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

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Haryana Law Reserving Certain Vacancies for Local Candidates, Declared Unconstitutional

Precedential Decision by Judiciary or Regulatory Agency

Authors: Vikram Shroff, Partner and Head of Employment, and Nipasha Mahanta, Associate – Nishith Desai Associates

The Punjab & Haryana High Court declared the Haryana State Employment of Local Candidates Act, 2020 (HSELC Act), which reserved 75% of certain vacancies for local candidates, unconstitutional.

In its judgment in IMT Industrial Association and Another v. State of Haryana and Another (MANU/PH/2939/2023) dated November 17, 2023, the court found that limiting employers’ discretion to choose their workforce based on their residence undermined the value of “India as a Nation” and concluded that the powers of the state legislature cannot be detrimental to the national interest and impose an unreasonable restriction on an individual’s right of free movement throughout India in violation of the Constitution. Consequently, employers no longer need to employ only locally domiciled candidates in the state.

The Supreme Court of India Holds that Maternity Benefits Can Be Extended Beyond Contractual Term

Precedential Decision by Judiciary or Regulatory Agency

Authors: Vikram Shroff, Partner and Head of Employment, and Nipasha Mahanta, Associate – Nishith Desai Associates

The Supreme Court has opined that maternity benefits can extend beyond the contractual period for employees on a fixed-term contract. The employee in the case challenged the company’s action to cut off her maternity leave when her employment contract ended.

On appeal, the Supreme Court ruled that section 12(2(a) of the Maternity Benefit Act, 1961 (MBA) “contemplates entitlement to the benefits under the 1961 Act even for an employee who is dismissed or discharged at any time during her pregnancy if the woman, but for such discharge or dismissal, would have been entitled to maternity benefits or medical bonus. Thus, continuation of maternity benefits is built in the statute itself, where the benefits would survive and continue despite the cessation of employment.” The court further held that eligibility for maternity benefits is based on the fulfilment of the conditions specified in section 5(2) of the MBA and therefore, such benefits can extend beyond the term of employment and is not co-terminus with the employment tenure.

Central Government Allows “Hybrid Working” for SEZ Employees until December 2024

New Regulation or Official Guidance

Authors: Vikram Shroff, Partner and Head of Employment, and Nipasha Mahanta, Associate – Nishith Desai Associates

New Special Economic Zone (SEZ) rules allow specified employees, particularly those in IT services, or who are temporarily incapacitated, travelling, or working offsite, to engage in hybrid work from any location outside the SEZs until December 31, 2024, based on their needs and subject to the satisfaction of certain conditions.

Among other things, employers must inform the district commissioner of implementation of the hybrid work model.

Telangana State Exempts IT/ITeS Employers from Certain Provisions of Shops and Establishments Law

New Regulation or Official Guidance

Authors: Vikram Shroff, Partner and Head of Employment, and Nipasha Mahanta, Associate – Nishith Desai Associates

Amendments to the Telangana Shops and Establishments Act, 1988 (TSEA) exempts IT employers from certain provisions relating to opening and closing hours, daily and weekly working hours, and the prohibition on engaging female employees at night and on holidays, subject to these conditions:

• A weekly cap of 48 work hours, beyond which overtime must be paid;
• Weekly days off;
• Adequate security for women employees on night shifts, including transportation between the office and their residences, pre-employment screening and bio-data collection of drivers, formally approved schedules for pick up and drop off routes, protection of personal information, security guards for night shift vehicles, control room/ travel desk monitoring of vehicle movements;
• Compensatory paid time off for employees working on holidays;
• Employers to maintain integrated register in soft copies (if various statutory registers are not being maintained in hard copies) as per the Government’s notification.