Labour Audit PDF

Monthly • Volume XXXVIX • Page 1-74 • No.
05 • May, 2020
Labour Laws
Compliances and Audit NIRC - ICSI Newsletter | May 2020 | 1
Contents
Chairman
The Regional Council
CS Suresh Pandey
Inside :
Vice-Chairman CS Vimal kumar Gupta
Secretary cs susshil daga
Treasurer CS Devender Suhag - From the Chairman, NIRC
Members CS Amit Gupta
(in alphabetical order) CS Bhupesh Gupta
CS Himanshu Harbola
CS Gurvinder Singh Sarin - Glimpses
CS Monika Kohli
CS Saurabh Kalia
CS Surya Kant Gupta
- Recent Initiatives by NIRC
CS Vinay Shukla
Ex-officio Members CS Hitender Mehta
CS Manish Gupta
CS NPS Chawla - Articles on Labour Laws
CS Ranjeet Pandey
CS Vineet K. Chaudhary
Compliances and Audit
Regional Director CS Sonia Baijal
- Recent Initiatives by Chapters

of NIRC-ICSI
- CSBF
NIRC-ICSI Newsletter
NIRC-ICSI Newsletter is generally published every
month.
Articles on subjects of interest to Company
Secretaries are welcome.
Views expressed by contributors are their own and
the NIRC-ICSI does not accept any responsibility.
The NIRC-ICSI is not in any way responsible for
the result of any action taken on the basis of the
Published by :
advertisements published in the Newsletter.
CS Sonia Baijal, Regional Director for and on behalf of Northern India
Regional Council of the Institute of Company Secretaries of India, All rights reserved.
4, Prasad Nagar Institutional Area, New Delhi-110005; E-mail: niro@
icsi.edu; Phones: 49343000; Published at: NIRC-ICSI, 4, Prasad Nagar No part of this newsletter may be reproduced
instl. Area, New Delhi. or copied in any form by any means without the
written permission of the NIRC-ICSI.
© The Northern India Regional Council of the Institute of Company The write-ups of this issue are also available on the
Secretaries of India
website of the NIRC-ICSI.
2 | NIRC - ICSI Newsletter | May 2020

From the Chairman
“Seeds of faith are always within us; sometimes it takes a

crisis to nourish and encourage their growth.”
- Susan L. Taylor
Dear Professional Companions, Noteworthy initiatives have been taken by our team that
have served in the welfare of our stakeholders and in
With rapid recognition of growing pandemic of COVID-19,
winning their trust and co-operation.
the integrated and timely approach of Indian Government
to encourage social distancing has continued to benefit I am really pleased to inform that one of our initiatives of
the country. The countrymen tirelessly engaged in serving the Master Classes on important topics like Independent
during these hard times deserve to be thanked. Directors, Labour laws, Security laws, FEMA etc. has proven
to be engaging and helping large number of members
With the ease and comfort that this home-stay comes
attending on daily basis for enhancement of their skills
up with, there arises a need to seek out and embrace the
and knowledge.
unfamiliar lifestyle in this sedentary state. It is therefore
necessary for all of us to stay motivated to be able to adapt Friends, this time the NIRC of ICSI is presenting the monthly
to new ways of living to achieve our personal, professional newsletter on the theme of- “Labour Laws Compliances
and societal goals. and Audit”, one of the most captivating topics in business
world, that has helped in establishing beneficial working
Where on one hand, sociality and physical contact are
environment for the entire workforce of our country and
absent; our Institute has been able to continue walking
contributed in their betterment.
on the path towards and into the hearts of our various
stakeholders. We should treat workers as assets of an organisation
because they impact on its future results. Safeguarding
I pay my sincere thanks to the entire NIRC Team of all
these assets therefore casts upon employers a big
Regional Council Members, Chapter Chairpersons,
responsibility to take care of their workers’ needs and
Managing Committee Members of Chapters and Officials
acknowledge their contribution in the organisation. It is
of Northern Region for playing a key role in an electronic
with this intent to guide and assist the employers in how
ambit of sharing, participating and keeping in touch with
to keep workers happy, the concept of Labour Laws was
the stakeholders to fulfil their requirements which are also
brought up many years ago.
our own top-most priorities.
NIRC - ICSI Newsletter | May 2020 | 3

From the Chairman
“Happy Labour does the endeavour!” Minister of State for Labour and Employment (Independent
Charge) Shri Santosh Kumar Gangwar Ji addressed our
Labour Law is a social security mechanism originating from
members in the 4 Days Online Master Class on Labour Laws
Union as well as Concurrent List under Indian Constitution,
organised by NIRC of ICSI and encouraged our members.
containing both Central and State legislations like
This indeed on one hand is a moment of proud for all of
Factories Act 1948, Industrial Disputes Act 1947, Child
us as the member of this prestigious institution and on
Labour (Prohibition And Regulation) Act 1986, Employees
the other hand there is huge responsibility on all of us to
Compensation Act 1923, Maternity Benefit Act 1961,
ensure and encourage the compliance of labour laws in
Wages Code 2019, etc. These well intentioned labour laws
the organisations we are associated with.
broadly provide the provisions related to minimum wages,
work insurance, standing orders, resolution of disputes Friends, during this continuing pandemic situation when
between workmen and employers and workmen inter-se, the whole world is experiencing a sharp deterioration
recognition to collective bargaining like trade unions and in economic performance and the situation is adversely
many more. The objectives of these laws are to protect affecting almost everyone, we need to stand united with
the rights and interests of employees, avoidance of their our young members. Looking at the existing situation,
exploitation and seek overall industrial peace and amity. Northern Region has announced its first online campus
placement and I urge our senior members and mentors
Understanding the letter of Labour Laws and working in its
to guide, inspire and encourage our young members in
true spirit command an organisation to not only engage
order to enable them to start their professional journey. I
in statutory compliances like filing returns, maintaining
also appeal the senior members to spread the word about
statutory deposits and records but also acknowledging
the online campus placement which provides an excellent
the contribution of workers and awarding them with
opportunity to, both the organization as well as for the
timely wages, incentives and other facilities for their living
member, to meet and explore the possibility of fulfilling
and personal growth and to provide them protection in
each other’s requirement.
working environment against harmful effects to their
health, safety and morality. Hope you have a joyful journey reading this newsletter
that will enhance your knowledge!
I believe, exploring the ambit of labour laws, we, the
Company Secretaries having command over legal, I look forward to your valuable suggestions and feedback.
interpretational, managing and executable skills of law, are Feel free to interact with me at chairman.nirc@icsi.edu.
blessed with opportunities to provide the organisations
Wishing all of you a good health! Stay Safe, Stay Healthy,
their whole-hearted support and cooperation in obeying
and take care.
the labour laws for upliftment of workers’ interests and
achievement of organisational goals. With warm regards
I feel Labour laws have opened many doors for Company

Secretaries in rendering wide range of services like
advisory, drafting, supervisory etc. A Practising Companies
CS Suresh Pandey
Secretary can also possibly remark his presence in
Chairman-NIRC of ICSI
conducting Labour Laws Audit and help an organisation to
Chairman.nirc@icsi.edu
avoid rigorous penal actions and embrace good corporate
Mob. +91 9968300649
governance that will support in creating a “corporate in
compliance” environment in the country.
I also feel honoured to share with all of you that our Hon'ble

NIRC-ICSI 1st online Campus Placement
Dear Professional Colleagues,
Kind Attention – Job Recruiters! – An appeal to support young members and fresher CS
Sub: NIRC-ICSI 1st Online Campus Placement
Greetings and Best Wishes from NIRC of ICSI !!
We are pleased to inform you that Northern India Regional Council (NIRC) of the Institute of
Company Secretaries of India (ICSI) is organizing NIRC-ICSI 1st Online Campus Placement for
members in June, 2020 through Weblink.
The Online Campus Placement for members is a unique initiative of NIRC which provides an
excellent opportunity to, both the organization as well as for the member, to meet and explore
the possibility of fulfilling each other’s requirement while sitting at home.
As you may kindly be aware that a CS Professional can support in Secretarial Department,
Finance Department, Legal Department, HR Department, Excise Department, Commercial
Department, Purchase Department, Admin Department, Secretarial Firm, Law Firm or any other
work related to Company Secretary. We request you to use your good office to support young
members and fresher CS by creating new employment opportunities for them.
We wish to inform that after receiving the information of Vacancy in your esteemed organization
though the below link, we will share the details of CS members interested in your organization.
Further, we will share the link to your office for conducting of online interviews with the
candidates. There is no fee for participation in the said Online Campus Placement.
https://forms.gle/LQvxmRw9Uycu1fbP9
We look forward for your support to young CS members.
Regards,
CS Suresh Pandey
Chairman
NIRC-ICSI
Mob.9968300649

Glimpses
4 Days Online Master Classes on Labour Laws from 4th May, 2020 to 7th May, 2020
Shri Santosh Kumar Gangwar, Hon'ble Minister of State for Labour and Employment (Independent Charge) addressing the participants on 6th May, 2020.
Address by CS Ashish Garg, President, ICSI Address by CS Suresh Pandey, Chairman, NIRC
Screen View of session on 6th May, 2020: CS Ashish Garg, CS Suresh Pandey, Shri Santosh Kumar Gangwar, NIRC, Shri Anil Bhat, Advocate,
LEX n CRAFT, CS Sonia Baijal, Regional Director, Northern Region-ICSI and CS Vimal Gupta, Vice Chairman, NIRC.

Glimpses
WEBINAR ON TRANSFORMING CHALLENGES INTO OPPROTUNITIES ON 16TH MAY, 2020
Shri Amogh Lila Prabhu, Vice President, ISKON Temple, Dwarka addressing the participants.
Address by CS Ashish Garg Address by CS Nagendra D. Rao, Vice Address by CS Suresh Pandey
President, ICSI
Screen View: CS Suresh Pandey, CS Ashish Garg, CS Nagendra D. Rao and Shri Amogh Lila Prabhu.

Glimpses
ICSI-IICA Joint online Master Class on Board Effectiveness & Independent

Director Databank on 18th April, 2020
Dr. Niraj Gupta, Head – School of Corporate Governance & Public Policy and Nodal Officer - IICA–MCA ID Databank, CS Suresh Pandey,
alongwith Mr. Anil Sharma, Former Independent Director, UCO Bank addressing the participants.
Online Master Class on “Different Dynamics Of Fund Raising, An In-Depth

Analysis…” on 23rd April 2020
CS Harsih Kumar, Partner, L & L Partners addressing the participants. Also seen CS Suresh Pandey.

Glimpses
4 DAYS ONLINE MASTER CLASS ON FEMA FROM 25TH APRIL, 2020 TO 28TH APRIL, 2020
CS Atul Mittal, Former Council Member, ICSI & Past Chairman, NIRC- Also seen CS Suresh Pandey, G S Sarin, Immediate Past Chairman,
ICSI and Partner-Deloitte Haskins & Sells addressing the participants. NIRC and CS Himanshu Harbola, Regional Council Member, NIRC-ICSI
Glimpses of Meeting of Regional Council held on 27th april, 2020 through

video conference

Glimpses
4 Days Online Master Classes on Labour Laws from 4th May, 2020 to 7th May, 2020
Day 1 : 4.05.2020
Shri Anupam Malik, Former Additional Labour Commissioner, Labour Department, Government of Haryana addressing the participants. Also
seen CS G S Sarin and CS Suresh Pandey.
Day 2 : 5.05.2020
Ms. Raavi Birbal, Advocate, Supreme Court of India addressing the participants. Also seen CS Suresh Pandey and CS Devender Suhag, Treasurer,
NIRC-ICSI.
Day 3 : 6.05.2020
Shri Anil Bhat, Advocate, LEX n CRAFT addressing the participants. View of Q&A session.
DAY 4 : 7.05.2020
Shri T K A Padmanabhan Advocate and Founder Attorney, Padmanabhan Associates addressing the participants. Also seen CS Susshil Daga,
Secretary, NIRC and CS Suresh Pandey.

Glimpses
4 DAYS ONLINE MASTER CLASSES ON SECURITIES LAWS FROM 11TH MAY, 2020 TO 14TH MAY, 2020
DAY 1 : 11.05.2020
Mr. Prashant Saran, Former Whole Time Member, SEBI And Mr. J N Gupta, Former Executive Director, SEBI & Founder and Managing Director of
Stakeholders Empowerment Services addressing the participants. Also seen CS Suresh Pandey and CS Himanshu Harbola.
DAY 2 : 12.05.2020
Mr. Khushro Bulsara, Chief General Manager - Listing Compliance, BSE, CS Ashok Singh, Assistant General Manager, BSE and Mr. Abhijit Pai,
Deputy General Manager, BSE addressing the participants. Also seen CS Suresh Pandey.
DAY 3 :13.05.2020
Mr. Somasekhar Sundaresan and Mr.Abishek Venkataraman, Legal Counsels addressing the participants. Also seen CS Suresh Pandey.
DAY 4 : 14.05.2020
CS Vinod Kothari, Director, Vinod Kothari Consultants addressing the participants. Also seen CS G S Sarin and CS Suresh Pandey.

Glimpses
WEBINAR ON IMPACT OF ECONOMIC RELIEF PACKAGE AND ATMA-NIRBHAR BHARAT
ABHIYAN (SELF-RELIANT INDIA MISSION) ON 19TH MAY, 2020
Shri Gopal Krishna Agarwal, National Spokesperson, Bharatiya Janata Party (Economic Affairs) addressing the participants.
Screen View: CS Nitin Hotchandani, Chairperson, Jaipur Chapter of ICSI-NIRC, CS Amit Gupta, Regional Council Member, NIRC, Shri Gopal
Krishna Agarwal and CS Suresh Pandey.

Glimpses
Glimpses of Crash Course in Tax Laws for Exective and Professional Programme Students

Feedback
Feedback received from Members on Master Classes organized by NIRC-ICSI
Dear Sir, Dear Sir,
today webinar on master class on labour Greetings of the Day!!! Dear Mr. Suresh,
laws was very excellent. so please try to I'm really thankful to whole NIRC team Thanks for organizing a very well master class
arrange more session like this on gst. for conducting webinar on this topic. It on labour laws. The choice of faculty is excellent.
Thank you and kind regards, will really helpful for the members like
The presence of a central minister added further
me in managing day to day compliance
issues pertaining to Labour Laws. to happenings.
Dear Sir, I also request NIRC to conduct a Master The way you address is also excellent. All the best
I really want to say that it's a great n Series like this on the matter of "Drafting to you for the future. Next series of webinars
happy to be a part of the master class of and Negotiating of Commercial could be on MSMEs.
fema and now on labour law. Contracts" as Company Secretaries who With best wishes.
are in whole time employment are very
Speaker are soo rich in their field and it's much expected to have expertise on
a great to be a part of learning. Contract Management issues. Dear Sir,
Thanks to you sir for this intiative. Thank you so much again for taking such I am very thankful to ICSI and specially you for
I want to say that institute also have to a nice knowledge enhancement initiative organised master class on labour law.
do some other master class on other for members. These kind of webinar are valuable for members
feild of RERA, IBBI and NCLT. Thanks and Regards
of ICSI.
Again thanks for this master class It request you that please organise webinar on
Dear Mr. Pandey,
Security Law.
At the outset, I would like to
congratulate you and your team on
Dear Chairman, the excellent work done during the Respected Suresh Sir,
thanks a lot for initiating such a good lockdown. I am very thankful on the great initiative on
webinars which apart from keeping us I have been a part of the labour law 4 days masterclass on FEMA undertaken by
motivated, increasing our knowledge master class for the past three days and NIRC of ICSI under the leadership of respected
could not help but give my feedback on
thanks a lot the excellent quality of the speakers. chairman of NIRC i.e. Shri Suresh Pandey sir.
The session by Mr Anil Bhat was par The masterclass conducted under the guidance
excellence and highly informative and of Shri Atul Mittal sir is very lucrative and
Dear Chairman Sir, engaging. knowledgeable.
and The whole team of NIRC I, congratulate you and your team once It was very rightly said by respected chairman
GREETINGS OF THE DAY again.
of NIRC during the initiation of Day 2 of
Sir, this is a very good initiative taken by I am actually proud that we the
masterclass on FEMA that lock down may stop
NIRC to conduct the webinar instead of members of the Northern region have
such an effeicient Regional team. movement of people from one place to another
a physical seminar.
Keep up the good work. but it cannot stop sharing of knowledge.
This is a very cheapest way to learning
Congratulations again and please arrange to
the new thing. And also convenient to
Dear Sir, provide these kind of masterclass after completion
us.
Thank you for such a great seminar and of FEMA
Sir all the webinar and faculty of the
faculty of master class on topic fema.
same was too good. I really appreciate the efforts of nirc for
Sir I request you to please keep going on Sir,
organising such an event.
this way my support is always with you. Kindly organise more seminars on topics thank u for wonderful session on labour law.
Thanks and Regards like IBC and gst.
Dear Sir, इस वैश्विक बीमारी कोरोना के कारण संपूर्ण विश्व एक नकारात्मक विचार से जुझ रहा है , लेकिन इस नकारात्मक
माहौल में भी ICSI सकारात्मक पहल करते हुवे तरह तरह के webinar ले कर आरहा हैं ।
I really appreciate that NIRC is
conducting this online Master class on इसी क्रम में अब NIRC भी आपके नेततृ ्व में अपने सदस्यों के PCH पूरे करवाने का बीड़ा उठा चुका है , 26 अप्रैल
से पहले जब भी master class का नाम आता था तो मन में पीड़ा होती थी क्योंकि NIRC से 250 KM दरु बैठ कर 4
FEMA, as it will certainly help members
दिन की CLASS लेना काफी मुश्किल होता था , ऐसे में सुदरू शहरो ओर गांवो मैं बैठे सदस्यों के लिए अपने PCH
looking to expand their domain in
पूरे करना एक बड़ी चुनौती होती थी ।
FEMA.
लेकिन आपके प्रयास से ये सफल हो पाया हैं , मेरे पास आपके ओर NIRC Council के इन प्रयासों की प्रशंसा के
The faculty opted for this theme is also
लिए शब्द कम पड़ रहे हैं , इस covid 19 के बाद भी मैं आपसे निवेदन करूँगा की ऐसे online classes हमेशा चालु
very apt and the allocation of good
रखे और इन class के लिए NIRC के दरु ु स्त सदस्यों के लिए ही रखे ताकि हमे हमारे PCH पुरा करने और अपने
duration of time to these classes also Konwledge को update रखने में सहायता मिलती रहे ।
allows to deep dive into topics.
साथ ही इस दिशा में आपके प्रथम ओर सफल प्रयास की मैं सराहना करता हूं ।
Introduction of these programmes at a
साथ ही आपके द्वारा NIRC Research Paper writing के बारे में भी आपके प्रयास की सराहना करता हूं , इसका भी
bigger level enabling participation of
रिजल्ट आप जल्दी announce करें गे ऐसी मे आशा करता हुं ।
more members willing to attend, shall
आगे भी आप ऐसे प्रयास जारी रखे और जब भी कोई PCH प्रोग्राम की घोषणा करें तो अवश्य विचार करे कि दरू स्थ
be highly appreciated.
स्थानों पर बैठें आपके सदस्य तक ये pch कैसे पहुँचे जिसका साधन हमे इस covid 19 ने दे दिया हैं ।
Thankyou
आगे भी यूँ ही आपके सहयोग मिलने की आशा के साथ ।

Recent Initiatives
Recent Initiatives taken by NIRC

RECENT INITIATIVES TAKEN BY NIRC was attended by members across the country, although
Dear Friends, being Northern Region, PCH could not be granted to
members who joined from other Regions. As a good
I am pleased to enlist the recent initiatives for your kind gesture, NIRC refunded the participation fees received
information and ready reference:- from members of other Region.
JOINT ONLINE MASTER CLASS OF ICSI-NIRC-IICA 4 DAYS ONLINE MASTER CLASSES ON LABOUR LAWS
A Joint Online Master Class of ICSI-NIRC with the Indian (5th Edition, Year 2020)
Institute of Corporate Affairs (IICA) was organized on 4 Days Online Master Class on Labour Laws was organized
18th April, 2020 on the topic Board Effectiveness & by ICSI-NIRC from 4th May, 2020 to 7th May, 2020. Shri
Independent Director Databank. Dr. Niraj Gupta, Head – Santosh Kumar Gangwar, Hon'ble Minister of State for
School of Corporate Governance & Public Policy and Nodal Labour and Employment (Independent Charge) was the
Officer - IICA–MCA ID Databank & Mr. Anil Sharma, Former Chief Guest of the Master Class. He addressed around
Independent Director, UCO Bank were the Guest Speakers 3000 members including participants from out of India
on the occasion. on 6th May, 2020. CS Ashish Garg, President, ICSI and CS
ONLINE MASTER CLASS ON DIFFERENT DYNAMICS Suresh Pandey addressed during the session. Shri Anupam
OF FUND RAISING Malik, Former Additional Labour Commissioner, Labour
Department, Government of Haryana, Ms. Raavi Birbal,
A Master Class of ICSI-NIRC was organized on the
Advocate Supreme Court of India, Shri Anil Bhat, Advocate
topic Different Dynamics of Fund Raising, An In-Depth
LEX n CRAFT and Shri T K A Padmanabhan, Advocate and
Analysis…. on 23rd April, 2020. CS Harsih Kumar, Partner,
Founder Attorney, Padmanabhan Associates were the
L&L Partners was the Guest Speaker on the occasion.
Guest Speakers at Master Class. The Program witnessed
ICSI-NIRC AS ASSOCIATE PARTNER IN WEBINAR rich deliberations and extensive exchange of thoughts.
ORGANIZED BY PHD CHAMBER OF COMMERCE AND The participants were given opportunity to raise their
INDUSTRY queries and the eminent speakers tried to resolve the
A Webinar was organized by Indirect Taxes Committee maximum queries in the given time slot. The Master Class
of PHD Chamber of Commerce and Industry on the topic was well appreciated by the participants.
‘Analyses & Issues in Place of Supply and Exports & Import 4 DAYS ONLINE MASTER CLASSES ON SECURITIES
of Goods & Services and Some Important Issues’ on 24th LAWS (6th Edition, Year 2020)
April, 2020. Your Institute (Northern Region) was Associate
4 Days Online Master Class on Securities Laws was
Partner in the webinar. Chairman, NIRC addressed on the
organized by ICSI-NIRC from 11th May, 2020 to 14th
webinar.
May, 2020. Mr. Prashant Saran, Former Whole Time
4 DAYS ONLINE MASTER CLASS ON FEMA (4th Member, SEBI, Mr. J N Gupta, Former Executive Director,
Edition, Year 2020) SEBI & Founder and Managing Director of Stakeholders
4 Days Online Master Class on FEMA was organized by Empowerment Services, Mr. Khushro Bulsara, Chief General
ICSI-NIRC from 25th April, 2020 to 28th April, 2020. CS Manager - Listing Compliance, BSE, CS Ashok Singh,
Atul Mittal, Former Council Member, ICSI & Past Chairman, Assistant General Manager, BSE, Mr. Abhijit Pai, Deputy
NIRC-ICSI and Partner-Deloitte Haskins & Sells was Guest General Manager, BSE, Mr. Somasekhar Sundaresan, Legal
Speaker. He covered the topics which includes Foreign Counsel, Mr. Abishek Venkataraman, Legal Counsel and CS
Direct Investments & Overseas Direct Investments, Vinod Kothari, Director, Vinod Kothari Consultants were
External Commercial Borrowings (ECB) & Imports, Export the Guest Speakers at Master Class. The Master Class was
& Liberalised Remittance Scheme (LRS), Compounding attended by around 2000 members. The Master Class
under FEMA & Late Submission Fees, etc.. The Master Class extensively covered the Overview of Capital Markets and

Recent Initiatives
its Governance, SEBI Listing Obligations and Disclosure The Chairpersons from the Region, shared their ideas/
Requirements Regulations, SEBI Prohibition of Insider grievances and also informed about the various activities
Trading Regulations & SEBI Takeover Regulations. undergoing in their jurisdiction.
WEBINAR ON IMPACT OF ECONOMIC RELIEF PACKAGE ONLINE CRASH COURSE FOR PROFESSIONAL
AND ATMA-NIRBHAR BHARAT ABHIYAN (SELF- PROGRAMME STUDENTS
RELIANT INDIA MISSION) With a view to support students of Professional Programme
Webinar on Impact of Economic Relief Package and Atma- for ensuing CS Examinations, NIRC has organized online
Nirbhar Bharat Abhiyan (Self-Reliant India Mission) was Crash Course for Professional Programme students. The
organized by ICSI-NIRC on 19th May, 2020. Shri Gopal feedback is covered elsewhere in this issue.
Krishna Agarwal, National Spokesperson, Bharatiya
ONLINE CLASSES ON DAILY BASIS
Janata Party (Economic Affairs) was the Guest Speaker on
the occasion. The webinar was attended by around 400 Despite the lockdown there is no stoppage in arranging
members. Many questions were ably responded by the the OTC Classes for the students registered for coaching at
learned speaker. NIRC. To cover the syllabus of students, we are continuously
organizing the Online Classes for the registered students
UPDATION OF PROGRAM CREDIT HOURS (PCH) of OTC at NIRC for Foundation & Executive Programme.
The purpose of organizing back to back Master Classes/
NIRC-ICSI 1ST ONLINE CAMPUS PLACEMENT
Webinars by NIRC-ICSI is Professional Development of
members, knowledge enhancement and providing an We have initiated the 1st Online Campus Placement for
opportunity for the completion of mandatory credit hours members in June, 2020 through Weblink. The Online
for the block year ending March 31, 2020 (extended upto Campus Placement for members is a unique initiative of
30/06/2020). We have tried to continuously updating the NIRC which provides an excellent opportunity to, both
program credit hours of the members who had attended the organization as well as for the member, to meet and
the programs organized by NIRC-ICSI. We are pleased to explore the possibility of fulfilling each other’s requirement
share that as on date, PCH of all the Programs organized while sitting at home. The main purpose of Online Campus
by NIRC of ICSI are updated. For any query/issue relating Placement is to make sure that the members should get to
to PCH related to NIRC programmes in your account, know the job opportunities available. An appeal is made
please write to arun.rawat@icsi.edu. For updation of PCH to Job Recruiters to support our young members in this
of Programs organized by HO, please mark your queries to hour of need.
Dte. Of Professional Development, ICSI at dheeraj.gupta@ Friends, let me assure you that your feedback and
icsi.edu . participation is always welcome and is truly valued, as it
MEETING OF REGIONAL COUNCIL OF NIRC-ICSI is only your feedback that will help us to improve further
and emerge as ICSI brand. I look forward for your valuable
The 246th meeting of the Regional Council of NIRC-ICSI
suggestions and feedback. Feel free to interact with me at
held on Monday, the 27th April, 2020, at 03.00 pm through
chairman.nirc@icsi.edu
online mode using video conferencing. The Regional
Council discussed on various Representations which Looking forward for your invaluable support.
needs to be placed before the competent authorities,
administrative and issues relating to Professional I am just a phone call away!
Development of members.
MEETING WITH CHAPTER CHAIRPERSON OF NIRC-ICSI Yours own,

A meeting of Chairman, NIRC with Chapter Chairperson CS Suresh Pandey
of NIRC-ICSI held on 3rd May, 2020 through video Chairman-NIRC of ICSI
conferencing to understand and appreciate their issues Chairman.nirc@icsi.edu
and challenges, particularly during Pandemic situation. Mob. - +91 9968300649

Article
ARTICLES on Theme
Labour Laws
Compliances
and Audit

Article
Corona Virus vs. Economic

Crisis : Systematized
Employment Laws Raavi Birbal, Advocate
raavibirbal@gmail.com
Pertinent principles concerning

downsizing, realigning, terminations,
pay cuts and similar issues are :
Under the Indian labour laws, pre-dominant nature of duties
determines category of employee as to whether he is a "workman"
as defined under Section 2(s) of Industrial Disputes Act, 1947
(ID Act) or not. Under the provisions of ID Act one gets several
protections inter alia pertaining to his termination. "Non-workman"
category of employees are those whose ending of contract and
other similar issues are not covered by ID Act. "Workman" level
employees are the ones doing technical, mechanical, clerical,
skilled, unskilled and similar stereotyped etc. nature of work. For
Latest vexed question posed in today’s economic scenario is which reduction in pay or any other change in employment conditions
one is more fearful : risk of Corona virus or living in economic crisis ? of workman level employee, Section 9 -A of ID Act gets attracted
Response may not be Corona for everyone and all times Nor do many which inter alia requires issuance of notice to workers / union. To
have privilege of work from home. Adopting Buddha's middle path avoid cumbersome procedures companies may even resort to
in framing of laws as well as Chankayas’s theory of better circulation entering into a bipartite or tripartite settlement under Section 12
of capital as blood circulation in body is need of the hour for saving and / or 18 of ID Act with the workers. This will avoid litigations to
depleting economy . a very large extent. Management may convince employees about
Employee costs, salaries, statutory and other fringe benefits constitute difficult situations. While in normal course workers / union are
a large part employer's expenditure. Organizations have been juggling hesitant and become militant upon such requests, however, during
between various plan of actions inter alia job / pay cuts, employee pandemic they too are conscious of circumstances. Counselling
optimizations, re-aligments etc. Indian economy has several kinds of about lengthy, costly litigations with ultimately no benefit, non
organizations ranging like multinationals, continentals, blue chips, availability of jobs may aide in persuading. They may also be made
conglomerate, government, PSUs, large/ medium/ small scales, conscious of the fact that some of the state governments are
manufacturing factories, shops, establishments, construction hospitals, already pondering upon liberalizing labour laws and inflexibility
universities, constituted by Act of parliament, intergovernmental, etc. may lead them to a bigger loss. It may be mentioned wages cannot
etc. List is limitless. It also has varied kinds of employees /engagement be reduced less than minimum wages. Companies having no
such as workman, non workman, casual, daily wagers, temporary, effect of pandemic or lesser affect or facing just a temporary phase
contract labour, outsourced, fixed term, blue, pink, white, gold collars, may not resort to bold strategies of pay cuts and/ or employee
government servants, consultants etc. Once size does not fit. There is reductions. Else rather than cost saving, it may result into expensive
no straitjacket formulae or strategy that may be applied to all situations litigations thereby adding to far more expenditure, disharmony/
and entities uniformly. discord by workers thereby deteriorating businesses apart from
loosing trained work force. Sometimes taking mis-advantage such
In a situation of pandemic coupled with boundless population, there situations lead to interference by greedy unions in the long run
needs to be harmonious applicability of various enactments vis a vis leading to extortionists costs. One middle path solution is if need is
labour/ employment, taxation, tariffs etc by legislature, executive and quite urgent, less amount be reduced
courts. At the same time appropriate knowledge as well as steps by
companies and employees may save both from expensive litigations, Where pay cuts is not the solution and work has come to a severely
confer frugal solutions with long term stable structures apart from long term halt/scatting reduction/ almost nil, managements
avoiding well known inspector raj. generally ponder upon possibilities of retrenchment of some
workers. If issue persists then even closure of units/ departments/
Lord Krishna said there should be harmony by all. In companies where branches may also have to be resorted to by the managements.
there are severe losses mutual agreements between employers and Though this is done in rarest of rare cases, where there is no
employees could be an appropriate solution for the current pandemic. option is left. Some even try to lay off workers for a brief while
Rigidity by any party may lead to colossal losses either at an individual before resorting to retrenchment or closure. Industry laying off
level for the employee or for the entity as a whole. is required to pay compensation equivalent to 50 % of the wages
*The views expressed are personal views of the author and it should not be taken as views of the NIRC-ICSI.

Article
for stipulated time period. Retrenchment and closure compliance cases situation is not that simple especially where several workers
includes fifteen days wages for each completed year of service are engaged through this mode. These terminations can result in
apart from notice pay as well as intimation / permission from costly litigation for years together. Therefore for this category also
Government. Amount of notice pay (one month or three months) schemes are framed for easy terminations/ parting ways, inter alia
for retrenchment / closure and intimation or permission from considering abovesaid factors.
government incase of lay off/ retrenchment/ closure depends on
number of employees as well as kind of organization. Principle of Another category of employees are the contractual /fixed term.
last come first go is to be followed i. e. junior most workman to be Often terms contractual and contract labour are confused. Contract
retrenched first and senior most last. labour are the ones employed through third party. Whereas
contractual/ fixed term are ones employed for fixed duration
Mass terminations can result in exorbitant and lengthy litigations. or project ortime period. This is a peculiar kind of employment
Therefore, actions should be taken only after considering various wherein retrenchment compliance is not required even in the case
factors such as : number of on-roll / of-roll (contract labour / of "workman" level employee. These employees can be terminated
outsourced), causal, temporary, fixed term employees, years of as soon as the contract ends or even before of the contractual terms
service, CTC structures, location of units, some important clauses so provide. It is generally advisable not to hire these employees
such as: probation, retirement, retirement age etc. To avoid for many years that make terms of the contract look artificial i. e.
litigations generally companies enter into golden hand shakes / camouflage to flout provisions.
VRS i. e. voluntary resignation / retirement schemes, which is an
advisable solution, that is if only there is absolutely nil possibility of Further there are casual, daily wagers, temporary workers, etc. For
restarting productions. terminating such employees incase they have completed 240 days
of continous service in an year, same procedure is required to be
With respect to non workman employees or the white collar followed as required for regular workers covered by ID Act.
employees, reductions are easier to be done as they are not
covered by ID Act. These employees are governed by their Incase there is a misconduct, workman level employee can be
respective contract of employment. It is advisable to take written terminated after conducting enquiry which includes issuance of
consent incase of pay reduction. According to Specifc Relief Act a chargesheet, enquiry, show cause. For a non workman employees
contract of personal service cannot be enforced. Maximum they these procedures may be avoided, unless facts of case involves
can sue for damages, compensation. Since white collar employees moral turptitude, financial bungling and the company wants to
have fear oftermination generally taking consent from them is not make termination letter punitive.
so tedious. However, incase company is not running into losses,
It may be mentioned employees not coming on duty during
or same are negligible, reductions for these categories may also
lockdown period by industries that were allowed to function,
be avoided. Just as white collar employee cannot forced to be
resulted in severe losses even to such industries. Termination in
kept in job, employer too cannot force him to work. Pandemic is
such cases has been recommended, unless case of the employee
a temporary problem. But loosing a high performing white collar
was of genuine illness or situation such as sealing of building, etc
employee may be like loosing a valuable asset forever. Ofcourse,
in which circumstances medical certificates etc must be examined.
if there is non performance, especially during this period where
However several instances were noticed where ingnuine reasons
performance is must, appropriate reductions be done.
were given for the sake of enjoying paid corona holiday. In such
Another category of employees are the contract labour i. e. the cases stringent pay cuts including terminations have been
outsouced employees. This is a huge chunk in the Indian work suggested. Infact one of the reasons for poor economic condition
structure. A major percentage of the work force of India is through of India are such termites.
third party vendors. These employees are governed by Contract
For knowledge sake it may be informed that termination of
Labour Regulation and Abolition Act 1970 (CLRA). Such employees
government servant without following procedure can be
work through third parties nomenclature as contractor / vendor /
outsourced agency etc. As per Section 21 of the CLRA, it is the duty
of principal employer to see that monthly wages are distributed
to these workers. Any shortfall becomes liability of the principal
employer which can be recovered from the vendor. There are
different ways to handle this segment. Several issues need to be
seen, such as since how many years the contractor/s has been
engaged for, were the workers same or changing in different years,
time period since workers are working, hours of work, power of
appointment, disciplinary measures, control and supervision,
responsibility of statutory benefits etc. Basically the nature of
arrangement between principal employer and contractor needs
to be examined. If arrangement is genuine termination of contract
may be looked into if the possibility and / or repercurssions of
litigations are not too high. However, practically in most of the

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50% reduction ), same will make a bearable impact on individual
employees and will make large savings for business needs. Since
PF is a 12% (now 10% for time being) share by employer and
equivalent share by an employee, incase an employee so wants,
he may continue to deposit his complete share, as already clarified
by the Government. Such amendmems may not be carried out for
companies where there are profits.
International Workers Provident Fund where there is no limit

of deposition upon 15, 000/-captures a huge amount of funds
of companies, since salaries of such employees are running into
challenged under Article 226 of Constitution of India by applying several lacs, even crores. It is suggested to mute employers share
for a writ of Mandamus and Certiorari. For punitive termination provision for at least 3 months.
of government servant Article 311 of Constitution of India which
Companies may also be given rebate w. r. t. mandatory bonus.
inter alia provides for complying with principles of natural justice
Minimum specified percentage i.e. 8. 33% as per Payment of
prior to termination is required. Non- performance, corruption
Bonus Act, 1965 (maybe mentioned Code on Wages 2019 date
etc by employees under this category enjoying salary from public
of enforcement is not yet notified ) may be reduced for this year.
taxes must be taken care of, especially in current circumstances by
Business houses with nil profit and/or losses be given a complete
issuance of memos, warnings, chargsheet, enquiry, show cause
exemptionfor this year. Corporates generating high profits,
and even strict actions, if need be. Needless, genuine employees
ofcourse, be kept out of such relaxations.
should not be made scapegoats.
Corporates should be given the benefit of lesser tariff charges of
Apart from above, salary restructuring may be done by companies.
electricity, water, coal, costs etc.
An appropriate structure may reduce taxes for employees as well
as reduce costs on some of the statutory benefits for the firms. Wage boards are operating in various industries providing heavy
Ofcourse restructuring shouldn’t be too subterfuge that it starts pay structures. Depending on the situation ahead, same may also
violating Provident Fund. ESI, gratuity laws. CTC may also be need a review.
redesigned.
While there are enough laws for employees in organized sectors
Most of the companies are unaware of the fact that even if basic
protection of professionals, hawkers, independent vendors, etc. be
wages, dearness allowance goes beyond Rs. 15,000/-, Provident
also not lost sight of. Suggestions may include easier tax liabilities
Fund may still be restricted to an amount of Rs, 15,000/- (except
and regimes. Government should come up with even more liberal
in the case of expat employees ). There are Judgments of various
tax regimes for the employers in these circumstances. Sanitizer,
courts in this regard as well as supported by Employees Provident
masks, soaps, etc. are companies from where more taxes may be
Fund scheme, 1952 framed under Employees Provident Fund and
generated, however, with sealing on the price of products.
Miscellaneous Provisions Act, 1952.
Thousand of crores are lying in coffers of statutory authorities in
Companies paying employees without any work sitting at home,
the name of Cess for Building and Construction workers, unclaimed
may deduct allowances linked to duty such as uniform, conveyance,
labour welfare fund under heads of unclaimed bonus, wages,
washing, etc.
unclaimed Provident Fund, etc. This crisis is "the time" to utilize
Any of the above steps must be taken said resources and distribute among deplorable ones.
under legal guidance. Apart from above
COVID 19 is an economic swelling for India and also for the rest of the
following may be considered by the
world. There has already been a spurting effect even on the tourism,
Government:
hospitality sector etc. The Centre for Asia Pacific Aviation has assessed
Step of premature withdrawal of Provident Fund (PF) taken by the
that the Indian aviation industry will post losses worth nearly about $4
government is much appreciated. However, the offer of depositing
billion this year. The automobile industry which was a key indicator of a
PF contribution of employee and employer share wherein salary
country's economic growth has also been forced to just hit the brakes.
limit is Rs. 15, 000/- in organizations which have employees upto
Manufacturing, retail restaurants, cinema, sports, almost everything
limit of hundred, as well as reduction of PF share to 10% has scope
has come to a standstill. Domestic demand for petrol, diesel, jet fuel
for refinement. This provision will make a difference of roughly
and shipping fuel have all substantially reduced. It is incumbent that
just above a few hundred/ thousands in the hand of individual
interest of industries as well as employees both are looked into.
employee/s. PF costs for mid size and biggish companies runs into
several crores. Considering pandemic is rare, in the larger interest Nevertheless, disaster could even prove a blessing in disguise for India
of economy, the government may ponder upon the fact that even since nations losing faith in China. Balanced laws as well as liberalized,
if about 3-5 months of PF is not deposited irrespective of salary uncomplicated tax regimes apart from others factors can attract
ceiling or the percentage of deposition is substantially reduced (like sizeable investments. Time for some serious decisions.

Article
Labour Law Compliances -

Way of Multifarious Mileage CS Prateek Bhansali, FCS
csprateekbhansali@gmail.com
“A man is not paid for having a head and Employment and Conditions of Service) Act, 1996Contract Labour
hands, but for using them.” (Regulation and Abolition) Act, 1970Equal Remuneration Act,
1976Inter-State Migrant Workmen (Regulation of Employment and
- Elbert Hubbard
Conditions of Service) Act, 1979Mines Act, 1952Minimum Wages
The labour welfare and increasing productivity are the prime objectives Act, 1948Payment of Wages Act, 1936Sales Promotion Employees
concerning social and economic policy of the Government. Economic (Conditions of Service) Act, 1976Working Journalists and Other
development means not only creation of jobs but also working Newspaper Employees (Conditions of Service) and Miscellaneous
conditions in which one can work in freedom, safety and dignity. In Provisions Act, 1955The five types of combined registers required
the direction to improve life of labour force of country, protection to be maintained under the Specified Labour Laws, include:
and safeguarding the interest of workers, promotion of welfare and
Employee register.
providing social security to the labour force by implementation of
various Labour Laws, which regulate the terms and conditions of Wage register.
service and employment of workers.
Register of loan / Recoveries.
Importance of Labour Law Compliance
The scope of compliance is very vast and under various labour laws the Attendance registers.
organization has to produce records of compliance as evidence. Also,
Register of rest days / Leave account of employees / Leave with
if your organization has failed to comply with the provisions of various
wages.
labour laws, there are penal provisions prescribed under the laws.
Pursuant to the Ease of Compliance Rules, the relevant Central rules
Labour laws contain rights of the labour, so after complying with the
enacted have been amended to replace existing forms of registers with
provision of laws the employer can protect the different rights of
the combined registers notified under the said rules. Consequently,
employees. Labour laws essentially
provide the protection of workmen
benefit which they get while they
are in the employment as well as
after retirement or superannuation.
Ease of Compliance
Rules
On Feb. 21, 2017, the Ministry of
Labour and Employment, has issued
the Ease of Compliance to Maintain
Registers under various Specified
Labour Laws Rules, 2017 (Ease of
Compliance Rules). The Ease of
Compliance Rules have come into
force with effect from the date of
their notification in the Official
Gazette.
Ease of Compliance Rules enable

an organisation to maintain 5 types
of combined registers under the
following labour laws –
B
uilding and Other Construction
Workers (Regulation of

Article
now the requirement of maintaining various types of registers has been approved by at least one level senior to the inspecting officer.
reduced to the combined registers under the Ease of Compliance Rules.
The Startups may self-certify compliance in respect of following Labour
The employer can also maintain these above mentioned registers Laws:
in electronic form. It is a very good step, the Ministry has developed
a software for these registers to enable maintaining such registers in 1. The Industrial Disputes Act, 1947;
digital form. The software has been uploaded on the ‘Shram Suvidha 2. The Trade Unions Act, 1926;
Portal’ of the Ministry to enable establishments to download such 3. The Building and Other Construction Workers’ (Regulation of
software for free. Employment and Conditions of Service) Act, 1996;
4. The Industrial Employment (Standing Orders) Act, 1946;
Labour Law Consultancy 5. The Inter-State Migrant Workmen (Regulation of Employment and
Labour Law Consultancy is important because it ensures an easy path Conditions of Service) Act, 1979;
for the organization to accomplish its goal. The business should have a 6. The Payment of Gratuity Act, 1972;
clear idea about the applicable laws and regulations. 8. The Contract Labour (Regulation and Abolition) Act, 1970;
9. The Employees’ Provident Funds and Miscellaneous Provisions Act,
Labour Law Consultant means a person who consults or represents 1952;
an organization, an employer or employer organization, labour 10. The Employees’ State Insurance Act, 1948.
organization or collective bargaining activities of the employees. He
is the expert of labour law compliances with the wide exposure and Note – Self Certification is facility for the first year only, for the
practical knowledge of said subject matter. subsequent years the startup has to furnish only compliance returns.
Importance Responsibility of the employers under

W
ith the changing conditions of the market, the requirement of
the situation of COVID-19
employer and employee relationship has changed. Because of 1. To provide a safe work areas and useful resources for working from
this, industry demands new services that will help to answer the home.
challenges.
2. To reimburse the reasonable expenses which are incurred by
E mployers are directly concerned with their labour. Labour laws employees while working from home such as Internet expenses,
impose certain obligations on them towards them. The consultant etc.
helps them to make understand about their duties, responsibilities
3. To ensure the safety, health and welfare of the employees.
and accountabilities.
4. To provide information, supervision and training regarding safety
T he labour law establishes sense of equality and obliges
and health to the employees.
organization to provide chances to the potential employees
without creating difference on the basis of race, caste, gender and 5. To put plans in place for emergencies.
religion etc.
Labour Audit
L abour laws falls under the concurrent list of the Constitution of
It is a detailed check of the policies, procedures and standards of the
India, that is why, Central and State Government both have power
company in respect of labour, compliances and non-compliances of the
and jurisdiction to make the said laws.
labour laws.
Labour Law Compliances for
Startups in India
Because of Start-up storm gripping the nation and
the tremendous potential that it has, the Ministry of
Labour and Employment has issued an advisory to the
States/Union Territories/Central Labour Enforcement
Agencies for a compliance mechanism based on self-
certification and various regulations under different
types of Labour Laws. It is the move to adhere startup
culture in India and incentivizing the entrepreneurs
in setting up new start-up ventures.
Self Certification
Startups shall be allowed to self-certify with 9 Labour
and Environment Laws through the Mobile App.
No inspections will be conducted for a period of 3
years. Startups can be inspected for the violation of
labour laws if complaint is received in writing and

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Process of Labour Audit 4. The positive outcome of the audit enhances the reputation of the
employer in the industry.
1. Firstly, you should understand the business and nature of the
organization, location of workplace and industry. 5. Audit eliminates the penalties, damages, compensation that can
be imposed by the government on the organization.
2. Understand the structure of manpower, number of human
resources (on roll and outsourced), their roles and duties. 6. Labour Audit will ensure compliance of historical defaults
committed by the organization under various labour laws.
3. Ascertain the applicable Labour Laws, Rules, Regulations (both
Central and State) 7. It reduces the burden of the government because audit will be
conducted by an independent professional such as – Company
4. To make the list of relevant authorities and compliances.
Secretary in Practice.
5. Verify the present compliance level under the various laws.
8. It ensures higher productivity and lower absenteeism.
Benefits of Labour Audit to various stakeholders
9. It helps in preventing lockout, retrenchment, strikes etc.
1. It enhances the morale and social security of the employees.
10. Co-operation and good understanding improves labour relations
2. It helps in maintaining the sense of belongingness between and this is indispensible for the good corporate governance.
employers and employees.
3. It ensures timely payment of wages, remuneration and other
statutory amount of the employees such as – pension, gratuity,
provident fund, etc.
Let’s take a look from the bird’s eye on compliance checklist

During Every Month/ Year Name of the Act Event Form No.
Within 15 Days of Contract Labour (Regulation Return/Notice within 15 days of Form VI-B
commencement/ completion of &Abolition) Act, 1970 commencement/ completion of
each contract each contract by the Principal
employer
Within 15 Days of Contract Labour (Regulation Notice of commencement/ Form VI-A
commencement/completion of &Abolition) Act, 1970 completion of contract work by
contract work the Contractor within 15 days
February 15 Building and Other Construction Annual Return in duplicate. Form XXV
Workers (Regulation of
Employment and Condition of
Services) Act & the Rules, 1966
Within 30 Days from due dates Employment Exchanges (CNV) Quarterly Return for respective Form ER-1
Act,1959 & Rules quarter
Within 30 Days from due dates Employment Exchanges (CNV) Biennial return within 30 days of ER-II
Act,1959 & Rules the due date as notified in the
official gazette
Within 30 Days of applicability of Payment of Gratuity Rules Notice of applicability of the Act Form A or B
the Act & any change & any change
Jan. 15 Factories Act ,1948 Annual Returns Form as prescribed in State Rules
Jan. 21 Maternity Benefit Act, 1961 Annual returns & details of Forms L, M, N, & O
payment ending 31st Dec
Jan. 31 Employees’ State Insurance Act, Annual information about Form 01A
1948 factory/ establishment covered
Feb. 1 Minimum Wages Act, 1948 Annual Return Form – III
July 15 & January 15 Factories Act, 1948 Half Yearly Return Form as prescribed in State Rules
Dec. 30 Payment of Bonus Act, 1965 & Annual Return, within 30 days Form D
Rules after the expiry of 8 months from
the close of the accounting year
Jan. 31 Sexual Harassment of Women at Annual Return, in such form and As may be prescribed
Workplace(P,P&R) Act, 2013 at such time as may be prescribed

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LABOUR LAWS COMPLIANCES

AND AUDIT
CS Devansh Aggarwal, ACS
Daggarwal145@gmail.com
Today, the issue of “Labour Laws Compliances and Audit” is being establishments, employees, workers etc. in a corporate sector like
pronounced at such a scale that it needs some serious deliberations by Factories Act, 1948, ESI Act, 1948, Employees’ Compensation Act, 1923
one and all. It is moreover well known to each and everyone that the are focused to the regulation of the employment of the women and
merits of Labour Laws Compliances and Audit have made the same to children in factories, just and humane conditions of work, protection of
write this article. health and compensation for injuries sustained during work. Minimum
Wages Act, 1948 and the Payment of Wages Act, 1936 regulate wage
At the outset, the issue of “Labour Laws Compliances and Audit” is payment. Payment of Bonus Act, 1965 seeks to bridge the gap between
being discussed at length among the people from all walks of life. It is the minimum wage and the living wage. Some of the glimpses of labour
due to the apparent fact that the above matter has been experienced laws compliances are as under:
by our society, our economy, and others in a desired manner for the
several yester years. 1. Law of welfare & Working Condition:
a. The Factories Act, 1948;
For Instance, Labour Laws Compliances are the mandatory rules and b. The Contract Labour (Regulation and Abolition) Act, 1970;
regulations which the corporate sectors have to follow. These are a set c. The Mines Act, 1952; etc.
of rules, regulations, conditions and guidelines set for the employment
2. Law of Industrial Relations:
of a particular employee. As per Article 246 of Constitution of India, the
a. Industrial Disputes Act, 1947;
power to make law’s have been distributed among Centre and State
b. The Plantation Labour Act, 1951;
Governments via three lists namely Union list, State list and Concurrent
c. Indian Trade Union Act, 1926; etc.
list. Under the Constitution of India, Labour is a subject matter in
the Concurrent List and, therefore, both the Central and the State 3. Law of Wages:
governments are competent to enact legislations subject to certain a. The Minimum Wages Act, 1948;
matters being reserved for the Centre. Under Concurrent List, Entry No. b. The Payment of Wages Act, 1936;
22 of the Seventh Schedule of the Constitution of India dealing with c. The Payment of Bonus Act, 1965;
Trade unions; industrial and labour disputes; Entry No. 23 dealing with d. The Equal Remuneration Act, 1976; etc.
Social security and social insurance; employment and unemployment 4. Social Security Legislations:
and Entry No. 24 dealing with Welfare of labour including conditions of a. The Employees’ State insurance Act, 1948;
work, employers’ liability, workmen’s compensation, invalidity & old age b. The Employees’ Provident Funds & Miscellaneous Provisions
pensions and maternity benefits. Hence, the labour laws derive their Act, 1952;The Employee’s Compensation Act, 1923;
origin, authority and strength from the provisions of the Constitution c. The sexual harassment of women at workplace (Prevention,
of India. Prohibition and Redressal) Act, 2013; etc.
The Labour Laws (Exemption from Furnishing Returns and Maintaining
There are various Acts implemented to regulate the Industries,

Article
Registers by Certain Establishments) Act, 1988 provides for the
exemption of employers in relation to establishments employing a small
number of persons from furnishing returns and maintaining registers
under certain labour laws. Small establishments were exempted from
furnishing returns and maintaining registers under certain enactments
mentioned in the first Schedule to the Act and instead they are required
to furnish returns and maintain registers in the forms set out in the
Second Schedule to this Act.
Now, let’s look over the detailed concept of some of the major labour
law compliances:-
1. THE FACTORIES ACT, 1948

• This Act extends to the whole of India with effect from the 01st
day of April, 1949.
harassment (whether employed in that workplace or not).
• It applies to factories as defined under the Act. Applicable to
all factories using power and employing 10 or more workers, The Act provides for two kinds of complaints mechanisms via
and if not using power, employing 20 or more workers on any Committee formation:
day of the preceding 12 months.
(i) Internal Complaints Committee (ICC) {an employer
• The Factory license is applied online in most states (including to set up an ‘Internal Complaints Committee’ (“ICC”) at
Haryana).Renewal is also done online & is required to be each office or branch, of an organization employing 10
generally done by 31st December. or more employees, to hear and redress grievances
• The Total number of hours of work in a week - shall not exceed pertaining to sexual harassment} &
60 and Maximum 9 hours of daily work with minimum 30
minutes of rest interval in every 5 hours to be provided. (ii) Local Complaints Committee (LCC). {At the district
• The Annual Return in (Form 21) is to be filed before 15thJanuary
level, the Government is required to set up a ‘Local
of every year and half yearly return in (Form 22) is to be filed
Complaints Committee’ (“LCC”) to investigate and
before 15th July & 15th January respectively of each year.
redress complaints of sexual harassment from the
unorganized sector or from establishments where
• The occupier of the factory is required to take the prior
the ICC has not been constituted on account of the
approval from the State Government or the Chief Inspector in
establishment having less than 10 employees or if
writing for the site on which factory is to be situated at least
the complaint is against the employer}.
15 days before he begins to use the premise as a factory. The
notice shall contain the following details:- The Internal Committee or the Local Committee, as the case
may be, shall in each calendar year prepare, in such form
Name and address of the occupier
and at such time as may be prescribed, an annual report and
Name and situation of the factory
submit the same to the employer and the District Officer.
Name and address of the owner of the premises

Address to which communication relating to the factory
3. THE EMPLOYEES’ STATE INSURANCE (“ESI”)ACT, 1948.
may be sent
Total rated horsepower installed or to be installed
This Act extends to the whole of India. Applicable to all
Name of the manager of the factory
factories and establishments other than seasonal factories (in
Number of workers likely to be employed in the factory
which 10 or more workers are employed) but as per decision
Average number of workers per day employed during the
dated 06.07.2018 by the Hon’ble Supreme Court, the ESI Act is
last 12 months in case if Factory is in existence on the date not applicable on Construction sector.
of commencement of this Act
Section 38 of the ESI Act, 1948 makes compulsory that subject
Other particulars which may be prescribed

to the provisions of the Act all the employees in factories or
There are several Measures to be taken by factories like
establishments to which this Act applies shall be insured in
Health, Safety and Welfare measures divided into Chapter
the manner provided by this Act. Such insured persons shall
III, IV &V of the Factories Act, 1948 respectively.
pay contributions towards Insurance Fund through their
2. THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE employers who will also pay their own contribution.
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
s per Section 40 read with Rule 51 of ESI Rules, 1950, the amount
A
This Act extends to the whole of India. of contribution for a wage period shall be in respect of —
T his Act is applicable in case there is an “aggrieved women” (a) employer’s contribution, a sum (rounded to the next
who alleges to have been subjected to an act of sexual higher rupee) equal to four and three fourth percent of

Article
the wages payable to an employee; and There shall be mandatory registers to be maintained under
this Act as Register of overtime, Register of Wages, Register of
(b) employee’s contribution, a sum (rounded to the next deduction and Register of fine, etc.
higher rupee) equal to one and three fourth percent of
the wages payable to an employee. The details like Minimum rate of wages, Abstract of Act &
Rules, Name & Address of Inspector shall be displayed at main
T he Return of contribution is to be filed in Form-5; Register of entrance of the establishment & office in English & Hindi in
employees to be maintained in Form-6.Every employer shall clean & legible condition.
keep a record in Form-11 with appropriate particulars of any
accident causing personal injury to an employee. Every employer shall send annually a return in Form III.
E very employer shall send a report in Form-12 to the 5. PAYMENT OF WAGES ACT, 1936
appropriate branch office and to the insurance medical officer
of the insured person immediately if the injury is serious and T his Act extends to the whole of India. The main object of the
in other case, within 48 hrs after the receipt of notice. Act is to eliminate all malpractices by laying down the time
and mode of payment of wages as well as securing that the
T he Chapter V of the ESI Act, 1948 provides the benefits of the workers are paid their wages at regular intervals, without any
Insured person under this Act. unauthorised deductions.
4. THE MINIMUM WAGES ACT, 1948. I t regulates payment of wages of certain classes of employed
persons. The payment of Wages will be as follows:
The Minimum Wages Act was passed in the year 1948 and it
came into force on 15th March, 1948. This Act extends to the  if less than 1000 workmen are employed- before expiry of
whole of India. 7th day after last day of wage period
This Act mandates the fixing minimum rates of wages in
 If more than 1000 workmen are employed- before expiry
scheduled employments.
of 10th day after last day of wage period
The number of hours which shall constitute a normal working
day, shall be - The Statutory registers are required to be maintained under
(a) in the case of an adult – 9 hours; (b) in the case of a child – 4 this Act as Register of wages, Register of fine, Register of
&1/2 hours. damage, Register of deductions & Register of advances.
The Minimum wages fixed as per latest notification by Haryana T his Act mandatorily required that the Abstract of Act & its
& Delhi Government*are as under: Rules shall be displayed at main entrance of the establishment
& office in English & Hindi in clean & legible condition.
 Delhi Government
6. PAYMENT OF BONUS ACT, 1965
S. Category of Minimum Wage Minimum
No. Worker Rate per-month Wage Rate According to Section 1(2) of the Bonus Act, 1965, this Act
(Amount in Rupees) per-day extends to the whole of India, and as per Section 1(3) the
(Amount in Bonus Act, 1965 shall apply to (a) every factory (defined in
Rupees) Factories Act, 1948); and (b) every other establishment in
1 Unskilled 14000.00 468.00 which 20 or more persons are employed on any day during an
2 Semi-skilled 15400.00 520.00 accounting year.
class- A
3 Skilled 16962.00 546.00
class- A
 Haryana Government
S. Category of Minimum Wage Minimum

No. Worker Rate per-month Wage Rate
(Amount in Rupees) per-day
(Amount in
Rupees)
1 Unskilled 7600.00 292.31
2 Semi-skilled 7980.00 306.92
class- A
3 Skilled 8797.95 338.38
class- A

Article
Every employee shall be entitled under this Act to be paid by (but this is however subject to judicial review).
his employer in an accounting year, BONUS, in accordance
with the provisions of this Act, provided he has worked in the 8. PAYMENT OF GRATUITY ACT, 1972
establishment for not less than 30 working days in that year.
• Gratuity is a lump sum payment made by the employer as a
A
s per Payment of Bonus Amendment Act, 2015, eligibility mark of recognition of the service rendered by the employee
limit was enhanced from Rs 10,000/- per month to Rs 21,000/- when he retires or leaves service. The Payment of Gratuity Act
per month & Calculation ceiling from Rs. 3,500/- to Rs. 7,000/- has been amended from time to time to bring it in tune with
per month (with retrospective effect from 1st April, 2014) the prevailing situation. Recently the Act has been amended
twice to enhance the ceiling on amount of gratuity from
7. THE EMPLOYEES’ PROVIDENT FUNDS & MISCELLANEOUS Rs.10 lakh to Rs.20 lakh as well as to widen the scope of the
PROVISIONS ACT, 1952 definition of “employee” under section 2 (e) of the Payment of
Gratuity Act, 1972.
This Act extends to the whole of India except Jammu &
Kashmir. • The applicability of this Act to an employed person depends
According to Section 1(3) of the Act, subject to the provisions upon two factors namely: firstly, the person should be
of Section 16, the Act applies: employed in an establishment to whom this act applies and
secondly, he should be an “employee” as defined in Section
(a) to every establishment which is a factory engaged in any 2(e).
industry specified in Schedule I and in which 20 or more
persons are employed; and • It is applicable to
(b) to any other establishment employing 20 or more
• Every factory, mine, oilfield, plantation, port and Railway
persons or class of such establishments which the Central
Company,
Government may, by notification in the Official Gazette,
• Company (As registered under Companies Act,
specify in this behalf:
1956/2013),
(c) But any establishment employing even less than 20 • Shop & Establishment (employing 10 or more persons are
persons can be covered voluntarily u/s 1(4) of the Act employed or were employed on any day preceding 12
months),
Under this Act, an equal contribution of 12% (10% in certain
• Other establishments, (employing 10 or more persons)
cases) of Wages (Basic wages, dearness allowance and
retaining allowance, if any) is required to be paid by employer • The establishment needs to intimate within 30 days in
and employee (whether employed by directly or through prescribed Form for any change in the name, address of
contractor itself ). However, employees can voluntarily opt to employer or nature of business of such change.
contribute more than 12% of their wages in Provident Fund
Account but needs to be provided in writing. • The payment of Gratuity (15 days salary for every completed
year of service) to be payable to an employee after rendering
In case the employer has made default in transferring of services of 5 his years to an establishment on his:
the accumulated amount, he is required to pay damages as
follows:  Superannuation,
 Retirement or resignation,
- If period of default is less than 2 months: 5 % of arrears
per annum  Death or disablement due to accident or disease
- If period of default is 2 - 4 months: 10 % of arrears per (completion of continuation of service for 5 years is not
annum necessary)This Act mandatorily required that the Abstract
- If period of default is 4 - 6 months: 15 % of arrears per of this Act & its applicable Rules shall be displayed at
annum main entrance of the establishment/company & office in
- If period of default is more than 6 months: 25 % of arrears English & Hindi in clean & legible condition.
per annum
However, these lists of detailed compliances of several labour laws
After the facility of online mode, there will be no required to are not exhaustive but this is inclusive. Audit under labour laws is a
submit paper and returns in form 5/10/12A/3A or 6A. new concept, which is necessitated, in direct consequence of its non-
compliance in large scale. Even after over six decades of attaining
Salary for PF calculation should not be less than the ‘Minimum independence, India is still plagued with victimisation; non compliance
Wages’ – as per directions issued by Central Provident Fund of labour legislations is still at large. An analysis of these practices
Commissioner to all Regional Provident Fund Commissioners reveals that many employers resort to short cut methods to avoid
(to be checked particularly in case of‘Contract Labour’deployed the compliance of labour legislations. There is no system in place for
through Contractors). However, the Principal Employer will be reporting non-compliance of labour legislations by aan independent
statutorily responsible for default of Contractor, with respect professional like Company Secretary. Although, they can mention
to statutory payments of PF contribution of Contract Labour the non-compliance in their Secretarial Audit Report prepared as per

Article
the Section 204 of Companies Act, 2013. The Labour audit should 5  Whether the Gratuity has been paid in
cover all labour legislations applicable to an Industry/factory or other accordance with the provisions of the
commercial establishments. There are several benefits of the Labour Act?
Audit provided to Labou, Employees, Employers, Government, etc.  Whether any dispute exists/arises
Illustrative lists of legislations that may be brought under the ambit of against the company for non payment
labour’s audit are: of gratuity? If so, details thereof.
6 Trade  Number of Registered Trade
S. Name of Certificates to Cover
Unions Act, unions in operation in the factory
No. legislations 1926 and its affiliations to any All India
1 Payment of  Annual Certificate provides that the
Wages Act, Organisations of Trade Unions.
wages were paid in accordance with
1936 7 Factories  Whether the factory is registered as
the Act. Act, 1948 per Factories Act, 1948? If so, then the
 How much number of employees in
registration number of the factory
the establishment governed by the
given.
Act.
 Item of manufactures.
 No deduction from wages has been
 Whether industry is hazardous or
made other than those authorised
not? If so, then steps suggested by
under the Act.
appropriate government for safety
 Calculation of Wage Period.
has been complied with in.
2 Payment of  Determination of Available and
Bonus Act,  Whether Chapter IV on Safety has
Allocable Surplus and correctness of
1965 been complied with or not.
Computation.
 Whether Chapter V on Welfare has
 Timely payment of bonus.
been taken care of.
 Bonus is paid to the eligible persons.
 Whether working hours are in
 Whether the company paid minimum
accordance with the provisions of the
or maximum bonus?
Act.
3 Provident  Timely deposit of Employer and  Maintenance of proper records of
Funds and Employee’s dues with Provident Fund
Miscella- Attendance and Leaves.
Provisions Act, 1952 Commissioner/  Provisions relating to employment of
neous Pro-
visions Act, Trust. women, young person’s etc. are duly
1952  Reporting of cases where proceedings complied with.
under the Act have been initiated 8 Employees’  Fatal Accidents are to be reported.
against the Directors for recovery of Compensa-  Time taken for payment for
dues. tion Act, compensation. Disputes on settlement
 If the Employer has created its own 1923
of compensation to be reported.
trust, whether the terms of trust are
 Any case of Occupational Disease
more beneficial than those provided
reported in the factory or
under the trust?
establishment.
 Whether conditions imposed by PF
 Insurance Cover for meeting the
Commissioner for the creation of Trust
liability.
are satisfied or not?
 Pending Disputes under the Act and
4 Payment  Whether liability for gratuity has its nature along with a note on liability
of Gratuity been provided for in the Accounts
Act, 1972 accepted by the Employer.
maintained or not? 9 Minimum Whether the company is paying the wages
 Whether the company has formed Wages in accordance with the provisions of the
any trust that would take care of the Act,1948 Act?
liability arising out of gratuity?
 Number of claims during the year
for the payment of gratuity and time Conclusion
taken for its settlement. Hence, consequently it has become the need of the hour for the
government & its competent authorities to initiate ambitious plans for
its further development to encourage it.

Article
Labour Law Compliances

and Audit Tanveen Bindra
kaurtanveen16@gmail.com
METHODOLOGY OF CONDUCT OF
LABOUR AUDIT
At the commencement of audit, the Independent
Professional like Company Secretary in Whole Time Practice
should define the scope of his audit. As stated Independent
Professional should identify various Central and State Acts
and Rules that are applicable to an employer. Based on
such identification, he should commence scrutinizing the
compliance of provisions of various Acts/Rules.
Before commencement of his audit, a checklist for

compliance of each legislation has to be formulated.
The applicability of law depends on the type of

organization. Also, there are multiple laws which apply to
employer and employee respectively.
The landscape of statutes related to labour laws is constantly evolving.
Thus, in pursuit of ensuring compliances with various labour regulations, THE CODE ON WAGES, 2019
audit under labour laws is necessitated. It’s crucial for the businesses Payment of minimum rate of wages: No employer shall pay to any
to comply with all legal and statutory norms, as applicable from time employee wages less than the minimum rate of wages notified by the
to time to operate successfully in India. This often involves significant appropriate Government.
amount of resources, time, and continuous monitoring, in order to
be compliant and avoid penalties. Labour audit involves a systematic Wages for overtime work: The employer shall pay employee for every
scrutiny of documents by an independent professional like Company hour or for part of an hour so worked in excess, at the overtime rate
Secretary in Whole Time Practice in order to ensure proper compliance. which shall not be less than twice the normal rate of wages.
For a timely and efficient statutory compliance in an organization, the Mode of payment of wages: All wages shall be paid in current coin
following aspects must be in place: or currency notes or by cheque or by crediting the wages in the bank
account of the employee or by the electronic mode.
Maintaining statutory registers and records
Time limit for payment of wages:
Unrestricted access to local and regional expertise
Wages, if on monthly basis, shall be paid before the expiry of the
Expert support during all audits and inspections seventh day of the succeeding month.
Following ethical practices
Eligibility for bonus:
Knowledge of timelines for adherence to the rules and regulations There shall be paid to every employee by his employer, who has put
in at least thirty days work in an accounting year, an annual minimum
SCOPE OF LABOUR AUDIT: bonus calculated at the rate of eight and one- third percent of the
Audit scope, defined as the amount of time and documents which wages earned by the employee or one hundred rupees, whichever is
are involved in an audit. The audit scope, ultimately, establishes the higher whether or not the employer has any allocable surplus during
depth of audit performed. The Labour law auditor must incorporate all the previous accounting year. However, the total bonus including the
labour legislations applicable to an Industry or any other commercial annual minimum bonus shall not exceed twenty percent of the wages
establishment, wherein audit is being conducted. In case a particular earned by the employee in the accounting year.
piece of labour law is not applicable to a specific business, the same
should be disclosed distinctly in the report of an Independent Payment of bonus out of allocable surplus: The bonus shall be paid
Professional. Scope of labour law audit will certainly vary from business out of the allocable surplus which shall be an amount equal to sixty
to business. percent in case of a banking company and sixty- seven percent in case
of other establishment, of the available surplus

Article
Time limit for payment of bonus: Central Government may make rules to provide for the facility of
crèche having suitable room or rooms for the use of children under
All amounts payable to an employee by way of bonus under this Code
the age of six years of the employees at suitable location
shall be paid by crediting it in the bank account of the employee by
his employer within a period of eight months from the close of the HOURS OF WORK AND ANNUAL LEAVE WITH
accounting year. WAGES
THE OCCUPATIONAL SAFETY, HEALTH AND Weekly and compensatory holidays: No worker shall be allowed to
WORKING CONDITIONS CODE, 2019 (as work in an establishment for more than six days in a week
introduced in Lok sabha)
Notice of periods of work: There shall be displayed and correctly
HEALTH AND WORKING CONDITIONS: maintained in every establishment a notice of periods of work, showing
The employer shall be responsible to maintain in his establishment clearly for every day the periods during which workers may be required
such health and working conditions for the employees such as: to work
Adequate and suitable facilities for washing to workers for male Maintenance of registers and records and filing of returns: An
and female separately; employer of an establishment shall maintain register, electronically or
otherwise, containing such particulars of workers; work performed by
Bathing places and locker rooms for male, female and transgender them; number of hours of work constituting normal working hours in a
employees separately. day; day of rest allowed in every period of seven days etc.
Place of keeping clothing not worn during working hours and for And file such return electronically or otherwise to the Inspector-cum-
the drying of wet clothing; Facilitator.
Sitting arrangements for all workers obliged to work in a standing THE CODE ON SOCIAL SECURITY, 2019:
position;
Employees Provident Fund: Employer shall make a contribution to
Adequate standard of canteen or workers thereof in an the Fund which shall be twelve percent of the wages for the time being
establishment employing one hundred or more workers including payable to each of the employees or such percentage of the wages
contract labour ordinarily employed; as may be notified by the Central Government and the employee’s
contribution therein shall be equal to the contribution payable by the
Responsibility of employer for maintaining health and working employer.
conditions;Adequate first-aid boxes or cupboards with contents
readily accessible during all working hours; Employees Pension Fund: The employer’s contribution under the
employees pension scheme shall be not exceeding eight and one- third
Ambulance room in every factory, mine and other construction percent of the wages.
work wherein more than five hundred workers are ordinarily
employed; Payment of Gratuity: The employer shall pay gratuity at the rate of
fifteen days’ wages to an employee
who has rendered continuous
service for not less than five years
(except for termination of the
employment of any employee
due to death or disablement or
happening of any such event) for
every completed year of service
or part thereof in excess of six
months.
Maternity Benefit:
No employer shall knowingly
employ a woman in any
establishment during the six
weeks immediately following the
day of her delivery, miscarriage or
medical termination of pregnancy.
No woman shall work in any

establishment during the six
weeks immediately following the
day of her delivery, miscarriage or

Article
medical termination of pregnancy. the collapse is not solely and directly attributable to a fault on the part
of any occupant of the house or to a natural calamity, the employer
Every woman shall be entitled to, and her employer shall be liable shall be liable to pay compensation.
for, the payment of maternity benefit at the rate of the average daily
wage for the period of her actual absence, that is to say, the period Amount of compensation: where death results from the injury, an
immediately proceeding the day of her delivery, and any period amount equal to fifty per cent of the monthly wages of the deceased
immediately following that day. employee multiplied by the relevant factor.
No woman shall be entitled to maternity benefit unless she has actually Where permanent total disablement results from the injury, an amount
worked in an establishment of the employer from whom she claims equal to sixty percent of the monthly wages of the injured employee
maternity benefit, for a period of not less than eighty days in the twelve multiplied by the relevant factor.Where temporary disablement,
months immediately preceding the date of her expected date of her whether total or partial, results from the injury, a half-monthly payment
delivery. of the sum equivalent to twenty-five percent of monthly wages of the
employee.
Every woman entitled to maternity benefit shall also be entitled to
receive from her employer a medical bonus of three thousand five E- KRANTI:
hundred rupees or as such amount as may be notified, if no pre-natal The Ministry of Labour & Employment has come up with a unique
confinement and post-natal care is provided for by the employer free E-governance service called “E-kranti” which aims to make government
of charge. services accessible to the common man in his locality, through
Common Service Delivery outlets and ensure efficiency, transparency
Every establishment having fifty employees or such number of
and reliability at affordable costs. For the purpose of E-governance
employees as may be prescribed by Central Government shall have
the ministry has also developed a unified Web Portal called “Shram
the facility of crèche within such distance. Provided that the employer
Suvidha Portal”. This portal integrates four major Organizations
shall allow four visits a day to the crèche by the woman, which shall also
under the Ministry of Labour. The objective of Portal is to consolidate
include the intervals of rest allowed to her.
information of Labour Inspection and its enforcement. It will lead to
Employee Compensation: transparency and accountability in inspections. The Unified Shram
Suvidha Portal is developed to facilitate reporting of Inspections, and
Reporting of Accident, Injury, Death and Occupational Diseases shall
submission of Returns. The Portal has been envisaged as a single point
be made within a period of twenty four hours of the occurrence of such
of contact between employer, employee and enforcement agencies
accident or the occupational disease comes within the knowledge
bringing in transparency in their day-to-day interactions.
of the employer. Provided that any fatal accident shall be reported
immediately. CONCLUSION
Employer’s liability for compensation: If personal injury is caused With rapid globalization and cut throat competition in the
to an employee by accident or an occupational disease listed in the manufacturing processes, the global manufacturing scenario has
Third Schedule arising out of and in the course of his employment, his become immensely competitive.
employer shall be liable to pay compensation.
“Keeping the social security and welfare aspects of workmen better and
Compensation in case of death of or injury in plantation: If death or intact, we are working in the direction of bringing reforms in various labour
injury is caused to any worker or a member of his family as a result of laws with objective of ease of doing business in new future,” Minister
the collapse of a house provided by the employer in a plantation, and Santosh Gangwar told PTI.
Considering the change in

employment pattern and the
current scenario of employment
in India, Labour Audit ensures a
thorough check of the company’s
policies and procedures with the
goal of preventing prosecutions
or lawsuits.
Labour audit does not only protect

the interest of the stakeholders
but also leads towards better
governance and value creation for
the organization.

Article
Working from Home during COVID-19 –

A workplace to provide healthy environment
as per The Sexual Harassment of Women
at Workplace (Prevention, Prohibition and CS Renu Aggarwal, ACS
cs.renuaggarwal@gmail.com
Redressal) Act (the PoSH Act), 2013

COVID-19, a strongest communicated that lawyers were supposed to appear in proper attire
pandemic has caused before the judges.
disruption of Economy, be it
business or life, and to address Whether WFH is considered as Workplace as defined in
the pandemic, Government the PoSH Act?
has announced national wide Yes, as per the Act, Workplace is any place visited by the employee
lockdown to stop the spread arising out of or during the course of employment including
of virus. Ministry of Corporate transportation by the employer for undertaking such journey. WFH is
Affairs has strongly advised corporate to implement “Working from out of contractual obligations between an employer and Employee.
Home” (WFH) policy considering Social Distancing is essential. But our It is the sitting area of an employee that has changed and not the
Economy and Business cannot stop. Be it Employer or Employee, all are accountability to discharge the responsibilities as assigned. An
working from Homes at their convenience. employee working from WFH is considered to be a place used by an
employee arising out of or during the course of employment.
Even WFH is not as easy as it sounds. One of my friends called me
during lockdown and informed about how she is getting unwelcome Whether WFH escapes the liability of Employers
random messages, videos and calls from her one of colleagues even Obligation under Sexual Harassment during
during lockdown. Feeling irritated, when she didn’t pick one of his calls Lockdown?
that was unknowingly related to Professional work, her complaint was Employers obligation to provide a safe working environment devoid
reached to the senior that she is not working or responding to calls of sexual harassment to their employees at the Workplace. Employers
during lockdown and it is affecting the working of the team. This strikes have to take preventive and remedial measures to make the work
me, that with an increase in Domestic Violence cases and child abuse environment safe for employee, failing which they will be punished. If any
cases these times, there are cases of Sexual Harassment too. aggrieved employee is approaching to Internal Complaint committee
or to Employer with any complaint of any act of circumstantial Sexual
I wrote an article on Sexual Harassment during Lockdown times and
Harassment, the same should be dealt in the same way as it would have
was responded with “Arey jab koi kisi se mil hi nahi raha,
been dealt in the running premises of office.
to harassment kaisa”? It raises further questions whether only
touching and physical presence is necessary to consider a case under Whether all provisions of PoSH Act are applicable
Sexual Harassment? We must understand that apart from good physical during COVID-19 lockdown times?
health, it is the mental health too which needs to be taken care of. Some
With no exception, all the provisions of the PoSH Act are applicable in the
acts may not hit your physical appearance, but it impacts mentally in
same way as they would have been applicable on any establishment
such a way that a person starts underperforming his obligations.
as if Lockdown had not been announced. Proper care should be
Whether WFH implies there can be no acts of Sexual taken to implement the policies, enquiries into complaints and provide
Harassment? suitable interim reliefs and final order etc., to provide a healthy working
environment to its employees.
No, every Unwelcome act like unnecessary repeatedly phone
calls, unnecessary video conferencing, appearing in indecent attire Even Supreme Court announced that Improper handling of Sexual
during video conferences, calling after office hours, sending indecent Harassment Complaint impinges upon the Fundamental Right to Life
messages, threats to Employment if not responding to calls etc., at and Dignity.
the workplace are the circumstantial factors of sexual harassment.
Every act which is unwelcoming verbal, visual or physical conduct of Therefore, it can be said that it is the duty of Employer to take measures
sexual nature which affects working conditions or creates a hostile in implementation of PoSH during lockdown in any establishment.
work environment, which lets the employee underperform is an act of
Sexual Harassment. WFH is a need of time but working under the safety Lockdown | COVID-19 | Stay Home | Stay Safe
environment is a necessity too. Therefore, it can be said that there are
acts of emotional visual Sexual Harassment during these times. Conclusion
Though the PoSH Act, particularly mentions about the safety and
Even if all the employees are working from home, it is the duty protection of Women, but one should believe in Gender Neutral
to maintain the same decency and professionalism at all the times Policy. Instead of Women, the word “Employee” for Men and Women
while working. Needless to say that even, the Rajasthan High Court both is mentioned. As the Act does not bar the inclusion of Safety and
expressed severe displeasure after a lawyer appeared in a vest during a Protection of Men too.
video conference in court proceedings in lockdown times. It was clearly

Article
Labour Laws Compliances

and Audit
CS Pankaj Jain, ACS
p.jain@risklab.co.in
contribution towards Provident Fund

and Employee State Insurance, due
date of its deposit under prescribed
statute and actual date of deposits.
Companies Act 2013 , does not

provide for Labour Law Compliance
and Audit, however Section 134(5),
Section 204 and Section 205 indirectly
clarify the requirement of Labour Law
Compliance and Audit.
Section 134(5)(f ) –Director

Responsibility Statement :- “Directors
had devised proper systems to
ensure compliance with the
provisions of all applicable laws
and that such systems were adequate
and operating effectively.”
Section 204(1) Secretarial Audit

and Rule 9 of the Companies
(Appointment and Remuneration
Introduction Personnel) Rules, 2014 provide that
In India, Labours play a vital role for development of economy. The Secretarial Audit, inter-alia, includes reporting of compliance of all
term “Labour” is a subject in “Concurrent List” under Constitution of applicable laws to companies.
India where both Central and State Government have power to enact
Section 205(1) Duties of Company Secretary:- To report to the Board
legislation. Entry no 55, 61 and 65 of Union List and Entry no 22, 23
about compliance with the provisions of this Act, the rules made there
and 24 of Concurrent List provide for constitutional status of labour
under and other laws applicable to company.
jurisdiction.
Labour Law Compliances and Audit
Labour laws apply to almost all industrial and commercial establishments,
since they belong to safeguarding the rights of employees and workers It is always recommended to get the insights of the business before
employed in industrial and commercial establishments. Employee performing any compliance activity by interviewing with concerned
count is the basic parameter to assess the applicability of labour laws. department.
Broadly, labour laws are categorized in following four categories:-
Following must be the key areas of discussion to determine the
1. Employment Condition applicability of Labour and Industrial law on the establishment:-
2. Industrial Relations
1. Nature of Business
3. Remuneration
2. Number of offices and branch
4. Social Security Benefits
3. Number of employees (permanent and contractual both)
Legislation Governing Compliances of 4. Status of registrations (if obtained)
Labour Laws Preliminary Steps:-
Every assessee to whom tax audit is applicable u/s 44AB of Income
1 Identify the laws applicable to company/establishment based on
Tax Act, 1961 has to compulsorily comply with the statutory and tax
nature of industry and number of employees.
law compliances. Tax Auditors are required to report the details of

Article
Below table provides an example for applicability of laws o Dock Workers (Safety, Health and Welfare) Act, 1986
based on number of employees:-
These are the names of few acts, in total there more than 50 different
Name of the Act Threshold/No of Workmen labour laws but one has to be wise while selecting appropriate acts
1. Shops and Commercial 1 or more (immediate basis) to determine the applicability on company.
Establishments Act, 1958
2. Prepare the checklist, based on discussions for coverage of
2. Building and Other 10 or more contractual applicable laws.
Construction Workers workmen (Section 7-
(Regulation of Employment Registration within 60 days) 3. After preparation of checklist, one has to start the compliances
and Conditions of Service) under labour laws.
Act, 1996
3. Contract Labour 20/50 or more contractual Following key areas must be covered while doing compliances and
(Regulation and Abolition) workmen (50 in case of audit under labour law:-
Act, 1970 Haryana)
1. Whether valid registration or license has been obtained. All
4. Minimum Wages Act, 1948 1 or more (State wage rate
dues to employees and workers are paid within timeline which
will apply as defined in latest
include: Monthly Wages (Equal or higher than minimum
minimum wages notification)
wages)
5. Payment of wages Act, 1 or more (covers the workers
1936 getting wages below than INR Bonus Payment
24,000) Leave Allowances
6. Employees Provident 20 or more persons employed Gratuity (in case of left out employee)
Fund and Miscellaneous Overtime Payment
Provisions Act, 1952
7. Employees’ State Insurance 10 or more persons employed 2. Check whether leave benefit is entitled to eligible employees
Act, 1948 (Leaves such as Sick Leave, Casual Leave, Earned Leave, Festival
8. Child Labour (Prohibition 1 or more (No registration Holidays and Maternity Leave)
and Regulation) Act, 1986 needed)
3. Whether safety and security of employees are ensured
9. Labour Welfare Fund Act Number varies from state to (Medical Facility, First Aid Box, etc.)
state.
10. National & Festival Holiday 1 or more person employed 4. Whether display requirements under the act have been
Act, 1963 complied.
11. Payment of Bonus, 1965 20 or more persons employed
5. Whether contribution under laws such as ESI, EPF, Labour
Industry based compliance includes Welfare Fund and Profession tax have been made on or before
due date.
o Factories Act, 1948
o Plantation Labour Act, 1951 6. Check whether all required registers and records are
o Mines Act, 1952 maintained as prescribed under the laws.
7. Whether periodic returns

are filed timely. Based on your
review, any short coming and/or
observation must be discussed
with the management and their
statements on corrective action
plan should be recorded within
expected timeline.
You may further categorized

your observation into High/
Medium/Low based on financial/
operational risk and penalties that
may impose for non-compliances.

Article
CONSTITUTIONAL OUTLOOK OF
LABOUR LAWS CS Kamit Jain, ACS
cskamitjain@gmail.com
CS Kriti Agrawal, ACS
cskritiagr@gmail.com
India, the plantation industry in Assam was the

first to attract the legislative. A number of Acts
were passed from 1863 century onwards to
regulate the recruitments. The Factories Act, was
passed in 1881 and the Mines Act in 1901. But the
most important Act that was passed to protect
the interest of the workers was the Workmen’s
Compensation Act, 1923 (now the Employee’s
Compensation Act, 1923).
But it is to be noted that most of the labour

legislations enacted prior to India’s Independence
were related only to the organized sectors. The
post-independence enactments of important
legislations in the areas of employee security,
social security, labour standard and welfare
of organized as well as unorganized sector
derive their origin partly from the vision of
independence of India’s leaders and partly from
the provisions of the Indian Constitution. These
INTRODUCTION: laws were also influenced by important human
rights conventions and their recommendations that have emerged
The Indian labour legislation owes its existence with the admittance of
from the United Nations. These includes social security, right to work of
the British Raj or British Colonialism. The conceptions of British political
one’s choice, right against discrimination and exploitation, prohibition
economy were naturally preponderant in casting or shaping some of
of child labour, abolition of contractual labour, abolition of bonded
these early laws. It can be said that labour legislations in India grew with
labour, equal remuneration, just and humane conditions of work,
the growth of industrialization in 18th century. At that time period, India
service conditions for migrant workers, and livelihood rights. With all
was not only a great agricultural country but a great manufacturing
these objectives or goal, our labour laws have also been significantly
country too. Asian and European markets were mainly fed by the
looms supplied by India. But the British Government as a matter of influenced by the deliberations of various sessions of the International
policy discouraged both these sectors in order to encourage the rising and National Labour Conference and also of the recommendations of
manufacturing of England. Their policy was to make Indian people the various National Committees and Commissions e.g. the FNCL, 1969;
grow only raw materials. The British oppression in India continued for the NCSEW, 1988; the NCRL, 1987; the NCRL, 1991 and the NCRL, 2002.
some time, which led to the growth of Indian nationalism.
After independence, several labour legislations have been passed and
In 20th century, the national movement took a new turn and there was amended at several times. The case in point is the Central labour
a common demand for Indian goods. A non-cooperative movement legislations for migrant labour working in an unorganized sector. These
which is known as “Swadeshi Movement” was started which urged laws, which protect the rights of migrant workers and regulate the
upon the people to use goods made in India and to boycott foreign conditions of work in the unorganized sector fall into three groups. The
goods. The non-cooperative movement synchronized with periods of first group applies generally to unorganized sector. The second group
economic crisis gave impetus to industrialization. Not only that, growth of laws applies to certain group of workers in the unorganized sector
of Indian private sector owes much to these popular movements. An and the scope of application is restricted by the nature of employment,
attempt was made to put forward a theory of economic development or size of employment. The third group of laws apply mainly to the
and planning suited to conditions of our country. After 30th century, organized sector workers or enterprises employing ten or more
planning was accepted by the national movement as its economic workers, but in certain cases, or by relaxing the employment criterion
ideology. Thus planned industrialization became our main goal. In these laws can apply to some sections of workers in the unorganized

Article
sector. But before the detailed discussion on the provisions of these sweep is comprehensive and is founded on the basic ideal of socio-
laws, it is incumbent to understand the basic principles of these labour economic equality and its aims at assisting the removal of socio-
legislations. economic disparities and inequalities of birth and status and endeavors
to resolve the competing claims especially between the employers and
Three S principles workers by finding a just, fair and equitable solution to their human
Social Justice relation’s problem so that peace, harmony and co-operation of the
Social justice implies two things: firstly, equitable distribution of profits highest order prevails amongst them which may further the growth
and other benefits of employment between owner and workers. and progress of nations.
Secondly, providing protection to the workers against harmful effects
to their health, safety and morality. In the beginning, the position of
Social Equity
a worker was that of a daily wage-earner, which means he was paid Any legislation which is based on social justice prescribes a definite
only for the days he actually worked. A workman was expected to standard for adoption in future. Such standard is fixed after taking into
accept all the hazards connected with his work as incidental to his account the past and present circumstances. Once a standard is so
employment. Until the passing of Employee’s Compensation Act 1923, fixed by legislation it remains in force until it is changed or modified
no compensation was paid in case of an accident taking place in the by another legislation passed in conformity with the legislative
course of employment. However, the Employee’s Compensation Act, procedure. No discretion is given to change such law to the authority
1923 guarantees to workmen compensation for any injury caused by an administering such law. However, where it is felt that the law should be
accident arising out of and in the course of employment. The Payment flexible and should be changed as the circumstances and conditions
of Wages Act, 1936 and the Minimum Wages Act, 1948 are a few other change, the law empowers the Government to make such changes. This
legislations based on the principle of social justice. These legislations is generally done by giving the Government rule making power under
the provisions of the Act. When power under the Act is given to the
fix the hours of work, make provisions for payment of over-time, safety,
Government the rules may be modified to suit the changed conditions.
health and welfare of labour. Labour welfare in our country has a special
Such legislation is said to be based on social equity.
significance for our constitution provides for the promotion of welfare
of people, for humane conditions of work and cultural opportunities. Social Security
According to Justice P. N. Bhagwati (the 17th Chief Justice of India), the The quest for social security and freedom from want and distress has
concept of ‘social justice’ does not emanate from the fanciful notions been the consistent urge of man since ages. This urge has assumed
of any particular adjudication but must be founded on a more solid several forms according to the needs of the people and their level of
foundation. In the opinion of Justice P. B. Gajendragadkar (the 7th Chief social consciousness, the advancement of technology and the peace of
Justice of India), the concept of social and economic justice is a living economic development. Social security envisages that the members of
concept of a community shall be protected by collective action against social risks
causing hardship and privation to individuals whose private resources
revolutionary import. It gives sustenance to the rule of law and meaning can seldom be adequate to meet them.
and significance to the idea of welfare state. Thus, this concept of social
justice has become an integral part of labour laws. It is founded on the International Labour organisation
basis idea of socio-economic equality and its aim is to assist the removal ARTICLE 14
of socio-economic disparities and inequalities. It is not narrow or limited Equality before the law which is interpreted in labor laws as “Equal pay
to a particular branch of legislation or adjudication although it is more for Equal work”. It does not mean that article 14 is absolute. There are
prominent and conspicuous in labour legislation and adjudication. Its a few exceptions in it regarding labour laws such as
physical ability, unskilled and skilled labours shall
receive payment according to their merit. The concept
of equality does not mean absolute equality among
human beings which is physically not possible to
achieve. It is a concept implying absence of any special
privilege by reason of birth, creed or the like in favour
of any individual and also the equal subject of all
individuals and classes to the ordinary law of the land.
As Dr. Jennings puts it: “Equality before the law means
that among equals the law should be equal and should
be equally administered, that like should be treated
alike. The right to sue and be sued, to prosecute and be
prosecuted for the same kind of action should be same
for all citizens of full age and understanding without
distinctions of race, religion, wealth, social status or
political influence”. It only means that all persons under
similar circumstances shall be treated alike both in
the privileges conferred and liabilities imposed by the

Article
laws. Equal law should be applied to all in the same situation, and and meaningfulness but it would make life impossible to live. There is
there should be no discrimination between one person and another. As thus a close nexus between life and the means of livelihood and as
regards the subject-matter of the legislation their position is the same. such that, which alone makes it possible to live.
ARTICLE 19 (1) (C) ARTICLE 23

Constitution guarantees citizens to form a union or association. The The Constitution prohibits traffic in human being and beggar and other
Trade Union Act, 1926 works through this Article of the Constitution. It similar forms of forced labour. The second part of this Article declares
allows workers to form trade unions. Trade Unions provide the power to that any contravention of this provision shall be an offence punishable
raise voice against atrocities done to the workers. Unionization brings in accordance with law. Clause (2) however permits the State to impose
power to the labourers. Trade Unions discuss various labour-related compulsory services for public purposes provided that in making so it
problems with the employers, they conduct strikes, etc. shall not make any discrimination on grounds only of religion, race,
caste or class or any of them. ‘Traffic in human beings’ means selling
This Article speaks about the Fundamental right of citizen to form an and buying men and women like goods and includes immoral traffic
associations and unions. Under clause (4) of Article 19, however, the in women and children for immoral or other purposes. Though slavery
State may by law impose reasonable restrictions on this right in the is not expressly mentioned in Article 23, it is included in the expression
interest of public order or morality or the sovereignty and integrity of ‘traffic in human being’. Under Article 35 of the Constitution, Parliament
India. The right of association pre-supposes organization or permanent is authorized to make laws for punishing acts prohibited by this Article.
relationship between its members in matters of common concern. It In pursuance of this Article, Parliament has passed the Suppression of
thus includes the right to form companies, societies, partnership, trade Immoral Traffic in Women and Girls Act, 1956 for punishing acts which
union, and political parties. The right guaranteed is not merely the result in traffic in human beings. Article 23 protects the individual not
right to form association but also to continue with the association as only against the State but also private citizens. It imposes a positive
such. The freedom to form association implies also the freedom to form obligation on the State to take steps to abolish evils of “traffic in
or not to form, to join or not to join, an association or union. human beings” and beggar and other similar forms of forced labour
wherever they are found. . Article 23 prohibits the system of ‘bonded
ARTICLE 21
labour’ because it is a form of forced labour within the meaning of this
The sweep of the right to life, conferred by Article 21 is wide and far Article. “Beggar” means involuntary work without payment. What is
reaching. ‘Life’ means something more than mere animal existence. It prohibited by this clause is the making of a person to render service
does not mean merely that life cannot be extinguished or taken away where he was lawfully entitled not to work or to receive remuneration
as, for example, by the imposition and execution of the death sentence, of the services rendered by him. This clause, therefore, does not prohibit
except according to procedure established by law. That is but one forced labour as a punishment for a criminal offence. The protection is
aspect of the right to life. An equally important facet of that right is not confined to beggar only but also to “other forms of forced labour”. It
the right to livelihood because; no person means to compel a person to work against his will. The Constitution of
can live without the means of living, that is, the means of livelihood. If India was drafted in such a way as to ensure that all workers, men and
the right to livelihood is not treated as a part of the constitutional right women were equally protected by the law.
to life, the easiest way of depriving a person of his right to life would ARTICLE 24
be to deprive him of his means of livelihood to the point of abrogation.
Constitution prohibits all forms of child labor. Nobody can employ a
Such deprivation would not only deny the life of its effective content
child under the age of 14 to work. Child labor was a
massive problem of our country in the earlier times
and it still is happening but at a lower scale. The
penalization of article 24 is severe.
ARTICLE 39
It contains certain principles of policy to be followed
by the State. The State shall, in particular, direct
its policy towards securing that the citizen, men
and women equally, have the right to an adequate
means of livelihood. The ownership and control
of the material resources of the community are
so distributed as to serve the common good and
operation of the
economic system does not result in the concentration

of wealth and means of production to the common
detriment. There is equal pay for equal work for both
men and women and the health and strength of
workers, men and women, and the tender age of

Article
ARTICLE 43
This article sets out the ideals to which our Social Welfare state has to
approximate in an attempt to ameliorate the living conditions of the
workers. Article 43 has been held to furnish the principle by which
unfair labour practice can be judged. It is not possible to lay down an
exhaustive test of unfair labour practice, but it can be said that unfair
labour practice violates the principles of Article 43 and other Articles

referring to decent wages and living condition for women and which
practice, if permitted to become normal, would lead to industrial strife.
The compulsory closure of the industrial concern on National and
Festival holidays has been justified under Article 43 so as to enable the
workers to fully enjoy their leisure and participate in social and cultural
activities. The “living wage” is to be distinguished from “minimum”
and “fair wage” while “living wage” is such wage that enables the
children are not abused and that citizens are not forced by economic male earner to provide for himself and his family not merely the bare
necessity to enter avocations unsuited to their age or strength and necessities but a measure of frugal comforts, “minimum wage” on the
children are given opportunities and facilities to develop in a healthy other hand, is just sufficient to cover the bare needs of a workman and
manner and in conditions of freedom and dignity and that childhood his family. Minimum wage is to be fixed in an industry irrespective of
and youth are protected against exploitation and against moral and its capacity to pay. A “fair wage” stands between “living wage” and
material abandonment. “minimum wage”. It has been held that though our constitutional aim,
as laid down in Article 43, is “living wage” for workers, in actual practice,
ARTICLE 41 our general wage structure has at best reached to the lower level of
“The State shall within the limits of its economic capacity and “fair wage”.
development, make effective provision, for securing the right to work,
to education and to public assistance in cases of unemployment, old CONCLUSION
age, sickness and disablement, and in other cases of undeserved want”. Regular employment at a living wage is the dream and the first demand
The principle enshrined in Article 41 read with Article 45 provides that of the poor in our country. The demand of right to employment calls
it is not only necessary but also desirable for the performance of the for an adequate legal system for providing employment guarantee
State’s ultimate duty and responsibility, to provide education to all whereby the Government can be legally bound to provide work to all
citizens. It has been held that Article 29 and 30 relating to Culture and those who are able bodied. This would enable people not only to feed
Educational Rights should be read in the backdrop of Article 41 and themselves and their families, but also to achieve a minimum standard
45. Right to work, to education, etc. in Article 41, is expressly subjected of living with human dignity. The guarantee of gainful employment
to economic capacity and development of the State. Therefore, person holds the promise of eventually leading to the fulfilment of other
left unemployed under any scheme, cannot claim regularization of their basic rights to food, health, education, and most importantly, right
employment, when that scheme comes to an end or the money for it, to life. This is not a utopian idea, indeed well incorporated in the
is exhausted. Right to work has been deliberately kept, by the Founding Constitution, the supreme law of the country. A guarantee implies not
Fathers, in Directive Principles and hence made unenforceable because, merely an opportunity or even a right, but also assured and secure
they, in their wisdom, realized that while it was their wish that everyone possession of what is guaranteed. The initiative should project the view
should be given employment, but the ground realities of our country that the right to employment must be backed by the full commitment
could not be overlooked. and determination of the government. Affirmation and commitment
to this principle does not mean that government should or could
ARTICLE 42 employ every job seeker. What it does mean is that government has
Article 42 requires that “State shall make provisions for securing just the obligation and it also has the power to formulate and modify
and human conditions of work and for maternity relief”. This Article its policies to make the economic system meet the objective of full
exhibits the concern of the framers of the constitution for the welfare of employment. If implemented well, the national-level Employment
the workers. The court may not enforce the Directive Principle as such. Guarantee Programme will go a long way in upholding the right to
But, they must interpret laws so as to further and not hinder the goals employment for the poorest who cannot find work but have labour.
set out in the Directive Principles. It has been held in P. Shivaswamy It will bring in greater security and confidence into their lives, and also
v. State of Andhra Pradesh, that Rs. 738/- paid per family as financial serve to strengthen their bargaining power. The duty of the State does
assistance to the repatriated bonded labourers, set free from bonds, not end only with the enactment of laws. Mere declaration of right is
were inadequate and not in conformity with Article 42 which required of no use unless a suitable mechanism has been set up to realize it.
the state to make provisions for just and human conditions of work. Successful implementation of any system for upholding the human
In M.C. of Delhi v. Female Workers (Muster Roll), 26 the Maternity Relief rights and dignity largely depends on the cooperation of all those who
has been extended to women (muster roll) employees, working on are involved and concerned with it. Let us also participate to make the
daily wages. right to work an evocative reality.

Article
IBC INTERPLAY WITH LABOUR

LAWS TO PROTECT WORKMEN AND
EMPLOYEES INTEREST
CS SHALINI GUPTA, FCS
shaliniguptacs@gmail.com
manner through National Company Law Tribunal

(NCLT). The elegance of this law is that the exceptions
are specifically laid down in law, in order to protect the
interest of organisation, as well as the principle of equity.
This IBC has also marked a crucial provision whereby
corporate working in India must be more diligent and
follow regulation as violation could be catastrophic. From
Employee perspective, the provisions under IBC is prudent
savior; and from Corporate perspective it is caution note.
Law proposed fast track recovery of undisputed dues
from defaulters Corporate and further employees will be
first in line to get their share from liquidation of assets
of such defaulters Corporate. Under IBC, employees and
workmen are considered as the operational creditors. If a
Company fails to pay salaries and/or other payable dues to
its employees or workmen and the total payable amount
is more than INR 1 lakh (now increased to Rs One Crore by
IBC Amendment Act, 2020), then the employees can file
the application against the Company with the NCLT for
initiation of the process of recovery. Organisations entering
any merger and acquisition should conduct additional due
This article aims to cover the provisions related to the rights of diligence on this matter in order to avoid any disguised
employees under the Insolvency and Bankruptcy Code to recover their impact. In wake of widespread job losses and these series of rulings, the
unpaid wages, provident fund, gratuity, EPFO and salaries from the introduction of sale of a company as a going concern in liquidation, was
corporate debtor and bring out a depiction about how it acts a boon primarily motivated by the objective of keeping employment.
for them with the help of judicial pronouncements.
WHO CAN FILE CLAIM?
THE PERSPECTIVE
The IBC differentiated between two categories of persons: workmen
India as a welfare state has enacted various labour laws in order to and employees. For insolvency process, both employees and workmen
ensure the protection and promotion of the social and economic status qualify as operational creditors (OCs). Since the term employee is not
of workers and the elimination of their exploitation. Under the Indian defined under the IBC, a general definition of employee has been
constitution, trade union, labour and industrial disputes are included referred to. An employee can be said to be a person who is hired by the
in the concurrent list, where both the central and state governments employer to perform a particular job or specific labour of the employer.
are competent to enact legislation, with certain matters reserved for The employee is entitled to a specific wage or salary and performs the
the central government. In addition to these, the preamble of the work under the control or regulation of the employee.
constitution has secured social, economic and political justice, equality
of status and opportunity. Section 3 (36) of the IBC mentions that the term Workmen shall have
the same meaning as provided under the Industrial Disputes Act, 1947
Advent of Insolvency and Bankruptcy Code 2016 (hereinafter referred which under its section 2(s) defines a workman as ‘a person who is
to as “IBC”) has arrayed a new horizon for Employee and workmen employed in any industry to do any manual, unskilled, skilled, technical,
working in Companies in India. Employees and workmen are among operational, clerical or supervisory work, for hire or reward, terms of
the strongest pillars of the economy. Hence, adequate safeguards are employment be express or implied and includes any such person who
required to protect helpless employees in situations of insolvency and has been dismissed, discharged or retrenched in connection with, or as
bankruptcy of their employers. Also, concentrating on the need to a consequence of dispute.
recuperate jobs of employees-the so called human and social capital,
from an unviable to a viable enterprise, becomes indispensable. The IBC provides that all the “employees and workmen” must be
considered within the meaning of the Operational creditors as defined
Employees are now empowered to claim their dues in fast track under Section 5 (20) of the IBC, means a person to whom an operational

Article
debt is owed and includes any person to whom such debt has been (ii) evidence of notice demanding payment of unpaid dues and
legally assigned or transferred. any documentary or other proof that payment has not been
made; or
As per section 5(21) of the IBC ‘Operational Debt’ means a claim in
respect of the provision of goods or services including employment or (iii) an order of a court or tribunal that has adjudicated upon the
debt in respect of the repayment of the dues arising under any law for non-payment of dues, if any.
the time being in force and payable to central government or any state
government or any local authority. IMPORTANCE OF JUDICIAL PRONOUNCEMENT
IN PROTECTING THEIR RIGHTS
The workmen and employee whose past payments are due comes For the matters relating to insolvency and liquidation proceeding
under the definition of operational creditor. For clear understanding against companies, the National Company Law Tribunal (NCLT), the
a general interpretation may be that, an employee is a person who National Company Law Appellate Tribunal (NCLAT) and the Supreme
has been hired by the employer to perform a particular job or specific court are the competent judicial bodies under the Code.
labour of the employer. So the essential criteria that are being looked
upon here may be: The following orders clearly reflect the role that Adjudicating
Authorities (AA) have played over the three years of existence of the
I. There is a specific wage or salary. Code empowering employees and workmen under the Code. There
have been some recent court decisions under the IBC that deal with the
II. The work being done is under control of the employer or is being
interpretation of labour legislation.
regulated by him.
Precision Fasteners Ltd. v. EPFO, Thane; EPFO, Vapi; EPFO Vashi in ARC
III. There is an existing implied or written contract in relation to this
(India) Ltd. v. Precision Fasteners Ltd
work being carried out and the employer and the employee have
consented to the same. In this case, NCLT Mumbai held that any amount due to the workmen/
employees from the provident fund/ ion fund or gratuity will not be
Provided that there is prima facie exception that if there is any suit
included within the purview of liquidation asset. It was further clarified
pending in the other court, then the application cannot be filed under
by NCLT that provident fund dues are excluded from the liquidation
the NCLT or if the amount of operational debt is disputed, then also the
assets enabling the workmen/ employees to realise their savings as well
application cannot be admitted.
as the Employer’s contributions as a part of their fundamental right to
RANKING OF EMPLOYEE AND WORKMAN IN life while the right of the creditors is merely a property right. Provident
WATERFALL MECHANISM OF IBC Fund payable was held to be deemed assets of employee/workmen.
Section 53 of the Code contains provisions for priority of payment JK Jute Mill Mazdoor Morcha v Juggilal
of debts from the proceeds of sale of liquidation assets. It reads that Kamalpat Jute Mills Company Ltd
notwithstanding anything to the contrary in any law for the time being
In this case Supreme Court upheld the insolvency application filed
in force, while distributing the assets, the order of priority as mentioned
under section 9 of the code by a registered trade union considering it
in section 53 has to be followed. Sub-section (1) clause (b) mentions
to be an operational creditor for the purposes of the code.
that the
The National Company Law Tribunal (NCLT), while adjudicating the
Workmen’s dues for the period of 24 months preceding the liquidation
application filed by the trade union on behalf of nearly 3000 workers
commencement date shall be treated equally with the debts owed to
of the debtor, had held that the trade union was not covered as an
secured creditors. Clause (c) provides priority to wages and unpaid dues
operational creditor and had dismissed the insolvency application. In
owed to employees other than workmen for the period of 12 months
the appellate proceedings, the NCLAT had also dismissed the trade
preceding the liquidation commencement date over the dues unpaid
union’s application by stating that each worker could file an individual
to Central or State Governments and unsecured debts.
application before the NCLT.
Unless the first category is paid in full, the second or subsequent
The Supreme Court, after studying various provisions of the Trade
category does not get any amount if the assets of the bankrupt
Unions Act, 1926 (act), observed that a trade union being an entity
company are insufficient to meet them. The claims as specified in the
established under the provisions of the act would fall under the
same category or rank take it pari passu.
definition of a person under section 3(23) of the code.
The existence of dues to workmen or employees may be proved by
Further, Rule 6, Form 5 of the Insolvency and Bankruptcy (Application to
them, individually or collectively on the basis of –
Adjudicating Authority) Rules, 2016, also recognizes that claims can be
(a) record available with an information utility, if any; or made not only in an individual capacity but also conjointly.
(b) other relevant documents, including – Also, a trade union that is recognized under section 8 of the act can sue
or be sued in its name. The Supreme Court relied on the judgment of the
(i) a proof of employment such as contract of employment for division bench of Bombay High Court in the case of Sanjay Sadanand
the period for which such workman or employee is claiming Varrier v Power Horse India Pvt. Ltd., where a winding-up petition by a
dues;

Article
trade union under section 434 read with 439 of the Companies Act, 1956, We are of the strong opinion that it would be inappropriate to approve
was held to be maintainable. On the basis of these observations, the such a plan, which contravenes the law and which is prejudicial and
Supreme Court was of the view that filing individual petitions would be causing injustice to the existing employees/workers/consultants.’
burdensome as each worker would, therefore, have to pay insolvency
resolution process costs, costs of the interim resolution professional, Reid and Taylor
costs of appointing valuers, and so on. It observed that since a trade In the matter of Reid and Taylor, the Mumbai bench of the NCLT
union is formed for the purpose of regulating the relations between accepted a proposal by an unregistered union of the premium apparel
employees and their employer, it can surely maintain a petition as an brand to take over the firm thereby obstructing liquidation. The
operational creditor under the code. On the basis of this, the Supreme company had around 1,200 employees and has a plant in Mysuru,
Court remitted the petition to the NCLAT to decide the matter on its which was running at under 30 percent of its installed capacity and thus
merits. incurring cash losses. Accepting the interest of the employees to take
over the company and thus stall liquidation which the creditors want,
Alchemist Asset Reconstruction Co Ltd vs NCLT noted that ‘...liquidation will get only a meagre value, the creditors
Moser Baer India Limited will be most affected and the workmen will be losing their livelihood...’
In above case, an application was filed by the workers of the debtor NCLT ordered for liquidation as going concern.
in liquidation, praying for a direction to the liquidator to exclude the
amount that is due towards their provident fund, gratuity fund and CONCLUSION
pension fund from the waterfall mechanism provided for under section Workmen and employees both are included in IBC hence, it is
53 of the code. The liquidator was of the view that as per explanation II indispensable for Corporate to have appropriate pay-out policies and
to section 53 of the code, “workmen’s dues” have the same meaning as adequate systems in place. Corporate needs to ensure that appropriate
that assigned to it under section 326 of the Companies Act, 2013, and measures are in place to avoid misuse by the employees as well.
therefore gratuity shall be included for the purposes of section 53 of
the code. IBC is a great measure in the corporate arena to empower the
employees and workmen and mitigate their losses in adverse situations
The NCLT observed that “liquidation estate” as defined under section like insolvency and bankruptcy of their employers.
36 of the code clarifies in unequivocal terms that all sums due to any
employee from the provident fund, pension fund and gratuity fund are It is an effective tool for preventing the loss of livelihood of the affected
not to be included in the expression “liquidation estate”. employees and workmen and safeguarding them from a financial
calamity.
Edelweiss Asset Reconstruction Company Ltd. v. Bharati Defence and
Infrastructure Ltd IBC is a socially beneficial legislation and a great measure in the
corporate arena to empower the employees and workmen and
NCLT rejected the resolution plan providing for right-sizing of mitigate their losses in adverse situations like insolvency or liquidation
employees, without mentioning the approximate number of employees of companies.
to be terminated or to be retained, without complying with labour laws,
and held not to be permissible under law. The extract from the order IBC provides the workmen and employees of the companies with an
reads; opportunity to recover their unpaid dues from the Corporate Debtor, by
approaching the NCLT in a systematic and time-bound manner. Within
‘ The resolution applicant wants all powers to decide the fate of a strict time-limit to resolve or liquidate the Corporate Debtor, the Code
employees/ workmen/ consultants of the company and further seeks is an effective mean to reform debtor behavior in India. It empowers
exemption from complying with the applicable laws and immunity from employees with the right to initiate insolvency proceedings against the
any claims from the employees/ workmen/ consultants so terminated. Corporate Debtor as Operational Creditors and places them in a higher
priority during the payment of the unpaid debts from
the liquidation of assets of the liquidating company
In wake of widespread job losses and these series

of rulings, the introduction of sale of a company as a
going concern in liquidation, was primarily motivated
by the objective of keeping employment potential
and economic activities intact. The amendments
to the IBBI (Liquidation Process) Regulations, 2016
(Liquidation Regulations), introduced on July 29, 2019
by incorporating regulation 32A of the Liquidation
Regulations, made it explicitly possible for the liquidator
to transfer a company in liquidation as a going concern.

Article
Labour Law
Compliance and Audit CS Yogesh Gupta, FCS
ykgupta64@yahoo.co.in
Vinay Kumar
Introduction: 1936, etc. For the purpose of securing interest of labour class workers,
Indian government has introduced and amended various Labour
Under the Constitution of India, Labour is a subject in the Concurrent List
Laws for different purposes which include Industrial law compliance,
and, therefore, both the Central and State governments are competent
Wages, working hours, conditions of service and employment, Equity
to enact legislations subject to certain matters being reserved for the
and Empowerment of Women, Prohibitive Labour Laws, Employment
Central Government under union list. India in the last few decades has
and Training, social security and others in the form of terms and
seen huge development of business and economic growth and the
conditions of employment. Labour Laws in India are primarily focused
most valuable major contribution has been made by our Labour force.
on safeguarding the protection of the rights of employees providing
Roughly 50% of our population comprises of the total labour force in
them working atmosphere at work place. Every Act has its implications
the country majority of which is engaged in the unorganized sector.
as well as it imposes responsibility of implementation and compliance
After being second largest populated country of the world, this work
of labour laws on employer.
force has become gigantic. For the purpose of safeguarding the interest
of these people, central and state government often introduce various Duties of Employers under labour laws
acts, rules and regulations. Compliance of labour laws is basically the
For the purpose of carrying out business with not only profitability but
set of terms or conditions of employment framed under the central
sustainability, employers are required to meet statutory compliance
laws as well as under the state laws which an organization is required to
requirements and if they fail to do so, they will be liable for punitive
comply with and is primarily focused on safeguarding the protection of
action in accordance with respective act or regulation from the
these rights of employees. There are Labour Laws on Industrial Relations
concerned authorities. Therefore it is the duty of employer employing
like Trade Union Act 1926, Industrial Employment (Standing Orders)
employees to introduce the terms and conditions of various labour laws
Act 1946, Industrial Disputes Act 1947, Social Security & Welfare Laws
as may applicable to them in their HR Policy or in their appointment
like Employees’ State Insurance Act 1948, Employees’ Provident Funds
letters to provide all the benefits as Central or State government is
& Miscellaneous Provisions Act 1952, Employee’s Compensation Act
intended to provide which includes minimum wages, working hours,
1923, Maternity Benefit Act 1961 Payment of Gratuity Act 1972, Sexual
safety at work place, retirement benefits, special protection to women
Harassment at Workplace (Prohibition, Prevention and Redressal) Act,
and many others.
2013 and Labour Laws on Occupational Safety, Health & Working
Conditions like Factories Act 1948, etc. apart from some more acts like Abiding to Labor Law compliances is essential for every big and small
Minimum Wages Act 1948, Payment of Bonus Act, Payment of Wages Act company to keep their businesses safe and secured from any legal
entangles.
Initiatives by Ministries under

COVID-19
Under this pandemic catastrophic situation of Covid-19,
Ministry of Labour and Employment of Government of
India has issued various Advisories and Notifications
for empowerment and benefits of the Labour and
employees. The ministry issued advisory dated
19/03/2020 in which it had issued direction of preventive
measures to be taken by employers and employees at
work place to prevent transmission, reduce the impact
of the outbreak and support control measures. This
direction was issued on the basis of advisories issued by
Ministry of Health and Family Welfare. With the Advisory
Number M-11011/08/2020-Media Dated 20/03/2020,
the Ministry has advised the employer of Public or
Private establishments not to terminate their employees,
particularly casual or contractual workers from their jobs

Article
2013, the Central Government has issued the Companies (Auditor’s
Report) Order, 2015 (CARO), which came into force on 10th April, 2015.
Clause (vii) (a) of Paragraph 3 duly amended with CARO, 2020 dated
25.02.2020 provides that:
The auditor’s report on the accounts of

a company to which CARO, 2020 applies
shall inter alia include a statement on
the following matters
i. whether the company is regular in depositing undisputed statutory
or reduce their wages. If any worker takes leave, he shall be deemed dues including Goods and Services Tax, provident fund, employees’
to be on duty without any consequential deduction in wages for that state insurance, income-tax, sales-tax, service tax, duty of customs,
period. Further, if place of employment is to be made non-operational duty of excise, value added tax, cess and any other statutory dues
due to Covid-19 employee of such unit will deemed to be on duty. to the appropriate authorities and if not, the extent of the arrears
Because termination of employees from their job or reduction of wages of outstanding statutory dues as on the last day of the financial
in this scenario would further deepen the crises which will not only year concerned for a period of more than six months from the date
weaken the financial condition of the employee but will also hamper they became payable.
their moral to combat their fight with this epidemic.
ii. If above mentioned undisputed dues are not deposited on account
Advantages of complying with labour of any dispute, then the amounts involved and the forum where
laws dispute is pending shall be mentioned (a mere representation to
Abiding the labour laws is beneficial for Employer, as this increases the concerned Department shall not be treated as a dispute)
productivity in view of lower absenteeism in the enterprise, increases
If such non-payment of dues is on account of any dispute, then the
profit of enterprise, employer’s status increases in society, increases
amount involved and for the forum where the dispute is pending
recognition in view of regulatory authority. Strict compliance of all
should also be mentioned.
labour legislation reduces or even eliminates penalties/ damages/
fines that may be imposed by the Regulatory authority. To improve As we already discussed the labour laws of central government or state
the labour relations, a strong communication and understanding of government do not contain any specific provision for audit but with the
the workers as to their behavior, requirements is a must. Therefore, the help of contents of
congenial atmosphere is indispensable for good corporate governance.
For employees the compliance of labour laws is beneficial as it increases auditor’s report specified in CARO, 2020 we can derive that audit
their Social Security as well as secure timely payment of wages, gratuity, of labour laws have been made applicable to certain companies
bonus, overtime, compensation, etc. of the workers which will in turn specified under Section 1(2) of CARO, 2020. Therefore, the companies
result in lower absenteeism in the organization and inculcating sense should make a monthly, quarterly, half-yearly and yearly check list
of belongingness towards their employer. The compliance of labour for compliance of the various requirements under the provisions of
laws is beneficial for the Governments as their revenues will rise each of the labour law on its own which will help them for any type of
phenomenally (Center or State as the case may be) by way of filing audits as may be required by any outside authority or by any statutory
fees and other charges. India’s image before the International Labour authority. In many cases, specially the Export Oriented Units, there is
Organization will improve as a country with negligible non-compliance a requirement of buyers audit which is just to check the compliances
of labour legislation. With the increase in compliance, it will lead to made by the company with which they are dealing with for adoption of
lesser visits from the statutory authorities for checking their records all safety and welfare measures as are required under different statutes.
etc. The due diligences can be done by an Independent Professional The audit process strives to provide all the benefits to employer,
like Company Secretary in Whole Time Practice as Secretarial auditor or employee and regulatory authority for the purpose of which all the acts,
for the purposes of audits required during the business by the clients of rules and regulations are enacted. The compliance of laws and audit
the business houses. process leads to better governance and value creation and provides
overall sustainability for the business.
Scope of Labour Audit under Companies
(Auditor’s Report) Order, 2015 (CARO) In nutshell, it is always desirable for any business to have a team of
professionals as per their requirement to comply with the labour laws
Audit is a process of assessment of activities by an independent
as are applicable to that particular kind of business which will create an
professional. The labour Laws do not contain the provision of audit but it
image as one of the best employer with whom the people would like
is advisable for companies to appoint an independent professional like
to get associated. At the same time, the Governments shall also make
practicing company secretary to conduct audit for not only checking
labour reforms to provide flexibility to the businesses to deal with the
the non-compliance of labour laws as applicable to the company being
labour in order to get the best output in proportion of their expenditure
an “employer” but also to suggest the corrective actions as may be
made on labour.
required to be taken for avoiding any unwarranted legal actions by the
respective authorities for violation of any of the labour laws. However,
in terms of power conferred under s 143(11) of the Companies Act,

Article
CONCEPT OF THE SEXUAL HARASSMENT

OF WOMEN AT WORKPLACE (PREVENTION,
PROHIBITION AND REDRESSAL) (POSH)
ACT, 2013 AND ITS COMPLIANCES
CS Divyanshu Sahni, aCS
divyanshu.sahni@yahoo.in
AN INTRODUCTION (ii) any private sector organisation or a private venture,

undertaking, enterprise, institution, establishment, society,
This Act provides protection against sexual harassment of women at
trust, non-governmental organisation, unit or service provider
workplace and for the prevention and redressal of complaints of sexual
carrying on commercial, professional, vocational, educational,
harassment and for related matters.
entertainmental, industrial, health services or financial activities
Sexual harassment results in violation of the fundamental rights of including production, supply, sale, distribution or service;
a woman to equality under articles 14 and 15 of the Constitution of
(iii) hospitals, nursing homes; any sports institute, stadium, sports
India and her right to life and to live with dignity under article 21 of
complex or competition or games venue, whether residential or
the Constitution and right to practice any profession or to carry on
not used for training, sports or other activities relating thereto; a
any occupation, trade or business which includes a right to a safe
dwelling place or a house;
environment free from sexual harassment.
(iv) Any place visited by the employee arising out of or during the
Case law: Vishaka and others v State of Rajasthan course of employment including transportation by the employer
In 1997, the Supreme Court laid down guidelines (popularly known for undertaking such journey.
as Vishaka Guidelines) in this case, pending formal legislation, for
dealing with sexual harassment of women at the workplace. This is the COMPLIANCES REQUIRED UNDER THE PoSHACT
judgement of the Supreme Court of India. The PoSH Act has proven to
SUBJECT COMPLIANCES REQUIRED
be a positive enhancement of the Vishaka guidelines.
Internal The law provides that every employer with 10
MEANING OF SEXUAL HARRASMENT Complaints or more employees must constitute an Internal
Committee Complaints Committee (ICC) within the organization
“Sexual Harassment” includes the following unwelcomed sexually
to handle complaints of Sexual Harassment. If offices/
determined behaviour (whether directly or by implication) namely:—
administrative units of the workplace are located at
Physical contact and advances, a demand or request for sexual different places or divisional or sub-divisional level,
favours, sexually coloured remarks, showing pornography or any other the Internal Committee shall be constituted at all
unwelcome physical, verbal/ non-verbal conduct of sexual nature. It administrative units or offices.
also covers the implied or explicit promise of preferential/ detrimental
Constitution:
treatment in her employment, implied or explicit threat about her
present or future employment status, interference with her work or Following members to be nominated by the employer:-
creating an intimidating or offensive or hostile work environment for
(a) Presiding Officer ( who shall be a woman employed
her, humiliating treatment likely to affect her health or safety.
at a senior level but if not available then nominate
HOW TO MAKE COMPLAINT from other offices/ administrative units of the
workplace but if still not available, then nominate
Any aggrieved woman may make a complaint of sexual harassment at
from any other workplace of the same employer or
workplace in writing, to the Internal Committee if so constituted, or the
other department or organisation)
Local Committee, in case it is not so constituted, within three months
from the date of incident and in case of a series of incidents, within a (b) Minimum two Members from amongst employees
period of three months from the date of last incident: committed to the cause of women/ experienced in
social work/ legal knowledge;
APPLICABILITY (c) One member from amongst NGO/ associations
(i) any department, organisation, undertaking, establishment, committed to the cause of women/ person familiar
enterprise, institution, office, branch or unit which is established, with sexual harassment related issues
owned, controlled or wholly or substantially financed by funds Provided that at least one-half of the total Members so
provided directly or indirectly by the appropriate Government or nominated shall be women
the local authority or a Government company or a corporation or
a co-operative society;

Article
Local Every District Officer shall constitute in the district Where the aggrieved woman informs the Internal
Committee concerned, a committee to be known as the Local Committee/ Local Committee, as the case may be, that
Committee to receive complaints of sexual harassment the settlement arrived has not been complied with by
from establishments where the Internal Committee the respondent, the Internal/ Local Committee shall
has not been constituted due to having less than ten make an inquiry into the complaint or, as the case may
workers or if the complaint is against the employer be, forward the complaint to the police.
himself.
Inquiry into complaint-
Constitution:
Subject to the provisions of conciliation, the Internal
Following members nominated by the District Officer: Committee/ Local Committee, as the case may be, shall,
— where the respondent is an employee, proceed to make
inquiry into the complaint in accordance to the service
(a) a Chairperson (from amongst the eminent women rules applicable to the respondent and where no such
in the field of social work/ committed to cause of rules exist, in such manner as may be prescribed or in
women); case of a domestic worker.
(b) One Member (from amongst the women working The Local Committee shall, if prima facie case exist,
in block/ taluka/tehsil/ward/municipality in the forward the complaint to the police, within 7 days for
district); registering the case under section 509 and any other
relevant provisions, if any applicable, of the Indian
(c) Two Members (at least one woman, to be
Penal Code.
nominated from amongst NGO/ associations
committed to the cause of women /person familiar Provided that if both the parties are employees, then,
with the issues relating to sexual harassment) during the inquiry, opportunity of being heard shall
be given to both the parties and a copy of the findings
Provided that at least one of the nominees should,
shall be made available to both the parties enabling
preferably, have a background in law or legal
them to make representation against the findings
knowledge and at least one nominee shall be
before the Committee.
a woman belonging to the Scheduled Castes/
Scheduled Tribes/ Other Backward Classes/ For the purpose of making an inquiry,t he Internal
minority community Committee/ Local Committee, as the case may be, shall
have the same powers as are vested in a civil court the
(d) the concerned officer dealing with the social
Code of Civil Procedure, 1908.
welfare/ women & child development in the
district, shall be a member ex officio. The inquiry shall be completed within a period of 90
Manner Of Conciliation days.
Inquiry By District District Officer shall designate 1 nodal officer in every
Internal/ The Internal Committee/ Local Committee, may, before
Officer to block, taluka and tehsil in rural/ tribal area & ward/
Local initiating an inquiry and at the request of the aggrieved
designate municipality in urban area, to receive complaints &
Committee woman take steps to settle the matter between her and
one nodal forward the same to concerned Local Committee
the respondent through conciliation but no monetary
officer within a period of 7 days.
settlement shall be made as a basis of conciliation.
After settlement is arrived, no further inquiry shall
be conducted by the Internal Committee/ Local
Committee.
Where settlement has been arrived the Internal

Committee/ Local Committee, as the case may
be, shall record the settlement and forward it to
employer/ District Officer to take action as specified
in the recommendation and also provide the copies
of settlement to the aggrieved woman and the
respondent.

Article
Duties Of (a) provide a safe working environment at the PoSH Policy Formulation and wide dissemination of an internal
Employer workplace with shall include safety from the PoSH policy for the prevention and redressal of sexual
persons coming into contact at the workplace, harassment at workplaces is required to be made by
the employer.
(b) display the penal consequences of sexual Board Board Report under Companies Act, 2013 shall contain
harassments at any conspicuous place in the Report of a statement that the company has complied with
workplace and the order constituting, the Internal Companies provisions relating to the constitution of Internal
Committee, Complaints Committee under the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
(c) organise workshops and awareness programmes
Redressal)
at regular intervals for sensitising the employees
with the provisions of the PoSH Act, IMPACT OF PoSH
(d) provide necessary facilities to the Internal/ Local A feeling of insecurity leads to an environment which is full of fear in the
Committee for dealing with the complaint and women and creates a lack of confidence in them, low job satisfaction,
conducting an inquiry, decrease in productivity, more absence from work due to unreasonable
excuses which ultimately results in the organization losing its valuable
(e) assist in securing the attendance of respondent employees along with a declining workplace culture.
and witnesses before the Internal Committee or
the Local Committee, By the introduction of PoSH Act at the workplace, women will feel
secure and safe at the workplace, without any fear of being harassed
(f ) make information available to the Internal/ Local by anyone. They will not tend to run away from their duties due to
Committee, as it may require having regard to the any fear. They will feel higher job satisfaction and hence they will give
complaint made higher productivity, will not hesitate to collaborate among employees,
Improvement in workplace culture will get improve, Trust and respect
(g) provide assistance to the woman if she so chooses for colleagues will be maintained.
to file a complaint in relation to the offence under
the Indian Penal Code or any other law By implementation of the Act, more women are raising their voice
against the wrong done to them, that also, without any fear and any
(h) cause to initiate action, under the Indian Penal embarrassment of reveal of their identity as the Act provides for the
Code or any other law, against the perpetrator, provisions for non- disclosure of the identity, address of the aggrieved
or if the aggrieved woman so desires, where the woman, respondent and witnesses, and any information relating
perpetrator is not an employee, in the workplace to conciliation and inquiry proceedings, recommendations of the
at which the incident of sexual harassment took Internal/ Local Committee, as the case may be, and the action taken
place, by the employer or the District Officer shall also not be published,
(i) treat sexual harassment as a misconduct and communicated or made known to the public, press and media in any
initiate action manner.
(j) monitor the timely submission of reports by the The Act comprehensively includes the safety of ‘external’ women also,
Internal Committee visiting the workplace and covers ‘verbal’ sexual harassment as well
which fulfils the object of safety of all women under the PoSH Act.
Committee (1) The Internal/ Local Committee, as the case may be
to submit shall prepare an annual report in each calendar
annual year and submit it to the employer and District
report Officer.
(2) Contents of annual report:-
number of sexual harassment complaints received

in a year, the number of complaints disposed off
in a year, cases pending for more than 90 days,
number of workshops or awareness programmes
carried out, nature of action taken by employer/
District officer
(3) The District Officer shall forward a brief report

on the annual reports so received to the State
Government.

Article
labour law
compliance and audit CS KOMAL AWASTHI, ACS
Komalawasthi1712@gmail.com
INTRODUCTION VALUE – BASED APPROACH TO COMPLIANCE:

LABOUR LAW COMPLIANCE IN INDIA is basically set of terms or condition The companies in India must carry out statutory compliance under
of employment… There are Central laws, as well as there are state laws various Labour Laws. The range of labour compliance is not restricted to
which a business is required to comply with. Labour Law Compliance filing returns and maintaining statutory deposits and records by means
in India is primarily focused on safeguarding the rights of employees. of the company. For any legal trial, these records shall be produced as
evidence under various statues. Also, if the business or company in
any case fails to make the industrial law compliance, there are strict
penalties specified by the law.
Indian Labour Law contains various acts consisting of every possible

aspect for the protection of labour rights. The application of the law
relies on the type of firm. Also, there are many laws which are applicable
to employer as well as employee respectively.
APPLICABILITY AND IMPLEMENTATION:

Every employer or an occupier has to be aware of the applicability
of various laws for every establishment. Whether certain laws are
applicable or not? If applicable, what is the minimum requirement of
workers and to what extent? Under the applicability, what practices are
“IT MAY BE POSSIBLE TO PUNISH EMPLOYEES INTO COMPLIANCE, BUT to be followed and records to be maintained? In India, most labour laws
WE CANNOT PUNISH THEM INTO COMMITMENT AND COMMITMENT IS are based on the number of employees in the establishment. Hence,
WHAT TODAY’S ORGANISATION REQUIRES” the applicability is important.
India has seen a huge development of business and economic growth Once the coverage and applicability is known, implementation becomes
in the recent times. For carrying out business, corporations are required very easy and mandatory. When the number reaches to certain levels,
to meet statutory compliance requirements. There are many laws it will go without saying. On an average, in India, normally for any
and Acts that a corporate is required to follow. If a corporation fails to establishment, there are about 14 to 16 labour laws applicable. They are;
comply with such laws, then it may lead towards punitive action from
REGULATORY LAWS:
the concerned authorities.
• Factories Act, 1948
Labour Law compliance regulates companies, workers as well as trade • The Contract Labour (Regulation and Abolition) Act, 1970
unions for securing the rights of the workers and labourers at large. • The Motors Transport Workers Act,1961
However, labour law compliance in India is imposed by the State as well • The Punjab Shops And Commercial Establishments Act, 1958
as the Central Government. Abiding to Labor Laws is essential for every • Industrial Employment (Sanding Orders) Act,1946
big and small company to keep their businesses safe and secured from
any legal trouble.
INDUSTRIAL RELATIONS:
• Industrial Disputes Act,1947
Globalisation in new economy has paved way for open business and • Trade Union Act,1926
everything is measured and looked from the angle of global standards
and best of best in the form of world class. This has led to lot of quality SOCIAL SECURITY LEGISLATIONS (CODE)
systems in technology, supply chain, banking, and finance and also in The Employees’ Provident Fund And Miscellaneous Provisions Act, 1952
Human resource management. Talent can move anywhere and people The Employee State Insurance Act, 1948
are also mobile. To have continuous flow of business in smooth way, The Payment of Gratuity Act,1972
many approvals, certifications and compliances have become need The Employee’s Compensation Act, 1923. The Maternity Benefit
of the hour and these are subject to various and continuous audits by Act,1961
internal and external agencies. The Equal Remuneration Act,1976

Article
COVID -19 CONTRACTUAL: no requirement
INDUSTRIAL DISPUTE ACT,1947 OUTSOURCED: ensure vendor does it – Courts can see NATURE OF
ARRANGEMENT- sham or genuine COMPLIANCE FOR RETRENCHMENT
RETRENCHMENT OF EMPLOYEE/LABOUR AND CLOSURE
RETRENCHMENT COMPENSATION : 15 days wages each completed

year of service
NOTICE/NOTICE PAY : one month/ 3 months
GOVERNMENT: Intimation/Permission- depending upon number

of workers
Last Come First Go
POSSIBLE SOLUTION FOR RETRENCHMENT &

CLOSURE
VRS/ GOLDEN HANDSHAKE- retrenchment , gratuity. Compensation
after negotiation
RELEVANT ISSUES UNDER INDUSTRIAL DISPUTES
ACT Resignation Transfer
COVID-19 is severe acute respiratory disease caused due to infection Retrenchment Compliance Outsourced Workers- Through Vendor
from the novel corona virus which originated from Wuhan province
in China and has now turned into a global pandemic. Within three WORK FROM HOME
months from its first instance, COVID-19 has spread across the globe While the concept of work from home is not new in Indian businesses,
and has already started causing severe economic repercussions. Indian the Indian employment statutes are silent about the work from home
businesses have also been severely affected due to the COVID-19. concept. There is no statutory definition or any specific guidelines
that may regulate the said concept. Accordingly, there is a flexibility
Taking question from how COVID-19 has taken turns in other countries available with the employers to allow or not allow their employee
and social distancing being the only effective way to control this work from home and they specify their own guidelines for the same.
disease, the Government of India has decided to implement a However, the statutory provisions relating to working hours, overtime
nationwide lockdown in India for three weeks effective from March payment etc. shall continue to apply as if the employee has been
24, 2020. On the basis of advisories issued by the Government of working from the office premises.
India, all state governments and union territories have implemented
lockdowns respectively. It is obvious that the Lockdown will come at Due to the nature of COVID-19 and to promote social distancing,
its own economic consequences in India, the Indian business are also various state governments and central government have time to time
experiencing unprecedented issues including employee related issues. issued various advisories for promoting work from home. As of the
In this note we endeavor to provide our understanding of some implementation of lockdown in India (effective March 24, 2020), all
common issues arising out of COVID-19 which may help the employers commercial and industrial establishments which are not engaged in
in taking a concerned approach in dealing with their employee related providing essential services, have to be closed. However, the closure
matter. due to the said lockdown does not necessarily mean that employers
are required to close all of their operations and are free to implement
RETRENCHMENT/ TERMINATION work from home wherever possible. Requiring employee to perform
The option of retrenchment/termination is available to the employers their work from home will also not trigger any overtime payments as
but the same will be treated as termination for convenience and all the the closure of offices does not mean declaration of a holiday. As an
necessary exception to lockdown, industrial establishment which requires some
physical presence of workers/ employees to maintain its continuity,
processes like notice period, intimation to government authorities,
such establishments can continue to operate after taking appropriate
payment of retrenchment compensation, payment of gratuity, Leave
permissions from the local administrative authorities.
encashment, etc. will need to be completed. Further, there are also
many government advisories against termination of employees due to LEAVE MANAGEMENT
COVID-19. We recommend that retrenchment/ termination should be As a result of the lockdown implemented by state governments on the
considered as an option of last resort. advisory of Government of India, many employers have implemented
CATEGORY WISE COMPLIANCE OF work from home to the extent possible, but there are various
RETRENCHMENT establishments or the nature of work performed by an employee,
where work from home is not possible.
REGULAR: completion of 240 days of continuous service CASUAL/
TEMPORARY: completion of 240 days PROBATIONER: no requirement Under the current circumstances where the lockdowns have been
implemented and commercial and industrial establishments are closed

Article
pursuant to government orders, the absence of employees from work adjustable with the compensation payable for retrenchment.
cannot be adjusted towards paid or un-paid leaves. However, if the
establishments are voluntarily closed in absence of specific orders from The processes for lay-off shall differ from one establishment to other
government, the employers and employees can mutually agree on depending on number of workmen employed and nature of activity
adjustment of paid and un-paid leaves. Availing leave on a particular undertaken. For a non-workman category employees the conditions of
day is an employee’s prerogative, and they cannot be forced to utilise lay-offs will need to be mutually agreed.
their leave. Most organisations are therefore examining the possibility
REDUCTION IN PAY
of work from home as a preventive measure. In past few days we have
noticed that a few organisations have implemented some schemes There is no specific provision which deals with reduction of pay. This
where employees are provided an option to go on un-paid leaves has to be agreed mutually between the employer and employees.
but considering the implementation of lockdown such scheme may get Taking in account the situation arising because of COVID-19 in certain
effected. industries (like Aviation and Tourism) the employer and employees
have agreed on a standardized pay cut across the board. In this regard
In case an employee is infected or requires sickness leave otherwise, if the employer is looking at implementing pay-cuts the same should
the prescribed number of sickness leaves under the applicable law vary be applied universally, without any discrimination and specially not in
from 7 (seven) days to 12 (twelve) days depending on the location form of a punishment to any specific employee.
of the concerned establishment. Some states like Karnataka have
required the employers to provide a longer duration of sickness COMPENSATION TO INFECTED EMPLOYEES
leave (up to 28 days) to employees who have contracted COVID-19. If Employers (in India) are obligated to pay compensation to employees
the sickness continues beyond such number of days, other leaves like who are injured (which includes partial or permanent disablement) or
casual leaves or earned leaves can be utilised for the same. In the event die due to accidents arising out of or in the course of employment.
of prolonged illness, employees can be provided unpaid leaves for Accordingly, if it can be demonstrated that COVID-19 infection was
the required duration. Further, establishments covered under ESI Act, contracted in the course of employment and it arose out of employment,
longer duration of sickness leave is possible. the employer shall be legally obligated to pay compensation to
impacted employees. The obligation to pay compensation would also
If an employee is required to administer self-quarantine as a depend on other factors like the State of employment, the nature of
consequence of discharging his official functions, such employees the employee’s work, and the circumstances in which the injury/death/
should be provided with paid leaves for the same. However, if the infection was caused. Accordingly, each case has to be evaluated based
employee is required to do the same due to his personal actions, they on the facts of each case.
can be required to utilise their outstanding leaves for the same.
GOVERNMENT ADVISORIES
The employers should not terminate their employees, particularly
casual or contractual employees or reduce their wages. If any employee
takes leave(s), he/she should be deemed to be on duty without any
consequential deduction in wages and
if the place of employment is non-operational, the employees would

deemed to be on duty.
The content of this article is intended to provide a general guide to the

subject matter. Specialist advice should be sought about your specific
circumstances.
ISSUES IN COMPLIANCE OF LABOUR LAWS :

Globalised Markets And Competition.
The Changing Ways of Conducting Business.
Rapid Change in Technologies.
LAY - OFFS Mobility of Labour.
Need For Flexibility of Organisations
Lay off is defined in the Industrial Disputes Act of India which means
Need To Cater to clients Located in Different Time Zones of The
the failure, refusal or inability of an employer on account of shortage
World.
of coal, power or raw materials or the accumulation of stocks or the
Social And Cultural Change Due to so Many Changes.
breakdown of machinery or natural calamity or for any other connected
Laws Must Conform to The Need of Changing Times.
reason to give employment to a workman. During lay-off, the workman
How To Confirm To The Requirements Of Social Clause Of The WTO
continues to be in the employment of the employer but at a reduced
Without Harm To The Industry
pay. Eligible workman category employees can claim compensation
at up to 50% of basic salary and dearness allowances for lay-off. If the BE A BUSINESS MANAGER AND NOT JUST
lay-off continues for a duration of 45 days or more, the employer ANOTHER BRICKS IN THE WALL
can proceed for retrenchment. The compensation paid for lay-off is

Article
CHANGE YOUR MIND SET Suggestions for regular monitoring, self-audits and reporting
system as part of MIS
TRADITIONAL MIND SET REALITY TODAY
BUSINESS = Battlefield BUSINESS IS AN ECOSYSTEM Inspect all the documents related to labour law compliance such
CORPORATION = Machine CORPORATION IS A COMMUNITY as License, provident fund, ESIC, professional tax, Minimum wages
Act, etc. (additionally for Contractors/ Vendors)
MANAGEMENT= Control MANAGEMENT IS SERVICE
EMPLOYEE= Child EMPLOYEE IS A PEER LABOUR AUDIT
MOTIVATION= FEAR MOTIVATION WITH FEAR Audit under Labour Legislations is an effective tool for compliance
management of labour legislations. It helps to detect non-
C harge sheet compliance of various labour laws applicable to an organisation and
Reply to charge sheet to take corrective measures. Objectives of labour audit is to protect the
Detailed enquiry including complete opportunity of evidence and interests of all the stakeholders. This leads to better Governance and
cross examination value creation for the organisation and to avoid any unwarranted legal
Enquiry Report actions against the organisation and its management.
Disciplinary Action
Appeal / Review in case there is provision Labour Audit is a process of fact finding. It is a continuous process.
The Labour Audit will ensure a win-win situation for all interested
LABOUR LAW COMPLIANCE MANAGEMENT persons. Initially, the Employers may frown at the idea of such Audits,
For Employers but with passage of time, the compulsion of labour audit will infuse
self- regulation amongst certain employers.
Identification of all labour law legislations applicable to the
company. Audit under labour laws is a new concept, which is necessitated, in
direct consequence of its non-compliance in large scale. Even after
Review of present system, practices and level of compliance over six decades of attaining independence, India is still plagued with
governing the business segment. victimisation, non compliance of labour legislations is still at large. An
analysis of these practices reveals that many employers resort to short
Evaluate, analyse and assess the compliance program to make the
cut methods to avoid the compliance of labour legislations. There is no
company totally compliant with the applicable laws.
system in place for reporting non-compliance of labour legislations by
Produce a comprehensive audit report and gap analysis including an independent professional like Company Secretary. Workers in India
risk analysis. report many cases relating to non-compliance of labour legislation by
employers.
Implementation of an effective compliance system – provide
required guidance and necessary facilities, provide options and METHODOLOGY FOR CONDUCTING LABOUR
recommendations to diminish or eliminate the risk wherever AUDIT:
possible in the areas of legal obligations. At the commencement of audit, the Independent Professional like
Company Secretary in Whole
Time Practice should define
the scope of his audit. The
scope will certainly differ from
employer to employer.
As stated Independent
Professional like Company
Secretary in Whole Time
Practice should identify
various Central and State Acts
and Rules that are applicable
to an employer. Based on
such identification, he should
commence scrutinising the
compliance of provisions of
various Acts/Rules. It will be
in the fitness of things that
the Report is drafted in the
same manner as PCS do for
Compliance Certificate under
the provisions of the Company

Article
Law. Checklist for compliance of each legislation has to be formulated Appropriate Government will rise phenomenally.
before commencement of his Audit.
(d) India’s image before the International Labour Organisation will
BENEFITS OF LABOUR AUDIT improve as a country with negligible non- compliance of labour
Benefits to the Labour legislation.
(a) Introduction of Labour Audit will boost the morale of the workers To Fulfil -SA 8000 Standards
to a large extent. No Child Labour
No Forced Labour. Health and Safety
(b) It will increase their Social Security. Freedom of Association and Right to collective Bargaining
Discrimination Discipline
(c) It will inculcate on workers a sense of belongingness towards their Working Hours
employer. Compensation
(d) It will secure timely payment of wages, gratuity, bonus, overtime, CONCLUSION
compensation etc. of the workers.
To conclude, non compliance will only put positions like occupier,
(e) Timely payment of entitlements will reduce absenteeism in the director into problems and they have to face the music of judiciary,
organisation. cases, prosecutions, imprisonment, fine, personal accountability, etc.
and have to waste time and energy in facing these issues. In the process,
Benefits to Employer relationship may also get affected with the authorities and may be with
employees and union.
(a) Increased productivity in view of lower absenteeism in the
enterprise. Higher the productivity, higher will be the profit. Thus, every prudent employer should always look at the positive side
of compliance thereby making all the stake holders happy and achieve
(b) Status in the Society for the employer will increase, in view of the
the goals of the organization and can concentrate on strategic issues
recognition that may be bestowed on them by the Government.
as priority.
(c) Strict compliance of all labour legislation will be ensured by each of
Establishment should also ensure that respective dues to the employees
the employers, which in turn, will reduce or even eliminate penalties
are paid on time and the welfare is taken care of in reasonable good
/ damages / fines that may be imposed by the Government.
manner. This amounts to mental peace and respect from all the
(e) Co-operation of and understanding with the workers will improve concerned! Country needs such situations!
labour relations. The congenial atmosphere is indispensable for
“Survey Janahaa Sukheeno Bhavantu (Let all people be happy-
good corporate governance.
Upanishad)”
Benefits to the Government
Such legislations ultimately ensure right way of happiness to
(a) Reduction in the number of field staff for inspection of Industries/ stakeholders.
Factories/ Commercial Establishments as most of their work will be
Finally, one must keep in mind and know that Compliance cost is
done by an Independent Professional like Company Secretary in
cheaper than Litigation Cost.
Whole Time Practice.
It is Better to manage the law before it manages you.
(b) Compulsory Labour Audit will ensure compliance of past defaults.
Comply and be safe.
(c) In case the Government seeks to introduce filing fees for
Compliance Report under Labour Legislation, the revenue of the

Article
Can Employees be Paid less

during Lockdown? CS Richa Sharma, ACS
richa@conducivelegal.com
employees, particularly casual/contractual workers or reduce their

wages. It further stated that if any place of employment is to be made
non-operational due to COVID-19, the employees of such unit will be
deemed to be on duty.
Further, it stated that the “no work no pay” judicial principle cannot
be invoked in the present circumstances as neither the employers
offer work nor the workers are able even if willing to report for work.
So the employers cannot deduct wages for absences due to national
lockdown.
What is the legal meaning and implication

After the outbreak of COVID-19 when the country-wide lockdowns were
of the Order?
announced and all the business, industries and establishments were
bound to shut down their operations except the essential services, the Order of 29th March, 2020 was issued by the Home Secretary, the Ministry
questions which came across the mind of every employee were, “How of Home Affairs and the Government of India, in exercise of the power
they will survive in these tough times?, Will their employer support? Will conferred under Section10(2)(1) of the Disaster Management Act, 2005.
they be paid during lockdown? OR “NO WORK, NO PAY.” principle will be This Order is binding upon all the concerned parties. The Section 10(2)
adopted?” To worsen the condition, when the lockdown was extended, (1) of the Disaster Management Act, empowers the National Executive
with the beginning of the second inning of lockdown it had a deep Committee to lay down direction to the Ministries or departments of
impact and no one remained untouched and everything came to a halt the government of India and State authorities, for preparing disaster
disrupting the whole economy during lockdown. The life threatening management plans. Section 51 describes the punishment for any
question was, “Whether after lockdown, shall we be able to join back obstruction or non-compliance of any such directions passed under
the office or we would be handed over the pink slip?” this Act. Section 72 creates an overriding effect, regardless of anything
contained in any other law that may be inconsistent with the orders
On one hand, employees were worried about their salaries, jobs and under the Disaster Management Act for the time being in force. The
on the other hand, employers were in dilemma whether to pay or said order under the Disaster Management Act cannot be set aside until
not, whether to downsize or not, as the environment for business any High Court of any State or the Supreme Court modifies it or sets it
(despite all the efforts by the Government right form relaxing statutory aside.
compliances to allowing moratorium period for repayment of debts)
was not conducive with either negligible or no profit despite being Can the wages be deducted or reduced?
humane, they needed money to pay off their workforce and money The Orders issued by the Central Government dated 20.03.2020 and
cycle or flow of money was disrupted. 29.03.2020 pertaining to lockdown and payment of wages should be
mandatorily followed. These must be continued to follow if there is any
While the country was coming to terms with the nation-wide lockdown, further extension or revision of the Government Order till the expiry of
a huge exodus of migrant laborers trying to go to their hometowns the same.
started taking place. Such a mass efflux of laborers increased the risk of
spreading the virus which prompted the Central Government through The orders invoked the extraordinary powers vested with the Executive
Ministry of Home Affairs to issue an order on 29th March, 2020 in committee and the Disaster management bodies under Sections 10
exercise of its power under Section 10 (2) (l) of the Disaster Management and 12 of the Disaster Management Act, 2005. These sections provide
Act, 2005 directing the states and union territories to ensure adequate blanket powers to the Committee to take any measure as deemed
arrangements of temporary shelter and provision of food for migrant necessary to either prevent or contain a disaster.
workers who had already moved out / got stranded in such states and
union territories amongst other directions. The non-observance of the advisory to pay salary during the lock down
period may result in filing of complaints by the aggrieved workmen
In view of the prevailing lockdown imposed by various states, Ministry before the authorities.
of Labour and Employment issued an advisory on 20th March 2020
appealing to all employers’ associations not to terminate their Furthermore, an employee could be denied wages only when he
employees or cut wages of its workers in view of the lockdown. The was absent from work or when he was on strike and, therefore, all
advisory also stated that all employers of public/private establishments employees, including contract workmen, were entitled to full wages
are advised to extend their cooperation by not terminating their lastly drawn by them during the period of lockdown.

Article
Can the employer compel an employee to Causing financial hardship to industrial establishments: The government
exhaust his/her annual leave? cannot be permitted to cause financial hardship to industrial
establishments by compelling them to pay “Wages” without getting any
In general, annual leave is a statutory entitlement to be availed at the
work done from the employees during the lockdown period. Specifically
employee’s discretion and as per terms of company policy. It cannot
when the employers are on the same boat struggling hard for survival
be forced upon the employees, hence ideally speaking, leaves during
due to mounting losses.
lockdown can’t be adjusted against accrued leaves of the employees.
Establishments will be forced into insolvency: If the notifications are
Can employees be sent on leave without pay?
implemented for entire lockdown period, many MSME establishments
Companies cannot force employees to take leave without pay amid the would be forced into insolvency and loss of control of business as they
lockdown imposed by the government to control the spread of COVID-19. will be compelled to pay for manpower during the shutdown without
receiving any substantial revenue from their customers, thereby
Whether the employer can reduce/downsize the workforce on account
hampering the right of the petitioner under Article 19(1)(g).
of business slowdown due to lockdown pursuant to COVID-19?
Many establishments failing to bear the financial burden and hardship
The Central Government has issued advisories and orders stating that
may have to close their businesses. The very notifications issued for the
even if place of business has become non-operational due to COVID-19,
benefit of the workers might end up adversely impacting those workers
its employees shall be deemed to be on duty and the employer should
who would be rendered unemployed.
not terminate any employees. The government advisories/orders further
directs that the employee should be paid full remunerations without WAY FORWARD
deduction.
The intentions of the government appear to be noble. The need of the
In this regard, state governments such as those of Gujarat, Haryana, hour is a dedicated framework in the form of monetary subsidies similar
Karnataka, Telangana, have issued advisories/orders asking employers to to the ones declared by governments across the globe. The employers are
refrain from terminating or reducing the wages of their employees. finding ways for generation of revenue for sustenance and governments
are also finding ways to create a balance between revenue generations
The State of Uttar Pradesh has issued a Notification dated 20th March, with least impact on people.
2020 stating that the employees/workers, working in factories/shops/
establishment which are closed temporarily vide order passed by the Madhya Pradesh and Uttar Pradesh have decided to stay labour laws
State Government or District Magistrate shall be provided holidays with in the name of reviving the economy under the cover of the COVID-19
wages by the employer for the period of temporary closure. pandemic. Uttar Pradesh government has decided to dilute certain
labour laws in the state for the period of next three years, while Madhya
It is, therefore, advisable that before taking any action for reduction of the Pradesh proposed a series of changes including the need to maintain
workforce during the lockdown, the employer must check the advisories/ official records for the purpose of inspection.
orders/ notifications issued by the State where its business is situated
or where the employer has its establishment. In a case where no such The Ordinance passed by the Uttar Pradesh government stated that
advisories/orders are issued, reduction or downsizing can be done subject government has cleared the ‘Uttar Pradesh Temporary Exemption from
to the policies of the employer, terms and conditions of the employment Certain Labour Laws Ordinance, 2020’ to exempt all establishments,
agreement/contract and complying with the due process of law. factories and businesses from the purview of all labour laws except the
Building and Construction Workers Act, Bonded Labour Act, women and
Does the Disaster Management Act children welfare Act and certain sections of the Workmen Compensation
override the Industrial Disputes Act? Act.
Order of 29th March, 2020 directing the payment of wages during
All the other labour laws stand suspended for 1000 days (one thousand
the Pandemic has been issued under the provisions of the Disaster
days). Laws pertaining to trade unions, contract workers, industrial
Management Act. Section 72 of the Disaster Management Act is a non-
disputes, occupational safety, health and working conditions of workers
obstante clause giving overriding powers to the Government in the time
have been put on hold.
of a disaster, and specifying that “The provisions of this Act shall have
effect notwithstanding anything inconsistent therewith contained in any The Minimum Wages Act, the Equal Remuneration Act, the Trade
other law for the time being in force or in any instrument having effect by Unions Act, the Industrial Employment (Standing Orders) Act, the
virtue of any law other than this Act”. It will thus override the sections of Industrial Disputes Act, the Factories Act, the Contract Labour Act, the
the Industrial Disputes Act, 1947 Inter-State Migrant Workmen Act, the Employees’ Provident Funds and
Miscellaneous Provisions Act, the Employees’ State Insurance Act and the
Employers’Dilemma
Unorganized Workers’ Social Security Act will remain suspended.
There is an issue of employers’ obligation to pay wages during the
COVID-19 lockdown period. An overwhelming majority of the industries, The proposed amendments in the labour laws will allow companies
shops and establishments have taken a holistic view and have hence not to follow required safety standards related to the health, safety
been empathetic to the plight of their workforce. and working conditions of employees. New units set up in Madhya
Pradesh will be exempted from the necessary provisions of cleanliness,
The basic idea about our recommendations is that the industry should disposal of waste, ventilation, lighting, drinking water, urinals, canteens,
also not be forced when the situation is beyond their control. The law has restrooms, crèches, working hours, wages during the leave period, and
to be reasonable. It is for the government to step in and extend a helping the need for the manager of the factory to send notice to authorities in
hand for the industries case any worker contracts occupational diseases

Article
COVID-19 OUTBREAK:
LABOUR LAWS MEASURES CS Mansi Agarwal, ACS
csmansiag@gmail.com
INTRODUCTION
India is on high alert as the number
of confirmed novel coronavirus
(COVID-19) cases in the country
has escalated to 66,040 (as of
09th May 2020). The Disaster
Management Act, 2005 provides
the administrative framework
to take measures to deal with
disasters such as earthquake,
flood or fire and not a disease like
Covid-19, thus to apply provisions
of this act, on 14th March 2020,
the Home Ministry declared the
Coronavirus outbreak as “notified
disaster”. Section 10(2)(1) of the
Disaster Management Act, 2005
(DMA) has been invoked, giving
wide powers to the Ministry of
Health and Welfare to enhance
preparedness and containment
of the virus. Various State their wages. If any employee is on duty or deemed on duty (leaves
Governments have also classified COVID-19 as an ‘epidemic disease’ by any worker due to lockdown or non-operational premises due
under the Epidemic Disease Act, 1897 (EDA), giving local administration to covid-19), he will be eligible for w ages without any deduction
authority to impose various containment measures, such as quarantine, or reduced wages. All Principal Employer/Employers are requested
closures and surveillance. to implement advisory in its letter and spirit vide No. ND-95(Covid-
19)/2020-RLC, dated 01/04/2020.
Complete or Partial Lockdown is one of the preventive measures taken
by the Government in various states based on number of cases. The • The Ministry of Labour & Employment has issued directions/
International Labour Organization (ILO) says that Lockdown measures advisories related with hygiene and sanitation to be followed
will worsen poverty and vulnerabilities among the world’s two billion at workplace in order to prevent the spread of COVID-19 to all
informal economy workers. ILO estimates that, assuming a situation workers organisations and employers organisations and to ensure
without any alternative income sources, lost labour income will result implementation of various advisories issued by Ministry of Health
in an increase in relative poverty for informal workers and their families. and Family Welfare (MoH&FW) and Ministry of Personnel, Public
Grievances and Pensions, Department of Personnel and Training.
In the back drop of lockdown due to Covid-19, India is facing labour
related issues like loss of employment, non-payment of wages/non- • The Ministry of Labour & Employment had extended the last date
payment of wages for lockdown days and shortages of rations for for filing of the Unified Annual Return for the year 2019 under 8
their survival which necessitates issuance of numerous advisories and laws and 10 central rules to 30th April, 2020 (previously to be filed
regulations on matters of travel, employment and healthcare by the from 1st January to 1st February 2020). The notification further
Central and several State governments and amendments in Labour stated that authorities are not to take any legal action for non-filing
laws and Labour related schemes. of Annual Returns for the year 2O19 against the establishments.
LABOUR LAWS MEASURES • The Ministry of Labour & Employment has extended the last date
• The Ministry of Labour & Employment, Government of India for submission of returns, notices and other forms required under
advised on 20th March, 2020, that all public and private Mines Act, 1952 and related rules and regulations, and due for
establishments are to refrain from terminating the services of their submission in the month of March and April, 2020 for 1 month
employees particularly casual or contractual workers or reducing from the respective due dates.

Article
• The Employees’ State Insurance Corporation (ESIC), through its and the employees do not need to return the same to their EPFO
communication dated 16th March, 2020, has extended the dates account.
of ESI contribution for the months of February and March, 2020
can be filed and paid up to 15th April, 2020 and 15th May, 2020, • Employees’ Provident Fund Organisation vide its communication
respectively. No.C-I/Misc./2019-20/Vol.II/Part/9 dated 15.04.2020, extended
due date for filing of Electronic Challan Cum Return (ECR) to the
• Organisation of Chief Labour Commissioner (Central) mentioned in Employers of those establishments, which have disbursed the
its status report about extension of the validity of licenses granted wage for March, 2020 to their Employees, for wage month March,
under the Contract Labour (R&A) Act, 1970 and the Inter-State 2020 on or before 15th May, 2020 duly certifying disbursement of
Migrant Workmen (Regulation Of Employment And Conditions of wages.
Service) Act, 1979 up to 31st May, 2020 for those licenses whose
renewal falls in the months of March, April & May 2020, however CONCLUSION
notification is awaited. Pandemic disease hampers growth of many establishments and even
makes its survival very difficult. Nowadays, conflict with the employer is
• Ministry of Home Affairs issued consolidated revised guidelines between moral and survival of establishment. As this is a very difficult
on the measures to be taken by ministries/Departments of time for individual and establishment, keeping in mind hardship of
Government of India, State/UT Governments and State/UT workers and employees and paying capacity of the establishment,
authorities for containment of COVID-19 in the country vide order employer shall pay wages to the possible extent. This practical difficulty
dated 15th April 2020, these guidelines include ensuring hygiene, must be faced based on nature of the industry and effect of Covid-19
sanitization at workplace and maintaining social distancing and on that industry (like Closure of restaurant business whereas growth
other preventive measures. Non adherence of guidelines by of sanitizer manufacturing establishments), size of the establishment,
Employer is punishable offence under Disaster Management Act, Number of Employees or worker, amount of salary or wages drawn.
2005 and Indian Penal Code, 1860. In order to protect establishment, employers in the organised sector
can ask its employees or some employees to go on short-term leave
• The Central Govt. announced Pradhan Mantri Garib Kalyan Yojana
without pay, temporary retrenchment and lay-off after following
Package to help the poor fight the COVID-19 pandemic. The
the procedure mentioned in the law and offer Voluntary Retirement
Government of India will directly contribute entire employer’s
Scheme. As ultimately survival of establishment is also very important
contribution (on behalf of companies) (12% of wages) and
and its closure will result in huge unemployment. But in India, around
entire employee’s contribution (on behalf of employees of those
90% of the workers are in the unorganised sector and do not come
companies) (12% of wages) totalling 24% of the monthly wages, in
under the purview of the labour laws related to social security.
the Employee Provident Fund Accounts (UAN), for the next three
months, for establishments with employment strength up to 100 Existing International Labour Standards provide a strong foundation on
employees. (90% or more of such employees should be drawing which to build key immediate responses to the COVID-19 crisis. These
monthly wages less than Rs.15000/-). immediate responses are aligned with the overall ILO policy framework
for coping with the COVID-19 pandemic in the world of work. The
• All EPFO (Employees Provident Fund Organisation) members
framework has four interconnected pillars: Pillar 1 – Stimulating the
(employees) can withdraw amount as COVID-19 advance, up to 75
economy and employment, Pillar 2 – Supporting enterprises, jobs and
percent of their total EPFO fund or an amount equivalent to three
incomes, Pillar 3 – Protecting workers in the workplace, and Pillar 4 –
months of their basic wages and dearness allowance, whichever is
Relying on social dialogue for solutions.
lower. The amount withdrawn from EPFO shall be non-refundable,

Article
LABOUR LAWS AND

RECENT REFORMS CS Pooja Jajoo, ACS
jajoo2008@gmail.com
Introduction • It will inculcate in workers a sense of belonging towards their

employer.
It is a widespread misconception that employee has no or very minimal
rights as compared to that of employer. There are laws that ensure that • Increased productivity in view of lower absenteeism in the
employees are not treated as slaves. There are certain welfare measures enterprise. Higher the productivity, higher will be the profit.
introduced that ensure that employees can enjoy a reasonable standard
• Status in the Society for the employer will increase, in view of the
of living both in employment and after retirement.
recognition that may be bestowed on them by the Government.
Audit under the Labour Law is a thorough check of the company’s • Strict compliance of all labour legislations will be ensured by each
policies and procedures with the goal of preventing prosecutions of the employers, which in turn, will reduce or even eliminate
or lawsuits. Labour law audit helps to identify non-compliances of penalties/ damages/fines that may be imposed by the Government.
employment laws appropriate to a business and the audit helps
business professionals to avoid any unwarranted legal actions. • To improve the labour relations, co-operation of and understanding
with the workers is a must. Therefore, the congenial atmosphere is
Significance of labour indispensable for good corporate governance.
A nation’s development is significantly depended on its labour force. By
the term “nation’s development” we mean the GDP of a nation. Gross
RECENT REFORMS
domestic product (GDP) is the monetary value of all the finished goods  Code On Wages - 2019
and services produced within a country in a specific time period.
The Code on Wages Bill subsumes four acts viz.
These laws are framed to protect the basic financial pay of the labourers,
• Minimum Wages Act, 1948
health conditions while working, provision of compensatory benefits in
• Payment of Wages Act, 1936
case of injury to labourers, and such other conditions.
• Equal Remuneration Act, 1976
Elements of Labour Law • Payment of Bonus Act, 1965
The basic subject matter of labour law can be considered under nine Definitions
broad heads: employment; individual employment relationships; wages
• Employee definition has been amended to include Managers,
and remuneration; conditions of work; health, safety, and welfare; social
Supervisors and Administrative persons.
security; trade unions and industrial relations; the administration of
labour law; and special provisions for particular occupational or other • No discrimination among male, female and transgender employees
groups. on the grounds of sex in the matter of wages.
Benefits of Labour Audit • Disputes to be decided by the authority notified.
• It will increase their Social Security. Minimum Wages

• It will secure timely payment of wages, gratuity, bonus, overtime,
• The minimum wages for different Scheduled Employments will
compensation, etc. of the workers.
be abolished. There may be one common minimum wage for all
• Also, timely payment of entitlements will reduce absenteeism in employments which will also include previously not included
the organisation. employments.
• The Central Government shall fix floor wage taking into account
minimum living standards of a worker and in this regard, different
floor wage may be fixed for different geographical areas. The
minimum rates of wages fixed by the Central/State Government
shall not be less than the floor wage and if the minimum rates
of wages fixed by the Central/State Government earlier is more
than the floor wage, then, the Central/State Government shall not
reduce such minimum rates of wages fixed by it earlier.

Article
Payment of Wages Key changes under the Industrial
Relations Bill
• Wages will be deposited in the bank account of the employees,
electronically or by cheque. Wages can be paid in cash, up to an (a) Fixed-term employees will get all statutory benefits like social
amount which will be notified by the appropriate government. security, wages, etc. at par with the regular employees who are
doing work of same or similar nature.
• Payment of wages has been made applicable to all class of
establishments and employees. Previously only employees earning (b) An industrial establishment will have to contribute an amount
less than INR 24,000 per month were covered and establishments equal to 15 days’ wages or such other days as may be notified by
defined or notified were covered. the central government, to this fund for every worker retrenched.
(c) Amendment in the definition of “strike” to bring “mass casual leave”
Equal Remuneration within its ambit, while suggesting that a union will be recognised
only if it has support of 75 per cent or more workers. Besides,
• The Act has been summarized in the code; there are no changes to
requirement of a notice period of 14 days has been incorporated
the provisions.
for strikes and lockouts in any establishment.
Payment of Bonus
L abour Code on Occupational Safety, Health and Working
• Only employees earning monthly salaries below the amount Conditions
notified by the appropriate Government will be eligible for bonus.
The Ministry of Labour and Employment has prepared a preliminary
• An employee will be disqualified for bonus if he/she is dismissed
draft on Code on Occupational Safety, Health and Working
from service on conviction of sexual harassment.
Conditions, 2018, by amalgamating 13 labour laws relating to
• Bonus shall be paid by crediting the sum eligible in the bank
safety and health standards, health and working conditions, welfare
account of the employee.
provisions for the employees and leave and hours of work. Some
• Bonus linked to productivity has been discontinued. Performance
important labour laws among the 13 include: The Factories Act,
based bonus without ceiling limit has been introduced, rules are
1948; The Mines Act, 1952; Sales Promotion Employees (Condition
yet to be prescribed.
of Service) Act, 1976; Building and Other Construction Workers
 Code on Social Security 2019 (Regulation of Employment and Conditions of Service) Act, 1996;
The Contract Labour (Regulation and Abolition) Act, 1970; The
Ministry of Labour and Employment has prepared a Preliminary Inter-State Migrant workmen (Regulation of Employment and
draft of the Code on Social Security & Welfare by amalgamating Conditions of Service) Act, 1979.
all existing Labour Laws related to Social Security (Including
Employees Provident Fund Act, Employees State Insurance Key changes under the Occupational
Act, Maternity Benefit Act, Payment of Gratuity Act, Employees Safety, Health and Working Conditions
Compensation Act, Unorganised Social Security Act and various Bill
Welfare Cess / Fund Acts). (a) A National Occupational Safety and Health Advisory Board in place
of multiple committees at present.
Key changes under the Social Security Bill
(b) One registration, one license and one tax return instead of multiple
The Indian government may set up various social security schemes, registrations, licenses and returns as required in the existing 13
including a provident fund, a pension fund, and an insurance scheme, labour laws.
for the benefit of workers. The government may also provide:
(d) Women, after their consent, will be permitted to work beyond 7
(a) sickness, maternity, and other benefits; pm and before 6 am subject to the safety, holidays, working hours
or any other condition as prescribed by the state or the central
(b) gratuity to workers on completing five years of employment (or government.
fewer than five years in certain cases such as death);
CONCLUSION
(c) maternity benefits to female employees;
The government stressed that there are too many labour laws
(d) payment of tax (cess) by the employer for the purposes of social regulating work and they need to be changed. On the other hand,
security and welfare for building and construction workers; and researchers point out that there are so many labour laws and many of
them covering same subject which is sometimes difficult to comply.
(e) compensation to employees and their dependants in the case of The regulations and restrictions were hampering the flexibility of firms
occupational injury or disease. and many checks and approvals from the government was again a
time-consuming process.
Labour Code On Industrial Relations
Secondly, this article tries to explore the impact of recent proposed
The Bill consolidates essential elements of three laws—the Trade labour law reforms on the job creation opportunities. From the above
Unions Act, 1926, the Industrial Employment (Standing Orders) analysis, it is clear that though job creation is one of the objectives
Act, 1946, and the Industrial Disputes Act, 1947—helping improve behind labour law reforms but the proposed reforms will be able to
ease of doing business. fulfil the objective is still questionable.

Article
POSH-compliant-A way to a
Harassment-Free Workplace or Mere adhering
compliances of Government norms.
CS SHWETA SAXENA, FCS
shwetasaxenacs@gmail.com
1. Forming Internal Control

committee headed by a “female
presiding officer”,
2. forming sexual harassment

policy,
3. creating awareness about it by

training and orientation and,
4. making disclosures regarding

compliance with POSH laws
and reporting number of sexual
harassment complaints received
in a year, the number of sexual
harassment disposed off in the year
and cases pending for more than 90
days in its Annual Report.
Mere forming of Internal Complaints

The Ministry of Corporate Affairs, through a Notification dated July Committees (ICC), forming Sexual
31, 2018, amended the Companies (Accounts) Rules 2014, casting Harassment policies or making disclosures in the Annual report don’t
higher responsibility on the Board of Directors of a company to ensure live up to the liability imposed on the Employers by the Government.
compliance under the Sexual Harassment of Women at Workplace Corporate have to recognise that complaints of sexual harassment
(Prevention, Prohibition and Redressal) Act, 2013 and the Rules cannot be treated as an empty formality, it is a duty to act judicially.
(collectively known as POSH Laws ). The Internal Complaints Committees (ICC) of corporate must grapple
By this amendment, it is now mandatory to disclose that the company with rival claims, and the dictates of legal processes, for relief the victims
has implemented the provisions of POSH. Each organization with of sexual harassment must meet the formidable challenge of adducing
more than 10 employees is required to form an Internal Complaints evidence, for the accused the right to proclaim his innocence till proven
Committee headed by a “female presiding officer”, along with the otherwise, for the management the dilemma of compliance and the
formulation of an internal POSH policy for the prevention and compulsions of containing the damage to the corporate brand. These
redressal of sexual harassment at workplaces. Orientation and training are early days but the new legislation is already a battle ground rife with
programmes are also required to be carried out by the organisation. allegations of non-compliance, prejudice of ICC members, violations of
procedure, evidence not considered, biased conduct of proceedings,
It is now compulsory for a company to make a statement in the and wrongful reprieve of the accused by the management.
Director’s Report that it has complied with the provisions regarding the
constitution of the Internal Complaints Committee (ICC). As sexual harassment continues to be a highly complex issue in
workplaces across the country, despite the high level of public attention
ARE YOU TRULY A POSH COMPLIANT? that sexual harassment and the #MeToo movement have garnered in
This amendment is a commendable step in the path of making recent years, many employers and HR departments are still not fully
Harassment Free workplace for women but yet the task of achieving the equipped to prevent and handle harassment claims that could cost a
object of the law is a long and winding road on which the complainant company in lawsuits, reputational harm, and employee turnover.
must persevere through successive legal forums of the legal system
Sexual harassment continues to be a significant workplace problem
with all its uncertainties and delays. The experience with this legislation
that has moved front and center with continuing prime-time media
is proving to be no different.
coverage and the #MeToo movement. It has caused tremendous
To be POSH compliant, an employer has following mandatory harm to countless victims – and has hurt companies’ pocketbooks,
obligations to fulfill in ensuring that working women do not face sexual productivity, and reputations.
harassment at the workplace:

Article
Therefore, compliance of government norms and laws against sexual an organization must have a well-written policy in including a
harassment for just sake of the compliance is not the option for the clear description of the legal prohibitions against discrimination,
corporate as it will have severe repercussions of not dealing effectively harassment, and retaliation in the workplace, and the consequences
with sexual harassment as strict stance has been taken against of violating the policy. A good policy will set out the steps
companies by the Courts if they find out that the company was not employees should take if they experience harassment themselves,
POSH-compliant, if an aggrieved employee drags the matter to the and also tell them what they should do if they see it happening to
courts for compensation. someone else. Names and contact information of the company’s
human resource representatives should be provided, as well as
IMPACT OF NON COMPLIANCE WITH POSH LAWS other individuals who stand ready to help. It should be clear that
Non-compliance with POSH can cost an employer a monetary penalty the employer will not tolerate harassment, and employees should
of INR 50,000. On repeated non-compliance, the employer may be know exactly what to expect if their own behavior “crosses the line.”
penalized with twice the punishment. Non-compliance can also lead
to cancellation of license, withdrawal or non-renewal of registration for 2. Creating awareness about the POSH laws- Distributing
carrying on business, by the Government or local authority. copies of the policy during orientation, posting of Policies on
walls is obviously not enough, even when employees confirm
There have been many instances where the employers have been their receipt of the policy via signature. The employer shall hold
charged with monetary penalties more than just Rs.50,000 where workshops, seminars, and orientations for its employees to ensure
the female employees have approached the courts for sexual proper awareness about the POSH laws and the process for
harassment cases at workplace.
Non-compliance with POSH can
cost the employer exemplary
damages imposed by the courts.
This may also harm the reputation
of the company and create a hostile
work environment. As a matter
of fact, lacking POSH compliance
can also harm the reputation of
the organisation/company. If the
matter reaches the court, or even
if the female employee complains,
the reputation of the company
is at stake. It may lead to the
organisation being labelled as an
“unsafe workplace” for every other
employee, thus making it hard
not only to hire future employees
but also negatively affecting the
business of such an organisation.
A GUIDE FOR HARASSMENT FREE WORKPLACE complaint resolution under the ICC. Management should include
When it comes to combating harassment, the law puts the onus on a comprehensive review of the policy each time there is formal
employers to create and maintain harassment-free workplaces. So how training, and should additionally review all or parts of the policy,
is that accomplished? First, it is important to acknowledge that creating as appropriate, any time the workplace actually experiences an
and maintaining a harassment-free workplace is a continuous, ongoing incident. These reviews should be documented as evidence of
process. No single act can satisfy an employer’s legal duties to its the efforts taken to assure that all employees are familiar with the
employees. The all-too-common belief that employers have “checked policy’s substance and have been given frequent opportunities to
the box” if they provide harassment training is a far cry from the truth. review it.
In reality, the law requires employers to “stand guard” every single day.
3. Training – Training of ICC members and employees, is a crucial
A holistic anti-harassment plan that engages your workforce and element, trainings need to define harassment, provide examples,
includes multiple elements and tools is your best bet. To be POSH explore the remedies available to victims, and discuss prevention
compliant, it is not enough for an employer in ensuring that working strategies. In addition, trainings should explain how the company
women do not face sexual harassment at the workplace, here are will investigate harassment complaints, and clearly specify
methods in addition to mandatory POSH Compliance to ensure that the protections that will shield complainants and others from
your organization is a Harassment Free workplace: retaliation. Annual trainings for everyone will be a good jumping
off point, while making sure that all new hires undergo training
1. Clear anti-harassment policy- Instead of mere adopting a soon after onboarding to ensure proper awareness about the
general anti-harassment policy for the sake of legal compliance, POSH laws and the process for complaint resolution under the ICC.

Article
7. Mitigate harm- Harassment causes
harm to individuals, to workgroups and to the
organization, and mitigation of harm should be
the driving force behind all harassment responses.
Employers should always act with an eye towards
helping the victim first, and repairing any harm
the victim may have suffered. This requires the
employer to be sympathetic to the victim’s needs
and wants. If the victim’s requests are reasonable,
the company should make them a priority when
considering next steps.
Mitigation takes many forms: removal of the harasser

from the job-site, or job reinstatement, promotion,
back pay, or job restructuring for the victim. To
repair harm to the organization, sanctions should
be applied as required by policy and commensurate
with the wrongdoing. This strengthens employees’
understanding that they will all be protected from
unlawful conduct, and bolsters the integrity of
the policy. Lastly, mitigation of harm also means
preventing repetition of incidents.
Punishments or Sanctions are necessary to give

strength to your policy, and to assure that all of your
employees understand that there are consequences
4. Model good behavior from the top- Leading by example is a for harassing behavior in the workplace. For those
tried-and-true leadership technique. Executives and supervisors who might not naturally be inclined to treat their coworkers with
should model the behavior they expect to see in the workplace. This dignity and respect, the “stick” of sanctions is sadly necessary
includes attending harassment trainings and being accountable to assure compliance with the policy. Doing so will restore the
to the company’s anti-harassment plan. When executives and sanctity of the workplace after a harassment incident.
supervisors attend trainings with the company’s core employees,
8. Audit your policies — are they working? - Ongoing audits are a
the business sends a strong message that everyone is responsible
necessary, if tedious, fact of life. When auditing your anti-harassment
for harassment prevention and no one is “above the law.”
plan, the company needs to periodically assess its efficacy and
5. Seek feedback- The best approach is an “open door” policy in accuracy. Examine the plan to determine where your company
which supervisory employees are available to receive complaints has succeeded and where it has fallen short. What changes to your
at any time, regardless of presentation. A verbal complaint can plan could help it flourish, and what can you learn from the areas
be committed to writing later, once the investigation is initiated. in which you have succeeded? What do your employees think of
This also means that the company should be willing to accept the plan? Gather their feedback on the plan, since you have tasked
anonymous complaints, and should respond appropriately to them with following it. If you have employees that have suffered a
them as well. Instituting an “open door” policy sends the message harassment incident, ask them to critique the company’s response.
that the company welcomes complaints in any form, and that the Be sure to ask any victim of harassment how your response could
company is committed to assuring a harassment-free workplace. have been better.
6. Conduct fair and effective investigations- The investigation It is vital to prevent sexual harassment in the workplace and
should be undertaken without delay, and that the investigator effectively handle such complaints which – when not handled
should be a neutral party, free from bias. If the person who would properly – can cost a company not only in lawsuits, but also in
normally investigate has a personal relationship with either decreased morale, productivity and higher employee turnover.
party, whether positive or negative, it is wise to have that person The above factors must be considered to effectively train
step aside and have someone else conduct the investigation to for prevention, mitigate risk and develop an effective sexual
remove any appearance of unfairness. Employers should promptly harassment program within their organizations and can be used
investigate each and every complaint they receive. Keep in mind to update and strengthen an organisation’s harassment-free
that complaints and problems fall on a wide spectrum from mild workplace efforts. Civility in the workplace is an attainable goal
to serious; so it is not surprising that the response and subsequent and it is worth striving for!
investigation will vary greatly as well, from simple to complex
but it should be ensured that a fair and effective investigation is
conducted.

Article
NEO-BONDAGE (SLAVERY OF
21st CENTURY) AND BRICK KILN
WORKERS IN DELHI NCR CS Anurag Singh
anuragsinghmcm@gmail.com
income and publicly disadvantaged section of the society. Though one

of the oldest industries in the history of mankind, brick industry in India
still remains unorganized and no official authentic data is available
regarding its status. The National Commission on Rural Labour estimated
that there were about one million workers2. Brick Industry is one of the
informal/unorganized industries in India. This industry is booming with
the expansion of real estate business. It is a labour intensive industry.
The industry employs millions of workers. In Delhi NCR, brick making on
simply business-related basis had started in the commencement of the
nineteen century.
Abstract
This article focuses at the migrant and non migrant workers in Brick Kilns
of the NCR region who often enter into ‘neo-bondage” situations (shorter-
term bondage, based primarily on economic transactions as opposed to
the more complex social and economic dependency manifested in the
older forms) wherein the workers receive short terms advance payment
and their failure to repay them back, creates a vicious cycle of debt and
bondage. Both migrant and non migrant labours specially belonging to
unorganised sector are compelled to take money in advance from owners.
This advance puts limits on their mobility and forces them to work with
minimum wages, it is very difficult to come out from a vicious debt trap
until their account settled at the end of yearly closing or person is in a
position to repay debt during work session. However the regulators drafted
for labours are silent about such transactions in form of cash or kind, made
by the employer, and this lacuna boost kiln owner to exploit poor workers
who trapped in socio-economic conditions and having lack of awareness
which mostly found in rural India. Delhi- National Capital Region. (54,984 km2
Area Cover 23 district of Uttar Pradesh,
Introduction Haryana, and Rajasthan,)
Brick-making is one of the most ancient industries. The craft is as old as the
At present about 4018 brick kilns are in operation in Delhi NCR. According
Indus Valley Civilization (2500 – 1500). Brick kilns in India produce around
to the report published by the Centre for Science and Environment,3
300 billion bricks and it is the second largest brick producing country after
the number of registered brick kiln units is nearly about 3823 but after
China1. According to Indian Brick Manufacturer Association, after including
including Shamil (Uttar Pradesh) district in NCR the number of brick kiln
all “small, medium and large brick kilns” there are approximately two lakh
increased by 195 brick kilns. Four million of labourers are engaged directly
brick kilns operating in India which employ more than four million workers.
Most of the workers are migrants who belong to economically backward 2 Dr. Parameshwara Naik, Socio-Economic Conditions of Women Workers in Brick Kilns:
and underdeveloped regions of the country and normally hail from low A Case Study on Davangere District in Karnataka,International Journal of Current
Research, Vol. 9, Issue, 08, August, 2017, p 56767.
1 Pallab Kanti Ghoshal, Prospects and Problems of Brick Industry, Mittal Publications, 3 Centre for Science and Environment report , “Make over conversion of brick kiln in
2008, New Delhi, p 3. Delhi NCR to a clean technology” 2018

Article
or indirectly in this sector. They are mainly surplus agricultural labourer Bulandshahr, G.B. Nagar, Jhajjar, Sonipat, Jind, Alwar and Bharatpur
belonging to weaker sections of the society. The requirements of bricks, in are the major brick producing districts of Delhi NCR. In Delhi NCR, the
the Delhi NCR region are constantly increasing year by year. The brick kiln locations of the brick kiln units that are found mainly of three types - linear,
industries in Delhi NCR are typically unincorporated concerns under owner- cluster and disperse.
management, mostly proprietary or partnership establishments. Bagpat,
District of Uttar Pradesh Number of Bri ck District of Haryana Number of District of Rajas Number of
covered Under NCR Kilns covered Under NCR Brick Kilns than covered Brick Kilns
Under NCR
Baghpat 525 Jhajjar 250 Alwar 142
Bulandsha hr 408 Sonipat 225 Bharatpur 110
G.B. Nagar 130 Jind 150
Ghaziabad 313 Palwal 125
M.Z. Nagar 336 Karnal 110
Meerut 238 Mahendragarh 110
Hapur 146 Bhiwani 110
Shamli 195 Rohtak 94
Rewari 90
Mewat 85
Panipat 80
Faridabad 80
Gurgaon 101
Rajasthan: Rajasthan state having the least number

of districts under NCR. Rajasthan shares only two
districts with the NCR — Bharatpur and Alwar4. The
Alwar district having 142 brick kiln and Bharatpur
having 110 brick kiln. The total contribution of brick
kilns from Rajasthan is 252 in National Capital Region.
Total Labour force

participation rate:
The Indian labour efficiency dropped by 5.52% in
December 2019, compared with a growth of 5.80%
in the previous year. The country labour force
participation rate dropped to 51.81% in December
2019. More than 90 per cent of workforce and about
50 per cent of the national product are accounted
for the informal economy5. According to an estimate,
around 10 per cent of India’s population working
in the informal sector is fascinated in a situation
of bonded labour6 or neo7- bondage8. This arises
through a confluence of complex inter-linked factors.
Uttar Pradesh: There are total 8 districts of Uttar Pradesh covering Immediate “triggers” such as health emergencies,
under NCR, having an area of 25327 Km2 in National Capital Region. religious ceremonies, dowries, food shortages or the sudden loss of a
There are around 2291 kilns in the NCR district of Uttar Pradesh. The job or an income earner, acute landlessness and high unemployment,
district of Baghpat has the most number of kilns among all district in may oblige an impoverished worker to seek a loan or advance from
NCR and 8 districts of Uttar Pradesh in NCR followed by Bulandshahr, kiln owners or labour agent for their daily sustenance by selling their
Muzaffarnagar, Ghaziabad, Meerut, Shamli, Hapur and Gautambudh labour. This arrangement limits their mobility to look for other locations
Nagar, respectively. The least number of brick kiln in NCR district of
Uttar Pradesh goes to Gautam Budh Nagar, having total of 130 brick 4 Tanya Mathur (ed.), Makeover: Conversion of brick kilns in Delhi-NCR to a cleaner
technology (A Status Report), Centre for Science and Environment, 2018, pp 8-9.
kiln in the region.
5 NSC, Govt. of India, 2012.
6 According to 1956 United Nations Supplementary Convention on the Abolition of
Haryana: There are total 13 district covered under NCR from Haryana Slavery Debt bondage (bonded labour): “The status or condition arising from a pledge
State. Haryana has maximum number of districts covered in NCR. As by a debtor of his personal services or of those of a person under his control as
per the data submitted by the brick kiln association, in Haryana, there security for a debt, if the value of those services as reasonably assessed is not applied
are around 1610 kilns in the NCR districts of the state. The maximum towards the liquidation of the debt or the length and nature of those services are not
respectively limited and defined.”
number of kilns is in Jhajjar district followed by Sonipat, Jind, Palwal,
7 Neo because the relationship between bosses and workers is less personalized, of
Bhiwadi, Mahendragarh, Karnal, Rohtak, Rewari, Mewat, Faridabad and shorter duration, more contractual, and monetized.
Panipat respectively. 8 Bondage often begins when a worker takes a loan or salary advance from his or her
employer to pay for a large expense.

Article
to work in. It also hinders their negotiating power regarding minimum 1000 bricks, he removes the baked brick from the kiln and stacks them
wages and forces them to work in appalling conditions. A vicious debt accordingly to the quality of the bricks. The women are engaged in this
trap sucks in these powerless workers, creating a situation known as activity and also clean the kiln after the bricks are removed. The fireman
neo-bondage. ‘Neo-bondage’ exists in a variety of industries in India’s who fire the kiln and watch over it all through the operation, to see that
rural and urban areas counting brick kilns, salt pans, stone quarries the bricks are properly burnt, are paid Rs.12000 per month14. Workers
and construction sites (irrigation canals, dams, road building) etc. are exposed to difficult conditions especially during acme winter and
As per neo- bondage, a debtor agrees to pay off his debt by offering summer months. In addition to being in general unaware of workers’
his services or those of another to work off the debt. However, these rights, they comprise the lowest level of the hierarchy of power and
conditions alone – the presence of a debt and the pledge of labour or therefore have no unions or organisations for collective bargaining
services – are necessary but not sufficient requirements to indicate a and to enforce their rights. Instead, they must surrender and carry on
situation of debt bondage. The voice of poor migrant labourers being returning to brick kilns year after year. Although, new rates of brick
made bonded is now echoing in Delhi. The Human Rights Commission paving for laborers working on brick kilns have been fixed15 but they
has taken a tough stance on complaints of such poor being held hostage remain only in papers.
on Ghaziabad brick- kilns and summoned the DM to Delhi and took full
information from them. In the case of mortgages on brick-kilns, many Type of Worker Nature of Work Nature of
workers have also caught the way of the Supreme Court9 and the High Remuneration
Court10. Actually, Loni, Meerut Road, Hapur, Modinagar etc. have a large Patheri workers Make the clay ready. Piece work per 1,000
number of brick-kilns. Workers from Bihar, Madhya Pradesh and Bengal
Moulding bricks into bricks;(broken or
reach these places to work11.
the case and Lining imperfect bricks are not
Brick Kilns: Large-scale Systematised them for drying. considered).
Informal Work Loader workers Carrying bricks from Piecework per 1000
The Brick-Kiln industry is working with small technology activity the site of (green bricks or weekly wage
having a stick division of labour. The brick kiln industry is the second bricks) production to in a few cases
largest sector after the construction sector, absorbing such a buoyant the kiln for firing
labour population and a reserve surplus offs the land12. There is little Jalai workers Firing the bricks in the Weekly or fortnightly
to no compliance with the legislation governing minimum wages. Low kiln and maintaining wage
wages are particularly prevalent in the brick kiln sector where payment temperature.
is on a piece rate basis (per brick) rather than a time rate wage. As there Nikashi Taking out the A lump sum
are usually no records detailing the number of bricks made or the rate
workers ready bricks from the amount or piece rate
paid per brick, workers usually find out what they have earned (or in
many cases still owe) at the end of the season, without being shown kiln with the help of a basis for all thework
any paperwork13. bullock cart and stack
them for sale.
Work in brick kilns demands physical labour that usually exceeds 10 Middlemen Recruit labourers Commission per 1000
and often more than 12 hours. The moulder who prepares the pit and
by paying them bricks per pairor group
moulds the brick is paid per thousand bricks. He uses the service of
the women and children of the family to mould the mud and to carry advance and arranging as the case may be.
the moulded brick to dry in the sun. In Haryana, moulder was paid their travel to the
Rs.600-650 per 1000 bricks which included the payment for his family. kilns
The loader loads the bricks into the kiln, which includes carrying the
dried brick to the kiln with the help of cart and animals. The stacker International Labour Organization and
arranges the bricks into the kiln and the ‘rapaswala’ covers it with Classification of Labour
earth in preparation for the firing receive consolidate salary which is Bonded labour is “the most ancient and most contemporary form
approximate to Rs 12000. The ‘nikasi’ or unloader was paid Rs. 80 per
of human servitude16. Workers in brick kiln fence usually work for
long hours under enormously hazardous surroundings with little or
no earnings and find themselves incompetent of opting out of this
bargain as they do not have any one-time source of income that could
be utilised to pay back the loan and render them free. Employing this
clause, five types of bonded labourer were identified: first, bonded
labour where there was a trace of traditional social relations; second,
bonded labour in agriculture; third, bonded labour that was found in
9 The Apex Court of India in its order dated 11-11- 1997 in People’s Union for Civil rural and urban unorganised and informal sectors; fourth, child bonded
Liberties (PUCL) case has directed that the National Human Rights Commission labour and fifth neo- bondage labour17.
(NHRC) should be involved in dealing with the issue of bonded labour.
10 Additional Commissioner of income tax Delhi vs. Delhi Brick Kiln Owners Aassociation 14 Data collected by field survey in loni (Ghaziabad Distt.) and Sarurpur Kalan (Bagpat
(1981) 130 ITR 55. Distt.) Of Delhi NCR.
11 available at https://www.livehindustan.com/news//article1-story-94306.html 15 The Uttar Pradesh government has fixed the minimum wage rate for Patera workers
assessed on May 05, 2020. working on brick kilns. According to this, per thousand brick path will have to be
12 Gupta, Jayoti. 2003. “Informal Labour in Brick Kilns: Need for Regulation”. Economic paid at the rate of Rs 483.20. available at https://www.amarujala.com/uttar- pradesh/
and Political Weekly 38 (31). pp. 3283.. meerut/81528404145-meerut-news assessed on May 05, 2020
13 Kate Willingham, India brick kiln briefing: Why is bonded labour rife in Indian brick 16 Siddharth, Kara, 2012. Bonded Labor – Tackling the System of Slavery in South Asia.
kilns?, available at https://www.antislavery.org/india-brick-kiln-briefing/ assessed on Columbia University Press.
May 05, 2020. 17 (Srivastava, 2005)

Article
In 1998, the International Labour Organization (ILO) adopted the
Declaration on Fundamental Principles and Rights at Work, which
commits all member States to respect, promote and realize the
elimination of all forms of forced labour, as well as other basic rights at
work. Bonded labour is one manifestation of forced labour. It defined
neo-bondage as, ‘short-term bondage, based primarily on economic
transactions as opposed to the more complex social and economic
dependency manifested in the older forms. Under this arrangement,
workers take short-term loans at exaggerated interest rates and their
failure to repay them creates a vicious cycle of debt and bondage. Brick
kiln workers came under the third category, that is, bonded labour in
the rural and urban unorganised and informal sector. Their numbers are
a shocking 40 million18. Through a survey conducted on migrant brick
kiln workers, the ILO has enumerated the reasons behind the ferocious
trap kiln work for continually fall into, a situation which is described as
‘neo-bondage’ situation19.
prohibition of traffic in human beings and forced labour and according

to Article 24 prohibition of the employment of children whether as
bonded labour or otherwise. Moreover, the Directive Principles directs
the State to strive to secure, inter alia:
(a) Just and human conditions of work under Article 42 and (b) to
secure, by suitable legislation or economic organization or in any other
way, to all workers, agricultural, industrial or otherwise, work and living
wage, conditions of work ensuring a decent standard of life and full
enjoyment of leisure and social and cultural opportunities22.
Labour Laws for Brick Kiln Workers

The Indian labour law regime faces the problem of plenty. There are
about 44 Central labour laws and 200 State laws governing labour
matters. However field studies has shown that inspite of an abundance
of legislations in India, the intricacies of labour laws are more than often
used by the rich and the powerful to either hold back welfare measures
or else make longer adjudication to the detriment of precarious
workers like contract and informal workers who are underprivileged
and insecure. Thus many wilful attempts of the contract workers to
seek better terms of employment from their employers are found to
be lost somewhere in the legal process. Although India has a relevant
domestic law in place regarding labour inspections, in practice very few
Indian Constitution and Labour Laws brick kilns are inspected properly to ensure minimum wages, proper
It is the fundamental right of everyone in this country to live with human keeping of employment records and safe working conditions. Brick kiln
dignity free from exploitation. This right to live with human dignity are although in the schedule of Minimum Wages Act, 1948 but they are
enshrined in Article 21 derives its life breath from the Directive Principles not paid such.
of State Policy and particularly clause (e) and (f ) of Article 39 and 41
Most of the brick kiln owners In the NCR region expressed their
and 42 and at least, therefore, it must include protection of health and
preference for migrants over locals (Contract Labour)23 not only in terms
strength of workers, men and women, and of the tender age of children
of harder work for lower wages but because the former were regarded
against abuse, opportunities and facilities for children to develop in a
as more reliable and loyal since they did not move to other persons. The
healthy manner and in conditions of freedom and dignity, educational
first fact is that they did not continuously demand about raising labour
facilities, just and humane conditions of work and maternity relief20.
cost and they don’t complaint about difficulty in living conditions. The
The Indian Constitution under the heading “Right against Exploitation”,
provision shall be an offence punishable in accordance with law.
Part III of the Constitution, one of India’s constitutionally proclaimed 22 Under Article 43. The State shall endeavour Living wage, etc. for workers.
fundamental rights, prohibited forced labour. As per Article 23(1),21 23 As per the Contract Labour (Regulation & Abolition) Act, 1970 of India, Contract
workers are those who are “employed by or through a contractor” (service provider)
18 (Breman, 2011; Heuze, 2009) (Section 2(b)) on temporary basis depending on the availability of work. Thus in the
19 (ILO, 2013) organized sector, a workman is deemed to be a contract worker when s/he is hired
20 Bandhua Mukti Morcha v. Union of India, AIR 1984, SC, 802 in connection with the work or “contract for service” of an establishment through a
21 As per Article 23 of the Constitution of India, traffic in human beings, beggar, and contractor. Unlike regular workers, contract workers working in brick kiln are hired and
other similar forms of forced labour are prohibited and any contravention of this fired at will, are cheaper, and are generally unorganized.

Article
of employment’ (Article 23(1)). India is also a party to The International
Covenant on Economic, Social and Cultural Rights (ICESCR) whose
Article
7 recognizes favorable conditions

for work, fair wages, healthy and safe
conditions of work.
The preamble of Abolition of Forced Labour Convention (no. 105) of
195726 provides that all necessary measures shall be taken to prevent
compulsory or forced labour from developing into conditions analogous
to slavery and that the Supplementary Conventions on the Abolition
of Slavery27, the Slave Trade and Institutions and Practice Similar to
Slavery 1956 provides for the complete abolition to debt bondage and
second fact is that the brick kiln is a seasonal work and during rainy serfdom. Article 5 of the said convention states that a Member which
and winter seasons most of them are closed. During the closing of brick has ratified this Convention may denounce it after the expiration of ten
kiln most of the labour got themselves engaged in agriculture activities years from the date on which the Convention first comes into force.
with the peasant farmers for their survival24. “Contract (agency) Labour The High Commissioner for Human Rights in his Opening Statement to
can be distinguished from ‘direct labour’ in terms of employment the Working Group on Contemporary Forms of Slavery (WGCFS), 23rd
relationship with the establishment and the method of wage payment”. SESSION, 18-28 MAY 1998 (Geneva,
Outlawing bonded labour in India, a statute was enacted known as 18 May 1998) stated that "Slavery and its prohibition is enshrined in
the Bonded Labour Abolition Act, 1976, that introduced provisions international treaties.” Despite all this, according to the 2016 Global
for the rescue and rehabilitation of bonded labourers and prosecution
of the employer. The Act states bonded labour as a service arising out
of loan/in-debt/advance.” These circumstances in the act represents
the relationship between creditor and a debtor where the debtor
undertakes to mortgage his services or the services of any of his family
members to the lender for a exacting or unspecified duration with
or without wages accompanied by denial of alternative avenues of
employment, or to deny him freedom of movement. Then the person
would be covered under the definition of a bonded labour. Therefore
Bonded Labour or ‘bandhua mazdoori’ was historically linked with
rural economies where peasants from economically disadvantaged
communities were bounce to work for the landlords.
International Organization and Bonded

Labour
According to the ILO Forced Labour Convention, 1930 (No. 29) forced
labour is all work or service for which the worker has not volunteered Slavery Report by the Walk Free Foundation, India has the highest
him-or herself, and which is performed under the threat of a penalty. number of persons living in slavery worldwide28.
The 1956 Supplementary Convention Against Slavery defines debt
bondage as the combination of a credit and a labour contract in which Peshgi (Advance) and Indebtedness of
the value of labour services, as reasonably assessed, is not applied Brick Kiln Labourers - Remuneration of
towards the liquidation of the debt (e.g. only interest is repaid by the workers in brick Industry
labour provided, but the principal is never repaid) or if activities are Most of brick kiln workforces are from the families that have for
neither defined nor limited (e.g. the labourer is required to work at any generations toiled in brick units in different parts of the Study area and
time of day or night)25. The United Nations Universal Declaration of are not aware of their constitutional rights or the wellbeing measures
Human Rights (UDHR) of 1948 reaffirmed the principle that ‘No one shall of the State and Central governments. The vicious cycle of debt begins
be held in slavery or servitude’ (Article 4). Article 7 of the UDHR states when the rural people voyage to a distant place and finds work in a
that no one shall be held in slavery or slavery, slavery and slave trade in brick kiln through middlemen known as “Sardar”. The employee
all its forms shall be prohibited. Article 23 of the UDHR emphasizes on accepts an advanced amount presented by the middlemen who has
favorable working conditions, non-discrimination, equal pay for equal not realized that in the procedure he is trading away his freedom. The
work and favorable remuneration along with the right to ‘free choice motive behind the owners giving advances of cash and kind to labour
24 Tom Brass, Towards a Comparative Political Economy of Unfree Labour: Case Studies
and Debates, Frank Cass Publication, London, 1999, p 97. 26 forced in India since 18 May 2000.
25 Smita Premchander, V. Prameela and M. Chidambaranathan, Prevention and 27 Slavery Conventions, 1926.
Elimination of Bonded Labour: The Potential and Limits of Microfinance-led 28 With Over 18 Million People, India Tops Global Slavery Index, available at https://
approaches, International Labour Office, Employment Sector. - Geneva: ILO, 2014, pp www.ndtv.com/india- news/with-18-35-million-people-india-tops-global- slavery-
3- 4. index-1413891 assessed on May 5, 2020.

Article
and binding them is two-fold. The first is to ensure that there is labour United Nations as a form of "modern day slavery" and is prohibited by
to perform the heavy physical work. Second, the seasonal nature of the international law34.
work plays a significant role. Such work normally starts in the month
of November which coincides with the kharif harvest season in India. Conclusion:
During the harvesting season, workers prefer to toil as agricultural Despite the prevention of bonded labour by the Bonded Labour
labourers, which results in a scarcity of cheap labour for other activities. (Abolition) Act, 1976, and prohibition of forced labour by the Indian
Constitution (also an offshoot of debt bondage), a system of bonded
By the time he does it is too late, because he is tied to the kiln in labour still exists. In India, So-called “neo-bondage” mechanisms have
perpetual bondage. The amount of advance ranged from Rs. 500 to largely replaced the more traditional forms of long-term attachment
Rs. 7000 or more which depends upon the advance demanded by the of labour. Neo-bondage exhibits some striking differences with the
employee. This ‘give and take’ relationship is deeply entrenched in the bondage of the past. It tends to be time-bound to a season or fixed
brick kiln industry29. Incidentally, the middlemen, who are part of the period, not indefinite as in the past. According to Professor Amartya Sen,
workforce, play an important role in the disbursement of the advances “One of the biggest changes in the process of development in many
and weekly wages to the workers. The owners have an inherent interest economies involve the replacement of bonded labour and forced work
in giving advances to workers, the main one being the maximum with a system of free labour contract and restricted physical movement”.
exploitation of workers30. Workers are provided a loan before they start The elimination of current debt bondage and the prevention of new
work, immediately going into debt. Then they are trapped in the kiln or renewed bondage therefore, require a combination of concerted
having to work for an entire season without being paid their wages, government action and extensive community involvement. The terms
not knowing if they have worked off their debt or not. As no records “bonded labour,” “indentured servitude,”“peonage,” and “neo-bondage”
are kept, at the end of the season the brick kiln owner often decides are used synonymously but are different forms of servitude and often
to pay less31. Both middlemen and workers believe that the advance being used in brick-kiln cases. The problem of Neo-bondage is not a
arrangement fosters “mutual trust”. But the field survey shows that it problem in or by itself. It is a part of the larger issue of welfare of the
not only makes workers susceptible to bondage but also pushes them nation as a whole. Different states have enacted different Acts for the
into the swamp of perpetual indebtedness. Article 1(a) of the 1926 brick kiln workers, but no law has been effectively implemented.
Slavery Convention defines slavery as: “the status or condition of a
person over whom any or all of the powers attaching to the right of The Factories Act states that all workers found at the site of the factory
ownership are exercised32. This debt bondage33 has been defined by the while the production process is in progress are to be considered
29 (Ercelawn, 2004) as employees of the factory, until proven otherwise. In NCR on the
30 (Breman, 1996) guidelines of Punjab brick kilns should be classified as factories. In
31 Appalling levels of slavery in India’s brick kilns, available at https://www.antislavery.
Punjab, all workers present in the worker/family unit of brick kiln
org/report-slavery- india-brick-kilns/ assessed on May 05, 2020.
32 United Nations, 1926. Slavery Convention. Last accessed February 18, 2016. workers are meant to be lawfully considered employees and deserve
33 Peonage is a system where labourers are bound in servitude until their debts are paid to be paid individually.
in full. According to Anti-Slavery International, "A person enters debt bondage when
their labour is demanded as a means of repayment of a loan, or of money given in 34 It is specifically dealt with by Article 1(a) of the United Nations 1956 Supplementary
advance. Convention on the Abolition of Slavery.

Article
DECODING THE CODE ON

WAGES, 2019 Unnati Jani
janiunnati04@gmail.com
Progressive labour laws are integral to the social

and economic development of every nation. At
present, plethora of labour legislations catering
to different aspects of labour are in force.
Having multiple labour legislations and their
inherent inconsistencies, the administration and
compliance of labour laws has become complex
& cumbersome and also led to difficulties
for workers/employees to identify and take
advantage of the benefits granted to them
under those legislations. Further, it has also
been quite challenging for the Central and State
Governments to effectively enforce and monitor
such laws.
With the aim to inter-alia consolidate,

modernize, simplify the labour laws and thus
creating a uniform system of governance to
the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948,
ensure a compliance regime that brings procedural efficiency and
or of any scheme made thereunder and specifies that the provisions
administrative transparency, minimize anomalies and contradictions
of the code shall not be deemed to affect the provisions of these Acts.
thereby reducing litigation in interpretation of statutes and to widen
the social security benefits ensuring last mile reach, the Government HIGHLIGHTS OF THE CODE AND MAJOR
pursuant to the recommendations of the 2nd National Commission COMPLIANCES THEREUNDER:
on Labour has proposed to subsume 44 Central Legislations into 4
1. Minimum Wages
Codes viz. Code on Wages; Occupational Safety, Health and Working
Conditions; Social Security and Industrial Relations . • No employer shall pay to any employee wages less than
the minimum rate of wages notified by the appropriate
THE CODE ON WAGES, 2019 Government.
The Code on Wages (“the Code”) is the first amongst the above proposed
codes, which received the assent of President on 8th August, 2019. The • An employee, who works for less than normal working day,
new Code subsumes following enactments: shall be entitled to receive full wages, except where an
employee fails to work due to his unwillingness and in such
The Payment of Wages Act, 1936; other circumstances as prescribed.
The Minimum Wages Act, 1948;
The Payment of Bonus Act, 1965 and • Where an employee does two or more classes of work to each
The Equal Remuneration Act, 1976 of which a different minimum rate of wages is applicable, the
employer shall pay not less than the minimum wage rate for
The Code has expanded the definition of “employer” as well as each class of work, proportionate to the time involved.
“employee”, resulting in a broad based applicability of the law. It is now
applicable to all employees irrespective of sector (whether organized • The overtime wage rate has been fixed at twice the normal
or unorganized) and wage ceiling (other than an apprentice engaged rate of wages for the hours worked in excess of the normal
under the Apprentices Act, 1961 and any member of the Armed Forces working hours.
of the Union) employed in any establishments wherein any industry,
2. Payment of Wages
trade, business, manufacture or occupation is carried on including
Government establishments. • All wages shall be paid in current coin or currency notes or
by cheque or by crediting the wages in the bank account of
Further, the Wage Code provides protection to the provisions of the
the employee or by the electronic mode, except for certain
Mahatma Gandhi National Rural Employment Guarantee Act, 2005 and
specified establishments, wages shall be paid only by cheque

Article
or by crediting the wages in his bank account. days from the day on which it was imposed.
• No wage period in respect of any employee shall be more than • All fines and all realisations thereof shall be recorded in a
a month. register as may be prescribed; and all such realisations shall be
applied only for the welfare of persons employed as approved
• The employer shall comply with the following time limits for by the prescribed authority.
payment of wages for respective wage periods:
5. Payment of Bonus
(i) For daily basis,at the end of the shift;
• An annual bonus shall be paid to employees of the
(ii) For weekly basis, on the last working day of the week i.e establishments in which 20 or more persons are employed
before the weekly holiday; or were employed on any day during an accounting year,
drawing wages not exceeding the notified threshold and who
(iii) For fortnightly basis, before the end of the second day
have put in at least 30 days work in an accounting year.
after the end of thefortnight;
• In cases where the wage of an employee exceeds the notified
(iv) For monthly basis, before the expiry of the seventh day of
threshold, the bonus payable shall be calculated as if his
the succeeding month.
wage were such amount, so determined by the appropriate
(v) Where an employee has been— government or the minimum wage fixed by the appropriate
government, whichever is higher.
a. removed or dismissed from service; or
b. retrenched or has resigned from service, or • The amount of minimum bonus has been fixed at rate of 8.33%
c. unemployed due to closure of the establishment, of the wages earned by the employee or Rs. 100, whichever is
the wages payable to him shall be paid within two higher, whether or not the employer has any allocable surplus
working days of his removal, dismissal, retrenchment during the previous accounting year.
or, as the case may be, his resignation.
• Bonus shall be paid by crediting it in the bank account of the
3. Deductions from Wages employee within a period of 8 months from the close of the
accounting year.
• The employer shall not make any deductions from the wages
of an employee except those as are authorized under the 6. Records, Returns and Notices
code.
• Every employer shall maintain a register containing the details
• The total amount of deductions in any wage period shall not with regard to persons employed, muster roll, wages and such
exceed 50% of such wages otherwise the excess deductions other details in such manner as may be prescribed.
may be recovered in such manner, as may be prescribed.
• Every employer shall display a notice at a prominent place
• All such deductions and all realisations thereof shall be of the establishment containing the abstract of this Code,
recorded in a registers may be prescribed. category-wise wage rates of employees, wage period, day
or date and time of payment of wages, and the name and
4. Imposition of fines on the employee
• The employer, with the previous approval of the appropriate

government/ prescribed authority, shall exhibit on the
premises of the employment, a notice specifying the acts and
omissions for which fine may be imposed on any employee.
• The total amount of fine which may be imposed in any one

wage-period on any employee shall not exceed an amount
equal to 3% of the wages payable to him in respect of that
wage-period.
• No fine shall be imposed on any

employee who is under the age of
15 years.
• No fine imposed on any

employee shall be
recovered from him
by installments or
after the expiry of 90

Article
address of the Inspector-cum-Facilitator having jurisdiction. depending on the nature of offence, with the maximum penalty
being imprisonment for three months along with a fine of up to
• Every employer shall issue wage slips to the employees in
one lakh rupees.
such manner as may be prescribed.
5. Compounding of Offences:The offence not being an offence
• The above provisions shall not apply in respect of the
punishable with imprisonment only or with imprisonment and
employer to the extent he employs not more than 5 persons
also with fine have been made compoundable under the code.
for agriculture or domestic purpose.
Such offences may be compounded by a notified Gazetted Officer,
INTRODUCTION OF NEW CONCEPTS UNDER THE for a sum of 50% of the maximum fine provided for such offence in
CODE the manner as may be prescribed.
1. Provisions relating to equal remuneration: The Wages Code
CONCLUSION
prohibits discrimination 'on grounds of gender', and thus making it
gender neutral, allowing a third category of gender i.e. transgender With its broad based applicability and uniform definition of wages,
to also be protected from discrimination in matters of payment of the code surely promotes the aim of ease of doing business under the
wages, recruitment and conditions of employment. “Make in India” policy of the Government of India. The Code has made
it easier for employers to understand and thereby comply with the
2. Floor Wages: The Central Government shall fix floor wage provisions of law.
taking into account minimum living standards of a worker and
geographical areas. Where existing minimum wages are higher Although, consolidation of various statutes is an attempt in the right
than the floor wages, the same shall be retained.The minimum direction for simplifying existing complexities under labour laws,
rates of wages fixed by the appropriate Government shall not be however, it still has its own limitations. In recent scenarios, a rise in
less than the floor wage. The appropriate Government shall review new forms of employment such as work from home, freelancing, flexi
or revise minimum rates of wages at an interval not exceeding 5 time, etc. has been witnessed, which is yet to be addressed and looked
years. The minimum wages shall be revised by the appropriate at. Further, the Code provides for power to the State Governments to
Government in consultation with the Advisory Board constituted make rules, for carrying out the provisions of the Code. The varying
in accordance with the Code. state rules may result in employers complying with multiple statutory
requirements across states and in consequence hamper with the aim
3. Inspector-cum-Facilitator:With the intent to remove arbitrariness
and malpractices in inspection, the appropriate Government may, of simplifying the labour laws and reducing the cost of compliance for
by notification, appoint Inspector-cum-Facilitators, who shall have employers.
dual responsibility of advising employers and workers relating to
As labour laws continue to evolve, it is imperative for employers, to
compliance with the provisions of this Code and also to inspect
acquaint themselves with the code and understand the impact it
the establishments as assigned to them. The Code also provides for
may have on their operations. Further clarity can be sought, once the
an Inspection Scheme introducing a web-based inspection and
Government sheds light on the subordinate legislations and rules under
calling of information relating to the inspection under this Code
the code. The same approach of simplification and ease of compliances
electronically.
is expected from the other codes relating to Occupational Safety,
4. Penalties on Offences: The Code provides for varying penalties Health and Working Conditions, Social Security and Industrial Relations.

Article
Cloud kitchens are the future

of the eating-out industry? CS Shweta Jain, ACS
shweta.jain2003@gmail.com
Amidst Covid-19, globally all the restaurants are shut, hotels are Step 3: Food is prepared as per the instructions and order
making home delivery of their patented and benchmark recipes. Food
& Beverage Industry is forced to shift itself to another mode for survival Step 4: Effective and accurate packing is done of the prepared food
and keeping pace in the current scenario. The pioneer hotels like The
Step 5: Finally, the delivery boy, delivers the packed food parcel to the
Taj Group of Hotels, Oberoi and The Park are constraint to deliver their
customer
famous dishes at the footsteps of customers, in the present moment
due to Covid-19. Advantages v/s Disadvantages-
The food ordering market of India is projected to reach $17 billion by Since Cloud Kitchen is the virtual restaurant, the orders are accepted
2023. Keeping in view the economic crisis in the wake of Covid-19, online or through telephone. Hence an integrated food ordering
opening a new restaurant or food joint seems to be the difficult task system has to be adopted.
where the annual average setup cost for opening a restaurant in India is The major points in support to the concept of Cloud Kitchen are-
approximately 3.05 times than that of a cloud kitchen.
1. Low Infrastructure Cost- Since dining facility is not provided thus
huge fundsfocus furniture, ambience, cutlery, adequate staff are all taken away in
And thus it seems even more feasible and profitable to the existing front this concept. It saves a huge cost which can very well be utilised
face Eating Joints to shift to food supply mode i.e. home delivery of the in quality of food and faster/no waiting delivery of the mouth-
same tongue-licking food at the footsteps instead of serving them at watering food to the customer.
their place and premises. In this way, Cloud Kitchens are becoming the
need of this hour. 2. Growth Oriented- Cloud Kitchen concept is full of growth prospects.
Once the base is set, branches under the same brand can be
The following steps shall help understanding the whole idea of Cloud opened in another States. Anytime if it becomes necessitated and
Kitchen; to encash an opportunity Front Face restaurant may be opened
with the same brand because customer base is ready.
Step 1: Orders are received from the customers
3. Less Overhead Cost- As briefed above, no ambience, decoration,
Step 2: Kitchen in-charge notes down the order details

Article
of India) is mandatory in India if one wants to be into Food
business. It may be from the period of 1years to 5 years. It adds
to the authenticity of food and vendor.
(b). Fire & Safety License- For businesses where usage of fire
shall take place, it is advisable to have fire and human health
agreements. Cooking food is all about fire and fireplace. This
eliminates the chance of future exertion.
(c). GST registration is mandatory for any business in India to pay

taxes timely.
(d). Trademark Registration – Any successful venture attracts the

rivals and their malpractices as well to disturb and distract.
Getting the brand name, logo, word mark registered under
trademark authorities is a wise decision to run smoothly.
fancy premises, staff- to- serve-customers are required in cloud
kitchen concept, the overhead cost is saved many times. 7. Packaging and Presentation- Since dine-in facility is away in cloud
kitchen idea, only food quality and the way & mode, it reaches
4. Innovative approach may work- In case, one wants to expand its to the customers is of utmost importance. Packing the food on
chain of cloud kitchen, he may have one big main kitchen supplying adequate temperature, using spill proof packing boxes, eco-
semi cooked food to the small kitchens who may directly deliver friendly reusable packing is all the convincing factors to be taken
the food to the customers. care of.
With every plus the minus is always there, the disadvantages or How to generate Orders?
struggle in this concept may be summed up as follows-
Once the kitchen is all set, the chef, the menu, the system is streamlined,
1. Tough competition because entry and exit is easy. the focus has to be on getting food orders. The following methods and
measures may be opted out for promotion and introduction of the
2. Personal App or website to obtain orders brand-
3. Dependency on food aggregators like Zomato, Swiggy, (a). Tying knot with existing Food Aggregators like Zomato, Food
Ubereats, Food Panda etc. Panda, Swiggy etc. since they are well acquainted by the mass.
4. No direct interaction with the customers, to receive adequate (b). Full- on Digital marketing of the brand and venture while entitling
feedback on services and food. the main features.
How to start a Cloud kitchen? (c). Mass SMS and membership launching with fascinating schemes
1. To have a Kitchen Space- a space with measurement of 200-500 sq
(d). Search Engine Optimization
ft shall go very well during initial stages.
(e). Preservation of Data base of customers ordered food in past for
2. Kitchen Equipment- Utensils to cook food, stove, oven, microwave,
future purpose
refrigerator, water filter, etc.
(f ). Synchronization between getting order/preparing food/packaging
3. Chef or the cooking person- The taste of food shall be the ultimate
properly & delivery at the right time within no-waiting zone. This
promoter in the long term. Hence the best person should be
ensures repetition of orders and reputation of the brand.
behind the course of cooking meals.
(g). Integrated online ordering system is a real must to ensure
4. Preparation of Menu (dishes) - This part is a first speak up and more
smoothing of operation without any failure.
than enough to allure customers.
Finally, it may be said that cloud kitchen is a commendable food channel
5. Multi-cuisine/ seasonal dishes concept - When someone orders
alternative, and if one wants to flaunt into with limited resources and
outside food, he seeks for the variety and diversity apart from taste.
investment, he has no better option than this. For sure, it’s the future
Thus if sitting at Mumbai, one is able to order Delhi styled Chole theme of food industry and it is safe and wise to opt for with all the
Bhature, nothing can be more admirable and flattering than this. necessary compliances. At present only 13% of the total market size has
been tapped by the cloud kitchens which lays down the huge potential
6. Licenses and Registration -In order to be saved from legal troubles for budding entrepreneurs to step into this segment of F&B Industry
and having more authentication, license and registration are with flying colours.
required with various authorities-
(a). Registration with FSSAI(Food Safety & Standards Authority

Initiatives of Chapters of Nirc of Icsi
NORTHERN
INDI A
REGIONAL
COUNCIL
initiatives of chapters
AGRA CHAPTER AMRITSAR CHAPTER
Agra Chapter has motivated the members to enroll for CSBF as the said scheme is Amritsar Chapter is regularly following up with Non- CSBF Members and providing
so important for the family members of the professional and appealed to members information related to the benefits of CSBF. The chapter is also providing all
to donate for the needy people in PM cares fund through the payment channel necessary information to the students regarding online coaching, crash course etc.
provided by the ICSI. The Chapter also requested the members to continuously
attend the webinars arranged by the ICSI related to profession and life. The Chapter
is trying to interact with the office in charges of the school and colleges to promote
their students to join CS course. The Chapter is in regular personal Interaction with BAREILLY CHAPTER
the members of the Agra Chapter to know their health and try to sought out their
problems occur due to lockdown. The Chapter also organised 2 Webinar on Theme Bareilly Chapter organised a webinar on 11th May 2020 on topic "Loans to
““Audit Complication and Certification During Lockdown” and “Practical Approach Directors" for members. The Guest Faculty for the webinar was CS Santosh
over the Corporate Compliances during Covid-19 Lockdown” and starts 1st Batch of Pandey and it was attended by about 70 members. On the child portal of
online classes for CSEET. Bareilly Chapter announcement regarding ICSI Placement Portal and ICSI
e-Vidhya Vahini was placed.
ALWAR CHAPTER Dehradun CHAPTER

Alwar Chapter has conducted a webinar for members on 22nd May, 2020 on Dehradun Chapter has finalised CS Examination Centre. The Chapter has
the Topic - "Recent Amendments in MSME and Glance at CFSS Scheme”. The discussed with all Non CSBF Members of Dehradun Chapter over the phone.
Chapter is also conducting test series for OCT foundation students and sent The chapter also shared Free online Crash Course related information to all
various information for press release as instructed by the HQ. students of dehradun. Webinar is to be organized by the chapter for Members
of Dehradun Chapter. Dehradun Chapter has discussed with the few faculties
for Webinars over the phone, which is to be conducted in the month of May-
2020.
Bhilwara CHAPTER
Bhilwara Chapter is continuously encouraging members to contribute in relief GHAZIABAD CHAPTER
fund and sending various updates by mail and whatsapp to students and Members
regarding "training, examination, classes etc. The Chapter is continuously following Ghaziabad Chapter has invited Articles and Write-ups for its Chapters
up with Non- CSBF members. The Chapter is also following up with the defaulter monthly e-newsletter for April issue. The Chapter has resumed OT Classes by
members for restoration of membership and appealing all the members and online mode. The Chapter is encouraging Members for contribution towards
students for taking precautionary measures and follow the government guidelines. relief fund. and also encouraging Members to take CSBF Membership of our
Personal contact number has also been provided to all the members and students to institute.
encourage them to use online services, module and call/mail personally if required.
Gorakhpur CHAPTER
Chandigarh CHAPTER
The Gorakhpur Chapter has conducted a Webinar on the theme "Atmanirbhar
The Chandigarh Chapter shows its solidarity and togetherness at these Bharat: Execution & Implementation" on 19th May 2020. The webinar was
testing times of COVID-19 crisis. We stand united and as a matter of fact, we started with an inspiring address by NIRC Chairman CS Suresh Pandey and the
started an initiative of thanks giving to all who are saving our lives at these faculty of the same was CS G. S. Sarin, Immediate Past Chairman of NIRC. The
testing times. We remain together, inseparable and empathetic during Chapter is also sending various information by mail and whatsapp to students
these pandemic syndromes coming our way. Chandigarh Chapter of NIRC and Members regarding various updates. The Chapter is continuously
of ICSI has started its first ever online classes for CSEET students on 18th following up with Non- CSBF members and also following up with the
April 2020 through SKYPE which are running successfully by our Chapter. defaulter members for restoration of membership. Personal contact number
The classes are provided free of cost. We have more then 25 (Twenty has also been provided to all the members and students for resolving their
Five) students in our first batch. Many students are residents of the tricity issues. The Press news related to announcement of contribution towards PM
and certain students are logging in from outside cities like Agra , Baddi,
Cares Fund, E-learning concept by ICSI has also been published. The chapter
Hyderabad, Bhubaneswar , Ludhiana, Patiala and Bareilly. Chandigarh
Chapter of NIRC of ICSI has started the process of publishing its first ever has also asked the Practising Company Secretaries and Members on Job to
e-Newsletter. The same shall be published soonest. generate UDIN and e-CSin respectively. Various announcements for the
benefit of students and members have been posted on the Chapter's Child
Portal.
AJMER CHAPTER
Ajmer Chapter has organised webinar for members on 14th May 2020 on
JAIPUR CHAPTER
theme "CFSS Scheme and its related FAQ".
Jaipur Chapter has started/launched its e-Newsletter for the month of April,
2020.

Initiatives of Chapters of Nirc of Icsi
Jalandhar CHAPTER Ludhiana CHAPTER
Under the guidance of The Chairman, Jalandhar Chapter of NIRC of ICSI Ludhiana Chapter started connecting with the students of Oral Classes
initiated online classes in the lockdown situation for the benefit of the through video conferencing for boosting their morale. The Chairman –
students. For this, The chapter contacted students of Foundation, Executive Ludhiana Chapter has motivated the students and asked them to share the
and Professional on phone and motivated to join the class. The chapter difficulties they are facing. This was done in view of suggesting the students
is also focussing on maximum calling and follow up with the defaulter right approach of facing the difficulties and moving ahead towards their
members to restore the membership. goals, which undoubtedly is becoming a knowledgeable and Professional
Company Secretary. Ludhiana Chapter also reached the members under
their jurisdiction for encouraging them to take the membership of CSBF,
which ultimately is a shield of protection and a symbol of belongingness.
Jammu CHAPTER The chapter has also asked the Practising Company Secretaries and
Members on Job to generate UDIN and e-CSin respectively. Ludhiana
Jammu Chapter has done 3 E- Career Awareness at Jammu. Executive Chapter is working on the idea of publishing the e-newsletter, thus, invited
Module-II OTC class is already running. Executive Module-I OTC class is the articles for publishing in the newsletter. The chapter also requested
going to start from 1st week of June 2020. Jammu Chapter has just started the members to send a work from home photograph for making a collage,
CSEET classes with 4 students from 8th May 2020 in collaboration with Pune purporting to inspire the other members to develop the system of working
Chapter. Jammu Chapter is going to organise “Safar – Life Skills” program from home, who are yet at the planning stage of the Idea. The chapter is
on 19th May 2020. The Chapter is going to organise “Teacher Conference” working on the idea of catchphrase “sharing ideas, making Lives”.
Webinar on 25th May at 4 PM. Jammu Chapter will also organise Webinar
on “How to write CS exams” in the first week of June 2020.
Udaipur
Jodhpur CHAPTER
Udaipur Chapter is encouraging members to contribute in relief fund
Jodhpur Chapter took initiative to send mail to all members of Jodhpur Chapter in and appeal to all the members and students for taking precautionary
related to Research Paper Writing Competition for ICSI members. It also organised measures and follow the government guidelines. Chapter also motivated
Lighting Diya Program for the Members of Jodhpur Chapter on 05th April, 2020 all the Members to contribute in CSBF. Udaipur Chapter has Conducted
at 9:09 PM (Photo Collage created and mailed to HQ to publish in E-newsletter & Two webinars on 4th May 2020 and 28th May 2020 for Udaipur Chapter
Chartered Secretary). The Chapter also sent mail to Members regarding suggestions Members. The chapter is following up with Defaulter Member for
Restoration of Membership. Personal contact numbers have been provided
on themes and sub-themes of National PCS Conference. Jodhpur Chapter is
to all the members and students to encourage them to use online services,
preparing E-newsletter of Jodhpur Chapter for the period of Jan-March, 2020. module and call/mail personally if required. The Chapter is also sending
The Press news related to announcement of contribution towards PM Cares Fund, various updates by mails and whatsapp to Members ans students regarding
E-learning concept by ICSI has also been published. A Photo Album has been webinar, Training, Examination and online classes etc.
created by Jodhpur Chapter related to programs and training conducted during
Jan-March, 2020.
Noida CHAPTER
KaNPUR CHAPTER
Noida Chapter designed and circulated E-Newsletter. The Chapter also empanelled
Kanpur Chapter distributed cooked food 50 packets (Puri Sabji) to the two more hospitals, namely Jaypee & Apollo Hospital. OT classes of Noida Chapter
poor and hungry families on Sunday, 5th April,2020. An Online conference are smoothly running, mostly revision, and syllabus completed for most subjects.
call (meeting) was organised for all members of Managing Committee of
Kanpur Chapter. The chapter distributed non-cooked items to the poor
families on every Sunday, on 12th April 2020, 19th April 2020, 26th April
2020 & 03rd May 2020. The chapter also circulated press release in local
media for postponed the CS Examination June,2020 and announcement for Patiala CHAPTER
next dates. Kanpur Chapter has also decided to issue monthly e-newsletter.
Patiala Chapter provided Information about CSBF to the members of the Patiala
Chapter by mail and some members were also called on the phone. The chapter
also contacted students for OTC classes.
Kota CHAPTEr
Kota Chapter is encouraging their members to be a proud member of CSBF by making
calls and mails. Kota Chapter is solving the queries of their Students/Members over Prayagraj CHAPTER
phone and WhatsApp. The Chapter is requesting the defaulter members for the
restoration of membership through calls and mails. The Chapter is coming with the 1st Edition of E-News letter of Prayagraj Chapter
is under compilation of data and figures. The chapter organised its 1st Webinar on
18th May 2020.
Lucknow CHAPTER
Lucknow Conlapter organised online Classes for all students at Oral Varanasi CHAPTER
Coaching Classes with the help of our Faculties. The Chapter is providing
all assistance over Email & Phone to all students. Lucknow Chapter has
Varanasi Chapter is solving the queries of their Students/Members over
also supported the needy persons around at individual levels in terms of
phone and WhatsApp. Varanasi Chapter is conducting online classes for
Distribution of Food Grains, Masks & other needful as required. Chairman
of the chapter along with managing Committee members have assisted at the Student. The Chapter is also planning to conduct Online webinar for
their individual levels. members. The chapter also sanitised complete office area while resuming.

ICSI Motto: lR;a on /keZa pjA speak the truth abide by the law ICSI Missin: "To develop high calibre professionals facilitating good corporate governance

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Monthly • Volume XXXVIX • Page 1-74 • No.

- Recent Initiatives by Chapters

2 | NIRC - ICSI Newsletter | May 2020

“Seeds of faith are always within us; sometimes it takes a

NIRC - ICSI Newsletter | May 2020 | 3

I feel Labour laws have opened many doors for Company

4 | NIRC - ICSI Newsletter | May 2020

Dear Professional Colleagues,

Sub: NIRC-ICSI 1st Online Campus Placement

Greetings and Best Wishes from NIRC of ICSI !!

We look forward for your support to young CS members.

NIRC - ICSI Newsletter | May 2020 | 5

6 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 7

ICSI-IICA Joint online Master Class on Board Effectiveness & Independent

Online Master Class on “Different Dynamics Of Fund Raising, An In-Depth

8 | NIRC - ICSI Newsletter | May 2020

Glimpses of Meeting of Regional Council held on 27th april, 2020 through

NIRC - ICSI Newsletter | May 2020 | 9

10 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 11

12 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 13

14 | NIRC - ICSI Newsletter | May 2020

Recent Initiatives taken by NIRC

NIRC - ICSI Newsletter | May 2020 | 15

MEETING WITH CHAPTER CHAIRPERSON OF NIRC-ICSI Yours own,

16 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 17

Corona Virus vs. Economic

Pertinent principles concerning

18 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 19

 International Workers Provident Fund where there is no limit

20 | NIRC - ICSI Newsletter | May 2020

Labour Law Compliances -

Ease of Compliance Rules enable

NIRC - ICSI Newsletter | May 2020 | 21

Importance Responsibility of the employers under

22 | NIRC - ICSI Newsletter | May 2020

Let’s take a look from the bird’s eye on compliance checklist

NIRC - ICSI Newsletter | May 2020 | 23

LABOUR LAWS COMPLIANCES

24 | NIRC - ICSI Newsletter | May 2020

1. THE FACTORIES ACT, 1948

NIRC - ICSI Newsletter | May 2020 | 25

S. Category of Minimum Wage Minimum

26 | NIRC - ICSI Newsletter | May 2020

NIRC - ICSI Newsletter | May 2020 | 27

28 | NIRC - ICSI Newsletter | May 2020

Labour Law Compliances

Before commencement of his audit, a checklist for

The applicability of law depends on the type of

NIRC - ICSI Newsletter | May 2020 | 29

No woman shall work in any

30 | NIRC - ICSI Newsletter | May 2020

Considering the change in

Labour audit does not only protect

NIRC - ICSI Newsletter | May 2020 | 31

International Workers Provident Fund where there is no limit

RETRENCHMENT COMPENSATION : 15 days wages each completed

NOTICE/NOTICE PAY : one month/ 3 months

GOVERNMENT: Intimation/Permission- depending upon number

Last Come First Go