Key HR Legal Insights

 

1. Provident Fund (EPF) & Social Security

• Unified Establishment Coverage: All departments and branches of an organization, regardless of location, are considered a single establishment under the EPF Act.
• Continued EPF Applicability: An establishment remains under EPF coverage until it formally obtains an exemption.
• Determining EPF Liability: Employers are liable for EPF contributions only when an employer-employee relationship is clearly established.
• ESI Coverage Verification: Before applying ESI provisions, thorough verification of employment records is necessary.
• Penalties for Delayed EPF Payments: Employers delaying EPF contributions are subject to penalties and interest charges.

 

2. Employment Status & Service Conditions

• Trainees vs. Apprentices: Contractual trainees are not classified as apprentices under the Apprentices Act and are thus entitled to standard employee benefits.
• Regularization Despite Breaks: Artificial breaks in service for part-time employees do not negate their eligibility for regularization.
• Contractor Licensing and Worker Absorption: Workers employed through contractors lacking proper licenses cannot be absorbed by the principal employer.
• Probationary Termination: Terminating an employee at the end of an extended probation period does not constitute retrenchment.Log in or sign up to view

 

3. Misconduct, Termination & Enquiry

• Abandonment of Service: Failure to respond to communications regarding duty resumption can be deemed as job abandonment.
• Use of Abusive Language: Employing offensive language towards superiors is grounds for dismissal.
• Enquiry Procedures: An enquiry is invalid if the employee is not paid subsistence allowance or if the enquiry officer is not examined during proceedings.
• Financial Misconduct: Misappropriation of company funds by an employee justifies termination due to breach of trust.

 

4. Maternity, Bonus, Leave & Benefits

• Maternity Benefits: Female employees are entitled to maternity benefits even if not explicitly mentioned in service rules.
• Bonus Entitlements: Employees cannot claim bonuses beyond the statutory minimum as a right, even if higher bonuses were previously granted.
• Medical Leave Requests: Merely sending letters without a formal medical leave application is insufficient for leave approval.
• Overtime Claims: Overtime compensation is valid only when additional work is acknowledged by the employer.

 

5. Workplace Conduct & PoSH Compliance

• Interim Relief in Harassment Cases: Internal Committees under the PoSH Act have the authority to recommend interim measures to protect complainants during investigations. SHLC
• Union Leadership Standards: Union office bearers are expected to exemplify integrity and diligence, serving as role models for other employees.

 

6. Dispute Resolution & Legal Proceedings

• Scope of Industrial Adjudication: Industrial adjudicators must confine their decisions to the specific issues referred to them.
• Service Condition Alterations: Employers are prohibited from changing service conditions during the pendency of an industrial dispute.
• High Court Submissions: Factual matters not presented before the tribunal cannot be introduced for the first time in High Court proceedings.

 

7. Resignation & Transfer Policies

• Immediate Resignation Acceptance: Employers can accept resignations with immediate effect if the employee submits a written request.
• Proper Resignation Protocol: Resignations must be submitted to the appropriate authority to be considered valid.
• Transfer Challenges: Personal hardships are not sufficient grounds for courts to interfere with an employer's decision to transfer an employee.

 

8. Workplace Safety & Compensation

• Work-Related Incidents: Fatal incidents occurring near an employee's residence post-duty can be classified as workplace accidents for compensation purposes.
• Liability Under Factories Act: The designated occupier, not the Managing Director, holds liability for offenses under the Factories Act.
• Factory Registration Compliance: Operating a factory without proper registration constitutes a legal offense.

 

9. Industrial Actions & Employer Rights

• Proximity Restrictions on Protests: Employees are prohibited from staging protests or demonstrations within 500 meters of the employer's premises.
• Industry Closure Requirements: Employers seeking to close operations must provide detailed justifications and obtain necessary approvals.

 

10. Employer Responsibilities & Compliance

• Contractor Wage Obligations: Principal employers must ensure that contractors pay their workers' wages promptly and in full.
• Charge Sheet Clarity: Employers must issue charge sheets that clearly outline the allegations against an employee to ensure a fair disciplinary process.