Further, the Government may also consider providing financial relief for those small and micro companies/entities that are not financially capable of sustaining themselves during these testing times. The term “wages” has also been defined under Section 3(n)[13] of the Act. For example, the increase in the prime-age labor force participation rate under President Trump translates to 2.2 million additional prime-age workers in the labor force. The Authors, Vinithra Srinivasan is a Partner & Varun Srinivasan is a Principal Associate at the Law Firm, NVS & Associates. This most likely will result in the financial crippling of the companies, which not long after the lockdown period, may lead to situations of heavy layoffs, even though that may not have been the original plan and also cause greater harm to the employees; the companies may, also need a longer time to rebound from the COVID attack. 40-3/2020-DM-I(A), dated 29.03.2020 under the aegis of the National Disaster Management Act, 2005, the non-compliance of which by the stakeholders would attract penal consequences. These revisions do not mean that jobs were lost, but rather that they were previously overestimated. Many employers already have experienced an uptick in related internal complaints or litigation. In this context, the Indian Government has taken the initiative through the recent Ministry of Home Affairs (“MHA”) Order dated 29.03.2020,[1] among other notifications/guidelines issued by other departments, stating that employers are required to pay full wages to all workers, the non-compliance of which would attract penal consequences. Therefore, the various definitions of worker/workman/person employed finds relevance in the context of the term “wages” used in the MHA Order. Now, it will be interesting to observe the manner in which the grounds raised in the Petitions challenging the MHA Order filed before the Supreme Court would be considered, especially, amongst other cases, in light of the decision of Supdt. Further, as per Section 72,[21] the said Act will also have an overriding effect over any other enactment for the time being in force. Thus, in accordance with the maxim of law, lex non cogit ad impossibilia, if it appears that the performance of the formalities prescribed by a statute has been rendered impossible by circumstances over which the persons interested had no control, like the act of God or the King's enemies, these circumstances will be taken as a valid excuse.”, The government’s active interference in the dynamics between employers and employees has been to prevent inequality in bargaining power and to add further value to the beneficial nature of the labour legislations. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the National Executive Committee may— (a) act as the coordinating and monitoring body for disaster management;  (b) prepare the National Plan to be approved by the National Authority;  (c) coordinate and monitor the implementation of the National Policy;  (d) lay down guidelines for preparing disaster management plans by different Ministries or Departments of the Government of India and the State Authorities;  (e) provide necessary technical assistance to the State Governments and the State Authorities for preparing their disaster management plans in accordance with the guidelines laid down by the National Authority;  (f) monitor the implementation of the National Plan and the plans prepared by the Ministries or Departments of the Government of India;  (g) monitor the implementation of the guidelines laid down by the National Authority for integrating of measures for prevention of disasters and mitigation by the Ministries or Departments in their development plans and projects; (h) monitor, coordinate and give directions regarding the mitigation and preparedness measures to be taken by different Ministries or Departments and agencies of the Government;  (i) evaluate the preparedness at all governmental levels for the purpose of responding to any threatening disaster situation or disaster and give directions, where necessary, for enhancing such preparedness; (j) plan and coordinate specialised training programme for disaster management for different levels of officers, employees and voluntary rescue workers;  (k) coordinate response in the event of any threatening disaster situation or disaster;  (l) lay down guidelines for, or give directions to, the concerned Ministries or Departments of the Government of India, the State Governments and the State Authorities regarding measures to be taken by them in response to any threatening disaster situation or disaster;  (m) require any department or agency of the Government to make available to the National Authority or State Authorities such men or material resources as are available with it for the purposes of emergency response, rescue and relief;  (n) advise, assist and coordinate the activities of the Ministries or Departments of the Government of India, State Authorities, statutory bodies, other governmental or non-governmental organisations and others engaged in disaster management;  (o) provide necessary technical assistance or give advice to the State Authorities and District Authorities for carrying out their functions under this Act;  (p) promote general education and awareness in relation to disaster management; and  (q) perform such other functions as the National Authority may require it to perform. [6] Therefore, considering the fact that the Supreme Court has not granted stay over the said Order, this article seeks to analyse the Order’s impact in the context of the prevailing labour laws in India, while also considering whether the Order can be said to be all encompassing in its application, without delving into the grounds such as arbitrariness, unreasonableness, amongst others, which have been raised in the Petitions. The MHA Order is one such direction that has been given life under this NDM Act. Understand your legal options and ask HG.org to help you find a local law firm Employment and Labor Law Articles Legal articles … November 30, 2020 During the pandemic some of the largest companies in the world got bigger and some got smaller. (b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force; (c) any gratuity payable on the termination of his service. Hence, the significant terms used in the MHA Order, which are of relevance to this article are that of “wages” and “workers.” Therefore, in this context, the prominent enactments that would need to be considered while interpreting this MHA Order are as follows: The term ‘Worker’ finds its place in the Factories Act, 1948. Changes in technology will also result in changes to the skill composition of many workplaces. However, each of these developments was part of an overarching theme in COVID-19, raising entirely new challenges such as the mass move to remote working, return to work planning and cost-cutting … Under the Factories Act, a “Worker” is defined in Section 2(l) to mean “a person employed, directly or by or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for remuneration or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of the manufacturing process but does not include any member of the armed forces of the Union.” Therefore, the definition of “worker,” as per the Act, draws a distinction between who is a worker and also goes on to state who is not. In the above context, the term “wages” as per the MHA Order, in view of it concerning the employees/workers/workmen under the different enactments, by necessary implication narrows down its reference to certain enactments. Historically disadvantaged groups are benefiting the most from today’s tight labor market. Additionally, Section 2(j). The COVID-19 crisis, declared as a pandemic by the Director General of WHO on 11.03.2020, in addition to having a significant and highly disastrous impact on the lives of people world over, has had and will continue to have an apparent and heavy influence on all industries, globally. The said order has been recently challenged before the Supreme Court,[2] in which matter the Trade Unions have also sought to be impleaded,[3] and which Order has also been challenged by another petition as well;[4] however, the Supreme Court for the interim has not provided any stay and has sought for the Government’s response on the said Order. Interestingly, as far as the State of Tamil Nadu is concerned, the definition of wages would require wages to be paid as per the specific definition under the Tamil Nadu S&CE Act, considering that the said Act does not refer to the POW Act. Further, although the MHA has relaxed the restrictions on movement of people from the 4th of May, 2020 and that workers/employees are expected to turn up to work, non-appearance would tantamount to a valid reason for wages reduction; nonetheless, considering that the lockdown measures have been extended till the 17th of May, 2020, the effect of the MHA Order 29.02.2020 would still continue to have its impact, until revoked or altered. All the employers, be it in the Industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their work places on the due date, without any deduction, for the period their establishments are under closure during the lockdown”. Those without a high school degree and people with disabilities also set record-low unemployment rates last year. (iv) who being employed in a supervisory capacity, draws wages exceeding ten thousand rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature. The sectors that saw the largest gains last month were education and health services (+72,000), construction (+44,000), and leisure and hospitality (+36,000). The primary reason for the slight uptick in January’s unemployment rate was an increase in labor force participation from workers coming off the sidelines to look for work and find jobs. As held in several cases of the Supreme Court, including in the case of Workmen v. Binny Ltd.,[10] “...it is a trite law that in matters of welfare legislation, especially involving labour, the terms of contracts and the provisions of law should be liberally construed in favour of the weak.” In this context, if a still wider interpretation of the term “worker” is to be used to include the entire workforce of companies, such interpretation will be restricted by the usage of the term “wages”. (b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months: “wages” means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes –, "wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes--. हाईकोर्ट ने बार काउंसिल को दिया निर्देश प्रदर्शन के दौरान एडवोकेट ना पहने गाउन और नेक बैंड, HC: RBI guidelines for covid-19 relief regarding loan repayment cannot cover defaults prior to the outbreak of Pandemic [Read Judgment], HC directs state to prepare comprehensive guideline for upcoming Magh Mela [Read Order], उत्तराखंड हाई कोर्ट का आदेश: मसूरी-नैनीताल आने वाले सैनानियों के लिए कोरोना जांच अनिवार्य, हाईकोर्ट की महिला जज हुईं कोरोना पॉजिटव, सुबह एअरलिफ्ट कर ले जाया जाएगा दिल्ली, हत्या का प्रयास: तबलीगी जमात पर 'हत्या के प्रयास' की चार्जशीट, इलाहाबाद हाईकोर्ट ने यूपी सरकार से मांगा जवाब, HC on outbreak of COVID-19: 'Public at large has also been callous, negligent and irresponsible', Issues series of directions for Authorities, Advocate's Day: Remembering eminent Lawyer and First President of India, Dr. Rajendra Prasad; throwing light on Role played by Advocates in Society, RBI’s new Cheque Payment rules set to kick in from January; Here’s all you need to know, Amazon fined INR 25K for not displaying Country Of Origin on Products, After 32 Yrs, Bhartiya Kisan Union implements its Sec 288 against Section 144 at Delhi-Ghaziabad Border, अनुशासनहीनता और काम के प्रति लापरवाही में 16 जजों पर पहली बार एक साथ कार्रवाई: हाईकोर्ट का फैसला, Wife can claim property entrusted to husband even after divorce: HC. [20] Disobedience to order duly promulgated by public servant.—Whoever, knowing that, by an order promulgated by a public serv­ant lawfully empowered to promulgate such order, he is directed to abstain from a certain act, or to take certain order with certain property in his possession or under his management, disobeys such direction, shall, if such disobedience causes or tends to cause obstruction, annoyance or injury, or risk of obstruction, annoyance or injury, to any person lawfully employed, be punished with simple impris­onment for a term which may extend to one month or with fine which may extend to two hundred rupees, or with both; and if such disobedience causes or trends to cause danger to human life, health or safety, or causes or tends to cause a riot or affray, shall be punished with imprisonment of either description for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. While COVID19 related issues have overshadowed most aspects of life, including work, for the last six months, non-COVID 19 related employment law developments have continued. A brief Powers and functions of National Executive Committee.—(1) The National Executive Committee shall assist the National Authority in the discharge of its functions and have the responsibility for implementing the policies and plans of the National Authority and ensure the compliance of directions issued by the Central Government for the purpose of disaster management in the country. For instance, as per the Industrial Disputes Act, under the definition of “workman” as per Section 2(s),[9] the said definition does not apply to those who are employed mainly in a managerial or administrative capacity or who being employed in a supervisory capacity, draw wages of more than ten thousand rupees per mensem, amongst other factors. Under the Factories Act, a “Worker” is defined in Section 2(l) to mean “. of Taxes v. Onkarmal Nathmal Trust,[23] wherein it has been held as follows: “Under certain circumstances compliance with the provisions of statutes which prescribe how something is to be done will be excused. In the 38 months since the election, the economy has created at least 100,000 jobs in 34 of those months and has added jobs every single month. Powers and functions of National Executive Committee.—(1) The National Executive Committee shall assist the National Authority in the discharge of its functions and have the responsibility for implementing the policies and plans of the National Authority and ensure the compliance of directions issued by the Central Government for the purpose of disaster management in the country. (i) such allowances (including dearness allowance) as the workman is for the time being entitled to; (ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles; (iv) any commission payable on the promotion of sales or business or both;]. Starting in 2020, some locations will prohibit employers from screening new hires for marijuana or refusing to hire applicants based on a failed pre-employment … 40-3/2020-DM-I(A), dated 29.03.2020 under the aegis of the National Disaster Management Act, 2005, the non-compliance of which by the stakeholders would attract penal consequences. (6) This Act applies to wages payable to an employed person in respect of a a wage period if such wages for that wage period do not exceed twenty four thousand rupees per month or such other higher sum which, on the basis of figures of the Consumer Expenditure Survey published by the National Sample Survey Organisation, the Central Government may, after every five years, by notification in the Official Gazette, specify; "wages" shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936); “wages” means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes— (a) any remuneration payable under any award or settlement between the parties or order of a Court; (b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period; (c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name); (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made; (e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include— (1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court; (2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of 1[the appropriate Government]; (3) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon; (4)  any travelling allowance or the value of any travelling concession; (5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or (6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d); 10. 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