Impleading of Immediate employers (Contractors) in proceedings under section 45A of Employees’ State Insurance Act, 1948. (“ESI Act”)

Impleading of Immediate employers (Contractors) in proceedings under section 45A of Employees’ State Insurance Act, 1948. (“ESI Act”)

In today’s competitive world employers engaging services of contractors is very common. However, ESIC acts as recovery agents in sending the employers notice u/s 45A of the ESI Act to recover the ESI contributions. ESIC targets outsourcing of service and attempts to recover the ESI Contributions from the principal employer without impleading contractors as a party. Many a times, ESIC contributions are paid by the principal employer, but the record may not be available with…

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Heat allowance for workers during the summer months

Heat allowance for workers during the summer months

In the midst of soaring temperatures, the union representative’s of factory workers at Renault Nissan, Chennai are demanding for heat allowance to deal with the hotter months of the summer. What is a heat allowance? Similar to a hardship allowance that people working in hostile conditions are entitled, Section 2(22) of the Employee State Insurance Act defines ‘wages’ as meaning: “All remuneration paid or payable in cash to an employee, if the terms of the…

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How to Manage Industrial Violence Effectively

How to Manage Industrial Violence Effectively

Industrial Violence is not new to the industrial scenario in India. In the 1980s violence was very common and Kerala and West Bengal were known for violent agitations by workers. The Left Governments kept supporting violence and decline of Industrial relations in India under the guise of supporting labour movements. However, the Judiciary was pro workers and the procedure for closure/lay offs was difficult, therefore even in impossible business environments closure of factory or lay…

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Taking the Leverage of Law

Taking the Leverage of Law

Introduction “There appear to be three preliminary objections which have become quite the fashion to be raised by all employers, particularly public sector corporations whenever an industrial dispute is referred to a tribunal for adjudication. One objection is that there is no industry, a second that there is no industrial dispute and the third that the workman is no workman”. This in an extract from the judgement of the Supreme Court in the matter of…

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Taking the Leverage of Law

Taking the Leverage of Law

Introduction “There appear to be three preliminary objections which have become quite the fashion to be raised by all employers, particularly public sector corporations whenever an industrial dispute is referred to a tribunal for adjudication. One objection is that there is no industry, a second that there is no industrial dispute and the third that the workman is no workman”. This in an extract from the judgement of the Supreme Court in the matter of…

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Disciplinary action against employee

Disciplinary action against employee

Disciplinary Actions are those which are taken by an employer against his employee for misconduct committed by the employee within the establishment and in certain circumstances, even outside the premises of the establishment. In keeping with Principles of Natural Justice, every employee who has been charged with any misconduct must be given an opportunity of being heard and explaining his actions before his employer, this opportunity is given to an employee during disciplinary action. The…

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Delay in commencing proceedings under Section 14B of the Provident Fund Act – does it waive the responsibility of a Company from making contributions?

Delay in commencing proceedings under Section 14B of the Provident Fund Act – does it waive the responsibility of a Company from making contributions?

As per Section 14B of the Provident Fund Act; “Where an employer makes default in the payment of any contribution to the Fund the Pension Fund or the Insurance Fund or in the transfer of accumulations required to be transferred by him under sub-section (2) of section 15 or sub-section (5) of section 17 or in the payment of any charges payable under any other provision of this Act or of any Scheme or Insurance…

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