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No, Labour Codes are not coming into effect from July 1st 2022

These are structural reforms and the ministry is for balancing labour welfare on one hand and ease of doing business on the other.

Notwithstanding wide speculations and scattered news reports, the four labour codes on industrial dispute, social security, wage and occupational safety, are not coming into effect from 1 July.

“It’s not getting rolled out on 1 July. The discussions and deliberations on final contours of the four codes are still on. Do not go by speculations,” a senior government official told Moneycontrol.

These are structural reforms and the ministry is for balancing labour welfare on one hand and ease of doing business on the other, a second official said, adding that the union labour ministry is in touch with states, industries and other stake holders and things have progressed well so far, but " July 1 is not the date we are looking at".

In response to a question whether the ministry is rolling out the labour codes from Friday (July 1), a ministry spokesperson said “No”.

Authorities in the labour and employment ministry said the ministry will make formal announcement when things are ready and codes are getting rolled out but nothing immediately is in the plan.

India has consolidated 29 central labour laws into four codes on wages, social security, occupational health, and industrial relations. While the parliament approved the Code on Wages in August 2019, the rest three were passed in September 2020. But none of them has been rolled out as yet.

The labour codes are expected to introduce far-reaching changes with implications for employers and workers. They will offer greater flexibility in rolling out short-term work contracts, make hiring and firing flexible, and make industrial strikes harder.

There will be a new national wage floor that will benefit workers, while informal and gig workers will get a social security net.

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The four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions are likely to be implemented from July 1.
"The four labour codes are likely to be implemented in the next financial year of 2022-23 as a large number of states have finalised draft rules on these. The Centre has completed the process of finalising the draft rules on these codes in February 2021. But since labour is a concurrent subject, the Centre wants the states to implement these as well in one go," officials had said in December.
Once the new codes come into force, the take home salary would be lesser as the PF contribution would go up. There is also a likelihood that the four day work week would be implemented. Employees may have to work for 12 hours a day as the Labour Ministry made it clear that the requirement for a 48 hour weekly work is compulsory.
So, here are the likely changes expected with the implementation of the new labour code:
4-day work week
Under the new rules, employees in India may be able to enjoy a four-day workweek, as opposed to the current five-day workweek from 2022-23. This means, an employee will have a 3-day holiday/week but there is catch. During this 4-day workweek, employees need to work for 12 hours to keep the weekly work hours in check.
Also, the new laws would also imply that the maximum overtime hours shall increase from 50hours to 125 hours across all sectors.
Your take home salary and the changes to the employees and employer EPF contribution
One of the significant move after the new labour code implementation is that there would be a reduction in the take-home pay of employees and hence there will be more money in PFs.
This will change the way an employee's basic pay and PF are calculated. Half of the salary would be basic wages and allowances would be restricted to 50 per cent, as per sources.

Ivan Antony John
9840667011 (w & m)
[email protected]
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Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

https://docs.google.com/forms/d/e/1FAIpQLSdFrIdxRFxvwyvBqDgwlhmpTOA1q3CGQhKACSY-eEfR6DelnQ/viewform

*During the period of vacation from 06.06.2022 to 01.07.2022 the sitting of NCLAT Principal Bench will be on every Monday and Wednesday – NCLAT notice dated 01.06.2022*

It is informed that during the period of Annual Summer Vacation from 06.06.2022 to 01.07.2022 for the NCLAT, Principal Bench, New Delhi, the Registry shall function during this period. During the period of vacation from 06.06.2022 to 01.07.2022 the sitting of the Principal Bench will be on every Monday and Wednesday at 10:30 AM to take up only the urgent matters.

Regards
Ivan Antony John
Director
www.hgcompliance.com

Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

We, hgcompliance.com, provide end-to-end services with consultation & Labour Law Opinions to carry out and establish Labour Law Compliance under various enactments of Labour Law.

Our team will help you with any aspect of employment/labour law.

Call: 9840667011 [email protected]

www.hgcompliance.com

Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

✍ From the News Desk of *Ivan Antony John*⚘ Director, Herttz Global Compliance Services Pvt Ltd
M : 9840667011
Email : [email protected]
www.hgcompliance.com
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The Labour Codes are coming with some changes. What are the key positive takeaways or benefits for employers and employees from the codes?

The consolidation of labour laws was very much required to fuel the growth and sustainability of the Indian Economy and we now see the codification which is a good trend.

For Employers: The changes are expected to ease out the compliance for employers because of the digitization of licensing process, single registration, combined and single return, decriminalization of offenses, web-based inspection system, self-assessment, and self-certification. Express provision on fixed-term employment will provide more flexibility to the employer to align the manpower based on the volatility of business. The law of limitation is now introduced to industrial disputes which is a key development in employment law.

For Employees: The wage disparity is expected to reduce because of the national floor wage. The safety and health of employees will have high focus. The contract labour system will come with more restrictions and this means less exploitation. The benefits and Government schemes will have the possibility to reach the beneficiaries directly. The Codes cover all kinds of employment including unorganized labour, platform, and gig workers. The recognition of trade unions as an agent of collective bargaining which is a long-standing demand of the workers is now met.

Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

✍ From the News Desk of *Ivan Antony John*⚘
M : 9840667011
Email : [email protected]
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*EPFO members Alert!* PF accounts to be divided into two parts from 1 April 2022:
*Know 5 key points......*

The central Government has notified new Income Tax Rules. *Under these rules, the existing Provident Fund (PF) accounts will be divided into two separate accounts.*

From April 1, existing provident fund (PF) accounts are likely to be divided into two parts. In September last year, the government had notified new income tax (I-T) rules, *under which the PF accounts will be split into two*. The step will allow the Centre to tax PF income on employee contributions of over ₹ 2.5 lakh annually.

With the new set of rules, the Centre aims to prevent high earning people from taking advantage of government welfare schemes.

*Here are the top five takeaways:*

*1.* All existing PF accounts will be divided into taxable and non-taxable contribution accounts.

*2.* The non-taxable accounts will include their closing account as it stood on March 31, 2021, the Central Board of Direct Taxes (CBDT) had said.

*3.* According to official sources, the rules may come into effect from the next financial year, i.e. *from April 1, 2022, onwards.*

*4.* In order to implement the new tax on PF income from employees’ contributions exceeding ₹ 2.5 lakh per annum, a new *Section 9D* has been included under the I-T rules.

*5.* For taxable interest calculation, two separate accounts will be maintained *within the existing PF account* during the recently concluded financial year as well as all the preceding years, to assess the taxable as well as the non-taxable contribution made by a person.

www.hgcompliance.com

Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

You have to ensure two important compliances related to income tax and employer and employee contributions towards PF, SAF & NPS as the year end is approaching.
(a) Interest on employee contribution exceeding 2.5 lakhs is taxable (The provisos are inserted in clause (12) of section 10 by the Finance Act, 2021, w.e.f. 1-4-2022 )
(b) Employer contributions exceeding 7.5 lakhs to PF, SAF & NPS and accretions on such excess contribution is taxable (refer to section sub clause (vii)(a) to sub section 2 of section 17 of Income Tax Act).
It is also employers responsibility to make sure that appropriate tax is deducted on the above.

[email protected]/9840667011

www.hgcompliance.com

Statutory Compliance Consultants | FSSAI (state and Central) | HGCompliance I strongly believe that every establishment should strive to stay afloat in the area of labour law compliances as no doubt there will be issues and concerns but like it is said, taking a little bit of extra stretch or walking an extra mile, with perseverance the matters can always get resolved.   ...

*It is an excellent online service introduced by Government of India. Kindly, pass this on to as many as you can. Finally something very useful. INDIAN GOVERNMENT INTRODUCED ONLINE Services to Obtain:*

*1. Birth Certificate* http://www.india.gov.in/howdo/howdoi.php?service=1
*2. Caste Certificate* http://www.india.gov.in/howdo/howdoi.php?service=4
*3. Tribe Certificate* http://www.india.gov.in/howdo/otherservice_details.php?service=8
*4. Domicile Certificate* http://www.india.gov.in/howdo/howdoi.php?service=5
*5. Driving Licence* http://www.india.gov.in/howdo/howdoi.php?service=6
*6. Marriage Certificate* http://www.india.gov.in/howdo/howdoi.php?service=3
*7. Death Certificate* http:// www.india.gov.in/howdo/howdoi.php?service=2

*To Apply for:*
*1. PAN Card* http://www.india.gov.in/howdo/otherservice_details.php?service=15
2. *TAN Card* http://www.india.gov.in/howdo/otherservice_details.php?service=3
*3. Ration Card* http://www.india.gov.in/howdo/howdoi.php?service=7
*4. Passport* http://www.india.gov.in/howdo/otherservice_details.php?service=2
*5. Inclusion of name in the Electoral Rolls* http://www.india.gov.in/howdo/howdoi.php?service=10

*Register:*
*1. Land/Property* http://www.india.gov.in/howdo/howdoi.php?service=9
*2. Vehicle* http://www.india.gov.in/howdo/howdoi.php?service=13
*3. With State Employment Exchange* http://www.india.gov.in/howdo/howdoi.php?service=12
*4. As Employer* http://www.india.gov.in/howdo/otherservice_details.php?service=17
*5. Company* http://www.india.gov.in/howdo/otherservice_details.php?service=19
*6. IN Domain* http://www.india.gov.in/howdo/otherservice_details.php?service=18
*7. GOV.IN Domain* http://www.india.gov.in/howdo/otherservice_details.php?service=25

*Check/Track:*
*1. Waiting list status for Central Government Housing* http://www.india.gov.in/howdo/otherservice_details.php?service=9
*2. Status of Stolen Vehicles* http:// www.india.gov.in/howdo/otherservice

National Portal of India National Portal of India provides a single-window access to information and services that are electronically delivered from all Government Departments, Institutions and Organizations. It has been a popular source of information to a wide range of stakeholders - from citizens, to government, business...

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The Employees' Provident Fund Organisation (EPFO) has recently changed the Provident Fund (PF) withdrawal rules, allowing PF account holders to withdraw money from their PF or EPF account (whichever applicable) as non-refundable advance. The decision aims to help EPFO members affected by the Covid-19 pandemic. An EPFO subscriber can now use PF/EPF withdrawal facility given by the EPFO citing Covid-19 as the reason for money withdrawal.

For all EPF withdrawal; non refundable advance and availing all benefits; kindly whatsapp me: 9840668011/email: [email protected]

Timely support and service assured! 👍

ESIC will pay monthly pension to family members of IPs, if he/she died due to covid19 between 24/03/2020 to 24/03/2022

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Part time lecturer is to be covered as ‘employee’ under the PF Act.
V.R. College, Nellore rep. by its Secretary & Correspondent Sri Anam Vivekananda Reddy vs. Provident Fund Appellate Tribunal, New Delhi, rep. by its Registrar and Others, 2017 LLR 599 (Hyd. HC)

Reinstatement on wrongful termination is not a rule of thumb.
Rajesh Kumar vs. Presiding Officer, Labour Court, Patiala and others, 2017 LLR 270 (P&H HC)

Dear HGCians,

Topic: "Updates on EPF and ESI schemes and COVID 19 Relief Measures

Time: Today - May 20, 2021 03:00 PM India

Join Zoom Meeting
https://us02web.zoom.us/j/87494818292?pwd=SHQrSDAydGV4cStpalhuVzNXYjdaUT09

Meeting ID: 874 9481 8292
Passcode: 643995

We shall be connected by 3 PM.

Ivan J
Director
HGC
[email protected]
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