Littler Global Guide - India - Q3 2017

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

View all Q3 2017 Global Guide Quarterly updates

Compliance Required Under New “Rights of Persons with Disabilities Rules”

New Legislation Enacted

Author: Manishi Pathak, Partner — Cyril Amarchand Mangaldas

In June 2017, the “Rights of Persons with Disabilities Rules” became effective, implementing the “Rights of Persons with Disabilities Act, 2017.” The Act encourages private establishments to employ at least 5% of their workforce with benchmark disabilities. Under the Rules, private establishments must (1) display their equal opportunity policy either on the company’s website or at a conspicuous place of the establishment; and (2) provide additional facilities to the disabled (such as training facilities, assistive devices and barrier free accessibility). If employing 20 or more employees, employers must (1) appoint a liaison officer to oversee the recruitment of disabled persons; (2) make the necessary provisions and facilities for such employees; and (3) maintain detailed record of the disabled persons employed at the establishment.

Key Amendments Under the Employee Compensation Act

New Legislation Enacted

Author: Manishi Pathak, Partner — Cyril Amarchand Mangaldas

The Employee Compensation (Amendment) Act, 2017 (EC Act) recently came into force bringing about key changes, including that at the time of hire, employers must inform employees of their right to receive compensation under the EC Act. Such information must be furnished in writing and electronically, in English, Hindi or the relevant official language of the area where the employee is employed. Failure to comply with this requirement is punishable by a fine. Additionally, the threshold to appeal orders of the Commissioner was increased from Rs. 300 to Rs. 10,000.

Crèche Facility Requirement Is Now in Effect

New Legislation Enacted

Author: Manishi Pathak, Partner — Cyril Amarchand Mangaldas

On July 1, 2017, key provisions under the Maternity Benefit Amendment Act came into effect. Under the “crèche facilities” requirement, every establishment having 50 or more employees must provide a crèche facility either individually or as a shared common facility, which women employees must be allowed to visit four times daily. Other provisions now in effect increased the period of paid maternity leave (for women who have less than two surviving children); extended the benefit to adopting or commissioning mothers; and introduced the “work from home” benefit, available under some circumstances.

Wage Limit Increased and Changes Concerning Employer Contributions

New Legislation Enacted

Author: Manishi Pathak, Partner — Cyril Amarchand Mangaldas

The wage limit for employees covered under the Payment of Wages Act, 1936, was raised from Rs. 18,000 to Rs. 24,000 (approximately from $281 to $375 U.S. dollars). Also, as of July 1, 2017, the date on which employers must make their contribution under the Employees’ State Insurance (General) law is the 15th day of every month (and no longer the 21st day of the month).

Right to Privacy Declared as a Constitutional Right

Precedential Decision by Judiciary or Regulatory Agency

Author: Manishi Pathak, Partner — Cyril Amarchand Mangaldas

The Supreme Court of India recently affirmed that the right to privacy is a fundamental right, which shall be protected from the interference of State or non-State actors. The right is not absolute and is subject to permissible restrictions by law. To be legal, any restriction invading or encroaching ‘personal liberty’ must meet the three-fold requirement, i.e., (i) legality, which postulates the existence of law; (ii) need, defined in terms of a legitimate state aim; and (iii) proportionality, which ensures a rational nexus between the objects and the means adopted to achieve them.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.