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Haryana: New Conditions of Engagement of Female Employees in Night Shifts

New Regulation or Official Guidance

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

The Haryana state government (Gurgaon) previously permitted certain commercial establishments such as IT/ ITeS establishments, hotels, logistics, warehousing and 100% export-based establishments to obtain exemption under the Punjab Shops and Commercial Establishments Act, 1958 to engage women employees in “night shifts” subject to certain conditions. On February 21, 2023, the Haryana state government issued a new notification, superseding its previous directions on the topic. This notice specifies the requirements for obtaining an exemption as a commercial establishment seeking to engage women employees at night between 8 p.m. and 6 a.m.

Besides health and safety related compliance requirements and compliance with all other applicable laws, the notification provides for special conditions of engaging women employees in night shift. This includes requiring employers to apply for an exemption at least a month in advance of exemption period, obtain prior written consent of women employees for their engagement in night shifts, comply with Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH Act) and amend company policies to accommodate the requirements under the PoSH Act, provide transportation equipped with CCTV cameras to female employees engaged in night shifts to and from their residences, ensure canteen and employee strength related compliances applicable to certain establishments, and provide of adequate medical facilities. The notification further requires employers to ensure female employees working in night shifts have regular meetings with the employer through their representatives. Employers are required to include details of employees engaged in night shifts in their annual report to be submitted to Haryana labour authorities.

Employees’ State Insurance Corporation (ESIC) to Conduct Suo-Moto Aadhar Authentication

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 notification dated January 13, 2023, which permits Employees’ State Insurance Corporation (ESIC) to perform Aadhar (Indian social security details) authentication on its own. The ESIC administers medical and certain other cash benefits to qualifying insured persons (employees in establishments having employed at least ten employees, earning monthly salaries up to INR 21000 i.e. approx. USD 260) under the Employees’ State Insurance Act, 1948.

The ESIC has, in the past, required employers to verify the Aadhar details of their employees in order to provide applicable benefits. With the recent notification, the ESIC will be able to verify the details on its own with inputs from the beneficiary directly. ESIC must comply with the applicable laws of the Unique Identification Authority of India (UIDAI) when verifying an individual’s information.

Karnataka: Bill Proposes to Amend the Working Hours of State Factory Workers

Proposed Bill or Initiative

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

The Karnataka State legislature has passed the Factories (Karnataka Amendment) Bill 2023 (Bill). The bill proposes to amend the Factories Act 1948 as it applies to the state of Karnataka to enable longer daily working periods in factories. The bill proposes an increase in daily working hour limit for Karnataka factory workers from nine hours to 12 hours.

Further, the bill proposes a revised requirement to provide all factory workers rest interval after six hours of continuous work as opposed to the current requirement to provide rest interval after five hours of continuous work. The bill also proposes to amend the overtime pay requirements, allowing employers to require employees to work more hours daily, without triggering overtime payments. The bill is currently pending the assent of the Governor of Karnataka for its enactment.

EPFO Allows Eligible Employees to Apply for Higher Contribution to Pension Fund Until May 3, 2023

New Regulation or Official Guidance

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

The Employees’ Provident Fund Organization issued circulars, dated January 25, 2023, and February 20, 2023, to its regional offices with instructions on how to comply with the the Indian Supreme Court judgment on higher pension. The judgment permitted employees to opt for higher pension fund contributions in accordance with the Employees’ Pension Scheme, 1995 (EPS) on wages exceeding the wage ceiling of INR 5000/ 6500/ 15000, as applicable.

The circulars provide guidance on conditions for employees to opt for higher contributions or opt out. Eligible employees will need to exercise their option to make higher contributions to the EPS before May 3, 2023, in a manner prescribed on EPFO portal.

Mumbai Municipal Bodies to Enforce Requirement to Display Name Board in Marathi Language

New Regulation or Official Guidance

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

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (MSEA) requires all commercial establishments in Maharashtra to display their name board in Marathi language in a prescribed manner. While the requirement was introduced through an amendment to MSEA, the Maharashtra state government has issued a notification dated February 24, 2023, empowering relevant municipal and local authorities in Maharashtra to enforce this requirement with respect to commercial establishments in their jurisdictions.

The relevant local authorities are able to exercise their powers of enforcement effective February 22, 2023.