In this context, the Indian Government has taken the initiative through the recent Ministry of Home Affairs (“MHA”) Order dated 29.03.2020, Prior to the Order of the MHA dated 29.03.2020, the Ministry of Labour and Employment had issued a series of letters dated 20.03.2020 & 23.03.2020 in the form of advisories that employers throughout various industries and sectors should not cause reductions of wages or termination of any worker and/or employees during the present COVID crisis. Articles written by lawyers explaining the different aspects of Employment and Labor. Here are a few compliance issues to keep on your radar as we move to 2020: Overtime Threshold Changes. IRS Issues Guidance on SALT Cap Workarounds Gretchen Whalen 12/16/2020 Key insights The Federal Tax Cuts and Jobs Act imposed a $10,000 cap on the deduction for SALT for individual taxpayers. Hence, all those employees who are either of managerial capacity or who are drawing a salary higher than INR 24,000 will not fall under the purview of the respective S&CE Acts of Karnataka and Kerala and Maharashtra. For example, the increase in the prime-age labor force participation rate under President Trump translates to 2.2 million additional prime-age workers in the labor force. Incidentally, in view of the respective closure of business / shops/ establishments orders issued by various States under The Epidemic Diseases Act 1897, the said MHA will apply only to the businesses that have been closed and not those that have been operating as essential services / commodities. Importantly, the prime-age (25-54) labor force participation rate also rose to 83.1 percent in January, which is 1.8 percentage points above its rate in November 2016. Further, considering that the interpretation pertains to issues arising out of a beneficial legislation, namely, labour laws, the term “worker” would need to be understood in its broad connotation and liberal construction. The report’s Establishment Survey finds that the economy added 225,000 jobs in January, crushing market expectations of 158,000 jobs. Additionally, Section 2(j)[7] of the Inter-State Migrant Workman (Regulation of Employment & Condition of Service) Act, 1979 (“ISMW Act”) defines who a “workman” is and Section 2(e)[8] as to who an “Inter-State Migrant Workman” is. A knowingly disobeys the order, and thereby causes danger of riot. Even in the most automated industries, people are at the fulcrum and so when contemplating cost-cutting, to stay afloat on such troubled waters, companies find it an inevitable step to cut down on their manpower, either in the form of job cuts or more prevalently, salary / wage reductions. However, probably, realizing that the said advisory was at best only an advisory, without having much legal force, the MHA issued the order, No. These revisions showed that 514,000 fewer jobs were added during the year ending in March 2019 than were previously reported. [12] (b) to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months: [13] “wages” means all remuneration paid or payable in cash to a woman, if the terms of the contract of employment, express or implied, were fulfilled and includes –. CiteScore values are based on citation counts in a range of four years (e.g. [6] Therefore, considering the fact that the Supreme Court has not granted stay over the said Order, this article seeks to analyse the Order’s impact in the context of the prevailing labour laws in India, while also considering whether the Order can be said to be all encompassing in its application, without delving into the grounds such as arbitrariness, unreasonableness, amongst others, which have been raised in the Petitions. Those without a high school degree and people with disabilities also set record-low unemployment rates last year. Thus, in accordance with the maxim of law, lex non cogit ad impossibilia, if it appears that the performance of the formalities prescribed by a statute has been rendered impossible by circumstances over which the persons interested had no control, like the act of God or the King's enemies, these circumstances will be taken as a valid excuse.”, The government’s active interference in the dynamics between employers and employees has been to prevent inequality in bargaining power and to add further value to the beneficial nature of the labour legislations. NAB has released its first annual pulse check on the big issues facing Australia today. Supdt. Over the past three months, the average share of new workers who came from outside of the labor force was 73.2 percent. As per the Act, a “woman” has been defined under Section 3(o) to mean “a woman employed, whether directly or through any agency, for wages in any establishment.” Further, as per Section 2(1)(b)[12] of the Act, it clearly provides that the said Act shall apply to every shop and establishment within the meaning of any law for the time being in force, in relation to any shop or establishment within a State. Scientific Research Publishing is an academic publisher with more than 200 open access journal in the areas of science, technology and medicine. Subscribe for articles Therefore, considering the above, the term “worker” must necessarily be construed to apply and extend to legislations such as, the ID Act, the respective S&CE Act, amongst others, even if the nomenclatures may differ in those enactments. The separate Household Survey shows that the unemployment rate ticked up to 3.6 percent in January, remaining near its lowest level since May 1969. Articles on labour market issues 27|2020 Employment Subsidies for Long-Term Welfare Benefits Recipients: Reconciling Programmes’ Goals with Needs of Diverging Population Groups Anton Nivorozhkin, Markus Promberger Explanation.—It is not necessary that the offender should intend to produce harm, or contemplate his disobedience as likely to produce harm. The unemployment rate remains well below the Congressional Budget Office’s final pre-election projection of 5.0 percent and 1.1 percentage points lower than its level when President Trump was elected in November 2016. A has committed the offence defined in this section. This most likely will result in the financial crippling of the companies, which not long after the lockdown period, may lead to situations of heavy layoffs, even though that may not have been the original plan and also cause greater harm to the employees; the companies may, also need a longer time to rebound from the COVID attack. Employment Issues during COVID-19 Crisis: An Analysis of the MHA’s Order. Till such time and in view of the powers being exercised by the MHA under the NDM Act, the Government may also consider creating a fund for payment of workers/employees to allocate funds to meet situations that may arise in the event of a crisis, such as the present one and thereby relieve companies/employers of their financial burdens, considering the power and authority available under the NDM Act. Powers and functions of National Executive Committee.—(1) The National Executive Committee shall assist the National Authority in the discharge of its functions and have the responsibility for implementing the policies and plans of the National Authority and ensure the compliance of directions issued by the Central Government for the purpose of disaster management in the country. The COVID-19 crisis, declared as a pandemic by the Director General of WHO on 11.03.2020, in addition to having a significant and highly disastrous impact on the lives of people world over, has had and will continue to have an apparent and heavy influence on all industries, globally. Further, the Government may also consider providing financial relief for those small and micro companies/entities that are not financially capable of sustaining themselves during these testing times. Hence, the significant terms used in the MHA Order, which are of relevance to this article are that of “wages” and “workers.” Therefore, in this context, the prominent enactments that would need to be considered while interpreting this MHA Order are as follows: The term ‘Worker’ finds its place in the Factories Act, 1948. Act to have overriding effect.—The provisions of this Act, shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. Understand your legal options and ask HG.org to help you find a local law firm Employment and Labor Law Articles Legal articles … A has committed the offence defined in this section. In April 2019, it is posted at 94.9 percent. However, in this attempt, there is a possibility that the companies, in their ardent attempts to adhere to the MHA Order in not reducing the salaries of their employees, may be jeopardizing their sustainability. This influx of workers signals increased confidence in the economy and improved job prospects. The Employment Adjustment Subsidy and New Assistance for Temporary Leave (PDF:260KB) Advance Published on October 12, 2020 (PDF:259KB) HAMAGUCHI Keiichiro Diminished Non-regular Employment, Solid Regular Further, the Government may also consider providing financial relief for those small and micro companies/entities that are not financially capable of sustaining themselves during these testing times. State S&CE Acts, for instance in the States of Tamil Nadu, Kerala, Maharashtra and Karnataka, the Acts exclude application to those persons who are employed in any establishment occupying a position of management, thereby creating a distinct classification of employees covered under the said enactments. The following provides a brief overview of the significant employment cases decided this term and provides a preview of the issues on the Court’s 2019-2020 docket. But in 2020 , the salary threshold is officially increasing, from $455 to $684 per week. 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