LABOUR REGULATORY UPDATES

  • The Punjab Labour Welfare Fund Act, 1965

The Government of Haryana issued the notification to their internal authorities with No. HLWB/REV/2023/2733-2982 dated 27/06/2023 regarding increasing the contribution limit under section 9A of the Punjab Labour Welfare Fund Act, 1965.

This provision has to be complied with effect from 01-01-2023 in the following manner;

  1. Each employee shall contribute to the Fund every month an amount equal to zero point two percent of his salary or wages or any remuneration subject to a limit of rupees thirty-one and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee.

The limit specified above shall be indexed annually to the consumer price index beginning from first of January each year.

  • Punjab Shops and Commercial Establishments Act, 1958 

The Government of Punjab on June 02, 2023, issued vide notification no. 21/08/2017-4L(5)/471 to permit all the establishments registered under the Punjab Shops and Commercial Establishments Act, 1958 in the State of Punjab to keep open on all 365 days of the year, for a further period of 1 year i.e up to May 31, 2024, unless it is revoked.

  1. This exemption shall remain in operation for the period of one year from the date of Notification published in Govt. Gazette. 
  2. Every employee working in the establishment shall be given one day holiday in a week without making any deductions from his/her wages on account thereof and list of the time table of such holidays for a month shall be placed on the notice board in advance.
  3. Every employee shall be given a rest period of one hour after 5 hours of continuous work.
  4. No employee shall be required to work for more than 9 hours in a day or 48 hours in a week.
  5. If the establishment remains open after 10.00 pm on any day, adequate safety and security arrangements shall be ensured for employees and visitors.
  6. As establishments are being given permission to be open for all days, new staff shall be appointed for the extended timing. 
  7. Female employees shall be provided separate locker, security and rest rooms at the work place.
  8. Every employer employing women employees shall constitute Internal Complaint Committee against sexual harassment of women under the Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act. 2013 (Central Act, 14 of 2013) and the said Committee shall be operative.
  9. Female employee will not be allowed to work after 8.00 P.M. provided, their written consent in this regard shall be taken as adequate safety and security arrangements of female employees shall be made during working hours and it shall be ensured that they safely reach home after their work is over.
  10. The Prevention of The Child and Adolescent Labour (Prohibition and Regulation) Act 1986, as amended from time to time, shall be implemented in the establishments.
  11. The employees shall be provided all the facilities mentioned in the relevant labour laws. 
  12. Consent letter shall be taken from the employees and it should be kept as record in the establishments. 
  13. The spread over of an employee shall not exceed 11 hours in a day.
  14. Employee shall be given national and festival holidays with wages.
  15. The wages including overtime wages of the employees shall be credited to their saving bank account.
  16. In addition to these terms and conditions, all the provisions of the Act and other relevant Laws shall be applicable to the establishment.

In case of violation of any of the above terms and conditions or any other provision of the Act, the exemption shall be cancelled after giving a due opportunity of being heard by the Competent Authority

  • Panchayat General Elections, 2023 Government of West Bengal

The Government of West Bengal, vide notification No: Labr./ 540 /(LC-IR)/IR/7S-06/17 dated 23/06/2023 hereby declares 08-Jul-2023 as a “Paid Holiday” being the polling day for the Panchayat General Elections, 2023 to the Gram Panchayats, Zilla Parishads in 20 districts, viz. Cooch Behar, Alipurduar, Jalpaiguri, Uttar Dinajpur, Dakshin Dinajpur, Malda, Murshidabad, Birbhum, Nadia, North 24 Parganas, South 24 Parganas, Howrah, Hooghly, Purba Bardhaman, Paschim Bardhaman, Purulia, Bankura, Jhargram, Paschim Medinipur and Purba Medinipur and Panchayat Samitis in two districts of West Bengal namely Darjeeling and Kalimpong.

  • As per this notification it has been made obligatory on the part of the employers of any business, trade, industrial undertaking or any other establishments in all areas pertaining to all the districts, to which elections have been notified, to grant paid holiday on the day of Poll to their workmen who are voters in the Gram Panchayats / Panchayat Samitis and Zilla Parishads,
  • The daily wage / casual workers are also entitled for a holiday and wages on poll day as provided in Section 135B of the Representation of Peoples Act, 1951.
  • It is instructed to all shops, commercial and industrial establishments, in the areas pertaining to the concerned Gram Panchayats / Panchayat Samitis / Zilla Parishads, to which elections have been notified and in whose units Saturday, the 8″ July, 2023 is a working day, to grant a paid holiday on 08.07.2023 (Saturday) to all categories of workers and employees who are voters in the said Gram Panchayats / Panchayat Samitis / Zilla Parishads areas to enable them to exercise their right of franchise in the aforesaid election.
  • The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976

The Government of Karnataka issued the notification No. FD 09 CPT 2023 dated on       13-Jul-2023 in exercise of the powers conferred by Section 29 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.

The Government of Karnataka exempts with effect from the date of publication in the Gazette, the tax payable under the said Act, by the following, namely:-

Owners of Transport vehicles (other than Auto rickshaws) not exceeding two in number, run on their own or through others under permits granted

Holders of permits of two or less Taxies or three-wheeler goods / passenger vehicles

Individual persons engaged in any profession, trades, callings and employment who are physically challenged who has total permanent disability of not less than 40% of both upper and lower extremity deformities subject to production of a certificate obtained from the Head of the Orthopaedic Department of Government Civil Hospital in the State;

Individual person having single child and who has undergone sterilisation operation, subject to production of certificate from the District Surgeon, Government Civil hospital, for having undergone such operation;

An ex-serviceman other than those covered under Serial no. 1 of the Schedule;

Person covered under Serial no. 1 of the above Schedule who are blind or deaf and dumb;

Foreign technicians employed in the State provided their appointments are approved by the Government of India for the purpose of exemptions from payment of Income Tax subject to a maximum of two years from the date of their joining duty;

All charitable and Philanthropic hospitals or Nursing homes situated in places below the Taluk level in all Districts of the State except Bengaluru, Ramanagara and Bengaluru Rural District;

Directors of Companies registered in Karnataka and nominated by the Financing agencies owned or controlled by the State Government or by other statutory bodies;

Combatant and civilian non-combatant members of the Armed Forces who are governed by the Army Act, 1950, the Navy Act, 1957 and the Air Force Act, 1950;

Institutes teaching Kannada or English shorthand or Typewriting;

Person running educational institutions, tutorial colleges and institutions teaching shorthand or Typewriting but excluding professional and technical educational institutions;

Central Para-Military Force (CPMF) Personnel; and

Persons running educational institutions in respect of their branches teaching classes up to twelfth standard or pre-university education.

  • The Rights of Persons with Disabilities Act, 2016
  • The Rights of Persons with Disabilities Rules, 2017

The Government of India, the Ministry of Social Justice and Empowerment, Department of Empowerment of Persons with Disabilities issued the notification number G.S.R. 517(E) dated on 17-Jul-2023

In exercise of the powers conferred by sub-sections (1) and (2) of section 100 of the Rights of Persons with Disabilities Act, 2016, the Central Government hereby makes the following rules further to amend the Rights of Persons with Disabilities Rules, 2017:

These rules may be called the Rights of Persons with Disabilities (Amendment) Rules, 2023.

In the Rights of Persons with Disabilities Rules, 2017, in rule (15), in sub-rule (1), after clause (d), the following clause shall be inserted, namely:-

“(e) guidelines on accessible sports complex and residential facilities for sports persons with disabilities, notified by the Government of India in the Ministry of Youth Affairs and Sports (Department of Sports), vide notification number 7-6/MYAS/MDSD/2021 dated 13th October, 2022, as amended from time to time:”

It shall come into force on the date of their publication in the Official Gazette.

  • The Chhattisgarh Building and Other Construction Workers (Regulation of Employment and Service Conditions) Rules, 2008.
  • The Chhattisgarh Labour Welfare Fund Act, 1982.
  • The Chhattisgarh Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services and Protection of Information) Act, 2018.

The Government of Chhattisgarh issued the notification No. F10-6/2022/16 published on dated on 11-Jul-2023 in exercise of the powers conferred by rule 277 and 279 of the Chhattisgarh Building and Other Construction Workers (Regulation of Employment and Service Conditions) Rules, 2008, under Section 33-A of the Chhattisgarh Labour Welfare Fund Act, 1982 and the Chhattisgarh Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services and Protection of Information) Act, 2018.

In pursuance to the provisions of sections 3 and 4 of the Chhattisgarh Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services and Protection of Information) Act, 2018, the State Government, hereby, notifies the following, namely:-

Worker registrations, various Schemes and plans to be implemented in the future under the Chhattisgarh Building and Other Construction Workers Welfare Board and similarly all scheme conducted under the Chhattisgarh Labour Welfare Board and the Chhattisgarh Unorganized Workers State Social Security Board (Labour Department). 

All the schemes to be implemented in the future involve expenditure incurred from the Consolidated Fund under ‘Building and Other Construction Workers Welfare Cess Act 1996 read with “Chhattisgarh Building and Other Construction Workers Welfare Cess Rules 1998, Labour Welfare Fund of Chhattisgarh & Consolidated Fund of Chhattisgarh.

  • The Employees’ Provident Fund Scheme, 1952

The Ministry of Labour and Employment, Government of India, has conveyed the approval in letter No. INV-11/2/2021-INV 2766 on dated on 24-Jul-2023 for declaring the Rate of Interest under the Employees’ Provident Fund Members Account for the year 2022-23.

The Central Government under para 60(1) of Employees’ Provident Fund Scheme, 1952 conveyed the approval to credit interest @ 8.15% for the year 2022-23 to the account of each member of the EPF Scheme.

The Ministry of Labour and Employment requested to all ACC(HQ)/ACC – Incharge of Zonal Offices and RPFC-Officers-In-Charge, Regional Offices to issue necessary instructions to all concerned for crediting the said interest to the members’ accounts.

  • ESI Act, 1948/ESI Scheme

The Ministry of Labour and Employment, Government of India, has issued the circular      No. P-11014/3/2022-Bft-II dated on 24-Jul-2023 for the clarification regarding correction in Date of Birth of Insured Persons/ Insured Women beyond 03 years or more.

All the Regional/Sub Regional Office of Employees State Insurance Corporation office is continuously receiving letters/representations from various stakeholders and employers across country regarding editing/updation in their employee’s particulars specially correction in Date of Birth. Insured Persons/Insured Women have been facing hardship for correction/updation in his/her particulars including Date of Birth where change varies 3 or more years.

ESI Corporation has implemented Aadhaar on voluntary basis for registration and providing benefits to Insured Persons and beneficiaries under the ESI Scheme.

In this regard, online requests which are being received from Insured Persons relating to correction/updation in their particulars specifically Date Of Birth (varying three years or more) may be accepted as per details in their Aadhaar Card which carries specific date of birth.

Keeping in view, all Regional Directors/ Joint Director, In-charges’ are requested to issue direction to all field offices under their jurisdiction for strict compliance in disposal off all online requests for edit/update of IPs and their family particulars as per this guideline within three days’ time to mitigate the hardship faced by the IPs and their family members.

LABOUR CODES UPDATE 

  • TeamLease HRtech’s Opinion 

There has not been any major movement or discussion towards the implementation of the four Labour Codes due to central election which shall take place in the next year i.e 2024 and number of states are yet to notify these Codes rules while some continue to have some reservations.

The ministry of labour and employment late last fiscal year held a series of discussions with stakeholders including industry representatives and trade union leaders to build consensus on the implementation date, but these efforts did not fructify, wherein certain  Trade unions are  opposed to them and a consensus with them had not been reached 

The status of publication of Draft State Rules , remains unchanged, with the following count of each Labour Codes:

  1. Count of the Draft Wages Rules – 31 States / UT’s 
  1. Count of the Draft Occupational Safety, Health and Working Conditions Rules – 25 States / UT’s
  1. Count of the Draft Industrial Relations Rules – 27 States / UT’s 
  1. Count of the Draft Social Security Rules – 28 States / UT’S

 JUDGMENTS

KARNATAKA HIGH COURT
Hon’ble Mr. Hemant Chandangoudar J.
WP No. 50485/2018 (L-TER) c/w
WP No. 24667/2019 (L-RES),
Dt/– 13-3-2023

Wonderla Karmika Sangha
v.
The Management, M/s Wonderla Holidays Limited and another

Dispute : Transfer of Contractual employees from Bangalore to Hyderabad and Kochi in order to avoid absorption including dismissal and suspension of over 100 out of 160 workers by the contractor

The aggrieved workers raised an industrial dispute which was referred for adjudication by Industrial Tribunal 

  • The decision of transferring, dismissing and suspension of workers by contractor was set aside 

Writ petition was filed by the union representing workers of the contractor, while upholding the award of the Industrial Tribunal in the absence of relationship of employer and employee between the principal employer and the workers of the contractor the writ petition was disposed of. However, the judgment revealed that there has been an order of the District and Session Judge who has held that the principal employer was a necessary party to the dispute but the same has been rejected by the High Court. Paras 4, 5 & 7

INDUSTRIAL DISPUTES ACT, 1947, Section 2A read with section 18(3) impleading of a necessary party in a dispute raised by the trade union. 

Being aggrieved the workers through trade union (petitioner) filed a writ petition challenging the transfers, dismissal and suspension of over 100 workers by the contractor and the principal employer was not made a party to the dispute and the petitioner union insisted that the principal employer made a party to the dispute alleging that on the instigation of the principal employer, the contractor has taken steps to reduce the number of workers, in the absence of relationship of employer and employee between the principal employee and workers of the contractor, the principal employer could not be made a party even though this objection was not taken before the Conciliation Officer.

  • Highlights of the Judgement

In the absence of relationship between principal employer and the workers of the contractor, the transfer, dismissal and suspension of 100 workers by the contractor, the Industrial Tribunal and the High Court upheld the submission of principal employer that it was not a necessary party to the industrial dispute and the writ petition.

Even though the principal employer has not taken the objection before the conciliation officer that it was not a necessary party in the dispute between the workers of the contractor and the contractor for transfer, dismissal and suspension of 100 workers and it will not mean that the principal employer should be made a party before the Industrial Tribunal and the High Court in writ petition

It specifies that, whether any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute. To put it simply, the Industrial dispute refers to a dispute between employer and workman and not with any other person.

Section 18 of the Act deals with the person on whom settlements and awards are binding, and Clause (3)(b) specifies all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, as the case may be, records the opinion that they were so summoned without proper cause.

A reading of section 18(3)(b) of the Act indicates that the Labour Court or the Industrial Tribunal concerned can implead any other person other than the workman or the employer, only if sufficient cause is made out for summoning.

In the instant case, the workmen/Trade Union has impleaded the Principal Employer by stating that the transfer/termination was made at the instigation of the Principal Employer. It is only during course of enquiry, if the Labour Court concerned comes to a conclusion that the Principal Employer is a necessary party to decide the dispute or any matter incidental thereto, can summon the Principal Employer. Hence, at this stage, the Principal Employer is not a necessary or proper party to adjudicate the dispute in question.

It is always open for the Workmen/Trade Union to file an application for impleadment at the appropriate stage. If such an application is filed, the Labour Court/Industrial Tribunal concerned finds that there is sufficient cause for summoning the Principal Employer, can pass appropriate order. Accordingly, I pass the following.

ORDER

(i) W.P. No. 50485/2018 is dismissed.

(ii) W.P. No. 24667/2019 is allowed.

(iii) The impugned orders dated 27.4.2019 passed by the Principal District And Sessions Judge, Ramanagara in I.D. Nos. 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40 and 41/2016 are hereby quashed.

(iv) The impugned order dated 31.10.2018 passed by the Addl. Industrial Tribunal, Bengaluru in AID.No. 11/2014 (Annexure-H) is hereby confirmed in W.P. No. 50485/2018.

“The most important asset of any company is its people.”

——————————————————————————————————

THE CONTRIBUTORS TO THIS EDITION OF THE E-BULLETIN ARE – ANANDAM MARIMUTHU, MAHESH KUMAR, SHANMUGA SUNDARAM (SUBJECT-MATTER EXPERTS), TEAMLEASE SERVICES LIMITED (HR Tech)

Download the newsletter in PDF format

Recent Posts