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Labour Laws Update
#1
Labour Laws Update

1. Status of Provident Fund Contributions on Allowances

It may be recollected that the Gujarat, Madhya Pradesh and Madras High Courts have held that all the allowances other than House Rent Allowance will be treated as part of basic wages to attract provident fund contributions. Being aggrieved, some of the employers have filed Special Leave Petition in the Supreme Court vide SLP © No.8781-8782/12 under the caption of Surya Roshni Limited. After about 6 years, now the appeals are fixed for final hearing on 03.07.2018. It is pertinent to state here that the Madras High Court in its judgment dated 17.04.2018 in W.P.No.22127 of 2014 titled as M/s.Techset Composition India (P) Ltd., v. The Regional Provident Fund Commissioner-(C&R) has concluded as under:

“The learned counsel for the petitioner states that the 7(A) proceedings had been concluded and a final order has been passed. However, the order so passed need not be implemented till the final disposal of the case pending before the Hon'ble Supreme Court of India cited supra.”


Accordingly, those who are facing such proceedings under sec. 7-A of the Employees Provident Fund and MP Act can take up the plea that till the matters as pending is disposed of by the Supreme Court, no order (when adverse) be implemented.

2. EPFO likely to introduce limits on PF withdrawal, says report. 

The Employees' Provident Fund Organisation (EPFO) is mulling the idea of introducing limits on the amount that can be withdrawn from Provident Fund prior to retirement, reported Business Standard. EPFO has proposed that its members can withdraw only 60 percent of their total savings or an amount equivalent to three months' salary, i.e. whichever is lower if they remain unemployed for a month.

3. Domestic Workers' Organisation gets Trade Union Status in Kolkata

The efforts of Paschim Banga Griha Paricharika Samiti (PGPS-West Bengal Domestic Workers Society), a Kolkata-based workers’ organisation, fighting on behalf of domestic workers, paid off this week after the organisation was granted a trade union certificate by the Bengal government, according to a report in the Hindu dated 19.06.18

 

4. 1,010 workers of contractor of MSRTC terminated for their participation in strike

The Maharashtra State Road Transport Corporation (MSRTC) has sacked 1,010 contractual employees for taking part in a strike earlier this month. The action was a stern warning to employees that such acts of indiscipline.

5.Government to do away with the 'hire and fire' clause of Industrial Employment (SO) Rules
 

By a notification No. G.S.R. 235(E) dated 16.03.2018, the Ministry of Labour and Employment has introduced fixed-term employment workman. It is reported in Indian Express on 21.06.2018 that In a bid to shed its anti-worker tag, the government is planning to do away with the ‘hire and fire’ clause it had introduced in the Industrial Employment (Standing Orders) Act. The decision was taken after RSS affiliate Bharatiya Mazdoor Sangh (BMS) put forward its objections regarding the rule, sources in the Ministry of Labour and Employment said. BMS leaders had recently met BJP president Amit Shah regarding the same.

6. Internal Committee under Sexual Harassment Act vitiated if the external member is unqualified.

          The Delhi High Court has come to the aid of a former employee of Air France, allowing her challenge to the clean chit given to its managing director in a case of alleged sexual harassment. High Court agreed with the basic argument of the complainant that one of the key requirements under Prevention of Sexual Harassment at Workplace Act is that IC must also contain an unbiased outsider aware of women’s causes.

 

7. Terminated contract worker can’t claim reinstatement with principal employer

         

The Allahabad High Court has held in Civil Aviation Training College that in the absence of ‘employer-employee’ relationship, the principal employer cannot be held liable for termination of services of the workman engaged through contractor. Hence, Industrial Adjudicator lacks jurisdiction to adjudicate a reference of the dispute, raised by the workman of contractor, only against the principal employer. The workman of contractor has remedy to file his claim before the competent authority under the Contract Labour (R&A) Contract Rules, 1971.
Regards
Team - HR SUCCESS TALK
 
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