For recovery of payment dues from employee, gratuity can be withheld-
In the case of M/s Steel Authority of India Ltd. v. Raghbendra Singh (15 December 2020), the Supreme Court of India held that if the employee occupies a quarter beyond the mentioned period, then he would be liable to penal rent. This penal rent can however be adjusted against the dues payable including gratuity.
Being paid paltry amounts qualifies as forced labour-
In the case of Chandrawati Devi v. State of U.P. & Ors. (15 December 2020), the Petitioner who worked barely for Rs. 1000 per month since 2005 was removed without any opportunity since August 2019. She works for making mid-day meals and a primary school along with being a member of Mandhyan Bhojan Rasoiya Mazdoor Sangh. The court held that paying such paltry amounts to the cooks qualifies as forced labour. The Allahabad High Court allowed the petition and held that there should be steps taken for fixing rates under the Minimum Wages Act.
Factories Act Notification increasing working hours indicative of intention to capitalize on the pandemic to force workers into servitude-
In the case of Gujarat Mazdoor Sabha v. The State of Gujarat (01 October 2020), the Apex Court quashed two notifications issued by the Gujarat Government which permitted factories in the state to make workers work for additional hours without paying double wages for the additional time. Citing public emergency and financial exigencies due to global pandemic as reasons for not paying extra wages is against Article 21 and Article 23 if the Constitution. The court held that as per Article 142 of the Indian Constitution and Section 59 of the Factories Act, all the workers working since the issuance of the notification shall be paid overtime wages.
The Code on Social Security, 2020-
The Ministry of Law and Justice on 28th September 2020 enacted an act to amend the laws relating to social security with the goal to extend such security to all the employees and workers either in the organised or unorganised sectors. The act further gives the power to the Central and State governments to launch schemes for the benefit of workers.
Supreme Court interim directions for payment of wages during national lockdown due to the Covid-19 pandemic-
In the case of Ficus Pax Private Ltd. & Ors. v. Union of India (12 June 2020), the Supreme Court of India directed private establishments, industries, employers to enter into negotiation and settlement with the workers/employers regarding payment of wages when the industrial establishment was closed due to the lockdown.
Gratuity payable if the Termination of Employment is after 5 years of Continuous Service; Termination includes Resignation as well-
In the case of Rajasthan State Road Transport Corporation Ltd. & Others v. Smt. Mohani Devi & Another (15 April 2020), the Supreme Court of India in terms of Section 4(1)(b) of the Payment of Gratuity Act, 1972, the employee is entitled to gratuity if the termination of employment is after 5 years of continuous service. The term termination also includes the term resignation.
Are Contractual Employees of a Company Entitled to Provident Fund Benefit under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees’ Provident Fund Scheme, 1952?
In the case of Pawan Hans Limited & Ors. Vs Aviation Karmachari Sanghatana (17 January 2020), the Apex Court has held that just like the regular employees of a company, Contractual Employees should be provided the benefit of Provident Fund in order to bring uniformity in the service conditions of all the employees of a company.
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