Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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COVID-19: Supreme Court’s Order on Wage Reductions During Nationwide Lockdown

Precedential Decision by Judiciary or Regulatory Agency

Authors: Ajay Singh Solanki, Leader and Archita Mohapatra, Associate – Nishith Desai Associates

On June 12, 2020, while hearing various writ petitions on the issue relating to the payment of wages during nation-wide lockdown amid COVID-19 pandemic, the Supreme Court of India (SC) has issued interim directions stating that employers willing to enter into negotiations with their employees regarding payment of wages during the period of lockdown, may do so and arrive at a settlement with the employees. By way of background, on March 29, 2020, an order was issued by Ministry of Home Affairs (MHA) under the Disaster Management Act, 2005 for the effective implementation of the lockdown measures. The order stated that during the lockdown period, employers shall continue to make payment of wages to their workers without any deduction. This order has been challenged in several writ petitions before the Supreme Court.

Extension of National Lockdown and Other Measures to Address Spread of COVID-19

New Regulation or Official Guidance

Authors: Ajay Singh Solanki, Leader and Archita Mohapatra, Associate – Nishith Desai Associates

On June 29, 2020, the Ministry of Home Affairs (MHA) issued an order to facilitate the re-opening of more activities and businesses in India in a calibrated manner, in areas outside the containment zones and to extend the lockdown in containment zones up to July 31, 2020. The order includes revised guidelines for effective implementation of the lockdown as well as national directives for public spaces and workplaces. Additionally, some state governments are relaxing some of the labor laws pertaining to work hours and opening and closing hours in factories and manufacturing establishments for a limited period, to provide a spurt in production after lag due to lockdown due to COVID-19.

Temporary Reduction of Minimum Rate of Contribution Under the Social Security Law

New Regulation or Official Guidance

Authors: Ajay Singh Solanki, Leader and Archita Mohapatra, Associate – Nishith Desai Associates

On May 18, 2020, the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (EPF Act), India’s prominent social security law, was amended to reduce the minimum rate of contribution from 12% to 10% of monthly wages of employees in eligible establishments for the wage months of May, June and July 2020.

Mandatory Submission of Mobile Number and Bank Account Information for ESI Registration

New Regulation or Official Guidance

Authors: Ajay Singh Solanki, Leader and Archita Mohapatra, Associate – Nishith Desai Associates

On June 29, 2020, the Employees’ State Insurance Commission (ESIC) issued a circular, mandating the submission of mobile number and bank account details with effect from July 1, 2020, for registration of employees under Employees’ State Insurance Act 1948, the federal law providing for certain benefits to employees in case of sickness, maternity and employment injury. It is important to note that bank account information has been categorized as sensitive personal data or information under the Indian data privacy laws.

Recent Development on Proposed Industrial Relations Code

Proposed Bill or Initiative

Authors: Ajay Singh Solanki, Leader and Archita Mohapatra, Associate – Nishith Desai Associates

On April 23, 2020, the Standing Committee of the Lok Sabha (Lower House of the Parliament) submitted its report on the proposed Industrial Relations Code, 2019 (IR Code) suggesting certain changes to the draft of IR Code, such as inclusion of gig-workers within the ambit of the IR Code, expansion of definition of “wages,” specifying conditions and tenure for fixed-term employment, reduction of limitation period for raising disputes from three years to one year. The IR Code will replace three federal laws, Trade Unions Act, 1926; the Industrial Disputes Act, 1947; and the Industrial Employment (Standing Orders) Act, 1946.