Do’s & Don’ts for Internal Committee under Sexual Harassment of women at workplace (PP&R) Act, 2013:

Do’s & Don’ts for Internal Committee under Sexual Harassment of women at workplace (PP&R) Act, 2013:

Do’s for Internal Committee constituting under Sexual Harassment of Women at Workplace (PP&R) Act, 2013:

*Create Awareness on the presence of the Internal Committee and make known complaint procedures

*Treat the complainant with respect

*Ensure that the body language of each member communicates complete attention to the complainant and the respondent

*Reject set ideas and stereotypes on how the complainant or respondent should appear or act

*Be open to the fact that sexual crimes are committed in privacy and eye witnesses may not be existing or forthcoming

*Ensure safety for witnesses, friends and supporters of the complainant. Must handle complaints in a confidential manner and within a time-bound framework

*Understand that it is difficult for a woman to talk about anything sexual. Hence there can be long time interval between the harassment and the actual complaint.

*Understand that only one out of many may be subjected to sexual harassment. The complainant, when she complaints, has at stake her personal life and career. Therefore, drawing up similarities or generalization should be avoided.

Don’ts for Internal Committee constituting under Sexual Harassment of Women at Workplace (PP&R) Act, 2013:

*Do not guide or lead the complainant to make statements.

*Do not insist on a detailed description of harassment. This could increase the complainant’s trauma.

*Do not interrupt or allow interruptions when conversing with the complainant and/or respondent.

*Do not determine the impact of the harassment on the complainant. *Do not, under any circumstances, get aggressive.

*Do not discuss the complainant in the presence of the respondent & vice-versa.

*Do not allow third parties to enter the room-be it for tea/refreshments. Stop proceedings when such things are taking place.

*Remember, this is a human rights issue, therefore,

(a) Do not give too much weightage to intention, focus on the impact, and

(b) Proof beyond reasonable doubt is not required, circumstantial evidence is enough.

Did you know????? (4)

Did you know????? (4)

Provident Fund (EPF and MP Act, 1952)

1. Contractors PF

As per The EPF and MP Act, 1952 (Definition of ’employee’ under sec 2 (f) of the Act read with para 30) – the PF Authorities always insist upon the principal employers to ensure that the contractors as engaged, must pay the PF Contributions and in case of non-payment, the principal employers are held liable.

However, as per the court judgement in various cases, it has been held that the contractor and not the principal employer will be liable for payment of PF Contributions for the employees engaged by him. E.g. Steel Authority of India Ltd vs National Union Water Front Workers, 2001

2. The consequences when a RETIRED coverable employee is not covered under provident fund:

You can be held liable to pay both the shares since no deduction can be made from the wages/salary of the employees towards the EPF contributions for more than one month wages.

It is clarified that as per provision contained in para 2(f)(i) of the the EPF Scheme, an employee who having been a member of the EPF, withdraws the full amount of the accumulation on retirement after attaining 55 years or leaving the service for disablement or for migration from India for permanent settlement abroad shall be deemed as an excluded employee on appointment thereafter.

As such engagement of retired government employees, who were not governed by EPF Scheme, shall not qualify for the same and will be coverable under EPF Scheme, the retired employees from Railway cannot be treated as excluded employees.

So, next time when you hire a retired employee, kindly comply.

Leave Encashment (Calculation & Taxation)

Leave Encashment (Calculation & Taxation)

Every salaried person as per labour law of that particular state in India is entitled to a minimum number of paid leave every year; there are organizations that provide more earned leave than the capped.

However, it is not necessary that an individual employee utilises all the leave he is entitled for a year. In fact, most employers allow the employees an option of carrying forward such unutilised paid leaves.

Some Organizations cap the Carry forward and remaining leaves are encashed during the service, whereas some organizations do not put any capping, which leaves the employee with an accumulated unutilised leave balance at the time of retirement or resignation from the company as the case may be. This compels the employer to compensate the unutilised paid leave of the employees. This concept is better known as leave encashment.

Leave Encashment during service

Leave encashed during service is fully taxable and forms part of ‘income from Salary’.  Hence, basis the tax slab you are into, Encashment will be taxed. However, it depends on the organization, whether they tax it and deduct in the same month or it is distributed equally in remaining months.

Leave Encashment during retirement or leaving the organization

Leave encashment received at the time of retirement or leaving the organization is either fully or partially taxable depending upon the category that an employee falls under.

Leave encashment received by Central or State Government employee at the time of retirement or resignation is not taxable.

Leave encashment received by legal heirs of deceased employee is not taxable.

Least of the following is exempt for Non-Government employee based on Section 10(10AA)(ii) and balance amount if any is taxable as ‘income from salary’.

  1. Leave Encashment Amount Received
  2. Average Salary of Last 10 Months
  3. Salary Per Day * Unutilised Leave of Maximum 30 Days for every completed years of Service
  4. Amount notified by the Government (Rs. 3,00,000)

Did you know????? (4)

Did you know????? (3)

Severance pay is pay provided to employees after they’re removed from a position, or after employment is “severed.” Severance pay is generally provided in cases where an employee is let go from a position due to situations like downsizing or job elimination, rather than voluntary job termination on the part of the employee. Severance pay can be provided to employees all at once or over time.

The Ministry of Labour and Employment, Government of India has vide its notification bearing ref. no. G.S.R. 1048(E) dated 04 November, 2016 notified the Ease of Compliance to Maintain Registers under various Labour Law Rules, 2017 (“Rules”) for providing combined registers under various labour laws to facilitate ease of compliance, maintenance, inspection and for providing easy accessibility to the public through electronic means and thereby increasing transparency. The Rules have come into effect on 21 February 2017.

You don’t need to maintain many registers under the following Act, after the introduction of East of Compliance:

a) Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996;

b) The Contract Labour (Regulation and Abolition) Act, 1970;

c) The Equal Remuneration Act, 1976;

d) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979;

e) The Mines Act, 1952

f) The Minimum Wages Act, 1948;

g) The Payment of Wages Act, 1936;

h) The Sales Promotion Employees (Conditions of Service) Act, 1976; and

i) The Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955.

Did you know????? (4)

Did you know????? (2)

  • An employee who has become a member of the Provident Fund on or after 1 September 2014 and draws monthly pay exceeding INR 15,000 is not eligible to become member of the EPS. In such case, the employer’s contribution is fully allocated to the EPF.
  • Notice Period recovery is non-taxable, it means if the Notice period is recovered under deduction after gross Salary being taxed in Full at the time of Full and Final Settlement, you are actually paying Tax on Notice Period recovery or the Amount, which you never received.
  •  Any Employer employing 10 or more employees has to display the following Abstracts (8):
  1. Sexual Harassment of women at workplace with Anti Sexual Harassment Policy with space for the name, addresses, e-mail, mobile no of the members of the Internal Complaint Committee
  2.  Payment of Wages (As Amended)
  3. Factories Act (As Amended)
  4. Maternity Benefit Act (As Amended)
  5. Contract Labour (R&A) Act (As Amended)
  6. Child and Adolescent Labour (P&R) Act with Child Labour (P&R) Amendment Act (As Amended)
  7. Checklist of Statutory Compliance under Labour Laws (As Amended)
  8. Payment of Gratuity Act Containing Amendment of 2018
Leave Travel Allowance (2)

Leave Travel Allowance (2)

This is the 2nd LTA Blog, here is the link for 1st LTA Blog :

LTA exemption cannot be claimed at the time of ITR filing, the exemption is limited to LTA provided by the employer.

LTA exemption is available only for travel and not for Boarding, Lodging, local conveyance, sightseeing, food, etc.

Carryover of Unclaimed LTA

Some Employers also allow the unclaimed LTA amount to be carried over to next Financial Year, whereas some employers pay back the unclaimed LTA amount as taxable component, in same financial year, either at the year-end or on monthly basis.

Carryover of Journeys Exemption to next Year

In case if any employee has not availed 1 or 2 journey in any block year, he/she is allowed to carryover such exemption to the 1st calendar year of the next block year

LTA in case of Air Travel, Train, Taxi Etc

In case of your source and destinations are not connected by any recognized public transport – it will be presumed that the journey had been performed by rail and the exemption amount cannot exceed the amount equivalent to the AC 1st Class rail fare for shortest route

In case of your source and destination are not connected by rail but by other recognized public transport – Exemption amount is restricted to 1st class or deluxe class fare for the shortest route

In case of your source and destination are connected by rail – exemption amount cannot exceed the amount equivalent to the AC 1st Class rail fare for shortest route

In case of journey from source to destination is performed by Air – exemption amount is restricted to the Economy fair of Indian Airlines or Air India for the shortest route

Multi Destination Journey

In case of Multi Destination Journey, exemption is always considered for the shortest route from source to destination (Place of origin to the farthest place).

LTA Exemption on Holidays

As per IT Act 1961, LTA exemption cannot be availed for the journey performed during Holidays and some organizations do follow the rules strictly and reject the claims.