Saturday, May 23, 2020

STATES IMPOSE ESMA FOR SIX MONTHS, DECLARING THE STRIKES ILLEGAL

Imposing the ESSENTIAL SERVICES MAINTENANCE ACT (ESMA), the government of UP and MP have announced on Friday i.e., 22.05.2020, that the act will be imposed for 6 months.

According to the U.P ESMA, the state government presently has the ability to forbid strikes for the following a six months, after which it might be stretched out for an additional a half year. It is pertinent to mention here that the State Government of Madhya Pradesh too has forced the stringent ESMA in the midst of Coronavirus pandemic.

Apart from making strikes illegal under ESMA, the salient features of ESSENTIAL SERVICES MAINTENANCE ACT (ESMA) are mentioned hereunder:

     The act is applicable on administrations such as open vehicle (transport administrations), wellbeing       administrations (specialists and clinics);

The act has is passed by the parliament of India in 1968, the same is a subject to concurrent list meaning thereby the State can have variations, the Central Government can impose the same in the hour of need or the state government can impose when there is a likelihood of strikes in essential services sector;

If any person strikes, during the ESMA being enforced, it shall be considered illegal and the offender may face imprisonment for a term which may extend to six months or with fine, which may, extend to five hundred rupees, or both;

Any Police Officer, may arrest without warrant, any person who is reasonably suspected of having committed any offence;

Orders issued under this law will be in effect in spite of being inconsistent with any other Uttar Pradesh Act for the time being in force, meaning thereby the provisions of this act will essentially have overriding effect over other acts.

The same being a very authoritative and stringent law, which can possibly smother genuine requests of employees, the execution of this strict law the Government remains totally cautious. The law is imposed under caution by the governments (be it state or the Union), that too in typical conditions. The law is not used in India to exploit the employees and the governments are liberal while imposing the Essential Services Maintenance Act, 1968.

Jai Hind!

Wednesday, May 20, 2020

Layoff: Legal way to make employees write their resignations?

Layoff - A Legal way to make employees write their resignations.

In the previous blog (https://labourlawscovid19.blogspot.com/2020/05/changes-in-labour-laws-post-covid-19.html) the effects of COVID- 19 on Labour Laws was discussed and now in the present post some of the heart breaking news of major commercial establishments such as UBER, Swiggy, Zomato, Airbnb, Cure.fit, Lyft, Oyo etc. have taken some serious decisions with respect to their employees. Either they have laid off their employees or salaries of majority workers have been made to take a pay cut to the extent of 50%.

Several of the business establishments are named as under with their decisions:-

A.      Swiggy lays off 1,100 employees, shuts down cloud kitchens to mitigate coronavirus impact

(https://gadgets.ndtv.com/apps/news/swiggy-layoff-1100-employees-care-package-offered-up-to-8-months-salary-2230763)  

B.       Zomato to lay off over 500 employees, announces up to 50 percent pay cut for rest

(https://gadgets.ndtv.com/apps/news/zomato-layoffs-520-people-13-percent-covid-19-coronavirus-lockdown-impact-2229450)

C.       Uber says will cut 3,700 jobs, CEO to waive base salary

https://gadgets.ndtv.com/apps/news/uber-says-will-cut-3700-jobs-ceo-dara-khosrowshahi-14-to-waive-base-salary-2224622

D.      Airbnb to lay off up to 1,900 employees in effort to ride out COVID-19 pandemic

(https://gadgets.ndtv.com/apps/news/coronavirus-airbnb-slashes-staff-1900-layoffs-in-effort-to-ride-out-covid-pandemic-2224097 )

E.       Cure.fit said to have laid off employees, mulling all-digital move

(https://gadgets.ndtv.com/internet/news/cure-fit-said-to-have-laid-off-employees-mulling-all-digital-move-2223019 )

F.       Lyft to lay off 982 workers, cut salaries due to virus outbreak

(https://gadgets.ndtv.com/apps/news/lyft-to-lay-off-982-workers-cut-salaries-due-to-virus-outbreak-2220955 )

G.       OYO said to cut pay of all employees in India - the move comes soon after OYO furloughed thousands of its international employees earlier in April

(https://gadgets.ndtv.com/apps/news/oyo-coronavirus-softbank-to-cut-pay-of-all-employees-in-india-internal-memo-2216154 )

H.      HDFC Bank's arm, HDB Financial Services, sacks several staff during lockdown

(https://www.livemint.com/companies/news/hdfc-bank-subsidiary-hdb-financial-services-sacks-several-during-lockdown-11589043618135.html)

The numbers referenced may appear to be inconsequential as against the quantities of the working employees. But, in the wake of significant decrease in the applicable Labour Laws, the situation becomes nothing less than a nightmare for the employees. The employees are spending sleepless nights and praying that they do not receive the pink slip from their companies, in the present situation.

The times are tough, let’s hope that the employees are able to protect their jobs and those who might have lost the jobs for any reason get a better opportunity so that they can forget these challenges soon….

JAI HIND!

CREDITS

https://gadgets.ndtv.com/apps/news/

https://www.livemint.com/companies/news

 

 

 

 


Monday, May 18, 2020

Changes in Labour Laws post COVID-19

The present times are tough and challenging us to our core. The situation is pretty much intense and dark, as such the entire mankind is waiting for that one single ray of light which will mark the end of this corona virus. For a growing and over populated economy like India, the mass wage earners like labourers and farmers are on negligible family income, trying to make the ends meet.
The country is being driven in a democratic mode with a principle i.e., ‘of the people, for the people, by the people….’. Hence the laws are framed which are basically pro poor and driving the upliftment of the poor. However, the governments (State Level as well as the Central Govt) might have failed in eradicating the poverty or have also failed in implementing the laws and might also have misused our laws by bending/ breaking them in favour of their near & dear ones. The laws are very clear and are undoubtedly in favour of the underprivileged so that they also enjoy the freedoms enshrined under the Constitution of India. The laws also ensure that the mighty ones do not deprive the poor/ underprivileged of their legal dues and earnings/ benefits which are provided to the people by our laws.
There are approximately 40 different central labour laws enacted by the Parliament of India and most of these are applicable in most of the states.
LIST OF CENTRAL LABOUR LAWS UNDER MINISTRY OF LABOUR AND EMPLOYMENT
1. The Minimum Wages Act, 1948
2. The Payment of Wages Act, 1936
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976
5. The Trade Unions Act, 1926
6. The Industrial Employment (Standing Orders) Act, 1946.
7. The Industrial Disputes Act, 1947
8. The Weekly Holidays Act, 1942
9. The Factories Act, 1948
10. The Plantation Labour Act, 1951
11. The Mines Act, 1952
12. The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
13. The Motor Transport Workers Act, 1961
14. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
15. The Contract Labour (Regulation and Abolition) Act, 1970.
16. The Bonded Labour System (Abolition) Act, 1976
17. The Sales Promotion Employees (Conditions of Service) Act, 1976
18. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.
19. The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
20. The Dock Workers (Safety, Health and Welfare) Act, 1986
21. The Child Labour (Prohibition and Regulation) Act, 1986
22. The Working Journalists and Other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
23. The Working Journalists (Fixation of rates of Wages) Act, 1958
24. The Employees’ Compensation Act, 1923
25. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
26. The Employees’ State Insurance Act, 1948
27. The Maternity Benefit Act, 1961
28. The Payment of Gratuity Act, 1972
29. The Unorganized Workers’ Social Security Act, 2008
30. The Building and Other Construction Workers Cess Act, 1996
31. The Mica Mines Labour Welfare Fund Act, 1946
32. The Cine Workers Welfare (Cess) Act, 1981
33. The Cine Workers Welfare Fund Act, 1981
34. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
35. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare (Cess) Act, 1976
36. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976 37. The Beedi Workers Welfare Cess Act, 1976
38. The Beedi Workers Welfare Fund Act, 1976
39. The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988
40. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959,

In addition to the aforementioned central acts there are state laws to regulate some aspects such as working conditions at the place of work. Each state in India may have special labour regulations in certain circumstances. The regulations may vastly differ from state to state. The forms and procedures might be different in each state.
Some instances of state wise laws are:-
Gujarat:-In 2004 the State of Gujarat amended the Industrial Disputes Act to allow greater labour market flexibility in the Special Export Zones (SEZs) of Gujarat. The law allows companies within SEZs to lay off redundant workers, without seeking the permission of the government, by giving a formal notice and severance pay.
West Bengal:-The West Bengal government revised its labour laws making it virtually impossible to shut down a loss-making factory. The West Bengal law applies to all companies within the state that employ 70 or more employees.
However, each and every situation has some positive as well as negative aspects related to it, the same is the situation with the aforementioned situation of the labour laws. The labour laws may prove to be in favour of the workmen, but we can’t ignore those who are at the receiving end of these laws i.e., the employers who employ the workforce. As the continuously growing competition in the markets squeezes the profit margin and in such conditions adhering to all the laws becomes difficult for the employers, such difficulty of the employer is being exploited by the persons of power (trade unions) or the government officials who are given the responsibility of ensuring the protection of rights of the workforce.
The corruption is not the only by-product of these multiple laws but also underemployment as the employers just to avoid the applicability of some of the laws keep the count of employees less than 8 (eight) whereas they require more than 20 (twenty) persons for the nature of work being carried on by them. 
That due to multiple labour laws, the economy of entire country is being hindered because the compliances of the aforementioned laws becomes cumbersome and consumes a lot of time. The investment which our country could have garnered, is also being hampered as the investors are not confident of the growth as per their expectations.
Now in the wake of the Corona Virus, several big companies are trying to shift their manufacturing basis from China to other parts of the world. Our country is also emerging in the minds of the investors being a country offering cheap labour and offering safe environment unlike the African countries which are unsafe and even lack the basic infrastructures.
The present situation demanded an immediate action so in order to attract investment in our country for setting up of manufacturing units and other infrastructure products the state of Uttar Pradesh took the initiative to change the applicability of the prevalent labour laws and the state has tabled an ordinance whereby the state has done away with all the labour laws except
            a.         Bonded Labour System Abolition Act 1976 (act abolishing the system of bonded labour),
b.     Employee Compensation Act, 1923 (act ensuring statutory liability upon an employer to discharge his moral obligation towards employees when they suffer from any physical disabilities or diseases, during the course of employment in hazardous working conditions),
c.        Building and other Construction Workers Act, 1996 (safety, health and welfare measures); and
d.        Section 5 of The Payment of Wages Act, 1936 (ensure timely payment of daily wages).

It is simply shocking to note that the Maternity Benefit Act, 1961 has also been taken down by the state, it is saddening as it is a clear violation of fundamental rights given to a women under the Constitution of India. It is pertinent to mention here that the aforementioned ordinance is applicable for a period of three years only. 
The ordinance since is a subject of concurrent list and there being a different law upon the same subject which has been enacted by the Parliament, thus under Article 254 of the Constitution of India the ordinance has to receive the assent of the Hon’ble President of India, meaning thereby that the state of Uttar Pradesh has become the first state of India where only three acts related to the labour laws are applicable. It is pertinent to mention here that the aforementioned ordinance is applicable for a period of three years only. 
Henceforth, as I would see it, Governments have a protected obligation to guarantee simply, altruistic states of work and maternity benefits. The physical health and mental strength of the workforce can’t be taken away by citing monetary growth as a reason.
The Central Government was, however, in the process on simplifying these multiple state laws into 4 Labour Codes. The labour laws would have been broadly divided into four basic aspects of Labour laws namely
1.     Wages,
2.     Social Security and Welfare,
3.     Industrial Relations,
4.     Occupational Safety and Health and Working Conditions.
However the government was contemplating the aforementioned change but the industrial growth was badly hit by the COVID-19 pandemic, and the steps taken by the Central Government could not be materialized. In the present situation we now as the citizens of this great country owe a responsibility to make sure that the masses of this country i.e., our labourers, farmers and factory workers or to say all those persons who were protected under the exempted labour laws are not again subjected to exploitation.
JAI HIND!
DISCLAIMER:-
The contents of the present blog are views of the publisher and are published for information purpose only, enabling public to have a quick and an easy access to information.
We are taking every effort to provide accurate and updated information. However, it is likely that the details may change any time, prior or post the publication. Hence, we do not assume any legal liability on the Completeness, Accuracy or Usefulness of the contents provided in this website and does not accept any responsibility for any damage occasioned by the use of information contained on this post.
Despite or best efforts, we do not Guarantee that the documents in this site are free from infection by computer viruses etc. and user will be solely responsible for any consequence of the decision taken on the basis of information, ideas and links contained in this website.
Thanks for visiting our site.