Sub: Unlock 4 (plan) to re-open more activities in non containment zones amid the Covid -19 Pandemic.

The Ministry of Home Affairs had issued fresh guidelines on 29-8-2020 (Attached) under its Unlock 4 plan to re-open more activities in areas outside containment zones amid the Covid -19 Pandemic and extend the lock-down in the containment zones upto 30-9-2020 .The guidelines will come into effect from 1 September , 2020.

Earlier relaxed norms for Commercial Establishments will continue (Refer page 5 of MHA Notification ) –Continuation of earlier directives for Workplaces:

1. Work from home (WfH): As far as possible the practice of Work from Home should be followed.

2. Staggering of work/ business hours will be followed in offices, workplaces, shops, markets, and industrial and commercial establishments.

3. Screening & hygiene: Provision for thermal scanning, hand wash, and sanitizer will be made at all entry and exit points and common areas.

4. Frequent sanitization of the entire workplace, common facilities, and all points which come into human contact e.g. door handles etc., will be ensured, including between shifts.

5. Social distancing: All persons in charge of workplaces will ensure the adequate distance between workers, adequate gaps between shifts, staggering the lunch breaks of staff, etc

V.Sounder Rajan

Advocate & Employment Law Consultant

From India, Chennai
Attached Files (Download Requires Membership)
File Type: pdf MHA Order and Guidelines for Phased Re-opening (Unlovk 4) 29.8.2020.pdf (6.76 MB, 8 views)

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  • Deprived Workers Of Their Dues: Karnataka High Court Directs Mysore Electrical To Reinstate Employees Unilaterally Shifted To Contractual Engagement - The finding of the labor Court regarding the alleged transaction being a sham and camouflage has already been upheld in response to point No. 1 above. Once this Court determines that the agreement is sham and camouflage, the workers cannot be denied their rightful benefits. In the present case, there is no agreement at all; it is merely a contention by the employer. The said contention is also sham and is meant to conceal the employer's liability to pay the due amounts to the workers. The Hon'ble Apex Court in SAIL's case has held that if a contract is found to be not genuine but mere camouflage, the so-called laborers will have to be treated as employees of the principal employer. The principal employer shall be directed to regularize the services of the contract labor in the establishment concerned, subject to there being a vacancy. If there is no vacancy and the principal employer intends to employ regular workers, preference should be given to the former contract laborers, if found suitable. If necessary, the conditions such as maximum age and academic qualifications, other than technical qualifications, may be relaxed appropriately, considering the age of the worker at the time of their initial employment by the contractor.

    - vsrlaw

    From India, Chennai
    Attached Files (Download Requires Membership)
    File Type: pdf The_Mysore_Electrical_Industries_vs_Engineering_General_Workers_on_23_February_2023.PDF (261.5 KB, 5 views)

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  • Information on the recent ruling of the Supreme Court in the matter of Neetu Singh vs. Union of India and others, extending the MB to contractual employees beyond the contractual period. This judgment has great ramifications in the contractual staffing industry and more particularly to IT staffing. The gist of the judgment is that the Supreme Court of India ruled that maternity benefits have to be granted even if the period of benefit overshoots the term of contractual employment. The court held that maternity benefits can travel beyond the term of contractual employment and are not co-terminus with the employment period. The court also observed that the Maternity Benefits Act, 1961, overrides other laws and agreements that may restrict the entitlement of maternity benefits. The court directed the employer to pay maternity benefits as would have been available in terms of Sections 5 and 8 of the Maternity Benefits Act, 1961, and payment to be made within 3 months. The court was hearing an appeal against a Delhi High Court ruling that had restricted maternity benefits to a mere 11-day period, citing the expiration of a contractual agreement. You can read more about the judgment from the link.

    Accordingly, all Contract Staffing Companies need to prepare a communication mail to their Clients, citing the judgment as overriding the contractual terms between the Client and the Contract Staffing Company.

    Regards,

    V. Sounder Rajan
    Advocate
    Chennai

    From India, Chennai
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  • Sub: Key Ruling on Contract Workers Regularisation - Madras High Court's Landmark Ruling on 18-3-2025

    The Madras High Court's recent ruling is not just a significant development but a crucial one that may impact contract workers in undertakings. The court has held that contract laborers must be granted permanent status if they have completed 480 days of service within two years. This judgment, delivered by Justice D. Bharatha Chakravarthy, dismisses appeals by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), formerly TANGEDCO. The ruling, which will have a chain-reaction effect in the Contract Staffing Industry, is a key piece of information for all professionals in the field.

    Key Takeaways from the Verdict:
    - Workers' Status: Contract laborers completing 480 days within two years are entitled to permanent employee status under the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981.
    - Dismissal of Appeals: The Court dismissed TNPDCL’s appeal against the Assistant Commissioner of Labour's (Enforcement) decision favoring the workers, given on 28 April 2023.
    - Validity of Evidence: Workers provided valid service documentation, while the Management failed to counter these claims with evidence.
    - Employer-Employee Relationship: The ruling rejected the argument that contracting out work negates employer obligations, affirming the workers’ rights. Contracting out means bringing in a Contractor as an intermediary to avoid permanency claims from the workers.

    Implications:
    - Urgent Implications: Workers must be absorbed within 12 weeks of the ruling, maintaining continuity of service without back wages. This timeline underscores the need for immediate action.
    - Deceased Workers and Retirement: Legal heirs of deceased workers will receive terminal benefits, and retirement benefits will be granted to eligible workers.

    Context of the Case:
    The management’s attempt to disqualify workers based on contractor transfer or lack of inclusion under the Industrial Disputes Act of 1947 failed in court. Justice Chakravarthy’s judgment reinforces that transferring workers to contractors cannot undermine their rights. The ruling cites a Supreme Court precedent affirming worker protections under the 1981 Act.

    The Specialty of the Act:
    Tamil Nadu, an advanced State for improving employee rights, enacted the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981, a special Act. The other States have no such enactment and are regulated by the I.D. Act and the SAIL Judgment of the Supreme Court. Another State has a similar Act, replicating the Tamil Nadu Act in Assam, namely the Assam Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1985.

    Legal Eagle Takeaway:
    When transitioning employees from contract roles to contractor roles, Contract Staffing Companies must seek proper legal advice. This proactive step can help avoid claims and mitigate the risks of permanent placement.

    Best regards,
    V. Sounder Rajan
    Employment Law Counsel for the Recruiting and Contract Staffing Industry (IT and Non-IT)
    Mob: 98401-42164

    From India, Chennai
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  • March 25, 2025

    Subject: Misappropriation & Termination in Temp/FTE Roles

    Handling misappropriation in temporary or FTE roles requires a structured approach to balance due process with employer protection. Here’s a framework for compliant severance & reduced legal risks:

    1. Investigation:
    * Internal audit for suspected misappropriation; gather evidence.
    * Suspend system access.
    2. Disciplinary Action:
    * Issue suspension, then show cause notice.
    * Impartial inquiry (ideally by external expert).
    * Proven misappropriation: termination, recovery via deductions/legal action, police report (serious fraud).
    3. Severance:
    * Temps usually lack severance unless contracted.
    * Misconduct dismissal negates severance.
    * Termination letter citing findings/legal justification.
    * ADR (arbitration/mediation) for disputes.
    4. Legal Compliance:
    * Comply with labor laws (Industrial Disputes Act, State Shops & Establishments Act).
    * Assess contract terms to avoid wrongful termination.
    * FTE contracts: follow contractual terms.
    * Client-deputed employees: unified disciplinary process.
    5. Client Consent (Crucial):
    * Audit Approval: Client approves methodology & auditor. Reviews findings pre-action.
    * Suspension/Notice: Client approves suspension, especially if employee manages client funds. Show cause notice aligns with client concerns.
    * Termination: Client consent critical to avoid legal issues due to their obligations.
    * Confidentiality: Protect client data; NDA reaffirmation required post-termination. Consent needed for disclosure.
    * Fund Recovery: Client defines recovery process (deductions, legal action, settlement).

    Risk Mitigation:
    * NDA: All employees handling funds sign NDA.
    * Client Consultation: Inform client; obtain written approval.
    * Legal Review: Validate process legally.
    * External Auditor: Consult external auditor with client.

    Bottom Line:
    Client's written consent is vital at each stage to avoid disputes, ensure compliance, and protect the staffing firm. Key in audits, findings review, aligning notices, & defining recovery.

    Key Takeaways:
    ✔ Clear misconduct clauses in contracts.
    ✔ Impartial inquiries.
    ✔ Secure recovery options contractually.
    ✔ Use ADR.

    Success hinges on client consent to avoid disputes, ensure compliance, and protect liability. Share for streamlining misappropriation/termination processes.

    Best regards,
    V.Sounder Rajan
    Employment Law Counsel-98401-42164

    From India, Chennai
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  • Breaking News for the Contract Staffing Industry: A Landmark Supreme Court Ruling on the Employment Status of Contract Workers, dated 17-3-2025, has significant implications for the industry.

    A recent ruling by the Supreme Court of India ruling of the Supreme Court, dtd 17-3-2025, of the Bench of Justice Ahsanuddin Amanullah and Justice Prashant Kumar in CBSE vs Rajeshkumar Mishra & others, has provided crucial clarification regarding the status of contract workers. On March 17, 2025, the court ruled that contract workers cannot assert direct employee status with the Principal Employer, in this case, the CBSE, without substantial documentary evidence.

    Key Highlights:
    Documentary Evidence Required: The ruling emphasizes that an employment relationship cannot be established solely based on supervisory control. It mandates the need for proper documentation, such as appointment letters or payment records, for contract workers to claim the benefits of permanent employment.

    Case Background: The decision arose from a case involving contract workers hired by a contractor seeking direct employment recognition from the CBSE. The court upheld that financial transactions and employment relationships were primarily managed through the contractor.

    Impact on Employers: This verdict significantly protects Principal Employers by reinforcing their stance against misclassification. It underscores the importance of clear and comprehensive contractual agreements, thereby reducing the risk of unjust claims and providing a shield for employers.

    Encouragement for Compliance: Companies are strongly urged to ensure compliance with labour laws and maintain accurate employment relationship records, fostering better governance in staffing agreements.

    Reduction in Litigation: By establishing that claims of direct employment must be substantiated with evidence, this ruling aims to decrease frivolous lawsuits and disputes in contractual jobs, providing relief for all parties involved.

    Awareness for Workers: Contract workers are reminded of the importance of securing documentation to support any claims for permanent employment status.
    Conclusion:
    The Supreme Court's judgment is a critical development for the Contract Staffing Industry, offering clarity and crucial protection for both workers and employers. HR professionals and legal teams must adapt their practices to align with this ruling.
    Best Regards,
    V. Sounder Rajan
    Retainer Counsel for the Recruiting and Contract Staffing Industry (IT and Non-IT)-Mob-98401-42164

    From India, Chennai
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    Subject: Important Update: The Maharashtra Government Passes Maharashtra Private Placement Agency (Regulation) Bill 2025

    In a substantial development impacting the Recruiting Placements and related Contract Staffing industries, the Maharashtra government passed the Maharashtra Private Placement Agency (Regulation) Bill 2025 on March 26, 2025. This proactive legislation is designed to regulate private placement agencies, combat employment-related fraud, protect job seekers, and enhance employment opportunities within the territories of Maharashtra State.

    Key Highlights of the Bill:

    Government Registration: It is now imperative for all placement agencies to register with the government. Non-compliance will result in penalties, including imprisonment for operating without registration.

    State Controlling and Monitoring Authority: The bill establishes an authority to supervise the implementation of regulations, ensuring adherence and providing an additional layer of security for job seekers.

    Accountability Measures: Agencies proven guilty of fraud, misinformation, or exploitation could face registration suspension or cancellation, thus ensuring accountability within the industry.

    Support for Job Seekers: The Skill Development Department will collaborate with registered agencies to conduct job fairs, provide career guidance, and offer skill development initiatives. This collaborative approach promises better employment opportunities and a brighter future for job seekers.

    Implications for Job Seekers:

    Fraud Protection: The bill strives to curb deceptive recruitment practices, thus safeguarding job seekers from misinformation.

    Enhanced Credibility: Mandatory registration will establish a structured regulatory framework, instilling trust among job seekers.

    Increased Accountability: Agencies failing to fulfill their obligations will face strict consequences, reinforcing industry standards.

    Employment Opportunities: Registered agencies will actively promote job opportunities through collaboration with the Skill Development Department, benefiting all job seekers.

    In conclusion, the Maharashtra Private Placement Agency (Regulation) Bill 2025 is a significant step towards creating a safer and more trustworthy environment for job seekers in Maharashtra. It not only shields individuals from fraudulent practices but also ensures compliance within the staffing industry, laying the groundwork for a more prosperous future.

    Next Steps: The bill must receive assent from the Governor of Maharashtra before it can take effect. It will then be notified in the Gazette. Subsequently, a portal will be launched to facilitate Registration.

    Thank you for your attention and for your continued commitment to our industry. Let’s collaborate towards a more transparent and reliable recruitment landscape where job seekers\' rights are safeguarded, and opportunities are plentiful!

    Best regards,
    V.Sounder Rajan
    Employment Law Counsel for the Recruiting and Contract Staffing Industry (IT and Non-IT)
    Mob-98401-42164

    From India, Chennai
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    BREAKING NEWS: The Madras High Court\'s Landmark Ruling on Sexual Harassment Under the POSH Act marks a pivotal moment. The Internal Complaints Committee (ICC), a vital body under the POSH Act, plays a significant role in receiving and addressing complaints of sexual harassment at the workplace. This recent ruling has substantial implications for the staffing industry.

    On March 26, 2025, the Madras High Court emphasized the importance of the POSH Act in a key judgment. The court declared that any unwelcome workplace behaviour, regardless of the intent, is now legally considered sexual harassment.

    Key Highlights:
    The Court upheld the Internal Complaints Committee (ICC) findings in HCL Technologies Ltd. vs Parthasarathi, stressing that the perception of the victim determines harassment. The ICC is not required to provide CCTV footage or allow cross-examinations during investigations.

    Implications for the Industry: This ruling, which highlights the urgent need for workplace sensitivity and comprehensive POSH Act training, holds practical implications for employers. It calls for the prioritization of fair investigations and regular awareness sessions to ensure readiness and compliance.

    Legal Insight: The focus of investigations should be on the impact of the conduct on the victim, not the intent of the perpetrator. Proactive steps, such as training ICC members and employees, are vital in creating a safer work environment.

    LINKED IN PROVIDES A PLATFORM FOR UNITING AND CHAMPIONING WORKPLACE FAIRNESS AND SENSITIVITY!
    V. Sounder Rajan, Employment Law Counsel (IT & Non-IT Staffing) 📞 98401-42164

    From India, Chennai
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