Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Maharashtra (Mumbai and Pune) Decriminalizes Non-Compliances under Certain State Labor Laws

New Legislation Enacted

Authors: Nipasha Mahanta, Associate, and Sayantani Saha, Associate – Nishith Desai Associates

On April 11, 2023, the state of Maharashtra enacted the Maharashtra Labor Laws (Amendment) Act, 2022. The law amends certain state level labor laws, doing away with criminal penalties for non-compliances in respect thereof. The notification decriminalizes non-compliances under the following Maharashtra state legislations:

• Maharashtra Industrial Relations Act, 1947
• Maharashtra Labour Welfare Fund Act, 1953
• Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969
• Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981
• Maharashtra Workmen's Minimum House-Rent Allowance Act, 1983

By decriminalizing offenses under such labor laws, the amendment promotes ease of doing business and prevents bureaucratic inefficiencies in the state of Maharashtra (which includes the cities of Mumbai and Pune).

New Compliance Requirements for Commercial Establishment Employers in Tamil Nadu (Chennai)

New Legislation Enacted

Authors: Nipasha Mahanta, Associate, and Sayantani Saha, Associate – Nishith Desai Associates

On May 19, 2023, the state of Tamil Nadu (Chennai) has notified the Tamil Nadu Shops and Establishments (Amendment) Act 2023 to amend its shops and establishments statute. The amendment is yet to be made effective. Owing to the amendment, employers of commercial establishments in Tamil Nadu will need to ensure certain additional welfare measures in their establishments.

These include ensuring inter alia:

• sufficient supply of drinking water for employees at the workplace
• sufficient number of latrine and urinals at the workplace accessible at all times for all employees during their working hours
• lunchrooms and restrooms at the workplace with provision for drinking water, maintained in a prescribed manner
• first-aid facilities at the workplace as per prescribed standards

Updates on Employees’ Pension Scheme, 1995

New Regulation or Official Guidance

Authors: Nipasha Mahanta, Associate, and Sayantani Saha, Associate – Nishith Desai Associates

On November 4, 2022, the Honorable Supreme Court of India (in the matter Employees Provident Fund Organisation & Anr. etc. v. Sunil Kumar B. and Ors.) upheld rights of eligible members of Employees’ Provident Fund (EPF) to file joint options with Employees’ Provident Fund Organisation (EPFO) for contributing to Employees’ Pension Scheme, 1995 (EPS) on wages exceeding INR 15000 (approx. US$183). Employees can file their joint options until July 11, 2023, on EPFO’s online portal.

On May 4, 2023, the (Indian) Ministry of Labor and Employment announced the employer's contribution rates towards the pension fund to be: 8.33% on wages up to INR 15000; 9.49% on wages above INR 15000 (inclusive of 1.16% administrative charges). These provisions have been made retroactively to September 1, 2014. Additionally, the EPFO issued several clarificatory circulars for higher pension contributions.

Aadhar Seeding of Newly Registered ESIC Members

New Regulation or Official Guidance

Authors: Nipasha Mahanta, Associate, and Sayantani Saha, Associate – Nishith Desai Associates

The (Indian) Ministry of Labor and Employment issued a circular dated January 13, 2023 allowing Employees’ State Insurance Corporation (ESIC) to perform Aadhaar authentication for providing social security benefits as per Employees' State Insurance Act, 1948 (ESI Act). Accordingly, on April 17, 2023, the ESIC issued a notification implementing and outlining the process of seeding Aadhaar details of newly registered employees.

The circular lays down the detailed process that an employer needs to follow to complete the Aadhar seeding of new registrants (earning monthly wages below INR 21000 (approx. US$ 256) who need to be covered under ESI Act as an insured person.

Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023

Proposed Bill or Initiative

Authors: Nipasha Mahanta, Associate, and Sayantani Saha, Associate – Nishith Desai Associates

The state of Rajasthan in India has recently introduced the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023 (RGW Bil”) which is a first of its kind state bill (yet to be enacted as a law) to provide social security benefits to gig and platform workers. The RGW bill envisages the establishment of the Rajasthan Platform-based Gig Workers Welfare Board (the Board) whose primary responsibilities will include:

• registering platform-based workers their aggregators and primary employers
• integrating monetary levies into aggregator operations
• formulating and notifying social security schemes for gig workers from the social security fund
• ensuring accessibility to services provided under the scheme

Penalties for non-compliance with the law (as may be enacted) may include fine of up to INR 1 million (approx. US$12,000) for the initial violation and up to INR 10 million (approx. US$120,000) for subsequent violations by aggregators and in the case of other individuals, including primary employers, penalties of up to INR 1 million (approx. US$12,000) can be imposed.