Inspecting Landslide Modifications To New Labour Legal guidelines – Newest Guidelines On Employee’s Compensation – Employment and HR

India:

Examination of landslide changes to new labor laws – Latest regulations on employee remuneration

17th August 2021

King, Stubb & Kasiva

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The Social Security Code 2020 (hereinafter referred to as “SS code, 2020“) was passed in Parliament in September 2020, but implementation was postponed due to the non-issuance of notices by the Länder. The SS Code 2020 aims to merge eight existing labor laws, including the Employee Compensation Act 1923, the Employee State Insurance Act, 1948, Employee’s Provident Funds and Miscellaneous Provisions Act, 1952, Maternity Benefit Act, 1961, Payment of Gratuity Act, 1972, and Unorganized Worker Social Security Act, 2008. In addition, the central government approved the draft workers’ compensation scheme under the Social Security Code, 2020.

The primary goal of the amended SS Code 2020 is to extend social security to workers and workers in both organized and unorganized sectors. The draft Workers’ Compensation Scheme announced by the central government explicitly contains provisions on the manner of filing claims or settlements, the interest rate for late payment of the compensation, the place of jurisdiction and the transfer of matters, the notification and method of transferring money from a competent authority another and agreements with other countries on the transfer of funds paid as compensation.

Proposals for the new remuneration rules

The Employee Compensation Rules, 2021, replace the following rules regarding employee compensation:

1. Compensation Rules for Employees, 1924.
2. Employee Compensation (Cash Transfer) Regulations, 1935.
3. Regulations on employee remuneration (place of negotiation), 1996.

The following suggestions were made about the new draft SS Code 2020:

1. The employee should be paid simple interest of 12 percent on compensation that is delayed by the employer by more than 30 days.
2. If the compensation amount to be paid in accordance with Section 77 (3) is not paid by the employer within thirty days, the employer pays a simple interest rate of twelve percent per year or another rate from the day the compensation is due until the day it is paid interest rate currently announced by the central government.
3. According to Section 76 of the SS Act 2020, the compensation in the event of death due to injury should be 50% of the monthly wage of the deceased employee multiplied by the “relevant factor” communicated by the central government. In the event of permanent total incapacity for work due to the injury, an amount equal to 60 percent of the injured worker’s monthly wage multiplied by the “relevant factor” or an amount which may be disclosed by the central government from time to time should be paid.
4. These rules suggest that the money transferred from one competent authority to another pursuant to Section 92 subsection (3) should be made through a transfer slip, electronic transfer, net banking or direct debit, such as the competent authority, who sent the money, direct.
5. The new regulation also provides for the agreements with foreign states on the transfer of equalization funds in accordance with Section 159 of the SS Act 2020 to come into force. The transfer can be deducted from the amount transferred. Money transferred from one authority in India to another authority in India in accordance with these rules must be sent by wire transfer receipt or postal order.
6. The draft regulation also provides that the competent authority can order if all or part of a lump sum deposited with a competent authority for payment as compensation under the Code is paid to one or more persons who live or will live in another country the transfer of the amount to be paid in this way to this country.
7. The rules also suggest the form and manner in which a petition for action or settlement is filed under Section 93 of the Code. It provides that any application pursuant to Section 93 can be sent by registered mail or electronically to the competent authority or submitted to it or a subordinate authorized by them on that behalf and, if this is transmitted or submitted, (unless the competent authority otherwise arranged) must be submitted in Form A, if available, in duplicate and signed by the applicant. The application must also be accompanied by the form B certificate and all documents relating to the compensation.

Registered changes

• A centralized and uniform regulation for the assertion of compensation according to the SS Code 2020 was bought.
• The concept of electronic transfer was introduced to transfer money.
• The concept of money transfers in connection with agreements with foreign states was introduced.
• The provision of simple interest was included in the regulation, according to which any employer who does not pay the employee the compensation for less than 30 days, the compensation together with 12% interest per annum. have to pay
• The proposed rule has also increased the amount of compensation in the event of death or permanent disability of the employee.

graduation

The proposed compensation scheme for workers under the SS Code 2020 has broadened the scope of labor law to include the unorganized sector, contract staff, etc. The new regulations attempt to solve the difficulties encountered by employees in claiming remuneration. This is a big step that protects employees from exploitation. It will also place the primary responsibility on employers in providing timely compensation to their workers. The regulations also focused on improving the technological interface that should facilitate the process of assisting workers. The SS Code 2020 has empowered the central government to provide social security benefits by setting clearer systems and rules employers’ claims to their respective employees.

Taking into account the broad scope that the Code will cover once it is consistently in force, it can be concluded that the Code can prove to be very beneficial to various bodies1. The existing labor laws were not as detailed, and given the pace in our country, an updated labor law is the order of the day today.

footnote

1 Priyadarshini Maji, New Labor Codes: How Will They Impact Social Security, Take Home Salary, FINANCIAL EXPRESS, last accessed 07/15/2021

The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.

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