to the fund, or
• After retirement as a pensioner.

Is there a provision facilitating benefits for seasonal or casual employees under the scheme?

 There are following provisions that are specified to facilitate the seasonal or casual employees:

• Employees engaged seasonally in any establishment, the period of “actual service” in any year, notwithstanding that such service is less than a year, shall be treated as full year.
• Pensionable salary will be worked out “Notionally” for full month in the event if drawal of salary for a part of the month.
• Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment

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The Ministry of Labour and Employment, Government of India has, with effect from 1 September 2014, brought into force several important amendments to the schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) i.e. (i) The Employees’ Provident Funds Scheme, 1952 (“PF Scheme”); (ii) The Employees’ Pension Scheme, 1995 (“Pension Scheme”); and (iii) The Employees’ Deposit-linked Insurance Scheme, 1976 (“Insurance Scheme”).

Key Amendments

PF Scheme

• • The definition of ‘excluded employee’ has been amended whereby the members drawing wages exceeding INR 15,000 per month are excluded from the provisions of the PF Scheme. Accordingly, the wage ceiling for an employee to be eligible for the PF Scheme has been increased from INR 6,500 per month to INR 15,000 per month.

Pension Scheme

• New members (joining on or after 1 September 2014) drawing wages exceeding INR 15,000 per month shall not be eligible to voluntarily contribute to the Pension Scheme.
• The maximum pensionable salary for the purpose of determining the monthly pension has been revised from INR 6,500 to INR 15,000 per month.
• The pensionable salary shall be calculated on the average monthly pay for the contribution period of the last 60 months (earlier 12 months) preceding the date of exit from the membership.
• The monthly pension for any existing or future member shall not be less than INR 1,000 for the financial year 2014-15.

Insurance Scheme

• The contribution payable under the Insurance Scheme shall now be calculated on a monthly pay of INR 15,000, instead of INR 6,500.
• In the event of death of a member (on or after 1 September 2014), the assurance benefits available under the Insurance Scheme has been increased by twenty percent (20%) in addition to the already admissible benefits.

Implications of the Amendments

The amendments to the three schemes by the Government of India, post the proposal made by the Union Minister of Finance in his Union Budget speech (for the financial year 2014-2015), have enhanced the applicability, scope and benefits provided to employees under the EPF Act. However, at the same time, it has also increased the liability of the employers who would now be responsible to enroll additional eligible employees and to contribute on the increased statutory wage ceiling.

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ESIC scheme was inaugurated in Kanpur on 24^th February 1952 (ESIC Day) by then Prime Minister Pandit Jawahar Lal Nehru. The venue was the Brijender Swarup Park, Kanpur and Panditji addressed a 70,000 strong gathering in Hindi in the presence of Pt. Gobind Ballabh Pant, Chief Minister Uttar Pradesh, Babu Jagjivan Ram, Union Labour Minister, Raj Kumari Amrit Kaur, Union Health Minister, Sh.Chandrabhan Gupt, Union Food Minister and Dr.C.L.Katial, the first Director General of ESIC.

ESIC scheme was simultaneously launched at Delhi as well and the initial coverage for both the centers was 1,20,000 employees. Our first Prime Minister was the first honorary insured person of the Scheme.

The Employees’ State Insurance Scheme is an integrated measure of Social Insurance embodied in the Employees’ State Insurance Act and it is designed to accomplish the task of protecting ‘employees‘ as defined in the Employees’ State Insurance Act, 1948 against the impact of incidences of sickness, maternity, disablement and death due to employment injury and to provide medical care to insured persons and their families. The ESI Scheme applies to factories and other establishment’s viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some States threshold limit for coverage of establishments is still 20. Employees of the aforesaid categories of factories and establishments, drawing wages upto Rs.15,000/- a month, are entitled to social security cover under the ESI Act. ESI Corporation has also decided to enhance wage ceiling for coverage of employees under the ESI Act from Rs.15,000/- to Rs.21,000/-.

The ESI Scheme is financed by contributions from employers and employees. The rate of contribution by employer is 4.75% of the wages payable to employees. The employees’ contribution is at the rate of 1.75% of the wages payable to an employee. Employees, earning less than Rs. 137/- a day as daily wages, are exempted from payment of their share of contribution.

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In this article, we will try and set down the manner and procedure for termination of service, and the monetary entitlements thereto.

‘Workman’ and ‘Non-workman’

Employees in India are generally categorized as a ‘workman’ or a non-workman. The term ‘workman’ has been defined under the Industrial Disputes Act, 1947 (“ID Act”), and would inter-alia mean all persons employed in any industry but does not include an employee who is in a managerial, administrative or supervisory role. Apart from the definition under the ID Act, there is no set formula to distinguish between a workman and a non-workman, and the position has been tested and established through various judgments, depending upon the nature of work being carried out by an employee.

An employee who is considered to be a workman will be governed by the ID Act, and their termination of service will have to be in accordance with the provisions of the ID Act.

Types of Termination of employment

Termination of employment may take place due to misconduct, discharge or retrenchment.

Misconduct

Termination of employment can be for misconduct, for which the employer is required to conduct disciplinary proceedings. The procedure to terminate an employee in India, for conducting a disciplinary proceeding has been set out under the law. It includes constituting and having a disciplinary panel, serving a show cause notice to the errant employee, and giving the employee a reasonable chance to put forth his defense. Proceedings have to be conducted in a fair manner, keeping in mind principles of natural justice.

In some cases, the outcome of the disciplinary proceeding may justify dismissal without notice, and any compensation. Under law, the term misconduct provides a list of circumstances and events which would amount to misconduct. It is an inclusive list, and hence, employers have the right to include in their company policies/ service rules, such other events, as it may deem fit, which would in their line of business, amount to misconduct. Misconduct includes wilful insubordination or disobedience; theft, fraud or dishonesty; wilful damage or loss of employer’s property; bribery; habitual lateness or absence; striking unlawfully and sexual harassment.

The aforesaid procedure for termination will apply to all employees whether workman or non-workman.

Discharge

The termination of employment of employees who are not workman are governed by the notice period in their employment contract, and the shops and establishment act (“S&E’”) of the State in which they work. Generally, the State S&E’s provide for at least one month’s notice of termination, or pay in lieu of termination, and in some instances, termination needs to be with cause, and in some other cases, the employer needs to pay compensation for terminating the employment. The notice of dismissal under an employment contract should not be less favourable than what is prescribed under law.

Retrenchment

The Industrial Dispute Act sets out the steps to be undertaken for retrenchment. The term retrenchment has been defined to mean termination by the employer of employment of a worker for any reason, other than disciplinary grounds, with certain exceptions.

An employer who proposes to retrench a workman, who have been continuously employed for more than one year, must give one month’s notice (together with the reason for the retrenchment) or pay in lieu of such notice to the workman. The employer must also inform the local labour authorities of the retrenchment within a stipulated time frame.

Rules for Retrenchment Compensation

Additionally, employers are also obliged to apply the “last in-first out” rule in selecting the workman for retrenchment except for reasonable cause. A retrenched workman is entitled to retrenchment compensation as per the provisions of the ID Act, which is calculated at the rate of 15 days wages for every year of continuous service. Certain establishments (factories, mines, plantations) employing over 100 workers may not be retrenched unless three months’ written notice, stating reasons for the retrenchment, or pay in lieu of notice, is given to the worker. Furthermore, prior approval from the relevant governmental authority must be taken before the retrenchment is made.

Severance Pay

Upon termination of employment of any employee, the employer is required to clear all dues, which are payable to the employee at the time of the termination. Some of these payments are as follows:

1. Notice pay, where notice of termination has not been given;
2. Salary for the days worked, but not paid for, during the month where the employee has been terminated;
3. Payment of gratuity for employees who have completed at least 5 years of service, in terms of the Payment of Gratuity Act 1972. This act is applicable to establishments which have 10 or more employees. The gratuity is calculated at 15 days salary for every completed year of service;
4. Leave encashment, for the leaves accrued, but not used by the exiting employee;
5. Statutory bonus, if the employee is eligible for the same. Employees who are earning up to Rs. 10,000 per month and who has worked in an establishment for not less than 30 working days in a financial year will be entitled to statutory bonus under the Payment of Bonus Act, 1965;
6. Retrenchment compensation, if the employee is a workman, and his services have been retrenched;
7. Such other dues that may have been contractually agreed between the employer and the employee, or is payable under the employer’s company policies;
8. Assist the employee in making applications to the appropriate authority, for withdrawal of the provident fund dues, accumulated to the credit of the existing employee.

There may be other dues payable, and such will vary from employment to employment.

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The benefits under the Maternity Benefit Act are available to all female employees, who are not covered under the Employees’ State Insurance Act and have worked for a continuous period of 80 days in twelve months immediately preceding the date of her expected delivery.

Maternity benefits act 2017 – This amendment has increased the duration of maternity leave available for women employees from the existing 12 weeks to 26 weeks.

Rs. 3,500 per maternity Current provision of maternity bonus.

A woman shall, on production of such proof as be entitled to leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage.

Women employee should be permitted to visit the crèche 4 times during the day, which includes the regular rest interval .

Penalties for contravention of the act by Employers; Imprisonment which shall not be less than three month, which may extend up to one year and with fine not less than two thousand rupees,  which may extend up to five thousand rupees.

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What is ‘sexual harassment’?

Is this Act only for women?

Yes, this Act is only for women who are sexually harassed in workplaces.

Is this Act only for working women?

No, this Act is for any woman who is harassed in any workplace. It is not necessary for the woman to be working at the workplace in which she is harassed. A workplace can be any office, whether government or private.

As an employer, what do you have to do under this law?

• You need to set up an ‘Internal Complaints Committee’ if you employ more than 10 people to handle cases of sexual harassment at your workplace.
• In case your workplace has more than one office or unit, then there should be an Internal Complaints Committee in each branch.

There is no sexual harassment at my office. Do I still have to follow the instructions regarding setting up an Internal Complaints Committee?

Yes, even if there are no cases of sexual harassment at the moment, it is still necessary for the committee to be set up (if you employ more than 10 workers) and for all rules to be followed.

Am I not allowed to approach the police and courts because of this Act?

No, the Act gives you a choice between dealing with the offender within the office or approaching a court. If you wish, you can file a criminal complaint instead of approaching your Internal/Local Complaints Committee.

What if the victim makes a wrong complaint because she does not like the offender?

If the Committee finds that the woman (or her representative) made a wrong complaint because she does not like or hates the offender or that she gave them fake documents, it can ask the employer or District Officer to take action against the woman or person according to the service rules of the workplace. If there are no service rules, action can be taken in any manner recommended by the Committee (Rule 10 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013). This can be by way of:

How will the Committee decide whether the complaint is false?

• If the victim is unable to provide enough proof to the Committee, it does not automatically make her complaint false.
• The Committee will have to conduct an inquiry to find out if she made a wrong complaint on purpose.
• Example: If there is a complaint initiated by Isha against Rohit but there are no witnesses or documents or any indication whatsoever that there was sexual harassment, then this will not be regarded as a false complaint. However, if Isha wrote an email where she told a friend she was lying, this may be a malicious or false complaint.

What happens if witnesses give false accounts?

If the Committee finds that a witness has told them things that did not happen or given fake documents, it can recommend to the employer or District Officer that action be taken according to the service rules. If there are no service rules, the government can make additional rules for this purpose.

Can any information about the complaint or the inquiry be made public?

No. It is unlawful to publish any information relating to a sexual harassment complaint under this law to the media. This information includes any details of the victim, offender and witnesses, the settlement or inquiry proceedings and the Committee recommendations.Committee recommendations and settlements can be published so long as there is no information in there which can identify the victim or witnesses.Example:If Rohit is found guilty of harassing Isha, none of the information relating to their identities and contact details can be made public. However, the recommendations of the Committee which required Rohit to formally apologise to Isha and leave the organization can be made public. This information can be made public without disclosing Rohit or Isha’s names or other details.

Can a case under this Act be taken to Court?

No, no case can be taken to Court unless the victim herself or the Committee files a case before the Court.

Which Court can hear this case?

Any court, as long as it is a Metropolitan Magistrate or a Judicial Magistrate of the first class or above.

Can someone be arrested without a warrant under this Act?

No, a warrant is required for arrest.

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