Safety First – The Importance of Labour Law Audits

Safety First –  The Importance of Labour Law Audits

The Labour law audits are integral  in today’s industrial world,  for the proper functioning of and safety for employees within an establishment in line with the principles laid down by labour laws in India. As labour laws stand today, with several amendments being proposed, the powers of the inspector are yet unregulated and ‘Inspector Raj’ continues to dictate what the CEO of a corporation big or small  should do. For example : failure to inform…

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Attacking a Manager outside office amounts severe misconduct.

Attacking a Manager outside office amounts severe misconduct.

Industrial violence in India has become both common place and rampant in today’s industrial environment. Assaults and acts of industrial violence in India are no longer a rarity. Until recently the newspapers were awash with terrifying instances of senior managers of MNCs being beaten to death, burnt alive in their cars, having their arms chopped off etc. The violence that raged through Maruti’s Manesar plant leaving a General Manager dead and about 100 people beaten…

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Attachment of Gratuity under Gratuity law

Attachment of Gratuity under Gratuity law

Gratuity law in India ensures the protection of gratuity payable to an employee. Section 13 of the Payment of Gratuity Act provides this express protection. It provides that no gratuity payable under the Act shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court. Therefore, even where a court orders attachment of properties of a worker, yet Section 13 expressly prohibits attachment of gratuity amounts payable….

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Is salary payable on a ‘Bandh’ day ?

Is salary payable on a ‘Bandh’ day ?

Despite  the  Supreme Court placing a ban on Bandhs, incidents of Bandhs in India are far too common. The question therefore is; when Bandh is declared by political parties, yet the employees are willing to work or report to work, is the management required to pay them wages if they are not provided with work. During the period of agitation , entire operations are paralysed and work comes to a grinding halt. Under such circumstances,…

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Is employer bound to give preference or provide employment to apprentice after their apprenticeship?

Is employer bound to give preference or provide employment to apprentice after  their apprenticeship?

No, as per labour laws in India, an employer is not required to give preference or bound to provide employment to apprentice after he completes his apprenticeship. Apprentices are covered under Indian employment laws. An apprentice is appointed in an establishment under the Apprentices Act 1961. Section 22 of the Apprentices Act of 1961 states that – (1) It shall not be obligatory on the part of the employer to offer employment to an apprentice…

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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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Will the Employee State Insurance Act continue to be applicable, if number of employees fall below requisite number mandated by the law?

Will the Employee State Insurance Act continue to be applicable, if number of employees fall below requisite number mandated by the law?

Section 1(6) of ESI Act has specific provision regarding number of persons falling below the limit specified under this Act. The provision reads as under- “A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the…

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Haryana Government Passes Labour Reform Bills.

Haryana Government Passes Labour Reform Bills.

On 30th March  the Haryana Assembly passed several labour reform Bills amending the Industrial Disputes Act, 1947, the Contract Labour ( Prevention and Abolition) Act,1970 Factories Act 1948, and the Payment of Wages Act 1936, moved by the Labour and Employment Minister, in the ongoing budget session. With the intention to “facilitate Industry”, the amendment to the Industrial Disputes Act will allow industrial units with up to 300 workers to shut down and lay off…

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As per employment laws in India what are the compliances under ESI Act 1948?

As per employment laws in India what are the compliances under ESI Act 1948?

It is imperative that thorough compliance of all applicable Indian employment laws be carried out by every employer to avoid prosecution or Industrial relations problems. An employer, under the Employees Provident fund Act, 1952 has to ensure compliance with the following requirements – Form 01 and 01A, under Regulation 10B(a) of The Employee’s State Insurance (General) Regulations, 1950 – A declaration of registration to be submitted in writing by the employer to the Regional Office,…

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