Employer safeguards in the wake of ‘Loud Quitting’

In the ever-evolving landscape of professional dynamics, a recent trend has emerged where employees have been publicly expressing their dissatisfaction and grievances with their employers after resigning from their jobs, often through social media platforms. This phenomenon has been termed as ‘loud quitting’. This practice marks a stark shift from the previous subtle ways that employees chose to express dissatisfaction about their work environments. Continue Reading Employer safeguards in the wake of ‘Loud Quitting’

POSH Act

Introduction

In its recent judgment in Aureliano Fernandes Vs. State of Goa and Others(Civil Appeal No. 2482 of 2014), the Supreme Court of India (“Supreme Court”) observed that even after a decade of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) being formulated, its implementation and enforcement is still inadequate. To remedy the situation, the Supreme Court issued various directions for effective implementation of the POSH Act. For reference, the POSH Act imposes an obligation on all employers, having 10 (ten) or more workers to set up an internal committee to look into sexual harassment complaints. It also lays down the procedure for conducting an inquiry into the complaints, amongst other things.Continue Reading Supreme Court’s landmark ruling : Directions for effective implementation of the POSH Act

Employee Provident Fund EPF

In its recent judgment in State Bank of India vs Moser Baer Karamchari Union[1], the Apex court has reiterated the settled legal position of law pertaining to treatment of Employees’ provident fund, pension fund and gratuity Fund (“EPF Dues”) under the Insolvency and Bankruptcy Code, 2016 (“Code”). The primary reason for various interpretations of how PF dues are treated under the Code ensues from the overlapping nature of certain provisions within the Code itself, the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) and the Companies Act, 2013. The article traces the judicial trend in treatment of EPF dues under the code and analyses the reasoning put forth by various adjudicating authorities in deciding on the rights of the employees of the corporate debtor.Continue Reading Treatment of Employees Provident Fund Dues under the IBC

Background

The Parliament took 16 years to implement the directions issued by the Supreme Court of India in 1997, in the landmark case of Visakha vs. State of Rajasthan[1] (“Visakha Guidelines”) to enact a law for the prevention of sexual harassment of women at the workplace. The enactment of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“Act”) and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Rules, 2013 (“Rules”) was very late, but better so than never.Continue Reading POSH Act – Implementational Challenges

Moonlighting

Introduction

Moonlighting is the colloquial term used to refer to the practice of employees working a second job, in addition to their primary job. The last few weeks saw myriad news reports on this practice in start-ups and the IT/ITES industry. Most companies have released statements opposing the practice and some have even taken action against moonlighting employees. Some companies have, however, indicated that they are open to allowing employees to moonlight within a defined framework.Continue Reading Moonlighting – Legal Considerations and Contractual Regulation

Legal Framework and Mitigating Risks Associated with Employee Downsizing in India SMM

Over the past couple of months, India Inc. has seen a spurt in employee downsizing, loosely termed as layoff. The impact is felt more prominently in the start-up sector where, in the face of reduced funding, there has been a significant cutback in the number of employees. The downsizing is done in a bid to save costs associated with employee expenses and to increase business profits.
Continue Reading Legal Framework and Mitigating Risks Associated with Employee Downsizing in India

ESOP Has SEBI Put an End to ‘Sell All’ Method of Cashless Exercise

Employee stock options are frequently used as an employee incentivisation and retention tool, given the benefit accrued over time. An ESOP-wrapped compensation is attractive because the gains from the shares acquired on exercise of employee stock options are much higher than the exercise price paid for the options. While the maximum or minimum price payable on exercise of the options is not prescribed by the law – which only lays down the requirement for the price to be accounting-standard compliant –  the price typically ranges from the face value of the share to the fair market value of the share.Continue Reading ESOP: Has SEBI Put an End to ‘Sell All’ Method of Cashless Exercise?

The Curious Case of Co- Lending Model

The Micro Small and Medium Enterprises (MSMEs) sector plays a crucial role in enhancing and ensuring India’s socio-economic development. The sector has gained significant importance due to its contribution to the country’s Gross Domestic Product (GDP) and exports.[1] A survey by International Labour Organisation indicates that MSMEs account for more than 70% of global employment and 50% of GDP[2].Continue Reading The Curious Case of Co- Lending Model

Widened scope of ‘employee under the New SEBI ESOP Regulations

Background:

The Securities and Exchange Board of India had notified the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (“New SEBI ESOP Regulations”), on August 13, 2021. The New SEBI ESOP Regulations govern all share-based employee benefit schemes dealing in securities, including employee stock options, employee share purchase, stock appreciation rights, general employee benefits and retirement benefits (“Share Based Benefit Schemes”). The New SEBI ESOP Regulations also include regulations on sweat equity shares.Continue Reading Widened scope of ‘employee’ under the New SEBI ESOP Regulations

Vocal for Local - Overview of the Haryana State Employment of Local Candidates Act 2020

Introduction

The Haryana State Employment of Local Candidates Bill, 2020 (“Bill”), which was passed by the Legislative Assembly of Haryana on November 5, 2020, received the assent of the Governor of Haryana on February 26, 2021. The Haryana State Employment of Local Candidates Act, 2020 (“Act”), has been published for general information in the extraordinary gazette of Haryana on March 2, 2021, and will come into force, once it is notified by the Government of Haryana (“Haryana Government”). The Act is applicable to (i) all companies, societies, trusts, limited liability partnerships, partnership firms, (ii) persons employing 10 (ten) or more persons and (iii) any entity as may be notified by the Haryana Government and will be operational for a period of 10 (ten) years from the date of its commencement. The Act does not apply to the Central or the State Government or any organisation owned by either of them. The draft rules under the Act are currently awaited.
Continue Reading Vocal for Local: Overview of the Haryana State Employment of Local Candidates Act, 2020