Revised VDA Notification - Maharashtra State January'2022

 Dear Readers,

 Government of Maharashtra has released revised minimum rates of wages (variable dearness allowance) effective from 1st January 2022 which will be valid till 30th June 2022.

In order to serve you better, we have prepared ready Reckoner of monthly minimum wages which is comprised and compared with previous and present periods’ Special Allowances (D.A.) and it is also included Basic Wages of scheduled employments for different class of workers under three different Zones / localities. 

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The Maharashtra Minimum Wages VDA Notification (July 2020)

 

Dear Readers,

 Government of Maharashtra has released revised minimum rates of wages (variable dearness allowance) effective from 1st July 2020 which will be valid till 31st December 2020.

In order to serve you better, we have prepared ready Reckoner of monthly minimum wages which is comprised and compared with previous and present periods’ Special Allowances (D.A.) and it is also included Basic Wages of scheduled employments for different class of workers under three different Zones / localities. 

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The Assam Minimum Wages Notification (Dec 2019)

Dear Reader,

As per notification no.MWC.3/93/Pt-II/6399, Government of Assam has released Minimum Wages for the state of Assam effective from 1st December 2019

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Amendment Under The Puducherry Contract Labour (Regulation And Abolition) Rules, 1973

Dear Readers,

Government of Puducherry vide notification no G.O.Ms. No.64/AIL/Lab/G/2020 has amended The Puducherry Contract Labour (Regulation And Abolition) Rules, 1973. As per the amendment, mentioned are the details of the changes.

(a) The application for registration under Puducherry Contract Labour (Regulation And Abolition) Rules shall be made through the online portal of Labour Department, Puducherry i.e https://loe.py.gov.in/ 

(b) The certificate of registration shall be granted through the on-line portal of Government of Puducherry 

(c) The fees shall be paid by visiting the online portal Government of Puducherry under the relevant head of accounts viz 0230-labour & Employment 106-Fees 

(d) Every employer shall maintain a register of contractors, register of persons employed electronically 

(e) The half-yearly return and annual return shall be submitted through the online portal of the Labour department. The amendment also requires that books, register, records shall be maintained electronically at the discretion of Employer subject to the condition that An employer shall furnish all such books, register, records in the electronic form to Inspector on demand.

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ESIC - Now Mobile No and Bank Account details Mandatory

Dear Readers,

Mandatorily Enabling Mobile No. and Bank Account details of an Insured Person while registering an Employee under ESI Scheme w.e.f 1^st July’2020.

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Mission Begin Again Unlock 2.0 - Govt. of Maharashtra

Dear Readers,

In the view spread of Covid-19 Virus, and to take certain emergency measures to prevent and contain the spread of the virus, the Government in the exercise of the powers conferred under Section 2 of the Epidemic Diseases Act, 1897, read with all other enabling provisions of The Disaster Management Act, 2005, it is expedient to extend the lockdown in the entire State of Maharashtra further till midnight of 31st July 2020.

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Mission Begin Again Unlock 1.0 - Govt. of Maharashtra

Dear Readers,

In the view spread of Covid-19 Virus, and to take certain emergency measures to prevent and contain the spread of the virus, the Government in the exercise of the powers conferred under Section 2 of the Epidemic Diseases Act, 1897, read with all other enabling provisions of The Disaster

Management Act, 2005, it is expedient to extend the lockdown in the entire State of Maharashtra further till midnight of 30th June 2020.

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NOTE ON REDUCTION OF EPF CONTRIBUTION RATE FOR MONTH OF MAY 2020 TO JULY 2020

Dear Readers,

Greetings from Classic Labour!!!!

The reduction in statutory rate of contributions from 12% to 10% for wage months May, 2020, June, 2020 and July, 2020 for all class of establishments covered under the EPF & MP Act, 1952 was announced on 13.05.2020 by the Central Govt. as part of Atma-Nirbhar Bharat package and same has been notified vide SO 1513 (E) dated 18.05.2020 published in the Gazette of India.

This notification was issued as due to Covid-19 pandemic and lockdown being in force across the country, the Central Government felt that to provide *liquidity* in the hands of employers and employees, there was a need to reduce the contribution rate. Hence it has amended the notification of the Government of India in the Ministry of Labour published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide number S.O. 320(E), dated 9th April, 1997;

This original 1997 notification was published in exercise of power conferred under 1st provision of the sec 6 of the EPF & MP Act 1952. Sec 6 is being reproduced below for the readers benefit
*[6.] Contributions and matters which may be provided for in Scheme. –*
The contribution which shall be paid by the employer to the fund shall be ten per cent  of the basic wages, dearness allowance and retaining allowance (if any) for the time being payable to each of the employees (whether employed by him directly or by or through a contractor), and *the employee’s contribution shall be equal to the contribution payable by the employer in respect of* and may, if any employee so desires, be an amount exceeding  ten per cent of his basic wages, dearness allowance and retaining allowance (if any), subject to the condition that the employer shall not be under an obligation to pay any contribution over and above his contribution payable under this section:
Provided that in its application to any establishment or class of establishments which the Central Government, after making such inquiry as it deems fit, may, by notification in the Official Gazette specify, this section shall be subject to the modification that for the words “ten per cent”, at both the places where they occur, the words “12 per cent“ Shall be substituted:

The original notification of April 1997 created increased contribution the rate from 8.33% to 10% w.e.f. 01-05-1997. However it created an exception in form of schedule II which allowed certain industries to retain earlier lower contribution rate of 8.33%. These rates were further enhanced to 12% and 10% respectively w.e.f. 22-Sep-1997.

Now, a basic question that is being asked by industries all over is – Whether can they as an employer contribute at 12% instead of 10% rate for period May 2020 to July 2020. To answer this query we must visit provisions of voluntary coverage of an establishment u/s 1(4) of the EPF & MP Act 1952. Under these provisions, any establishment which has less than 20 employees can voluntarily apply for obtaining EPF coverage and the PF commissioner may apply provisions of EPF & MP Act to such establishment. It is pertinent to note that since such establishment falls under the exception of the April 1997 notification through *Schedule II - point (I) - Any establishment in which less than twenty persons are employed;*still the EPF accepts its contribution at rate of 12%. This makes it clear that EPFO has mandate to accept higher contribution from employer. Further examples, there are instances that EPF has accepted contributions at rate of 12% from jute industry which comes under the exception of schedule II of the said notification.

So in my considered opinion Schedule II of the said notification is for benefit of certain class of establishments and if the establishment does not want to take the benefit, it can go by its choice of contributing at higher rate. Also the notification of 18-May-2020 was introduced primarily due to covid-19 and lockdown situation where the government wanted to introduce liquidity benefits to the employers and employees. In event the employer and the employees don’t intend to have this liquidity benefit they are free to do so by contributing at higher rates of 12%.

Further it must be noted that employee’s contribution has to be equal to employers. So *if the employer contributes at rate of 12%, the employee is bound to contribute at equal rate.* This is provided in section 6 of the EPF Act and Paqra 29 of the EPF scheme

*Note*
The above reduction of rate of contribution is not applicable to establishments like Central and State Public Sector enterprises or any other establishment owned or controlled by or under control of the Central Govt. or State Govt. These establishments shall continue to contribute 12% of basic wages and dearness allowances.

The reduced rate is also not applicable to the establishments eligible for relief under PMGKY scheme, since the entire employees EPF contributions (12% of wages) and employers’ EPF & EPS contribution (12% of wages) for employees having less than 15000 salary per month , totalling 24% of the monthly wages is being contributed by the Central Govt.

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Classic Labour Advisory Services Pvt. Ltd.

Mr Sunil Basakhetre

(Chief Consultant)

Revised Guidelines by MHA Lock-down 4.0

Dear Readers,

Ministry of Home Affairs (MHA) issues guidelines on measures to be taken by Ministries/Departments of Government of India, State Governments/UT Governments & State/UT authorities for containment of COVID19. #LockDown4 will remain in effect till 31st May 2020.

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Govt. of Maharashtra extended Lock-down - 4.0

Dear Readers,

Government of Maharashtra has issued the circular DMU/2020/CR.92/DisM-1, on dated 17^th May 2020 for the Extended Lockdown 4.0 valid up to 31st May 2020.

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EPFO - FAQ in regards DSC and e-Sign

Dear Readers,

EPFO has released a set of frequently asked questions to bring a clarification regarding employer DSC and e-sign. Refer notification for more detailed information.

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Employer’s DSC e-Sign Registration of Authorised Signatories during Lockdown

Dear Readers,

EPFO vide press note, keeping in view the COVID-19 situation and to further ease the compliance procedure has decided to accept KYC attestation, transfer claim attestation etc. through email also. An employer can send the scanned copy of the duly signed request letter to the concerned Regional Office through the mail. Official email addresses of the Regional Offices are available at www.epfindia.gov.in

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Extension Of Working Hours For Factories In Uttar Pradesh

Dear Readers,

Government of Uttar Pradesh vide notification no.No. 13 /2020/ 502 /XXXVI-03-2020- 30 (Sa.)/2020TC has exempted all factories registered under The Factories Act, 1948 in the state from the provision of Section 51 (Weekly Hour), Section 54 (Daily Hour), Section 55 (Interval Of Rest), Section 56 (Spread Hours), Section 59 (Extra wages for overtime) with effect from 20th April 2020 till 19th July 2020 subject to aforesaid conditions.

Conditions are as below;

·        No adult worker shall be allowed or required to work in a factory for more than twelve hours in any day and Seventy-two hours in any week.

·        The periods of work of adult workers in a factory each day shall be so fixed that no period shall exceed six hours and that no worker shall work for more than six hours before he has had an interval for rest of at least half an hour.

·        Wages shall be in proportion of the existing wages. (e.g. If wages for eight hours are 80 Rupees, then proportionate wages for twelve hours will be 120 Rupees.

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Withdraw increase of Minimum Wages - Punjab

Dear Readers

Government of Punjab, as per notification number No.ST/9408 had released the Minimum Wages for the State effective from 1st March 2020. In pursuance to the same, the Government of Punjab considering the emergent economic situation arising out of COVID-19 has issued an order withdrawing the notification number No.ST/9408 published on 1st May 2020 revising minimum wages effective 1st March 2020. Hence employer may continue to follow the existing minimum wages prevailing prior to the withdrawn notification until further notice from the Government of Punjab.

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Extension in working hrs. To the employees Under Factories act 1948 - Maharashtra

Dear Readers,

In the view of COVID-19 and the available percentages of Factory employees in the state, Under Sec 65(2) of Factories Act 1948 in Maharashtra State those factories who are enduring less operational strength of employees, an extension given to the employees under Sec. 51,52,54 & 56 of Factories Act 1948 up to 30th June 2020;

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Central Minimum Wages w.e.f. April-2020

Dear Readers,

The Ministry of Labour and Employment published Central minimum wages revised, w.e.f. April-2020. Find below revised Minimum Wages notification.

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Revised Guidelines by MHA Lock-down 3.0

As per Ministry of Home Affairs MHA order no. 40-3/2020-DM-I (A) dated 15th Apr 2020, with the extension of the lockdown period of two weeks w.e.f. 04^th May. 2020 issued revised Guidelines and the activities will continue to remain prohibited across the country.

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Govt. of Maharashtra extended Lock-down - 3.0

Government of Maharashtra has issued the Revised Guidelines for the Extended Lockdown 3.0 valid up to 17th May 2020.

Private Offices in the area excluding the area of all Municipal Corporation within the Mumbai Metropolitan Region (MMR), Malegaon Municipal Corporation, Pune Municipal Corporation (PMC) and the Pimpri-Chinchwad Municipal Corporation (PCMC) can operate with up to 33% strength as per requirement, with the remaining persons working from home. 

                                       Zones 

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Revised Guidelines by MHA Lock-down 2.0

As per Ministry of Home Affairs MHA order no. 40-3/2020-DM-I (A) dated 15th Apr 2020, with the extension of lockdown period 2.0 issued revised Guidelines and the activities will continue to remain prohibited across the country until 3rd May 2020.

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Set aside MHA, Maharashtra govt orders compelling payment of full wages during Covid lockdown: Textile company moves SC

Dear Readers,

Greetings from Classic Labour!!!!

In the continuation of the below link,  The petition filled by Mumbai based Textile Company in Supreme Court on Govt. of Maharashtra regarding compelling payment of full wages during Covid-19 lockdown.

https://www.barandbench.com/news/litigation/set-aside-mha-maharashtra-govt-orders-compelling-payment-of-full-wages-to-workers-during-lockdown-mumbai-textile-company-moves-sc

Now Supreme Court grants Centre Two weeks to show how it will implement MHA Order directing payment of full wages during COVID-19 lockdown.

Today, Two Petition with respect to the direction issued by UOI to pay full wages came for hearing three Judge Bench along with another petition filled by Association of Journalist challenging reduction in wages. After hearing the parties, SC issued a notice. While examining the challenge, SC Expressed its view on how long an industry can be made to pay. The matter is kept after 2 weeks. Solicitor General submitted he will placed on record relevant polices. Senior advocate appeared in matters. No interim relief is granted by SC. All the matter will be tagged together and will come up for hearing after 2 weeks.