Contract Labour (Regulation and Abolition) (Maharashtra Amendment) Act: Changes & Impact

divyaThe Law and Judiciary Department, Government of Maharashtra vide its notification published in the Maharashtra Government Gazette on 5 January 2017 has made significant amendments in Contract Labour (Regulation and Abolition) Act for the state of  Maharashtra.

Now the said act will be applicable:

  • To every establishment in which 50 (fifty) or more workmen are employed or were employed on any day of the preceding twelve months as contract labour.
  • To every contractor who employs or who employed on any day of the preceding twelve months 50 (fifty) or more workmen.

Prior to the Amendment, the limit for applicability of the said Act in the State was 20 (twenty) or more workmen which was a small number . As we are aware that most of the medium and small enterprises are human intensive hence MSMEs were required to required to comply with more regulations.

Post 5th of January, 2017 business entities employing less than 50 contract labour or contractor employing less than 50 employees during preceding 12 months will be exempted .This will make operations easier for upcoming small scale units. Less number of compliance will lead to less complexity & the same will motivate higher number of start-ups to grow their roots in the state of Maharashtra.

Disclaimer : This is an effort by Lexcomply.com to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts. 

Code of conducts under Insolvency and Bankruptcy Board of India Regulations, 2016

bankruptcyeditInsolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016

The Insolvency and Bankruptcy Board of India has issued the Notification on Insolvency and Bankruptcy Board of India. These Regulations shall come into force on 29thNovember, 2016.

The purpose of the Act is to build up a strong legal system related to the Bankruptcy and Insolvency.
This step opens a new opportunities of practice for professionals in the areas of Corporate and Individual Insolvency, Corporate Liquidation Process. 

Some Code of Conducts to be complied by Insolvency Professionals:

  1. Insolvency professionals must maintain integrity by being honest, straightforward, and forthright in all professional relationships.
  1. Insolvency professionals must not misrepresent any facts or situations and should refrain from being involved in any action that would bring disrepute to the profession.
  1. Insolvency professionals must act with objectivity in his professional dealings by ensuring that his decisions are made without the presence of any bias, conflict of interest, coercion, or undue influence of any party, whether directly connected to the insolvency proceedings or not.
  1. An insolvency professional appointed as an interim resolution professional, resolution professional, liquidator, or bankruptcy trustee should not himself acquire, directly or indirectly, any of the assets of the debtor, nor knowingly permit any relative to do so.
  1. An insolvency professional, or his relative must not accept gifts or hospitality which undermines or affects his independence as insolvency professional.

Know More:- Insolvency and Bankruptcy Board of India Regulations, 2016

Managing Human Resource (HR) Laws Compliance using Technologies

Lexcomply.com enables HR departments to identify, allocate, manage and report statutory compliances. In HR function Statutory Compliances are of immense importance. In India it is not only the Central Government but also the state governments which have enacted various Acts/Laws for welfare of workmen and governing their terms of employment. Some of the labour laws are listed here-under :

1) The Employees Compensation Act, 1923 and The Workmen’s Compensation Rules 1924
2) The Child Labour (Prohibition and Regulation) Act, 1986 and the Child Labour (Prohibition and Regulation) Rules, 1988.
3) The Employees Provident Fund & Miscellaneous Provisions Act, 1952 and Employees’ Provident Funds Scheme, 1952
4) The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952 and The Employee’s Deposit Linked Insurance Scheme, 1976
5) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees’ Pension Scheme, 1995.
6) The Employees’ State Insurance Act, 1948 And The Employees’ State Insurance (Central) Rules, 1950 And The Employees’ State Insurance (General) Regulations, 1950
7) The Employer’s Liability Act, 1938
8) Equal Remuneration Act 1976 and Equal Remuneration Rules, 1976
9) The Payment of Bonus Act, 1965 and Payment of Bonus Rules, 1975
10) The Minimum Wages Act 1948 and The Minimum Wages Central Rules, 1950
11) The Apprentices Act, 1961 & Apprenticeship Rules, 1992
12) The Employment Exchanges (Compulsory Notification Of Vacancies) Act, 1959 and Employment Exchanges (Compulsory Notification Of Vacancies) Rules, 1960
13) The Punjab Labour Welfare Fund Act, 1965 and The Punjab Labour Welfare Fund Rules, 1966
14) Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Act, 1979 and Haryana Inter State Migrant Workmen (Regulation Of Employment & conditions Of service) Rules, 1981
15) The Punjab Shops and Commercial Establishments Act, 1958 and The Punjab Shops and Commercial Establishments Rules, 1958
16) Payment of Gratuity Act, 1972 and Haryana Payment of Gratuity Rules,1972
17) Payment of Wages Act, 1936, Payment of wages (Haryana Amendment) Act, 1985 and The Punjab Payment of Wages) Rules, 1937
18) The Minimum Wages Act 1948 and & The Punjab Minimum Wages Rules 1950
19) Contract Labour (Regulation And Abolition) Act, 1970 and Haryana Contract Labour (Regulation And Abolition) Rules, 1975
20) The Factories Act & Haryana Factory Rules

And these laws are dynamic and are changing on day to day basis. Non compliances may result in monetary penalty; closure of business operations or imprisonment. So e-HRM(Compliance) tools like LexComply.com generates due date, event based and ongoing compliances on its own hence chances of non-compliance go down.

Hence HR function can use e-HRM solutions to de-risk an organization from negative impact arising out of exit of key employees, high employee turnover and impact of regulatory non compliances.

For more details and demo please contact at info@lexcomply.com or visit at http://www.lexcomply.com

Provisions under Companies Act, 2013

Various Committees and provisions under Companies Act, 2013

 

  1. CSR Committee (Section 135 of Companies Act 2013)

Every company having the following criteria shall contribute in every financial year, at least two per cent. Of the average net profits of the company made during the three immediately preceding financial years

Net Worth: Rs. 500 Crores     Turnover: Rs. 1000 Crores          Profits: Rs. 5 Crores

  1. Audit Committee (Section 177 of Companies Act 2013)

Every public company having the following criteria shall constitute an audit committee .The paid up share capital or turnover or outstanding loans, or borrowings or debentures or deposits, as the case may be, as existing on the date of last audited Financial Statements shall be taken into account for the purpose

Paid up Capital: Rs. 10 Crores   Turnover: Rs. 100 Crores       O/s Loans: Rs. 50 Crores

  1. Nomination and Remuneration Committee (Section 177 of Companies Act 2013)

The Board of Directors of every listed company and the companies under following criteria shall constitute the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half shall be independent directors

Paid up Capital: Rs. 100 Crores             O/s Loans: Rs.50 Crores

  1. Vigil Mechanism (Section 177 of Companies Act 2013) Every listed company or following class of companies, shall establish a vigil mechanism for directors and employees to report genuine concerns

 O/s Loans: Rs. 50 Crores

  1. CARO (Companies Auditor Report Order, 2016)

It shall apply to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 (18 of 2013 except– 1. Insurance Companies 2. Banking Companies 3. Section -8 Companies  4. One Person Company and a Small Company   5. Private Company not being a holding or a subsidiary company of a public company having the Following criteria during the Financial Year as per the Financial Statements:

Paid up Capital: Rs.1 Crore     Borrowings: Rs.1 crore           Profit: Rs. 10 Crores

  1. XBRL (Extensible Business Reporting language)

The companies following under following criteria are required to file their financial statements using XBRL Mode and the companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or (r (i)all companies who were required to file their financial statements for FY 2010-11. However, banking companies, insurance companies, power companies and Non-Banking Financial Companies (NBFCs) are exempted.

Paid up Capital: Rs.5 Crores           Turnover: Rs. 100 Crores                     

  1. MGT-8 (Section 92(2) of Companies Act 2013)

Applicable for Listed Companies and the Companies under the following criteria

Paid up Capital: Rs. 10 Crores        Turnover: Rs. 50 Crores                     

  1. Internal Audit (Section 138 of Companies Act 2013)

Every listed company:      Always applicable

In the case of Unlisted Public companies, the following criteria should be fulfilled

 Paid up Capital: Rs. 50 Crores    Turnover: Rs. 200 Crores    O/s Loans: Rs. 100 Crores 

 O/s Deposits: Rs. 25 Crores

In the case of Private companies, the following criteria should be fulfilled

 Turnover: Rs.200 Crore               O/s Loans: Rs. 100 Crore

  1. Women Director (Section 149 of Companies Act 2013)

Every listed Company:    Always applicable

Every other public Company, the following criteria should be fulfilled

Paid up Capital: Rs. 100 Crores         Turnover: Rs. 300 Crores                  

How to Deal With Sexual Harassment at Work Place?

7 things you can do to handle a case of sexual harassment at the workplace

harrassementHandling sexual harassment at the workplace can be tricky business. At stake is not just the morale and the productivity of employees, but also the very reputation and growth of the company. Here are some things you should consider as an employer.

1. Assess the Complaint: Insist on a written complaint. Where the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or any person on her behalf may make the complaint.

2. Reconciliation: If there is a miscommunication or the matter is of trivial nature, the mater should first be tried to be resolved with reconciliation.

3. Form an Internal Committee as soon as you can: Assess the date of incident and in case of a series of incidents, within a period of three months from the date of last incident. During the pendency of an inquiry, on a written request made by the aggrieved woman, the Internal Committee may recommend to the employer to –

(a) transfer the aggrieved woman or the respondent to any other workplace; or
(b) grant leave to the aggrieved woman up to a period of three months: or
(c) grant such other relief to the aggrieved woman as may be prescribed.
(d) the leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled.

These recommendations shall be implemented by you as an employer.

4. Assess the defense of the accused person, statement of witness, camera recordings, call records if relevant. It must be ascertained whether or not the allegations are made to settle personal grudges.

5. If Respondent is found Guilty: Take action in accordance with the provisions of the service rules applicable. Where no such rules have been made, salary shall be deducted as appropriate to be paid to aggrieved or her legal heirs within 60 days. Such misconduct can also be considered a violation of service norms of company/workplace.

6. Punishment for false or malicious complaint and false evidence

Where the Internal Committee arrives at a conclusion that the allegation against the respondent is malicious, the aggrieved woman or any other person making the complaint has made the complaint knowing it to be false or the aggrieved woman or any other person making the complaint has produced any forged or misleading document, it may recommend to the employer or the District Officer, as the case may be, to take action against the woman or the person who has made the complaint.

7. An additional complaint can also me made Under section 354/376 IPC and all above proceedings shall not made public.

500 & 1000 Rupee currency banned: An initiative for a glorious future

ban

With the announcement of the Hon’ble Prime Minister banning Indian Currency of Rs. 500 & Rs. 1000, the Voluntary Disclosure of Income Scheme, gold monetization scheme, opening of bank accounts, etc. everything seems to have fallen in place. This proves that it is not just an impromptu decision taken by the government, It was a move planned long back and all the steps taken till now were just a facilitator of this final step.

This step will prove to be a major blow to:

  • Black Marketers
  • Terrorists & Anti National Activities
  • Fake Currency Markets
  • Real Estate

How will this step benefit India and its nationals?

  1. Arms smuggling, undercover activities and terrorist related activities will be Paralyzed due to lack of funding. This is most important advantage to the country.
  2. It will help the government to fight Black money, corruption, terrorism and counterfeit currency with one single decision.
  3. Rupee will strengthen over-time as Inflation will go down which will benefit poor and middle class people.
  4. Investments in gold and jewelries will increase, eventually increasing investment in the government’s gold monetization scheme.
  5. Rise in plastic money like debit card, credit card, online transactions.
  6. All cash whether in a normal household, reported, un-reported will come on records.

Although this move will hamper normal day to day routine activities for a few days, creating havoc and panic in the nation, but very soon, it will prove to be a clear win-win situation for a common man, who was till now suffering the negatives impacts of the parallel economy. As a responsible citizen the need of the hour is to extend full support to this initiative and help achieve the benefits of this move and ultimately contribute towards India becoming a paperless economy.

Ban on Indian Currency of larger denomination – A Checkmate move

ban

On the eve of 08th November, 2016 when half of the nation was busy watching saas-bahu stereotypes, and the other half in witnessing the fate of United States of America, our Hon’ble Prime Minister along with Reserve Bank of India had all their moves ready to make a landmark and everlasting impact in the history of India. When his sudden address to nation was announced at 7.45 P.M., everyone thought it to be yet another statement against Terrorism or Pakistan, but no one had ever imagined, that history would be made.

Just one statement “500 & 1000 rupee note will not be a legal tender from midnight of 08th November, 2016” and it was a checkmate situation for corruption, black marketer and terrorism. It was one of the biggest, stringent, planned and secretive move ever taken in the history of Republic of India by any ruling party. With the banks closed for public on 09th November, 2016 and ATM closed for 09th & 10th, India hopefully is all set to awaken to a new era free of deep rooted black marketing and corruption.

The major highlights of Hon’ble Prime Minister’s Speech are

  • From midnight of 08th November, notes of Rs 500 and Rs 1000 will cease to be legal tender.
  • Reserve Bank of India would soon release and circulate new notes of Rs 500 and Rs 2,000.
  • All banks to remain closed on November 9 for public work.
  • ATMs will not function on November 9, and on November 10 in some places.
  • For 72 hours, until the midnight of November 11, government hospitals, government-authorised consumer stores like milk booths and ticketing counters, will continue to accept the old Rs 1000 and 500 notes.
  • Citizens will have 50 days, from November 10 to December 30, to deposit/exchange old Rs 1000 and 500 at post offices and banks.
  • Those unable to submit all their old currency notes within the deadline, will be able to do so at the Reserve Bank of India up till March 31, 2017 by providing a declaration.
  • No limit on Deposit of amounts in bank accounts.
  • Withdrawals from bank accounts limited to Rs 10,000 a day and Rs 20,000 a week
  • Exchange limit has been capped at Rs 4,000 till November 24 on production of a valid Government identity card, like PAN, Aadhaar and Election Card
  • Withdrawals from ATM capped at Rs. 2,000 per day till 19th November & to Rs. 4,000 after 19th November.