At a time when the world is taken by the Covid-19 storm, the Indian Government, in order to contain the spread, morbidity, and mortality, declared a nationwide lockdown. This lockdown restricted not just the movement of humans and material in the nation but also demanded the closure of all kinds of businesses, establishments, and shops (other than those providing essential services). In a 21-day complete lockdown period (“Lockdown”), various manufacturing, trading, and other businesses have…
The government is considering bringing the three remaining parts of the proposed labour codes into force simultaneously vide an ordinance. The Code on Wages has already been passed but there still remains uncertainty with regards to its enforcement. COVID-19 and its consequent economic fallout is the main reason the government is contemplating the above action. Key Highlights In a press conference on 14th May, Finance Minister Nirmala Sitharaman spoke about the introduction of various provisions…
As part of the recovery plan from COVID-19, state governments see the suspension of labour laws by way of notifications/ordinance, as a policy measure that’s expected to boost economic recovery. This decision has been surrounded in hyperbole and rhetoric, with fake and ambiguous news circulating as well. There have been claims of total suspension of labour laws and employers actioning widespread exploitation. This article aims to provide an objective view of the facts surrounding the…
Employee Provident Fund (EPF) is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Under the scheme, employees are obliged to contribute towards the scheme, with an equal, corresponding contribution being paid by the employer. Prior to the Coronavirus pandemic, employees earning less than INR 15,000 per month were required to become members of EPF scheme mandatorily. While those drawing a salary above the aforementioned threshold could avail of either a…
The scope of freelance work in India has rapidly changed from being an alternate career option to an integral part of its labour market. Prior to the onset of the COVID-19 crisis, the freelance industry was expected to grow to an estimated value of $20-30 billion by 2025, according to reports from a leading newspaper. With companies being cash strapped and unwilling to take on full-time employees, freelance work also known as a gig/platform work…
Drained cash reserves, force majeure clauses, and an array of executive decrees have crippled India’s private sector. The lockdown has pushed the workforce into their homes with no clarity with respect to the resumption of business. Meaning that business continuity plans are being made in the dark, in anticipation of a much-needed stimulus package. With clients invoking force majeure clauses to avoid/delay performance, revenue streams are also drying up. In light of the above circumstances,…
The COVID-19 crisis has accelerated the transition from work in office spaces to working remotely. India Inc. has embraced virtual workspaces, with numerous HR leaders stating that work from home (WFH) is here to stay even after the resolution of the crisis. While everyone is happy with this arrangement in the short run, conflicts between the employer and employee will arise in the long haul as there are no laws in India governing WFH. Some…
Even before the government imposed lockdown on 24th March, a majority of India’s private sector had been working from home in consonance with the Ministry of Corporate Affairs’ advisory, which amongst other relaxations with respect to board meetings, financial statements etc. included an expectation that companies would initiate an immediate plan to incorporate a ‘work from home’ policy till 31st March, 2020. To this end, companies were asked to file CAR (Company Affirmation of Readiness…
In light of the advisories issued by the Ministry of Labour and Employment that clearly request employers to refrain from terminating employees or reducing their wages, the question arises as to whether the same would constitute illegal/wrongful termination of employment.Generally speaking, wrongful termination is when an employee is terminated without sufficient cause and it is one of the most common types of employment disputes. There exist several remedies for an employee who has been laid…
