Tag Archives: maternity benefits

Regulatory Display Requirement for an establishment under Labour Laws of India

Indian labour laws require certain notices to be displayed on their notice boards in order to educate its employees as well as visitors to the establishment.  These display requirements are mandated to be in English as well as the local language of the State in which the establishment is situated.  Some States in India have their separate rules, while others follow the rules framed by the Central Government, regarding the display requirements.  Below table provides the name of the legislations mandating the display of notices along with a brief description of the contents of the notice to be displayed.

Name of the Act/Rules Section/ Rule No. Form number, if any Local Language in addition to English Details of Information to be Displayed
Child And Adolescent Labour (Prohibition And Regulation) Act, 1986 S.12 NA Yes Notice containing an abstract of sections 3A and 14. While 3A prohibits employment of adolescents, Section 14 contains the penalty provision
Contract Labour (Regulation And Abolition) Central Rules, 1971

 

 

 

 

 

R.26(2)(ix) NA No A copy of contractor’s license shall be displayed prominently at the premises where contract work is carried on
R.47 NA No The charges for foodstuffs, beverages and any other items serviced in the canteen shall be conspicuously displayed in the canteen
R.53 NA Yes Notice in language understood by majority of workers to be displayed outside the latrine as “For Men only” or “For Women only”, and shall also bear the figure of a man or a woman, as the case may be.
R.71 NA No Notice showing wage period and the place/time of disbursement of wages
R.79 NA Yes Every contractor shall display an abstract of the Act and Rules
R.81 NA Yes Notices showing the rates of wages, hours of work, wage period, dates of payment of wages, names and addresses of the Inspectors having jurisdiction, and date of payment of unpaid wages, in conspicuous places
Industrial Employment (Standing Orders) Act, 1946 S.9 NA Yes The text of the standing orders as finally certified under this Acton to be posted on special boards to be maintained for the purpose at or near the entrance and in all departments thereof where the workmen are employed
Maternity Benefit Act, 1961 S.19 Form-K Yes An abstract of the provisions of this Act and the rules made there under shall be exhibited in a conspicuous place in every part of the establishment in which women are employed
Minimum Wages (Central) Rules, 1950 R.22 Form-XI Yes 1. Form-XI containing minimum rates of wages fixed together with
2. The abstracts of the Act
3. The abstracts of the rules made there under
4. Name & Address of the Inspector
(These notices are to be displayed at all the offices)
Additionally a notice of period of work including overtime is to be displayed in Madhya Pradesh.
Payment Of Gratuity (Central) Rules, 1972 R.4 NA Yes A Notice specifying name of officer with designation authorised by the employer to receive on his behalf notices under the Act or rules.
  R.20 Form U Yes Display an abstract of the Act and the rules made there under
Karnataka Payment Of Wages Rules,1963 R.7 Form VI Yes Notice specifying the rates of wages payable to different classes of workers to be displayed separately in the main entrance or each of the departments
  R.21 r/w S.25 Form V Yes The abstracts of the Act and of the rules
Rights Of Person With Disabilities Rules, 2017   R.8(2) r/w S.21 No Display equal opportunity policy on either website or at conspicuous place in their premises
Sexual Harassment Of Women At Workplace (Prevention, Prohibition And Redressal) Act, 2013 S.19 NA No 1. Display penal consequences of Sexual Harassment
2. Order constituting the Internal Committee
Karnataka Shops and Commercial Establishments Acts, 1961

 

 

 

S.4(2) NA No Registration certificate to be prominently displayed
S.12(1) r/w R.24(4) Form P No Notice of Weekly Holiday
R.24(5) NA Yes The abstracts of the Act and of the rules
24-A NA Yes The name Board in Kannada version shall be written more predominantly by providing more space than for other languages
Karnataka Tax On Professions, Trades, Calling And Employments Rules, 1976 R.8 NA No Display conspicuously at his places of work the certificate of registration or the certificate of enrolment or a copy thereof

Disclaimer: The Rule name mentioned in the above table is for the State of Karnataka and the respective State Rules will be applicable for establishments in States other than Karnataka.

Author:  NovoJuris Legal

Advertisements

ESOP vesting: Can it be paused during maternity leave?

Employee Stock Option Schemes (“ESOPs”) are structured by companies such that the employees are granted options which is a right that vests over a period of time. Upon vesting the employee can ‘exercise’ and shares are allotted by the company (or transferred by the Trust, if the ESOP is administered by a Trust).

The question is, can the vesting be paused / stopped for reasons such as sabbatical, unauthorized leave, garden leave, maternity leave etc.?

Sabbaticals, garden leave is usually a program / policy that a company would have and they spell out treatment of full pay, partial pay, benefits and the like.

Unauthorized leave is usually treated as mis-conduct and is treated per company’s policies.

However, maternity leave is a statutory right and the pay and other benefits cannot be stopped or paused during this period.

The United Nations Convention on the Elimination of all forms of Discrimination Against Women (“UNCEDAW“), which India is a signatory to, mandates under Article 11 that State Parties are required to ensure that the female employees would have a right to pay or comparable benefits without loss of employment, seniority or social allowances.

India being a signatory to the UNCEDAW is bound under the obligation of pacta sund servanda Article 26 and Article 18 providing for the obligation not to defeat the object and purpose of a treaty of the Vienna Convention on the Law of Treaties (“VCLT”).

Vesting of ESOP during Maternity Leave

The vesting of options stays in effect as long as the employee remains in the employment of the company. A female employee’s employment, during maternity leave, cannot be terminated in accordance with Section 12 of the Maternity Benefit Act 1981 and it shall be unlawful for her employer to discharge or dismiss her during or on account of such absence.

The said position has been upheld in the case of Neera Mathur v Life Insurance Corporation of India[1] where it was held that the employment of a female employee shall be protected and it would be wrongful on part of the employer to terminate the employment of the female employee during the period of maternity leave. The same position was upheld in the case of Bharti Gupta (Mrs.) v. Rail India Technical and Economical Services Limited and Ors[2] wherein it was held that Section 12 of the Act underscores the independent and inflexible nature of the liability to mandate that no woman employee can be dismissed on account of her pregnancy. It is the right of the employee to get medical benefits since such grant of maternity benefit is according to the mandate of the law.

Section 5 of the Maternity Benefit Act 1981 states that female employees cannot be denied the emoluments such as continuation of employment and payment of wages on account of being on maternity leave. This position has been upheld by the Supreme Court in the case of Municipal Corporation of Delhi v. Female Workers (Muster Roll) and Ors[3].

ESOP taxation is treated as a perquisite. Ie. at the time of exercise, the difference to exercise price and fair market value is taxed as perquisite. Shares when sold are subject to capital gains tax.

An inference can be drawn from the above, that vesting of ESOP cannot be suspended, paused during maternity leave.

Author: Mr. Spandan Saxena

[1] AIR 1992 SC 392

[2] 2005 VII AD (Delhi) 435

[3] AIR 2000 SC 1274.