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Partner in the General Corporate Practice at the Bangalore Office of Cyril Amarchand Mangaldas. Rashmi advises both domestic and international clients on legal aspects of their business strategy in India, including on various commercial arrangements, entry strategy, private equity, mergers, acquisitions, restructuring, foreign investment and employment matters. Chambers Asia Pacific, 2017 has mentioned her as a ‘Recognised Practitioner’ for Employment. She can be reached at rashmi.pradeep@cyrilshroff.com

Does the relaxation on PF contribution rates really benefit employers

As part of the ‘Atmanirbhar Bharat’ (Self-Reliant India) campaign, which is the Central Government’s initiative in its war against the Covid-19 pandemic, the Ministry of Labour and Employment (“EPF Amendment”) through a notification dated May 18, 2020, has introduced an amendment to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”).

The EPF Act is the key social security legislation in India, under which both the employer and employee are required to contribute a certain percentage of the employees’ salary to the Employees’ Provident Fund Organisation (“EPFO”) (or to a trust in case of exempted establishments). Pursuant to the EPF Amendment, read with the FAQs dated May 20, 2020 issued by the EPFO (“FAQs”)[1], the statutory rate of provident fund (“PF”) contributions under the EPF Act, for both employers and employees, has been reduced from the existing 12 percent to 10 percent, for the months of May, June and July, 2020. The EPF Amendment is applicable to all establishments except: (i) Central/State Public Sector Enterprises; (ii) establishments owned or controlled by the Government; and (iii) establishments covered under the Pradhan Mantri Garib Kalyan Yojana (for whom the Central Government is already contributing both the employer’s and employee’s share – at the rate of 12percent – for the period from March to August 2020). The EPF Amendment is expected to benefit more than 40 million members of the EPFO and more than half a million establishments.
Continue Reading Reduction in the rate of PF contributions: Some practical considerations

KARNATAKA-GOVERNMENT’S-LEGISLATIVE-ATTEMPT-TO-TACKLE-COVID-19-OUTBREAK

The Karnataka Government is reported to have notified the Karnataka Epidemic Diseases, COVID-19 Regulations, 2020 (“COVID Regulations”), on March 11, 2020, late evening, as an attempt to contain the outbreak and spread of coronavirus, COVID-19, which was incidentally declared as a ‘pandemic’ by the World Health Organisation the same day. Issued with immediate effect and for a period of 1 (one) year from its notification, the COVID Regulations empower the district administration to put in place containment measures and also ensure the public takes special measures to prevent the outbreak and spread of the potentially fatal disease, as fears around its ramifications have reached a feverish high worldwide.


Continue Reading Karnataka Government’s Legislative Attempt To Tackle Covid-19 Outbreak

 Indian Labour Laws Recap 2019 and Outlook 2020

The year 2019 can be said to be a watershed year in relation to the employment law regime in India. The Indian government took various steps to simplify and streamline the dated employment legislations, veritably in a bid to rise up in the index of Ease of Doing Business in India. The courts in India too played their part in interpretation of the existing legal regime. Here, we not only look at some of the key, impactful developments, but also look forward to what 2020 may have in store for India Inc., in relation to the same:
Continue Reading Recap of Key Labour Law Developments of 2019 & Looking Forward to 2020

The Karnataka Maternity Benefit (Amendment) Rules, 2019

The Maternity Benefit Act, 1961 (the Act) was introduced to regulate the maternity and related benefits that are extended to women in certain establishments for a period before and after childbirth.

In 2017, by way of the Maternity Benefit (Amendment) Act, 2017 (Amendment Act), various progressive changes were brought about to the law, such as an increase in maternity leave from 12 to 26 weeks, provision for maternity leave for adopting mothers and commissioning mothers, and the introduction of a work-from-home concept as part of an employee’s conditions of service.

Section 11A of the Act, which was introduced under the Amendment Act, made it compulsory for every establishment employing 50 or more employees to provide a crèche facility for its employees. The Amendment Act uses the term “employees” and not “women” thus leading to varied interpretations – for example, does “employees” include employees of all genders and does the Act apply to both permanent as well as contract employees?
Continue Reading The Karnataka Maternity Benefit (Amendment) Rules, 2019: Good Intentions But Can It Be Implemented?

Sec 377 LGBT Employment in India

The Supreme Court of India has held Section 377 of the Indian Penal Code, 1860 (IPC) to be unconstitutional, in so far as it penalises any consensual sexual relationship between two adults, be it homosexuals, heterosexuals or lesbians (Navtej Singh Johar v. Union of India and Ors. (2018) (Johar Judgment). By way of this landmark judgment, the Supreme Court has overruled its earlier decision in Suresh Kumar Koushal v. Naz Foundation (2013), whereby, the validity of Section 377 of the IPC had been upheld.
Continue Reading What Does the Section 377 Judgment Mean for a Modern Day Employer?