C. NIRANJAN RAO ADVOCATE & CORPORATE LEGAL CONSULTANT RECENT AMENDMENTS IN LABOUR LAWS C. NIRANJAN RAO ADVOCATE & CORPORATE LEGAL CONSULTANT

MATERNITY BENEFIT ACT (AMENDMENT) ACT, 2017

MATERNITY BENEFIT ACT The Act now mandates that the employer of the establishment should inform a women all benefits made available under the law, at the time of her appointment. Such information must be given in writing and electronically. Every establishment employing fifty or more employees shall provide crèche facilities within a prescribed distance and the woman should be allowed four visits to the crèche in a day. However, this includes her rest interval. After completion of the statutory maternity benefit period with wages, an employer can permit a woman to work from home, if the nature of work assigned permits her to do so for a duration that is mutually decided by the employer and the woman employee.

MATERNITY BENEFIT ACT Leave up to twelve weeks for a woman who adopts a child below the age of three months. The period of leave will be calculated from the date the child is handed over to the adoptive mother. In surrogacy, the surrogate mother carries a child for another person after an agreement made before conception of the child. The person wishing to adopt and foster the child is called the commissioning person/couple. The amended legislation provides leave up to 12 weeks for commissioning mothers also. Maternity benefit shall be twenty six weeks of which not more eight weeks shall precede the date of her expected date of delivery. Maternity benefit by a women having two or more surviving children shall be twelve weeks of which not more than six weeks shall precede the date of her expected delivery. It came in to effect from 01.04.2017 except work from home.

DRAFT LABOUR CODE ON SOCIAL SECURITY & WELFARE 2017 Code on Social Security & Welfare has been formulated by amalgamating all existing Labour Laws related to Social Security . After the amalgamation the Main departments will merge in to Social Security counsel Objections called from all the stake holders till 17.04.2017. Many objections are submitted as there is no clarity on many of the issues. It may be tabled in the parliament winter session with minor modifications.

FIFTEEN LABOUR LAWS TO BE AMALGATED 1.      Employee Provident Fund and Miscellaneous Provisions Act 1952 2.      Employees State Insurance Act, 1948 3.      Pension Fund Regulatory and Development Authority Act, 2003 4.      Maternity benefit Act, 1961 5.      Payment of Gratuity Act, 1972 6.      Employees Compensation Act, 1923 7.      Unorganised Workers Social Security Act, 2008 8.      Employees liability act 1938 9.      Bidi Workers’ Welfare Fund Act 1977 10.  Cine Workers Welfare Fund Act 1981 11.  Limestone and Dolomite Mines Labour Welfare Fund Act 1972 12.  Mica Mines Labour Welfare Fund Act 1946 13.  Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare FundAct, 1976 14.  Building and Other Construction workers’(Regulation of Employment and Conditions of Service) Act, 1996 15.  Welfare funds established by any state government for providing social security and other benefits to such class of workers, such as under The Bombay Labour Welfare Fund Act 1953.

SCHEMES TO BE AMLAGAMTED 1.      Pension Scheme 2.      Sickness Benefit Scheme 3.      Maternity Benefit Scheme 4.      Disablement Benefit Scheme 5.      Invalidity Benefits Scheme 6.      Dependent Benefits Scheme 7.      Medical Benefit Scheme 8.      Group Insurance Benefit Scheme 9.      Unemployment Benefit Scheme 10.  Provident Fund Scheme 11.  International Workers Pension Scheme

CONTRIBUTION Employer contributes at 17.5% of monthly wages. Unorganised sector employee contributes at 12.5% of monthly wages(minimum wages) if income is above wage ceiling.    Self employed individuals contribute at 20% of monthly wages(minimum wages) if income is above wage ceiling(below wage ceiling). The Code shall apply to workers that are employed by any entity including Domestic workers.

B O C W WELFARE CESS ACT The BOCW Act has defined building or other construction work as the construction, alternation, repairs….. but does not include any building or other construction work to which the provisions of the Factories Act, 1948 applies, The Supreme Court examined the issue of when do the provisions of Factories Act will apply and held that during the period of construction of green field factory the provisions of Factories Act are applicable. Hence BOCW Welfare Cess Act is applicable and cess is payable. Reasons; Manufacturing Process is not started during construction, hence it is not a factory.

PAYMENT OF GRATUITY ACT 1972 It is only proposed in the form of bill for amendment Sec 4 ( 3) The amount of gratuity payable to an employee shall not exceed TEN LAKHS (Twenty Lakhs) rupees. The amendment is yet to take place. If it is done, the amount received as gratuity up to Rs. 20 lakhs will not be taxable under Income Tax Act.

NEW LEGISLATION EASE OF COMPLIANCE TO MAINTAIN REGISTERS UNDER VARIOUS LABOUR LAWS RULES 2017

NEW LEGISLATION The legislations covered under these new rules The Building and other Construction Workers’ (RE & CS) Act, 1996 The Contract Labour (Regulation & Abolition) Act, 1970 The Equal Remuneration Act, 1976 The Inter-State Migrant Workmen (RE & CS) Act, 1979 The Mines Act, 1948 The Minimum Wages Act The Payment of Wages Act, 1936 The Sales Promotion Employees ( C S) Act, 1976 The Working journalists and Other Newspaper Employees (CS) & Misc. Provisions Act, 1955 and it came in to effect from 21.02.2017.

NEW LEGISLATION Combined register to be maintained to cover all the legislations Registers can be maintained either electronically or otherwise New Registers Form A : Workers / Employees Register Form B : Wage Register. Form C : Register of loans/ deductions, fines and advances Form D : Attendance Register. Form E ;Register of Rest/ Leave/Leave with Wages.(only in 3 acts) The Sales Promotion Employees Act, 1976,The Working journalists and Other Newspaper Employees AND Mines Act. Henceforth there will be only 5 registers to comply with all above mentioned legislations.

Old Category of Apprentices APPRENTICES ACT, 1961 New Category of Apprentices Optional Trade any subject field in engineering, non engineering and vocational course – may be determined by the employer. Old Category of Apprentices Graduate or Technician Apprentice for candidates holding degree or diploma both for engineering and non engineering. Technician (Vocational) Apprentice - ITIs and the like. Number of apprentices can be 2.5% to 10% of Total Manpower including contractual workers.

Stipend for Optional Trade APPRENTICES ACT, 1961 Stipend for Optional Trade First Year training : 70% of Semi Skilled Minimum Wage Second Year training : 80% of Semi Skilled Minimum Wage Third Year training : 90% of Semi Skilled Minimum Wage Apprentices are not covered under PROVIDENT FUND ACT & ESI Act But Covered Employee Compensation Act & Maternity Benefit Act.

THE MODEL SHOPS AND ESTABLISHMENT (REGULATION OF EMPLOYMENT AND (CONDITIONS OF SERVICE) BILL, 2016. Cabinet in its meeting held on 29th June, 2016 considered The Model Bill is a suggestive piece of legislation and has been finalized keeping in view the spirit of cooperative federalism.  This gives liberty to States for fine tuning the Model bill to suit their requirement.  This Model Bill applies to shops and establishments employing ten or more workers except manufacturing units. This Model bill gives freedom to operate 365 days in a year and opening/closing time of establishment, women to be permitted during night shift, if the provision of shelter, rest room, ladies toilets,  adequate protection of their dignity and transportation etc., exists.

LABOUR CODE The 2ndNational Commission on Labour had recommended codification of Labour Laws in to 4-5 Groups on functional basis.  At present, Ministry of Labour & Employment is working to rationalize the provisions of the 43 Labour Laws in 4 Labour Codes they are. Labour Code on Wages -. Labour Code on Industrial Relations – Labour Code on Social Security & Welfare -. Labour Code on Safety &Working Conditions –

LABOUR CODE The Ministry of Labour & Employment is planning to club under Labour Code on Industrial Relations Bill,2015 . Laws governing terms and conditions of employment, (i.e.) Trade Unions Act. 1926 , Industrial Employment (Standing Orders) Act,1946 and Industrial Disputes Act, 1947 & under Labour Code on Wages Bill, 2015 (ii) Laws governing wages by consolidating : The Minimum Wages Act, 1948, The Payment of Wages Act, 1936, The Payment of Bonus Act, 1965 and The Equal Remuneration Act, 1976.

EMPLOYEE’S COMPENSATION ACT On April 5, 2017 Lok Sabha approved the amendments made by the Rajya Sabha. The Bill amends the Employee’s Compensation Act, 1923. The Act provides payment of compensation to employees and their dependants in the case of injury by industrial accidents, including occupational diseases. The Bill introduces a provision which requires an employer to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him. Penalty for failure to inform: The Bill penalises an employer if he fails to inform his employee of his right to compensation. Such penalty may be between 50,000 to one lakh rupees. Appeals from the Commissioner’s order: The Act permits appeals against the Commissioner’s orders related to compensation, distribution of compensation, award of penalty or interest, etc. However, this is only if the amount in dispute is at least 300 rupees. The Bill raises this amount to 10, 000 rupees. It permits the central government to further raise this amount. 

EPF AMENDMENTS Minimum pension under EPS has been revised to Rs.1000/- in perpetuity per month in April 2015. EDLI Benefit increased from 3.6 Lakh (max) to 6.0 Lakh(max) Time limit reduced to 20 days from 30 days for EPF claim settlements.

SPECIAL PROVISION IN RESPECT OF EMPLOYEES’ ENROLMENT CAMPAIGN, 2017 shall come into force on the 1st day of January, 2017 and shall cease to operate on the 30th day of June, 2017. Every employer who has failed to comply with the provisions of this Scheme during the period 1st day of April, 2009 and ending the 31st day of December, 2016 can avail this scheme by submitting a declaration form. If the employees contribution is not deducted , one share of employer needs to be paid. proceedings under 7-A or 14-B should not be pending. Damages of Rs.1/-for annum will be levied ,but interest should be paid. No administrative charges will be levied.

ESI COVERAGE The Government has issued coverage Notifications covering 165 districts in whole where the ESI Scheme was earlier implemented in part. Decision taken to enhance the maternity benefits under ESIC from existing 12 weeks to 26 weeks. Adopting and commissioning mothers also to get maternity benefits. Intention notification sent for legal vetting. It is decided to reduce the employees’ and employers contribution under ESI Act from existing 1.75 and 4.75% to 1% and 3%, respectively for two years in new implemented areas of districts where ESI scheme is partly implemented. Intention notification published on 25.7.2016 ESI Coverage has been extended to Construction workers in the implemented area. Construction site Workers have been covered to avail benefits under the ESI Scheme w.e.f. 1stAugust, 2015.  Extending the social security benefits of ESI Scheme in the remaining North-East States Arunachal Pradesh, Mizoram, Manipur and Andaman & Nicobar Island.

THE CHILD LABOUR (PROHIBITION AND REGULATION) AMENDMENT ACT, 2016 (Passed July 19, 2016) The Act prohibits employment of children in all occupations except where the child helps his family after school hours. The penalty for employing a child increased from imprisonment between 3 months- 1 year to 6 months – 2 years or a fine from ₹10,000 to ₹20,000 to ₹20,000 to ₹50,000 The Act empowers the government to make periodic inspection of places at which employment of children and adolescents are prohibited. Sub section 1 of the Section 1 has been amended so as to include a new group called “Adolescents” under the ambit of this Act.

C. NIRANJAN RAO,ADVOCATE & CORPORATE LEGAL CONSULTANT