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Labour And Employment Law Updates [May And Early June, 2021]

Arunabh Rajan
14 Jun 2021 3:59 PM GMT
Labour And Employment Law Updates [May And Early June, 2021]

The following updates are in relation to the central notification, circulars and press release and does not include state wise updates except for the NCT Delhi. 1. Draft Code On Social Security (Employee' s Compensation) (Central) Rules, 2021 (3rd June ,2021) Applicability-: It extends to the whole of India and shall come into force after the date if their...

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The following updates are in relation to the central notification, circulars and press release and does not include state wise updates except for the NCT Delhi.

    1. Draft Code On Social Security (Employee' s Compensation) (Central) Rules, 2021 (3rd June ,2021)

Applicability-: It extends to the whole of India and shall come into force after the date if their final publication in the official Gazette.

Ministry of Labour vide notification no G.S.R. 385( E) has notified the draft Code On Social Security (Employee' s Compensation) (Central) Rules, 2021 for providing compensation to workers under the Code on Social Security, 2020. The proposed draft Rules will supersede the Employee's Compensation Rules, 1924, the Employee's Compensation (Transfer of Money) Rules, 1935 and the Employee's Compensation (Venue of Proceedings) Rules, 1996 under the erstwhile Employee's Compensation Act, 1923. Section 164 of the stated Code on Social Security, 2020, enacted by Parliament in September 2020, repealed the Act. According to the new rules, if the amount of compensation payable under sub-section (3) of section 77 is not paid by the employer within thirty days, the employer must pay simple interest at the rate of 12% per annum or any other rate notified by the Central Government from time to time from the date on which the compensation became payable to the date on which it is paid.

It further notified rules to put into effect agreements with foreign nations for the transfer of money paid as compensation under section 159 of the Code. The costs of transmission may be deducted from any sum transmitted by any authority in India to any other authority in line with these regulations, and such money shall be communicated by remittance transfer receipt or money order. It also stated that when the entire or a portion of a lump sum deposited with a competent authority for payment as compensation under the Code is payable to any person or persons residing or about to reside in another country, the competent authority may order the sum to be transferred to that country.

    2. ESIC COVID-19 Relief Scheme (3rd June,2021)

Applicability-: It is applicable for employees covered under section 2(9) of the ESI act,1948 and extends to whole of India except the states of Nagaland, Manipur, Tripura, Sikkim, Arunachal Pradesh and Mizoram.

The ESIC vide notification no. P-11/14/11/ COVID-19 Relief Scheme/2021-Bft- II has approved ESIC COVID-19 Relief Scheme to provide help to the families of the Insured Persons who died due to Covid-19. The dependent of insured person are entitled to receive 90% of the Average Daily Wages of the Insured persons during their life and will be paid periodically. The insured person must have been enrolled on the ESIC portal at least 3 months previous to the diagnosis of COVID that resulted in death for the dependents to receive payments. In addition, the insured person must have been engaged for wages, and 78 days of contribution must have been paid or payable in respect of the deceased covered person during the year before to death. The scheme shall be effective for a period of two years w.e.f. 24.03.2020.

    3. Seeding Of Aadhaar Number For Filing Of ECR (1st June 2021)

Applicability-: It is applicable to all states and union territories.

Employees' Provident Fund Organization vide notification no. BKG-27/7/2020-G/Pt. file, has directed that the employers shall be allowed to file the ECR only for the UANs seeded with Aadhaar w.e.f. 1st June 2021. Employers are asked to ensure that all contributory members have their Aadhaar numbers seeded in order for them to continue to receive EPFO services without interruption and to avoid any inconvenience.

    4. EPFO Allows Its Members To Avail Second COVID-19 Advance (31st May,2021)

Applicabilty-: EPFO members from all over India.

In a press release dated May 31, 2021, the Ministry of Labour and Employments announced that EPFO members can apply for a second non-refundable COVID-19 advance to help subscribers cope with the pandemic's second wave. In March 2020, the Pradhan Mantri Garib Kalyan Yojana (PMGKY) introduced a non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75 percent of the amount standing to member's credit in the EPF account, whichever is less, to meet the financial need of members during a pandemic. EPFO has also implemented a system-driven auto claim settlement mechanism for all members whose KYC requirements are met in every respect. EPFO can decrease the claim cycle to three days using auto-mode settlement, as opposed to the statutory requirement of twenty days.

    5. Registration Of Establishment Under Delhi Shops & Establishments Act Integrated With Ministry Of Corporate Affairs. (Delhi Specific) (28th May,2021)

Applicability-: It is applicable to all the new companies seeking registration under the act.

The Delhi government as per notification no.PA/Addl.LC/Lab/2021/1859 has directed that the Ministry of Corporate Affairs' "SPICE+" portal be integrated with the "Delhi Shops & Establishments" registration portal, and that any new company seeking registration under the Delhi Shops And Establishments Act, 1954 should do so through the "SPICE +" portal . Any further registration for different branch offices of an establishment under the Act can be done through the Delhi Shops & Establishment Registration Portal, which can be accessed at As a result, an employer who wants to register a new business in Delhi under the Delhi Shops and Establishments Act, 1954, can do so directly via the "SPICE+" platform.

    6. ESIC Circular On Collection OF AADHAR For Beneficiaries or Insured Persons (20th May, 2021)

Applicability-: It extends to the Whole of India.

ESIC vide circular no. P-11/14/11Rules/2020-BFT II has issued a directive to all regional offices stating that the use of AADHAR for benefits may not be mandatory until the provisions of the Social Security Code, 2020 are applied. As a result, AADHAR will be collected once the project Panchdeep modules have been modified.

    7. Circular On Mandatory Registration Of Inter-State Migrant Worker In Delhi (Delhi Specific) (14th May,2021)

Applicability-: Every establishment in which five or more inter-state migrant workmen are employed.

The Government of Delhi vide circular no.F.No.PA/Addl.LC/Lab/2021/499 has mandated that all major employers who employ (or have employed in the previous 12 months) workers through outsourcing must register with the Labour Department via the NCT of Delhi's e-district site at Contractors are also required to supply passbooks to interstate migrant workers, according to the circular. As a result, the circular specifies that major employers and contractors must precisely obey the circular, and that failure to do so will result in legal action under the Act.

    8. ESI Contribution Due Date Extended For The Month Of April 2021, (12th May 2021)

Applicability-: Applicable to all the employers liable to pay contributions in respect of any employee all over India.

ESIC vide notification no p-11/14/Misc/1/2019-Rev-II, In view of the pandemic and second wave of Coronavirus (COVID-19), the ESI contribution for the month of April 2021 has been extended from 15 May to 15 June 2021.

    9. Appointment Of Effective Date Of Section 142 of Code On Social Security, 2020 (3rd may, 2021)

Applicability-: It Extends to the whole of India

Government of India vide Gazette notification no.1603 has set the 3rd of May 2021 as the day on which the provisions of section 142 of the Code on Social Security, 2020 will take effect. The government has made Aadhaar mandatory as identity proof for all employees and workers, including organised and unorganised workers, to avail social security benefits with effect from May 3rd, according to the notification, in order to prevent benefit misuse by workers or employees with a false identity, employees or unorganised workers must establish their identity or, as the case may be, the identity of their family members or dependants through Aadhaar number to register as beneficiaries for social security benefits or to avail other social security services, Section 142 of the Code on Social Security, 2020 provides that the employees or unorganized workers shall, to register as beneficiaries for social security benefits or avail other social security services, establish his identity or, as the case may be, the identity of his family members or dependants through Aadhaar number. Medical and illness benefits, pensions, gratuities, maternity benefits, and any other benefit or fund withdrawal would be included. Furthermore, Aadhaar registration will be required to use the career centres, receive any remuneration, or receive medical treatment as the covered individual or for his dependents.

    10. ESIC On Medical Care Benefits And Relief During COVID-19 Pandemic (29th April,2021)

Applicability-: It extends to the whole of India.

ESIC vide press release no. F.No.E-13/12/5/2021-PR has introduced medical care and relief to its beneficiaries during COVID-19 pandemics. As per the press release, (1) The insured person can claim sickness benefits for the period of abstention. The sickness benefit is paid at 70 per cent of daily wage for ninety-one days, (2) The insured person during the period of unemployment may avail relief under Atal Beemit Vyakti Yozana Scheme under fifty per cent average per day earning for a maximum of ninety days. (3) The insured person during retrenchment or closure under The Industrial Dispute Act, 1947 may claim unemployment allowance for a period of two years (4) In any case of unfortunate demise of Insured Person, funeral expenses of Rs.15000 are paid to eldest surviving members of his family.

The "Across the Board" Lockdown has had a negative impact on both business operations and employee morale. From time to time, the government has issued numerous Notifications/Orders/Circulars/Letters/Press Releases to alleviate the difficulty. As we all know, the situation is still unstable, and our economy is in horrible shape. As a result, the government is taking and will continue to take additional steps to correct the situation as needed.

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