Recent Landmark Court Rulings Reshape Labour Laws and Workers' Rights Across India
"Recent Landmark Court Rulings Reshape Labour Laws and Workers' Rights Across India"
1. EPF Contribution Appeal Process: "EPF Appeals: Allahabad High Court Clarifies Pre-Deposit Requirement for Damages"
o The Allahabad High Court ruled that when appealing EPF Authority’s decision, a pre-deposit is generally required under Section 7-O of the EPF Act. However, if the appeal concerns damages (Section 14B), no pre-deposit is needed, which ensures specific financial protections for employers during appeals
2. Minimum Wage Revisions Across States: "Minimum Wage Hike Across States: October 2024 Updates for Worker Welfare"
o In October 2024, states such as Bihar, Gujarat, Tamil Nadu, and Uttar Pradesh revised their minimum wages, impacting diverse industries. This reflects state efforts to ensure fair wages aligning with inflation and living costs, crucial for maintaining worker welfare
3. Rights of Chartered Accountants and Lawyers Under ESI Act: "Exemption for CAs and Lawyers: Calcutta High Court Rules ESI Act Inapplicable"
o The Calcutta High Court clarified that offices of Chartered Accountants and Lawyers are not covered by the Employees' State Insurance (ESI) Act. This ruling exempts these professionals from mandatory ESI contributions and marks a clear boundary for ESI Act applicability
4. Illegal Forfeiture of Gratuity: "Delhi High Court: Illegal Gratuity Forfeiture Without Proven Allegations"
o The Delhi High Court held that gratuity cannot be forfeited if an FIR wasn’t filed, or allegations weren't proven in court. This ensures that employees retain their entitlement to gratuity unless legally substantiated evidence of misconduct exists
5. Maternity Leave Entitlement in Private Sector: "Rajasthan High Court Grants 180-Day Maternity Leave to Private Sector Employees"
o The Rajasthan High Court mandated a 180-day maternity leave entitlement for female employees in the private sector. These ruling highlights efforts to standardize maternity benefits and protect female workers’ rights across various sectors
6. Interim Orders in Labour Courts: "Labour Courts Can't Issue Interim Orders on Disciplinary Actions: Bombay High Court"
o The Bombay High Court ruled that Labour Courts cannot issue interim orders to prevent an employer from imposing disciplinary actions or punishments. This prevents labour courts from overstepping in disciplinary matters pending final judgments
7. Contractor Liability for Accident Compensation: "Madras High Court Mandates Contractor Accountability for Worker Compensation"
o The Madras High Court held that contractors must pay accident compensation to subcontractor employees. This judgment stresses accountability in contractor and subcontractor relationships, aiming to protect workers in outsourced roles
8. No Show Cause Notice for Terminating a Probationer: "Probation Termination Without Show Cause Notice Allowed: Kerala High Court"
o Kerala High Court ruled that probationers can be terminated without a show cause notice, emphasizing the employer's right to discontinue probation without the requirement for formal procedures
9. Forfeiture of Financial Benefits Post-VRS: "Delhi HC: No Financial Benefits Post-VRS, Reinforcing Finality in VRS Agreements"
o The Delhi High Court clarified that financial benefits subsumed under a Voluntary Retirement Scheme (VRS) are not payable post-retirement, preserving the intent of VRS agreements that financially close employment relationships
10. EPF Applicability on Small Establishments: "Karnataka High Court Confirms EPF Act Exemption for Small Establishments"
The Karnataka High Court confirmed that the EPF Act does not apply to establishments with fewer than 20 employees. This ruling reinforces the threshold applicability of EPF, providing clarity for smaller businesses
11. Requirement of Independent Member in ICC: "Mandatory NGO-Affiliated Member in ICC for Workplace Harassment Cases"
• In cases of workplace sexual harassment, the court emphasized the need for an independent, preferably NGO-affiliated member on the Internal Complaints Committee, underlining the importance of impartiality in workplace harassment cases
12. Liability for Employees’ Provident Fund Contributions: "EPF Contributions Exclude Business Partners: Punjab & Haryana High Court Ruling"
• The Punjab & Haryana High Court ruled that partners should not be counted as employees for EPF coverage, which differentiates business partners from regular employees under the EPF Act.
13. No Coverage for Apprentices Not Meeting Wage Conditions: "EPF Exemption for Apprentices: Kerala HC Limits Liability on Stipend-Only Roles"
• Apprentices who receive only stipends and no other benefits are exempt from EPF coverage. This ruling by the Kerala High Court aligns with the Apprentices Act, limiting EPF liability based on the financial arrangements for apprentices
14. Dismissal After Admission of Misconduct: "Employee Dismissal Upheld for Admitted Misconduct: Court Supports Employer Rights"
Courts upheld the dismissal of employees who admitted to misconduct in an inquiry, with dismissal seen as a proportionate punishment when the charges are grave, supporting employer rights to disciplinary actions when misconduct is acknowledged
15. Interest on Delayed EPF Payments: "Interest on Delayed EPF Payments Reinforces Timely Compliance"
• EPF authorities can impose damages and interest on delayed contributions without sufficient cause, reinforcing prompt payments by employers. This penalty discourages delays and ensures timely compliance with EPF obligations
16. Recognition of Contract Labor Rights: "Delhi High Court Affirms Contract Labour Rights and Proper Case Processing"
• The Delhi High Court stressed that labour courts should not question the maintainability of cases concerning contract labour, as the Advisory Board has the authority to prohibit contract labour use. This decision affirms the structured process for resolving contract labour disputes
18. Insurance and Medical Benefit Rights for ESI Workers: "Supreme Court Secures Healthcare Rights for ESI Beneficiaries"
The Supreme Court ruled that ESI beneficiaries have the right to medical benefits as prescribed under the ESI Act, upholding worker healthcare rights and ensuring ESI coverage extends comprehensively to entitled employees
19. Limits on EPF Authority’s Review Timeframes: "EPF Appeals Time-Bound to 45 Days: Madras High Court Enforces Accountability"
The Madras High Court held that the EPF Authority cannot condone delay in review petitions beyond 45 days, imposing time-bound accountability on EPF authorities to prevent indefinite delays in appeal processes
20. Accident Definition Expanded for Compensation: "Delhi HC Expands Workplace Accident Definition to Include Off-Duty Incidents"
The Delhi High Court recognized incidents such as a worker’s murder near home after work as compensable accidents, broadening the scope of what constitutes a workplace accident, particularly for employees at risk in vulnerable areas.
21. Fairness in Union Recognition: "Trade Union Recognition Conditional on Compliance: Karnataka HC Clarification"
• The Karnataka High Court ruled that trade unions do not have an automatic right to recognition, reinforcing that union rights must align with compliance under the Trade Unions Act and depend on meeting specific organizational standards
