This labour & employment law newsletter provides a brief summary of the developments and updates in the month of July, 2023 through judgments, notifications, circulars, and other updates in the labour & employment sector in India.
A settlement between Employer and Employee Union would not override Model Standing Orders unless it is more beneficial to employees
The Supreme Court of India held that no contract/settlement between the employer and the employee union which abridges the employees' legal rights can be agreed upon, let alone be binding. The Court further that the Industrial Employment (Standing Orders) Act, 1946 being a beneficial legislation provides that any agreement/contract/settlement wherein the rights of employees are waived off would not override the Standing Orders.
[Bharatiya Kamgar Karmchari Mahasangh vs. M/s Jet Airways Ltd. Civil Appeal 4404/2023]
Bombay High Court holds Abbott’s Business Manager not a ‘Workman’ under the Industrial Disputes Act, 1947 (“I.D. Act”)
The Bombay High Court recently held that for a person to be termed as ‘workman’ must satisfy the requirement under Section 2(e) of the I.D. Act, however, in the case in hand, the Business Manager’s role and responsibilities do not perform any manual, unskilled, skilled, technical, operational, clerical or supervisory work. In view of the above, the High Court quashed the order of the Industrial Tribunal to hold that the Petitioner is not a workman under the I.D. Act.
[Abbott India Limited vs. Dipak WP No. 2101 of 2023]
Employment/Promotion can’t be denied on the grounds of the employee being HIV-positive
Allahabad High Court has held that a person, who is otherwise fit, could not be denied employment only on the ground that he or she is HIV positive and this principle also extends to grant of promotion.
[XYZ vs Union of India Special Appeal Defective No. 430/2023]
Insurer is not automatically liable to indemnify employer under Employee’s Compensation Act, 1923 (“E.C. Act”) for interest on delayed payment of compensation
J&K High Court has ruled that unless there is a specific contract of insurance between employer and insurer that the insurer would indemnify the employer in respect of interest and penalty also, no liability can be fastened on the insurer to indemnify the employer for the same for delayed payment of compensation under E.C. Act.
[Md. Abdullah vs Manager, Trumboo Cement Industry Limited MA 155/2007]
Employee’s Provident Fund Organisation (“EPFO”) approves 8.15% interest rate for Provident Fund (“PF”) deposits in 2022-23
The Central Government accepted the recommendation of the Central Board of Trustees (CBT) of EPFO to increase the rate of interest of PF deposits (which is a retirement benefits scheme administered by EPFO wherein both the employee and the employer make monthly contributions in equal proportions, amounting to 12% of the employee's basic salary and dearness allowance) to 8.15%.
The EPFO circular read, "The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest@ 8.15 % for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952. You are accordingly, requested to issue necessary instructions to all concerned for crediting the said interest to the members' accounts."
The circular dated 24.07.2023 can be accessed here.
This newsletter was authored by Kushank Sindhu (Counsel), Anmol Singh (Associate Counsel), Apali Kaushal (Associate Counsel) and Sanya Singh (Associate Counsel). The authors may be contacted at office@sigmachambers.in.
DISCLAIMER. THIS CONTENT HAS BEEN PREPARED FOR INFORMATIONAL PURPOSES ALONE AND IS NOT A SUBSTITUTE FOR LEGAL ADVICE. PLEASE OBTAIN LEGAL ADVICE PRIOR TO ACTING ON OR RELYING ON THE CONTENTS OF THIS PAGE.