ESI under Code on Social Security: An Overview of Changes

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ESI – Background  Employees’ State Insurance Scheme [‘ESI Scheme’] is a comprehensive social security scheme devised to protect employees and their dependents, covered under it, against contingencies, such as sickness, maternity, and death or disability due to employment injuries. The ESI Scheme is based on the principle of ‘pooling of risks and resources’, wherein that section of the population, which is exposed to risks of the same nature, comes together to mitigate the physical and…

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Compounding of Offences Under Labour Codes

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What is compounding? Compounding refers to a process whereby the defaulting person or entity may file an application to the notified compounding authority, accepting the commission of an offence, and pleading for its condonation. The compounding authority may compound the offence after the defaulter deposits a compounding fee. If the offence is compounded before the institution of prosecution proceedings, then no proceedings are initiated against the defaulter. If an offence is compounded after the institution…

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Offences and Imprisonment Under Labour Codes – Ease of Doing Business

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Background The amalgamation and codification of 29 labour statutes into 4 codes – Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, and Occupational Safety, Health and Working Conditions Code, 2020 (‘Labour Codes’) – streamlines and simplifies complex labour law-related procedures. The aim of such amalgamation is to reduce the burden of compliance and promote the ease of doing business. One salient feature of the Labour Codes is the decriminalization of…

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Contracting Out Under the Code on Wages, 2019

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Introduction The general connotation ascribed to the term ‘contracting out’ consenting to be excluded from a particular scheme or benefit. It requires a legal agreement that operates as a formal statement expressing a person’s intent to be excluded from an official plan or system. As a consequence, it means forgoing a right that one would ordinarily be entitled to. Most labour enactments in India provide that contracting-out is prohibited, meaning that employers cannot by agreement…

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Fixed Term Employment Under the Labour Codes

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Background Fixed term employment was formally introduced in March 2018 by amending the Central Rules under the Industrial Employment (Standing Orders) Act, 1946. This allowed all types of industries to engage fixed term workmen. Our earlier blog has studied the introduction of the amendment to the Central Rules under the introduced fixed term employment. The new labour codes have extended this to all types of establishments. Generally speaking, fixed term employment is a mode of…

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Liabilities of the Principal Employer Under the New Labour Codes

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Background The four new Labour Codes introduce a plethora of changes to India’s regulatory framework. Their impact on various domains such as IT/ITes companies, payroll and salaries and more have been discussed in previous posts. In this post we shall examine the impact of each of the four codes on the liabilities of a principal employer. This shall allow us to obtain an understanding of the various compliance consequences of the same. The above juxtaposed…

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Is the Apprentices Act Applicable to Your Business?

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Background The Apprentices Act, 1961 was brought in to regulate and promote the training of trade apprentices. The objective was to create a set of proficient tradesmen with specialized skills in their craft. A class of trained personnel who are able to perform specialized functions was seen as fundamental to boosting industrial development. Later amendments to the Act extended its scope and coverage to ensure that it remains relevant in the face of industrial innovation.…

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Worker Under the Occupational Safety Health and Working Conditions Code

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Background Understanding the definition of worker is imperative to obtain a comprehensive view on the impact of the new labour Codes. As a part of this series of blogs, we have examined the import of the term worker under the Code on Wages, 2019, the Code on Social Security, 2020 and the Industrial Relations Code, 2020. Our last blog in the series of posts about workers shall examine the use of the term under the…

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Impact of Worker Definition on Industrial Relations

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Background The definition of worker is one of the key aspects to be interpreted to understand the changes brought in by any of the four new labour Codes. Our earlier blog in this series examined the definition of worker under the Code on Social Security, 2020. In this post we shall analyze the use of the term worker under the Industrial Relations Code, 2020. The above shall shed light on the reasons behind the use…

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Worker Under the Code on Social Security: Contributions

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Introduction The definition of worker is one of the key aspects to be interpreted to understand the changes brought in by any of the four new labour Codes. Our earlier blog in this series examined the definition of worker under the Code on Wages. In this post we shall analyze the use of the term worker under the Code on Social Security, 2020. The above shall shed light on the reasons behind the use of…

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