Implications of the ESIC Proposal to Increase the Wage Threshold

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Introduction The Employees’ State Insurance Corporation (ESIC) is a statutory body responsible for administering India’s flagship social insurance program. It is established under the Employees’ State Insurance Act, 1948 which empowers it to make rules with respect to the scheme under Section-95 of the Act. Rule-50 of the Employees’ State Insurance (Central) Rules provides for the wage threshold for coverage of an employee under the Act, and consequently the scheme. It was previously amended in…

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Update on Eligibility Criteria and Increase of Unemployment Benefit Under ABVKY

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In an earlier blog post titled Unemployment Benefits under ESI: RGSKY and ABVKY we had discussed the eligibility criteria as well as the manner in which unemployment benefits can be claimed under the two ESIC schemes. In this post we shall examine the changes brought in by the ESIC through its Press Release No. E-13/12/9/2020-P.R. dated 20th August 2020. The Employees’ State Insurance Corporation during its 182nd meeting decided to take steps to provide workers…

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A Critical Analysis of PF Withdrawal Rules

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The Employee Provident Fund is a scheme established under the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952. It operates based on a mutual contribution by the employer and the employee towards a corpus that acts as a retirement fund of sorts. Social security as welfare for the elderly is based on a conception of social security programs as a solution to market failure. The argument is that the market fails to address the…

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Code on Wages: Changes in Compliance and Expected Impact

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Introduction The Code on Wages, 2019 was passed by both Houses of Parliament last year. However, its draft Rules were circulated to receive recommendations and objections from the public on July 10th, 2020. From a technical perspective, the Code on Wages is already a law, but it has not been brought into force through a notification in the Official Gazette as per Section-1(3) of the Code. This article examines the Code on Wages, 2019 read…

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Unemployment Benefits Under ESI: RGSKY and ABVKY

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The unemployment rate in India hit record levels during the peak of the COVID-19 pandemic and had been increasing until the lockdown ended in mid-May. Labour participation rate has increased to around 40.66% according to data from the Center for Monitoring Indian Economy (CMIE), which is close to pre-COVID levels. However, several individuals are still being laid-off as part of restructuring operations, business continuity plans and other measures to cope with the economic consequences of…

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Changes to Definitions: Code on Social Security

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The Code on Social Security was introduced in the Lok Sabha on 11th December 2019 and referred to the Parliamentary Standing Committee on Labour on 23rd December 2019. Following an extension of three months from the original date of presentation, the report was adopted on 29th July 2020. This series of blogs by Simpliance covers the important concerns, recommendations and suggestions made by the Parliamentary Committee as well as examine some of the justifications provided…

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Concerns Over Amalgamation: Code on Social Security

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The Code on Social Security was introduced in the Lok Sabha on 11th December 2019 and referred to the Parliamentary Standing Committee on Labour on 23rd December 2019. Following an extension of three months from the original date of presentation, the report was adopted on 29th July 2020. This series of blogs by Simpliance covers the important concerns, recommendations and suggestions made by the Parliamentary Committee as well as examine some of the justifications provided…

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Introduction of Fixed Term Employment (FTE) Under Standing Orders Acts of Various States

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The Industrial Employment (Standing Orders) Act, 1946 is a Central law that aims to provide industrial establishments a common framework that defines conditions of employment across the country. The objective behind the same is to ensure workers are aware of the conditions of work they are entitled to as well as regularize the same across the nation to prevent exploitation. Under the Act, States have the power to issue rules as well as publish Model…

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Data Privacy During Work From Home (WFH): Best Practices

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Introduction With most businesses choosing to operate entirely or with a substantial portion of their workforce outside the office, data privacy and security becomes an increasingly important policy decision for employers. While several individuals have hailed work-from-home (WFH) as a panacea from a business continuity and cost perspective, that should not divert attention from the issues surrounding it.  Office networks are generally better protected against data loss, security and privacy risks as significant investments are…

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Does India’s Private Sector Need Laws Governing Retirement?

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Introduction While individuals employed in government related jobs are statutorily provided with pensions and other retirement benefits, there exists no law governing the provision of such benefits to individuals in the private sector. This means that individuals in the twilight of their careers either have to invest in private retirement plans or approach old age with a great deal of uncertainty. The above is especially troubling in India that has undergone a demographic shift both…

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