Employment, Labour & Benefits (ELB) News Updates

Notification by Central Govt.

Government of India published its revised rate of minimum wages (Central) effective from 01 April 2023.

The Ministry of Labour and Employment has released a notification dated April 03,2023 superseding its previous notification dated  March 31, 2022 revising the rates of variable dearness allowance (VDA) for employees employed under various industries. The revised VDA shall be payable from  April 01, 2023.

Amendment in Persons with Disability Rules

On April 18, 2023, the Ministry of Social Justice and Empowerment, Government of India, enacted the Rights of Persons with Disabilities (Amendment) Rules, 2023 and amended Rule 15 of the Rights of Persons with Disabilities Rules, 2017 ("Disability Rules"). As per the said amendment, in addition to the accessibility standards of building, buses and information technology contained in clause (a) to (c) of the Rule 15 of the Disability Rules, clause (d) has been inserted containing accessibility standards and guidelines for civil aviation notified by the Central Government vide notification dated January 9, 2023.

Data Protection Bill to be tabled in the next parliamentary monsoon session

On April 11, 2023, in the proceeding of Karmanya Singh Sareen & Anr. vs. Union of India & Ors. TPC No. 2145/2022, Attorney General of India informed the Supreme Court that the Digital Personal Data Protection Bill, 2022 ("Data Protection Bill") is going to be tabled during the monsoon session which will commence in the month of July, 2023.

Clarification regarding TDS

On April 5, 2023, the Central Board of Direct Taxes ("CBDT") issued circular to clarify regarding Tax Deduction at Source ("TDS") in view of the new tax regime introduced via Finance Act, 2023 which shall be effective from April 1, 2024. As per the Finance Act, 2023, the income-tax in respect of the total income of the person shall be computed at the rates provided in Section 115 BAC (1A) of the Income Tax Act, 1961 ("IT Act"). However, Section 115 BAC (6) of the IT Act provides that a person not having income from business or profession can exercise an option to opt out of this tax regime. Representation has been received by the Finance Ministry from the employers deducting TDS on salary income of an employee under section 192 of the IT Act, that they would not know if an employee, would opt out from taxation under Section 115 BAC (1A) of the IT Act. Therefore, in order to avoid the genuine hardship in such case, the CBDT that the employer being the deductor shall seek information from each of its employees having income under section 192 of the IT Act regarding their intended tax regime and each such employee shall intimate the same to the employer regarding his intended tax regime for each year and upon intimation, the employer shall compute his total income, and deduct tax at source thereon according to the option exercised. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime.

EPFO recommended the interest rate of 8.15% for the financial year 2022-23

On March 28, 2023, the Central Board of Trustees, EPFO in its 233^rd meeting recommended 8.15% (eight point fifteen percent) annual rate of interest to be credited on provident fund accumulation in the members account for the financial year 2022-23. The interest rate would be officially notified in the government gazette after approval of Ministry of Finance, following which EPFO would credit the rate of interest into its members’ accounts.

Mandatory insertion of statutory benefits in the employment contract of outsourced workers

On April 19, 2023, the Union Labour Secretary instructed the Chief Secretaries of all states and Administrators of all Union Territories to incorporate the following statutory obligations in the employment contract of the outsourced employee engaged in government offices, so that the rights of the workers could be protected: (a) mandatory contribution of employees provident fund and employees state insurance by the manpower hiring agencies in timely manner; (b) the contractor shall be responsible for paying wages to contract labour at rates not less than the minimum wages as notified by the appropriate Government; (c) the contractor shall not make any unauthorized deductions from the wages of the contract labour; (d) as per the Contract Labour (Regulation and Abolition) Act, 1970, the service contractor shall be responsible for timely paying the wages to the contract labour. The principal employer shall ensure that the wages are paid on time to the contract labour by the contractor. In case the contractor fails to pay the wages on time or makes short payment, the principal employer shall be liable to pay the wages to the contract labour directly and recover the amount from the contractor; (e) the contractor shall be responsible for paying bonus to contract labour in the manner prescribed by the Payment of Bonus Act, 1965 & shall get reimbursed from the principal employer and (f) the contractor shall be responsible for paying proportionate gratuity to contract labour who have rendered continuous service as per the provisions of the Payment of Gratuity Act, 1972.

ESIC to publish e-samachar

On April 18, 2023, the Employees' State Insurance Corporation ("ESIC") in order to effectively communicate information to internal and external audiences and stakeholders has started publishing e-samachar on monthly basis with effect from April 2023. The e-samachar covers an extensive range of topics featuring the culmination of special services fortnight and its outcome, latest initiatives, special drives and events organized by the ESIC. The e-samachar for the month of April, 2023 can be accessed by clicking on the following link: https://publuu.com/flip-book/114973/304715. 

Measures to mitigate the adverse effects of extreme weather on workers

On April 18, 2023, the Union Labour Secretary instructed the Chief Secretaries of all states and Administrators of all Union Territories to ensure preparedness and effective management of impact of ensuing heat wave conditions on workers and labourers working in different sectors. She emphasized that appropriate direction should be issued to the occupiers, employers, construction companies, industries to undertake necessary steps to mitigate the adverse effects of extreme hot weather.

Mandatory Aadhar seeding with UAN of EPFO members for filing of ECR

On April 18, 2023, the Employees' Provident Fund Organisation ("EPFO"), partially modified its previous circular dated April 11, 2022, and granted extension for mandatory seeding of Aadhar with Universal Account Number ("UAN") of members for filing of Electronic Challan cum Return ("ECR") till March 31, 2021. The extension is allowed to certain class of establishments, namely, beedi making, building and construction and plantation industries including tea, coffee, cardamom, pepper, jute, rubber, cinchona, cashew nuts etc. and for north eastern region comprising of state of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura.

E-passbook launched for EPFO members

On March 28, 2023, the Labour and Employment Minster launched the e-passbook or the benefit and convenience of the EPFO members enabling them to view more details of their accounts in graphical representations. 

Aadhar implementation in ESIC

On April 17, 2023, the ESIC an employer can seed Aadhaar number while registering an employee as the provision for seeding and authentication of Aadhaar of the newly registered insured persons has been implemented in the ESIC portal. After authentication of Aadhaar, the personal details of the employee will get auto populated in the system. Also, by providing consent, Ayushman Bharat Health Account ("ABHA") number of the employee will also be generated on the basis of provided Aadhaar Number. ABHA number is a unique identity and shall identify a person, and update his health records across multiple healthcare service providers.

MCA launched Centre for Processing Accelerated Corporate Exit

On March 17, 2023, the Ministry of Corporate Affairs ("MCA") issued notification regarding the establishment of the Centre for Processing Accelerated Corporate Exit, known as C-PACE which shall come into effect from April 1, 2023. The office of C-PACE shall be located at the Indian Institute of Corporate Affairs (IICA), Plot No. 6, 7, 8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin Code – 122050.

Notification by State Govt.

Assam

Extension of last date for filing annual return under the Trade Unions Act

On April 13, 2023, the Labour Commissioner of Assam extended the last date of filing annual return to May 31, 2023, from April 30, 2023, as mandated under Section 28 of the Trade Unions Act, 1926 ("Trade Unions Act") to be filed by the registered trade unions.

Bihar

Minimum Wages notified in the state of Bihar

On March 31, 2023, the Government of Bihar revised the minimum rates of wages of employees engaged in 69 (sixty-nine) scheduled employments which shall be effective from April 1, 2023 in the entire state of Bihar.

Delhi

Minimum Wages notified in the state of NCT of Delhi

On April 20, 2023, the Government of NCT of Delhi revised the minimum rates of wages of employees engaged in scheduled employment which shall be effective from April 1, 2023 in the entire NCT of Delhi. The monthly wages of skilled workers has been increased by ₹546, from the existing ₹20,357 to ₹20,903; the salary of semi-skilled workers has been increased by ₹494, from the existing ₹18,499 to ₹18,993; while the unskilled workers has been increased by ₹442 per month, from ₹16,792 to ₹17,234. The minimum wages were last revised in Delhi in October 2022.

Goa

Amendment under the Factories Act

On April 18, 2023, the Government of Goa amended certain provisions of the Factories Act, 1948 ("Factories Act") by introducing the Factories (Goa Amendment) Act, 2019, which are as follows:

·       Under Section 65(2) of the Factories Act, subject to the control of state Government, the chief inspector is allowed to exempt adult workers from the applicability of Section 51 (weekly hours), Section 52 (weekly holidays), Section 54 (daily hours) and Section 56 (spread over) of the Factories Act which subsequent to amendment can be exempted by the chief inspector without involving state Government.

·       Subsequent to amendment the overtime working hours prescribed under Section 65(3)(iii) of the Factories Act is extended from 60 (sixty) hours to 72 (seventy-two) hours and the overtime work allowed to work in a stretch of quarter prescribed under Section 65(3)(iv) is extended from 75 (seventy five) hours to 125 (one hundred twenty five hours).

·       Under Section 66(1)(b) of the Factories Act provides that women employees not allowed to work 7 p.m. to 6 a.m. however the state government vary the limits but such limits shall authorize the employment of any woman between 10 p.m. to 5 a.m. subsequent to amendment the state Government is allowed to vary the limits without any working hour restriction however it should also specify the conditions for ensuring the safety of women who work in any factory or manufacturing process between the hours of 7 p.m. and 6 a.m.

·       After Section 92 of the Factories Act, Section 92A has been inserted for compounding of the offences by the chief inspector or the inspector of factories. In this regard Fourth Schedule has been inserted in the Factories Act providing the list of compoundable offences.

·       Under Section 105 of the Factories Act, the court can take the cognizance on the complaints sanctioned by the inspector which subsequent to the amendment can be sanctioned by the chief inspector.

·       Under Section 106 of the Factories Act, the commission of any offence should ben informed to the inspector within 3 (three) months which subsequent to the amendment can be informed within 6 (six) months.

Karnataka

Precautionary measures to curb the spread of Covid-19 and influenza

On March 27, 2023, the Government of Karnataka in view of the spike in Covid-19 cases and other influenza cases, released the precautionary guidelines for early compliances and follow ups which are as follows: (a) focus on 5 (five) fold strategy of test-track-treat-vaccination and Covid Appropriate Behaviour (CAB) to be continued; (b) wearing of masks is recommended when senior citizens and those with co-morbidities visit crowded areas including closed spaces and poorly ventilated spaces and (c) wearing of masks in hospital premises by patients, health professionals and health workers should be ensured.

Maharashtra

Amendment in certain labour laws to decriminalize the offences

On April 11, 2023, the Government of Maharashtra amended the penalty provisions of certain labour laws by introducing the Maharashtra Labour Laws (Amendment) Act, 2022, in the following manner:

·       Under Section 104 of the Maharashtra Industrial Relations Act, 1947 ("Maharashtra IR Act"), the offence of illegal closure by employer or illegal lockout or stoppage of work by employee is punishable with imprisonment of either description for a term which may extend to 3 (three) months, or with fine or with both which subsequent to the amendment be punishable with a fine which shall not be less than INR 5,00,000/- (Indian Rupees Five Lakhs) but which may extend to INR 10,00,000/- (Indian Rupees Ten Lakhs).

·       Under Section 106 of the Maharashtra IR Act, the offence of not complying the order of industrial court regarding the illegal change is punishable with imprisonment which may extend to 3 (three) months or for every day on which the contravention continues with fine which may extend to INR 5,000/- (Indian Rupees Five Thousand) or with both which subsequent to the amendment shall be punishable with a fine of INR 5,00,000/- (Indian Rupees Five Lakhs) and for every day on which the contravention continues with a fine of INR 5000/- (Indian Rupees Five Thousand).

·       Under Section 17A of the Maharashtra Labour Welfare Fund Act, 1953 ("Maharashtra LWF Act"), the offence of obstructing inspector for the first time is punishable with imprisonment for a term which may extend to 3 (three) months, or with fine which may extend to INR 500/- (Indian Rupees Five Hundred), or with both which subsequent to the amendment shall be punishable with fine which may extend to INR 1,00,000/- (Indian Rupees One Lakh). The second time commission of offence is punishable with imprisonment for a term which may extend to 6 (six) months, or with fine which may extend to INR 1000/- (Indian Rupees One Thousand), or with both which subsequent to the amendment be punishable with fine which may extend to INR 2,00,000/- (Indian Rupees Two Lakhs). In the absence of adequate reason for obstructing the inspector, the offence is punishable with the amount of fine not less than INR 50/- (Indian Rupees Fifty) which subsequent to the amendment be punishable with fine not less than INR 50,000 (Indian Rupees Fifty Thousand).

·       After Section 17B of the Maharashtra LWF Act, Section 17C has been inserted for compounding of the offences providing that offence punishable under section 17A may, on an application of the accused person, either before or after the institution of any prosecution, be compounded by the Welfare Commissioner, for a sum of fine provided for such offence. However, the offence committed by a person for the second time or thereafter within a period of 5 (five) years will not be compounded.

·       Under Section 3(3) of the Maharashtra Mathadi, Hamal and other Manual Workers (Regulation of Employment and Welfare) Act, 1969 ("Maharashtra Manual Workers Act"), a contravention of any provision of the scheme is punishable with imprisonment not exceeding 3 (three) months or with fine not exceeding INR 500/- (Indian Rupees Five Hundred) which subsequent to the amendment shall be punishable with fine not exceeding INR 5,00,000/- (Indian Rupees Five Lakhs). The offence committed by a person for the second time is punishable with imprisonment not exceeding 6 (six) months or with fine not exceeding INR 1000/- (Indian Rupees One Thousand) which subsequent to the amendment shall be punishable with fine not exceeding INR 10,00,000/- (Indian Rupees Ten Lakhs). Continuous contravention is punishable with the fine upto INR 100/- (Indian Rupees One Hundred) for each day which subsequent to the amendment shall be punishable with fine upto INR 5000/- (Indian Rupees Five Thousand) for each day.

·       Under Section 27 of the Maharashtra Manual Workers Act contravention of any provision of the Maharashtra Manual Workers Act is punishable with fine which may extend to INR 500/- (Indian Rupees Five Hundred) which subsequent to the amendment shall be punishable with fine INR 5,00,000/- (Indian Rupees Five Lakhs). The continuous contravention is punishable with additional fine which may extend to INR 100/- (Indian Rupee One Hundred) per day which subsequent to the amendment shall be punishable with fine which may extend to INR 5000/- (Indian Rupees Fie Thousand) per day.

·       After Section 27 of the Maharashtra Manual Workers Act, Section 27A has been inserted for compounding of the offences providing that any offence of contravention of any of the provisions of any scheme punishable under the scheme, may, on an application of the accused person, either before or after the institution of any prosecution, be compounded by the Chairman of the concerned Board, for a sum of 50% (fifty per cent), of the maximum fine provided for such offence. However, offence committed by a person for the second time or thereafter within a period of 3 (three) years will not be compounded.

·       Under Section 3(3) of the Maharashtra Private Security Guards (Regulation of Employment and Welfare) Act, 1981 ("Maharashtra Security Guards Act"), a contravention of any provision of the scheme is punishable with imprisonment not exceeding 3 (three) months or with fine not exceeding INR 500/- (Indian Rupees Five Hundred) which subsequent to the amendment shall be punishable with fine not exceeding INR 5,00,000/- (Indian Rupees Five Lakhs). The offence committed by a person for the second time is punishable with imprisonment not exceeding 6 (six) months or with fine not exceeding INR 1000/- (Indian Rupees One Thousand) which subsequent to the amendment shall be punishable with fine not exceeding INR 10,00,000/- (Indian Rupees Ten Lakhs). Continuous contravention is punishable with the fine upto INR 100/- (Indian Rupees One Hundred) for each day which subsequent to the amendment shall be punishable with fine upto INR 5000/- (Indian Rupees Five Thousand) for each day.

·       Under Section 27 of the Maharashtra Security Guards Act contravention of any provision of the Maharashtra Manual Workers Act is punishable with fine which may extend to INR 500/- (Indian Rupees Five Hundred) which subsequent to the amendment shall be punishable with fine of INR 5,00,000/- (Indian Rupees Five Lakhs). The continuous contravention is punishable with additional fine which may extend to INR 100/- (Indian Rupee One Hundred) per day which subsequent to the amendment shall be punishable with fine which may extend to INR 5000/- (Indian Rupees Fie Thousand) per day.

·       After Section 27 of the Maharashtra Security Guards Act, Section 27A has been inserted for compounding of the offences providing that any offence of contravention of any of the provisions of any scheme punishable under the scheme, may, on an application of the accused person, either before or after the institution of any prosecution, be compounded by the Chairman of the concerned Board, for a sum of 50% (fifty per cent), of the maximum fine provided for such offence. However, offence committed by a person for the second time or thereafter within a period of 3 (three) years will not be compounded.

·       Under Section 10(1) of the Maharashtra Workmen's Minimum House-rent Allowance Act, 1983 ("Maharashtra House Rent Allowance Act"), the offence of making any false statement or false representation or false entry is punishable with imprisonment for a term which may extend to 1 (one) year, or with fine which may extend to INR 2000/- (Indian Rupees Two Thousand), or with both which subsequent to the amendment shall be punishable with fine which may extend to INR 10,00,000/- (Indian Rupees Ten Lakhs).

·       Under Section 10(1) of the Maharashtra House Rent Allowance Act, the offence of contravening the provisions of the Maharashtra House Rent Allowance Act is punishable with imprisonment for a term which may extend to 6 (six) months, or with fine which may extend to INR 1000/- (Indian Rupees One Thousand), or with both subsequent to the amendment shall be punishable with fine which may extend to INR 10,00,000/- (Indian Rupees Ten Lakhs).

Manipur

Extension of applicability of certain provisions of the ESI Regulations

On April 10, 2023, the Employees' State Insurance Corporation ("ESIC") appointed March 1, 2023 as the date from which the medical benefits as laid down in the Regulation 95-A of the Employees’ State Insurance (General) Regulations, 1950 ("ESI Regulations") and the Manipur Employees' State Insurance (Medical Benefit) Rules, 2018 shall be extended to the families of insured persons in all the areas of Imphal East and Imphal West districts of Manipur.

Punjab

Minimum Wages notified in the state of Punjab

On April 18, 2023, the Government of Punjab revised the minimum rates of wages of employees engaged in scheduled employment which shall be effective from March 1, 2023, in the entire state of Punjab.

Amendment under the Punjab Shops Rules

On March 31, 2023, the Government Punjab amended the Punjab Shops and Commercial Establishments Rules, 1958 ("Punjab Shops Rules") by introducing the Punjab Shops and Commercial Establishments (First Amendment) Rules, 2023. As per the said amendment after Rule 22 of the Punjab Shops Rules, Rules 23 and Rule 24 has been inserted. Rule 23 required the employer of every shops and establishment to display the name board in Gurumukhi script in Punjabi and where ever the other languages are also used, the version in such other language shall be below the Punjabi version. The name board in Punjabi version shall be written more predominantly by providing more space than for other languages, if any. The said changes have to be made by establishment within the period of 6 (six) months from the date of commencement of this amendment. Rule 24 provides that whoever contravenes the provisions of Rule 23 shall be punishable with fine not exceeding INR 1000/- (Indian Rupees One Thousand) for first offence and INR 2000/- (Indian Rupee Two Thousand) for every subsequent offence.

Tamil Nadu

Amendment in TN Catering Establishments Rules

On April 12, 2023, the Government of Tamil Nadu increased the registration fees payable for registration of catering establishments, by replacing the existing table contained under Rule 3 of the Tamil Nadu Catering Establishments Rules, 1959 ("TN Catering Establishments Rules") with the new one.

Telangana

Minimum Wages notified in the state of Telangana

Recently, the Government of Telangana revised the minimum rates of wages of employees engaged in scheduled employment which shall be effective from April 1, 2023 till September 30, 2023 in the entire state of Telangana.

Guidelines On Exemption from Opening And Closing Hour Of Telangana Shops And Establishments Act 

The Government of Telangana, vide Notification G.O.Ms.No. 4 dated April 04,2023 issued the guidelines for granting exemption from section 7 (Opening and Closing hours) of the Telangana Shops and Establishments Act, 1988 to all Shops & Establishments as defined in section 2 (21) of the Telangana Shops & Establishments Act, 1988 for operating 24/7 in the Telangana State, subject to following conditions namely:-

(i)              Issue of ID cards,

(ii)             Weekly off,

(iii)           Weekly working hours,

(iv)           Overtime wages,

(v)            Compensatory holiday with wages in lieu of employees attending duty on a notified national /festival holiday,

(vi)           Adequate safety of Women employees,

(vii)          Consent of women employee to work in night shift,

(viii)         To and fro transport from Women employees working in night shift,

(ix)           The Management shall maintain the records and furnish returns as prescribed by the State Government within time,

(x)             Subject to compliance of provisions under the Police Act & Rules in force, and

(xi)           Subject to payment of annual fee of Rs.10,000/- (Rupees ten thousand only) for each store to open 24x7 under the Telangana Shops and Establishments Act, 1988.

Uttar Pradesh

Minimum Wages notified in the state of Uttar Pradesh

The Government of Uttar Pradesh, vide Notification No. 02-09/Pravartan-(M.W.)/15 dated April 03,2023, declared minimum wages effective from 1st April 2023 till 30th September 2023.

Uttarakhand

Minimum Wages notified in the state of Uttarakhand

On March 27, 2023, the Government of Uttarakhand revised the minimum rates of wages of employees engaged in 57 (fifty-seven) scheduled employments which shall be effective from April 1, 2023 in the entire state of Uttarakhand.

Case Law Updates

EPFO to allow employees to submit higher pension application without insisting to furnish the details of joint option under Para 26(6) of the EPF Scheme: Kerala High Court.

In Saheer S vs.Union of India WP(c) No. 8979/2023, the Kerala High Court vide its judgment dated April 12, 2023, observed that due to the peculiar nature of the online facility provided by the EPFO mandating employees to furnish the details of the joint option filed under Para 26(6) of the Employees' Provident Fund Scheme, 1952 ("EPF Scheme"), the employees are prevented from submitting their higher pension application before the cut-off date of May 3, 2023, which would deprive the employees to claim the benefits of the Supreme Court judgment forever. Therefore, EPFO is directed to make adequate provisions in their online facility to enable the employees/pensioners to furnish the options in tune with the directions of the Supreme Court without the production of the copies of option under Para 26(6) of the EPF Scheme. If appropriate modifications cannot be made in the online facility, feasible alternate arrangements, including the permission to submit hard copies of the options, shall be made/granted.

Employee is entitled to annual increment even if he retired from the services on the next day: Supreme Court.

In the Director (Admn. and HR) KPTCL & Ors. versus C.P. Mundinamani & Ors. CA No. 2471/2023, the Supreme Court of India vide its judgment dated April 12, 2023, while responding to the question as to whether an employee who has earned the annual increment is entitled to the same despite the fact that he has retired on the very next day of earning the increment, observed that the increment can be withheld only by way of punishment or he has not performed the duty efficiently. Any interpretation which would lead to arbitrariness and/or unreasonableness should be avoided. If the interpretation as suggested on behalf of the employer is accepted, in that case it would tantamount to denying the employee the annual increment which he has earned for the services he has rendered over a year subject to his good behaviour. The entitlement to receive increment therefore crystallises when the employee completes requisite length of service with good conduct and becomes payable on the succeeding day. In the present case the word 'accrue' should be understood liberally and would mean payable on the succeeding day. Therefore, the employer to grant one annual increment which the employee earned on the last day of their service for rendering their services preceding one year from the date of retirement with good behaviour and efficiently.

Transfer of employee for raising genuine grievances against management is totally arbitrary and unsustainable in law: Maharashtra Administrative Tribunal.

In Smt. Ruchita Subrat Ratho vs. the State of Maharashtra OA No. 1143/2022, the Maharashtra Administrative Tribunal vide its judgment dated April 6, 2023, set aside the transfer order passed by the department and observed that except the grievances made by employee against the principal of college there is absolutely no other material or ground to show that employee’s behavior or nature was in any way is of disruptive or obstructive to the administration or her behavior was affecting the administration and functioning of the college. Suffice to say, only on ipse dixit of principal, the employee is transferred without there being any such legal ground. Thus, if an employee is transferred because of raising some legitimate grievance, it would certainly attract malice and such transfer would be impermissible.

Vicarious liability cannot be fastened upon the managers of the Company unless their involvement is not mentioned in complaint petition: Jharkhand High Court.

In Aseem Sood vs. state of Jharkhand W.P.(Cr.) No.425/2015, the Jharkhand High court vide its judgment dated March 29, 2023, quashed the entire criminal proceeding including the cognizance order arising out of complaint pending in the court of learned Chief Judicial Magistrate against the managers of the Company and observed that in the complaint petition it has been alleged that certain stock was not acquired by the Company and certain amount has also not been paid and the complaint case has been filed. It appears that for commercial transaction the criminal case has been put into motion. The ingredient of cheating being the intention of cheating from the very beginning is not made out in view of definition of cheating under section 415 of the Indian Penal Code, 1860. What is the role of these managers has not been stated in the complaint petition and it has also not been disclosed in the solemn affirmation as well as by enquiry witnesses and in that view of the matter vicarious liability cannot be fastened on managers of the Company.

Burden of proof is on employer to establish that the workman is casual labour and not cover under the ID Act: Orissa High Court.

In Dillip Kumar Swain vs. Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court and Ors. WP(c) No. 7178/2019, the Orissa High Court vide its judgment dated April 6, 2023, directed the bank management to pay compensation of INR 10,00,000/- (Indian Rupees Ten Lakhs) to the workman whose services were summarily terminated without gratuity or any benefit pertaining to the service rendered and in violation of the provisions of the Industrial Disputes Act, 1947. The Court has rejected the contention of the bank that the workman was a daily wager as had been paid wages at the end of the day for the reason that the bank has not produced any documents substantiating that the workman have been appointed as casual labourer in replacement to the regular sweeper-cum-messenger being unwell, on leave or otherwise not attending duty. In fact, in view totality of the evidence it can be safely held that the workman worked in the bank for more than 11 (eleven) years, he worked 240 (two hundred forty) days in each year, his engagement was continuous and uninterrupted preceding is disengagement.