$ 5.7 Million Class Action Settlement for IT Giant Cognizant

$ 5.7 Million Class Action Settlement for IT Giant Cognizant

Debi Mishra, an Employee of Cognizant working in California had filed a lawsuit on 25th August 2017, Debi Mishra v. Cognizant Technology Solutions U.S. Corporation before the United States District Court Eastern District of California alleging that Cognizant had underpaid its employees against overtime. According to the employees, they were a part of the quality engineering & assurance (QE&A) team. In 2012, the employees of the team received Letters from Cognizant stating that they would…

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Whether ‘SPECIAL ALLOWANCES’ are a part of Basic Wages?

Whether ‘SPECIAL ALLOWANCES’ are a part of Basic Wages?

…An Insight For the better part of the last decade, the question that was there amongst both Labour Law practitioners and the Central Government Industrial Tribunals all around this Country was based on the specific question of law as to whether ‘allowances’ bearing different nomenclature, paid by any establishment to its employees would necessarily fall within the definition of ‘basic wages’ as provided u/s 2 (b) (ii) r/w sec 6 of the Employees’ Provident Fund…

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Impleading of Immediate employers (Contractors) in proceedings under section 45A of Employees’ State Insurance Act, 1948. (“ESI Act”)

Impleading of Immediate employers (Contractors) in proceedings under section 45A of Employees’ State Insurance Act, 1948. (“ESI Act”)

In today’s competitive world employers engaging services of contractors is very common. However, ESIC acts as recovery agents in sending the employers notice u/s 45A of the ESI Act to recover the ESI contributions. ESIC targets outsourcing of service and attempts to recover the ESI Contributions from the principal employer without impleading contractors as a party. Many a times, ESIC contributions are paid by the principal employer, but the record may not be available with…

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Is bonus payable on suspension allowance?

Is bonus payable on suspension allowance?

Under Indian Labour laws, suspension allowance is paid during pendency of inquiry when an employee has been suspended. The suspension allowance/subsistence allowance is a payment made out of a  statutory obligation. The payment is made to enable the employee to meet his subsistence requirements. Therefore subsistence allowance will not attract Bonus, as per labour law in India. In Motor Industries Company Limited V/s Popat Muralidhar Patil, the Hon’ble Bombay High Court held that subsistence allowance…

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Can new units promoted by existing companies, be required to pay bonus ?

Can new units promoted by existing companies, be required to pay bonus ?

The question herein is whether new units started by an existing Company can claim benefit of exemption from payment of Bonus. And whether the workers working in the new units are entitled to bonus as per the Balance-sheet which is common to both the units. The new unit started by an existing Company can avail of the benefit of exemption available to new units under Sec.16 of the Payment of Bonus Act. This makes an…

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As per employment law in India, what is the time limit for payment of Bonus?

As per employment law in India, what is the time limit for payment of Bonus?

As per employment law in India, the time limit for payment of Bonus is fixed under the Payment of Bonus Act, 1965 Section 19 of the Payment of Bonus Act, 1965 states as follows – ‘All amounts payable to an employee by way of Bonus under this Act shall be paid in cash by his employer – (a) Where there is a dispute regarding payment of bonus pending before any authority under Sec.22, within a…

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