The Maternity Benefit Act: An Overview

The Maternity Benefit Act of 1961 must be complied with by factories, mines, and plantations. The Act applies to all businesses that have more than 10 employees working each day throughout the previous 12 months. Additionally, it applies to every shop and other establishment in the concerned Indian state. Additionally, this Act applies to specific facilities and businesses. It must be followed in order to maintain the goodwill of the workforce.

Every organization must abide by this Act, and the workers must receive a number of benefits. The outcome is that the employees get the best care and their health is maintained. The health of employees is essential since it promotes the growth of the company.

The following are the major conditions required to fulfill in order to claim maternity benefits −

• The employee (women) must have worked for the establishment for at least 80 odd days in the previous 12 months in order to be eligible to receive benefits under this Act.

• The Act also protects women who miscarry, in addition to public hospitals, nursing homes, schools, and other businesses.

• A woman is entitled to a maximum of six weeks of paid leave if her pregnancy ends in miscarriage or she has an abortion. If she delivers the baby earlier than expected, the earnings will be paid 48 hours after the birth certificate is shown.

• Women were granted 12 weeks of maternity leave under the terms of the Maternity Benefit Act of 1961. The Maternity Benefit (Amendment) Act of 2017 has raised the leave term from 12 to 26 weeks, nevertheless.

• The 26−week maternity leave period can be divided into up to 8 weeks of leave before the expected delivery date and the remaining leave following childbirth.

• Up to two children may be granted the 26−week maximum maternity leave duration. The 12−week leave period applies to mothers who have more than two children. According to the act, a woman is not obligated to work for six weeks after a miscarriage, unless the miscarriage was caused by a medical termination of the pregnancy. Surrogate moms and mothers who have adopted a child under three months old are also eligible for 12 weeks of leave.

Section 3 Definitions

Section 4 Employment of, or work by, women is prohibited during certain periods.

Section 5 Right to payment of maternity benefit.

Section 7 Payment of maternity benefit in case of death of a woman.

Section 8 Payment of medical bonus.

Section 13 No deduction of wages in certain cases.

Section 18 Forfeiture of maternity benefits.

Section 21 Penalty for contravention of Act by the employer.

All about Overtime Payment Rules in India

Factory: Factories Act, 1948

• Weekly Limit - Maximum 48 hours a day.

• Daily limit - Maximum 9 hours a day.

• Interval - No work for more than 5 hours without an interval. 

• Spread over - Working hours including interval periods not more than 10.5 hours.

• Overtime limit - Daily work time inclusive of overtime shall not exceed 10 hours which is 60 hours on a weekly basis. Overtime hours cannot exceed 50 hours in a quarter (3-month period).

As per Section 59 of the Factories Act, 1948, a person is entitled to be paid overtime wages twice his ordinary rate of wages in case he/ she is required to work for more than 9 hours a day or more than 48 hours in a week. The wages mentioned here are equivalent to the basic wages along with allowances but do not include any bonus or other overtime wages. In case a worker is paid on a ‘piece rate’ basis, the time rate will be calculated on the basis of the previous month and the amount of overtime wages will be calculated accordingly. 

Shop/ Establishment: Shops and Establishments Act of States/ UTs

• Daily working hours may range from 8-10 hours

• Weekly working hours cannot exceed 48 hours

• Overtime may range from 10-11 hours on a daily basis (1 to 3 hours)

• No continuous (break-free) work for more than 5 hours in one go

• Weekly limit of 50-60 hours

• Quarterly limit of 50-150 hours

• Spread over a limit of 10-14 hours

Depending upon the rate fixed by states or union territories, employees are paid for overtime hours apart from fixed working hours in the shops or establishments. In some states, the overtime amount is twice the usual working hours. Here again, the employee overtime rate is calculated for basic + allowances (not including any bonus).

 Mines Act, 1952

• Daily Working Hours - 9 hours a day above ground/ 8 hours a day under the ground

• Weekly hours - Maximum 48 hours a week

• Overtime - If a person works for more than a fixed time (above or below the ground), he/ she is entitled to overtime wages twice the ordinary rate

• The payment will be equivalent in case of employee works on a piece rate

• There is a work hour limit of a maximum of 10 hours a day inclusive of overtime

As per the overtime payment rules in India, it is calculated on basic salary. It may also include dearness or any other allowance. But it may be noted that labor law on overtime in India excludes any bonus or other such incentive while deciding or calculating overtime payment rules. In any case, the overtime payment rules do not regard the gross salary. But if there is no statutory obligation and the employer wishes to reward the hard-working employees voluntarily, overtime payment rules in India do not restrict the same. In such a case, whether overtime is paid on basic or gross in India is the employer’s choice.

Shop and Establishment Act and employment Law

The Shop and Establishment Act governs the state's active shops and commercial establishments. The Shop and Establishment Act (the "Act") is unique to each state. The Act's general requirements, however, apply to all 50 states equally. The Shop and Establishment Act is put into effect by the labor departments of the individual states.

According to the Act, a shop is commonly defined as a place where items are sold, either retail or wholesale, or where consumers get services. As part of the trade or business, it also comprises offices, godowns, storerooms, and warehouses.

Generally speaking, a commercial establishment is any business, financial institution, trading company, insurance agency, or office-based service. Hotels, boarding houses, restaurants, cafes, theatres, and other public entertainment and amusement facilities are included. However, the Factories Act of 1948 and the Industries (Development and Regulation) Act of 1951 regulate factories and industries, which are not covered by the Act.

The shops and businesses covered by the Act are obligated to submit an application for registration under the applicable state Act. A Shop and Establishment Registration Certificate or Shop Licence ("Certificate") is required by the Act for all businesses and establishments, including those run entirely from home.

The Act, among other things, regulates the following matters-

• Hours of work, annual leave, weekly holidays.
• Payment of wages and compensation.
• Prohibition of employment of children.
• Prohibition of employing women and young persons on the night shift.
• Enforcement and Inspection.
• The interval for rest.
• Opening and closing hours.
• Record keeping by the employers.
• Dismissal provisions.

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Employment Law - Leave Policy in India

 

The relationship between a worker, a trade union, and the general government is represented by the field of law known as labour law. It is crucial for preserving workers' rights, their unions, and pay. It also helps to forge a connection between employers and employees. It is a safeguarding code for laborers, workers, and employees as well, establishing a standard rule governing labour work practices and educating them about their rights. Labor law and employment law are frequently mistakenly combined. The branch of law that focuses exclusively on the connection between an employer and employee is employment law.

The overarching framework for determining various aspects of leave, such as category or categories, eligibility, duration, etc., is established by employment legislation. Numerous businesses and organizations divide leave into various categories, such as unpaid leave, paid leave, earned leave, maternity leave, special leaves, unpaid leave for the loss of pay, unpaid leave for compensatory reasons, etc.

Leave policies are developed with the unions when employment contacts involve trade unions in the decision-making process. The Industrial Employment Standing Orders Act, created to enforce certain service conditions, references such thorough consultation.

In India, three different types of leaves—earned leave, sick leave, and casual leave—are typically observed. For various types of leaves, multiple laws have varied provisions.

1. Earned Leave

2. Casual Leave ( Casual Leave)

3. Sick / Medical Leave

4. Maternity Leave  

                                                                                                                                                                                                                

Crucial HR Policies That Companies Should Implement in 2023

Every business needs HR policies as a foundation to ensure efficient operation. These rules serve as the guiding principle that instructs the industry and the employees on how to operate and behave in order to guarantee a secure working environment for everyone.

HR Department Policies and Practices are critical in SMEs because they give an outline, management, uniformity, justice, and rationality. They also guarantee that employment laws are followed and that workers are aware of their obligations and the Business’s goals.

HR strategies are often called the set of ideas and standards of conduct that govern how an organization interacts with its employees. Such a suggestion for a policy establishes guidelines for several job links within the company. The purpose and applicability of HR regulations are apparent. Every business needs policies to encourage consistency in behavior and fairness in employee relations.

1 Recruitment Policy

2 Background Verification Policy

3 Leave Policy 

4 Maternity and paternity policy

5 Separation Policy

6 Performance Management Policy 

7 Probation Policy

8 Performance Improvement Plan (PIP)

9 Code of Conduct (COC)& Disciplinary Policy

10 Prevention of Sexual Harassment Policy

11 Whistle-blower and Non-Retaliation Policy

12 Grievance Redressal Policy

13 Compensation and Benefit Policy 

                                                                                                                                                                                                                           

Employment Policy Design

Employment / HR policies provide written guidance for employees and managers on how to handle a range of employment issues. They are important in practically and effectively implementing an organization’s HR strategy. Human resources policies provide the necessary structure many businesses need to sustain the company’s productivity and overall profitability. Our HR policy design services are responsible to review existing policies, identifying gap areas, design policies, programs, and initiatives aligned to HR strategy, the Company’s Values, Vision, Business requirements, and the law of land.

We design policies for the complete life cycle of employees in an organization. Covering areas from Talent Acquisition, Talent Management, Total Rewards and Wellness (. Employee Benefits & Compensation Structuring, Employee Stock Options & Share Plans), Employee Relations, Talent Development, Health and Safety, Administration, Diversity and Inclusion, Code of conduct, Employee Participation, Employee Separation policies (including VRS), Communication policies including social media, etc.

This includes the following Stages :

• HR Policy Current Stage Audit
• Risk and Gap Identification
• Identify Policies required based on business requirements and the law of the land.
• Advisory on identified policies
• Provide Required Support w.r.t Industry Insights (without client details) and Best Practices
• Drafting, Implementation, Roll out and Communication plan support.

                                                                                                                                                                                                                    

Employment Law - Key Information every HR and Business Leader should know

 

The Ministry of Commerce & Industry’s Department of Commerce has substituted rule 43A of Special Economic Zones Rules, 2006 by notifying the Special Economic Zones (Fifth Amendment) Rules, 2022. The substituted rule 43A eliminates the requirement for IT/ITeS entities operating from Special Economic Zones to obtain permission from the Development Commissioner for allowing work from home to the employees.

The substituted rule 43A also simplifies the regulatory requirements for implementing the WFH arrangement and does away with the limit with respect to the proportion of employees of SEZ units1 who can be allowed to WFH.

The key features of new rule 43A, inter alia, includes:

• the facility for WFH or from any place outside the SEZ may cover all the employees of the SEZ unit.
• where the SEZ unit permits its employees to WFH or from any place outside the SEZ, it shall intimate the same to the DC through an email on or before the date on which the facility to WFH or from any place outside the SEZ is permitted.
• where the SEZ unit has permitted its employees to WFH or from any place outside the SEZ, before the date of commencement7 of the SEZ Fifth Amendment and permits its employees to WFH or from any place outside the SEZ under rule 43A, it shall intimate the same to the DC through an email by January 31, 2023.
• the SEZ unit shall not be required to submit the lists of employees who are allowed to follow WFH or from any place outside the SEZ, but shall maintain in the unit the lists of employees who had been permitted to WFH or from any place outside the SEZ and shall be submitted for verification whenever is required by the DC.
• the facility to WFH or from any place outside the SEZ shall be admissible if the SEZ unit continues to operate from the premises as per its Letter of Approval.
• the work to be performed by the employee permitted to WFH under rule 43A shall be as per the services approved for the SEZ unit, and the work should be related to a project of the SEZ unit.
• the SEZ unit shall ensure export revenue of the resultant products or services to be accounted for by the SEZ unit to which the employee is tagged.
• where an employee ceases to be part of the project of the SEZ unit, the employee shall be un-tagged from the SEZ unit and the SEZ unit shall surrender the identity card as per the SEZ Rules.
• the SEZ unit may provide to an employee duty-free goods, including laptop, desktop, and other electronic equipment needed by the employee to WFH or from any place outside the SEZ and the same shall be allowed to be taken outside the SEZ without payment of duty or integrated goods and services tax on a temporary basis. The SEZ unit while opting for the facility of WFH or from any place outside the SEZ shall ensure that such duty-free goods are duly accounted for in the appropriate records as per the extant rules and are available for verification, if necessary.
• the temporary removal of such duty-free goods shall be allowed for a period commensurate with the validity of the facility for WFH or anywhere outside the SEZ. If the SEZ unit fails to bring back the duty-free goods into the SEZ within the specified period, the duty applicable to such goods shall be paid by the SEZ unit.
• the permission granted to WFH or from anywhere outside the SEZ shall be applicable up to December 31, 2023.

                                                                                                                                                                                                                 

Recruitment and Selection of Employees and Labor Law

 

Recruitment and Selection of Employees and Labor Law

For Civil Servants Article 16(1) of the Indian Constitution guarantees equal opportunities for all citizens in matters of employment or appointment to any office under the State. According to Article 16(2), no citizen shall be discriminated against, employed or appointed to a position in the State solely on religion, race, caste, sixth grade, ancestry, place of birth or residence, etc. should not be done. One of them.

Adherence to the principle of equality in public service is an essential feature of the Constitution and the rule of law is at its core. Recruitment rules shall be designed to give equal opportunity to all citizens of India who are eligible to be recruited for vacancies. The word "equality" in Section 16(1) means equality between members of the same class of workers and does not mean equality between members of separate and independent professional groups. Section 16, therefore, does not prevent the proper classification of workers and proper selection procedures.

Equal employment opportunity means choice. Equality of employment opportunities means equality between workers of the same class, not equality between members of separate and independent classes.

The Child Labor (Prohibition and Regulation) Act, 1986 and Article (24) of the Indian Constitution provide that no child under the age of 14 shall be employed.