India’s Biggest Labour Code LIVE Q&A | Adv. S.K. Gupta | Friday 9 PM | 29 May 2026

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[00:00:05]Just go there and check. Huh?

[00:00:07]Started.

[00:00:13]So good evening everyone. Thanks for coming YouTube channel.

[00:00:24]Label reporter team foundation.

[00:00:35]I am ready series start.

[00:00:48]Honorable Supreme Court of India, one of the advocate advocate.

[00:01:09]Of course.

[00:01:16]Yes. Yes. Go ahead, sir.

[00:01:26]on social security household right so entire Mumbai di and other cities already.

[00:01:50]Basically most of the organization they are asking from which date we have to implement ESI and pro PF provision.

[00:02:02]>> Yes, >> that is the most important question.

[00:02:05]And second question which most of the participant they are asking that whether we have to deduct the provident fund or ESI contribution with the old provision of law or the new provision of law.

[00:02:24]Okay. So actually basically I have I want to give a very clear answer on this.

[00:02:34]As you are all aware that by notification of 21st November 2025 this all four code has been notified by the government.

[00:02:51]>> Yeah. with effect from 21st November 25 across the country.

[00:02:58]>> Okay. Thereafter there was a confusion among all legal experts and the industry owner that rule has not been notified by the central government. So we are unable to make a compliance with respect of the provident fund with the new definition of wages which has been defined under section 28 of the social security code. Okay.

[00:03:24]>> Yeah. Now ESI act has already been repealed on 21st by that notification but PF was not repealed.

[00:03:35]>> Later on on 19th December it was also repealed.

[00:03:40]>> So now I say Provident Fund Act 1952 and ESI Estate Insurance Act 1948 both act has been repealed. Okay. Now all establishment have to make a compliance with the definition of new. Okay.

[00:03:59]>> Right.

[00:03:59]>> Now if there is a like uh a that rule has not been notified that's why we are unable to make a compliance of the code PF or ESI with the definition of the new. Okay. So now the rule has already been notified.

[00:04:23]>> Yes. Number okay. Now second actually uh like people they are saying state government has not notified the rules.

[00:04:34]Okay.

[00:04:34]>> Kind of excuse.

[00:04:35]>> Okay. But ESI and private fund has no connection with the state government.

[00:04:41]>> Correct. Completely agree.

[00:04:42]>> It has to be okay.

[00:04:45]>> Yes. make a compliance are controlled and supervised by the central government. Correct? Okay. So I advise if establishment has not make a compliance with the new definition of wages from 21st number they have to make a compliance for this month as early as possible. This is my legal opinion. And second actually I am also getting a question that the ESI corporation has not come out any notification. There is no provision for notification because central government has already notified and the rule has been framed. So all establishment has to make a compliance under PF in ESI from first May positively otherwise they may >> face the consequences. consequence for like assessment under section 125 of the social security act and even a criminal offense also. So for all the audience who are available to all of you. Please start PF and ESIC compliance ASAP as soon as possible. If you have failed to start from 21st November 2025, do not fail for further time.

[00:06:16]Immediately is man compiance. If you fail then definitely there will be a future consequences that you have to face. Anyway, right 532 in calculation in PF wage rate as per her knowledge basic plus DA retaining alliances are included. Can we take other allowances also? I will listen. I will come.

[00:06:56]>> Yes.

[00:06:58]If you are going to read section two within bracket 88 of the social security which has been defined the definition of wages. Jiha the uh they have clearly narrated that if you are going to read the definition of wages in all four act >> first you start reading definition all remuneration.

[00:07:24]>> Okay.

[00:07:25]>> Right. Either salary allows or otherwise. Yes.

[00:07:29]>> Okay. So what will happen actually whatever a company is giving a monthly wages to their employee that all will be treated as a remuneration >> remuneration. Yes. But there is a exception that only include out of the total revenue basic DA and retaining allows.

[00:07:56]>> Okay. will be the first part >> first part >> of the phase of the >> for which actually employer is liable to deduct the provident fund employer is liable to deduct the ESI or calculate the graduity or the bonus okay but the second part does not include huh okay allowances which allowances which is mentioned in the provided that A to I A to A to I >> whatever mention into A to I that should not be 50% of the total wages.

[00:08:36]>> Okay. Now what is the A2 I first the statuto bonus >> if you're giving monthly bonus >> then it will come. So monthly bonus we should avoid giving we have to give bonus as per the provision >> as per the provision at the end of the >> financial financial year >> because financial year now with the latest rule uh assessment year that is start along with the financial yearong >> from the 1st April to 31st March. So this is a bonus year.

[00:09:12]>> Okay.

[00:09:12]>> And bonus will be paid within a eight month.

[00:09:15]>> It will be paid on number >> number >> positively.

[00:09:19]>> I say if you are paying a bonus >> yearly then it will not come under the wages.

[00:09:27]>> Under the wages.

[00:09:28]>> It is a deferred wages because it is being paid.

[00:09:33]>> Yes.

[00:09:34]>> After completion of certain condition.

[00:09:36]>> Yes.

[00:09:37]>> Okay.

[00:09:38]>> Okay. Aa second H >> that will come under the exclusion clause allowances.

[00:09:49]Third act commission.

[00:09:51]>> Commission any commission >> com uh convince allowance.

[00:09:55]>> Okay. And one of the important which I will let you know defray expenses.

[00:10:02]>> Defray special expenses.

[00:10:04]>> Special expenses.

[00:10:06]Retrenchment compensation it is excluded.

[00:10:10]>> Excluded.

[00:10:11]>> Okay. And another actually graduity is also excluded.

[00:10:15]>> Yes. So I advise all of you that whatever the allowances mentioned from A to I it should not be more than 50%.

[00:10:27]Okay, >> that is one rider.

[00:10:28]>> Per rider up. Now if you are paying a special allowance, >> artificial allowance, >> yes >> or difficult allowance which is not mentioned A2Y >> that will be treated as a basic base for which you are liable to deduct provident fund and ESI also. It means any earning component which is not uh getting placed between A to I >> A to I >> it then it has a capacity to become the part of including >> Yes.

[00:11:00]>> So uh let's say one of the uh viewer had also asked about special alliance. So do we need to deduct PF and ESIC on the earning?

[00:11:09]>> Yes sir. I'm coming.

[00:11:11]>> You have to clarify why you are paying a special allowance. Okay. Why you are paying a special allowance to the employee?

[00:11:19]>> Purpose need to be identified.

[00:11:20]>> Purpose. Suppose for example you are having a uniform in a company.

[00:11:25]>> Yes.

[00:11:25]>> For maintaining you are paying a special allowance. Then that special allows will go into defay. But you have to make the policy.

[00:11:33]>> We have to make the policy.

[00:11:34]>> Okay. Our special allows is being paid to the employee because he's doing some field job.

[00:11:40]>> Correct.

[00:11:41]>> So it is not paid to all employee. Okay.

[00:11:45]So I say like that is huh for the name sake are just two balancing figure. Yes if you have put as a special allowance then it will be treated as a basic base >> means balancing first part >> balancing figure >> any balancing figure by nature >> but for which you are not able to explain to the authority.

[00:12:10]>> Okay.

[00:12:10]>> Okay. in a different way. If I have to put it around >> any component which is not getting placed between A to I >> A to I it will be treated as a >> as a basis of the first point >> means it will become a remiration which will get uh the part of including provision >> statuto >> wages okay >> for which actually PF ESI bonus and fund will be calculated. It means those three uh earning component which were mentioned and including part that is basic DA retain and retaining allowance.

[00:12:45]>> Retaining allows normally actually it is not practically applicable across all industry. It is only seasonal >> right >> actually retaining allows there is a confusion Mr. the whole >> uh most of the participant if I want to retain person for 2 years then we can give a retaining allowance >> or 3 years then give it is not like that object of retaining allow retaining allowance is related to the seasonal industry >> when a person works during the season >> yes >> then he's getting a wages >> okay >> when the employee is not called on duty but remaining in the house.

[00:13:29]>> Yes.

[00:13:30]>> During the off season then the company is paying a >> retaining allows >> to retain them. Sorry. To retain >> in future when I need he can come back and >> they are permanent but during the off season.

[00:13:42]>> Yes >> they are paid most of the company they are giving a 50%.

[00:13:48]>> Okay.

[00:13:48]>> So 50% it is called retaining allows.

[00:13:52]when it is 50% is paid to the employee.

[00:13:56]Yes, >> it will come under the first part.

[00:13:59]>> Okay.

[00:14:00]>> For which PF graduity and everything will be calculated.

[00:14:04]>> So sir now we will move to another question that someone had asked. Now Sanjie sa 9745 he asked us that we did not give appointment later and any employee previously now we give appointment later as per new code. Yes then all employee date of joining previously on record but issue date is present.

[00:14:30]>> Yes I will.

[00:14:31]>> Okay. I hope previously >> actually basically earlier >> normally appointment letter is not given to casual employee.

[00:14:44]>> Huh.

[00:14:45]>> Indirect employee through contactctor for permanent employee all company they were issuing a appointment.

[00:14:54]>> Yes. Now this under the OS code this responsibility is fixed under the what is the duty of the employer. One of the duty of the employer say that you have to issue appointment letter each and every employee.

[00:15:12]>> Yes.

[00:15:13]>> Now the question of the >> viewer is like that if I have not issued. Okay. M >> now you have to issue to him >> mentioning that actually >> your appointed on such and such date and now as per the new definition of the >> are the requirement of code we are issuing appointment letter and these are the terms and condition of appointment letter and issue him no problem >> that's a completely complied >> yes >> that's good so uh uh our viewer Mr. Sanjiv you are going to be complied if you follow this right now somebody have asked how to regularly contract how to regularly contract personal well question and correct process or anything now maternity benefit benefit calculation as per as as per latest.

[00:16:20]Yes.

[00:16:25]Yes. Yes. Yes. So, okay. Definitely Sanji, we are going to >> maternity benefit actually as per the new provision of law which is mentioned in the code on social security. India 26 days 26 week will be given maternity benefit to the female employees.

[00:16:49]>> Okay. But his question whether we should pay wages or total >> gross gross very correct audience >> as per the provision of As per the provision of >> social security you have to pay the wages only.

[00:17:07]>> Okay. Not on gross >> not on gross but there is a direct Supreme Court judgment for the previous maternity benefit act. Okay.

[00:17:17]>> Okay. which clearly says Supreme Court before proceedings on maternity leave whatever the female was getting the total amount she will entitled to get the full salary. It means already supreme court given the judgment that gross gross >> but due to new code definition only the wages should be paid >> only as for the wages not on the gross >> not of the gross judgment it will not affect because actually new act >> notified legislated by the parliament.

[00:18:00]So now actually employer has to give a maternity benefit only the first part of >> wage wage code.

[00:18:09]>> Okay that is 26 week.

[00:18:13]>> Okay benefit as per the wage difference yes from 21st 21st 100%. Because rule has no no role to play only procedural procedural but there is no maximum limit in court for ESIC. I think maximum limit right now actually there's a limit of 21,000 if any employee is getting a 21,000 of the first part of wages >> correct >> then he's entitled for the membership under the >> ESI ESIC social security If his salary is going to increase during the contribution period, >> yeah, >> then the employer is liable to deduct and pay the ESI contribution for the first contribution period >> and as soon as the second is going to start, it can be discontinued.

[00:19:32]>> Okay. But the eligibility for getting a a deduction of the ESI is still 21,000 per month. per month right >> and for the provident fund it is a 15,000 which I will uh read for you sir live chat me this all advocate to pay monthly bonus and leave along with the regular salary then what should we be done for provision under labor under the code on wages.

[00:20:19]>> Yeah.

[00:20:20]>> Which the bonus provision is also there.

[00:20:23]>> Yes.

[00:20:26]>> Employer is empowered to give the intim bonus.

[00:20:30]Yes.

[00:20:31]>> Not the monthly bonus.

[00:20:33]>> And intrim bonus can only be given on some occasion >> like Diwali.

[00:20:43]And that interim bonus you can adjust when you are going to do final payment.

[00:20:50]>> Okay. Yes.

[00:20:51]>> But if you are giving a monthly bonus to your employee >> uh >> then it will come under the excluded wages. Okay.

[00:21:02]>> In second part of the wages.

[00:21:05]>> Second part of the >> Okay.

[00:21:07]And if you are giving a bonus at the end of the year then it will not be treated as a wages >> as per the for the purpose >> purpose of this code >> this code the monthly actually you can give there is no problem >> there's a violation also >> because act does not say that employer is liable to pay the monthly bonus correct and nor practically I can Okay, monthly bonus across the country it is a practice they are giving a 8.33 that is the minimum >> but the bonus is going to be calculated at the end of financial year >> based on the profit of the company not actually not it can't be it can't be the part of salaryus It is a basis. It's a basis lose being a part of bonus. Okay.

[00:22:23]Again from this is from advocate uh Djun Djun Singh. Okay sir. In ESIC if gross is 21,000 and employee work extra then we must give uh pay on ESIC 21,000 or on actual costs >> it this actually uh it was a previous position of law >> jiha >> what the previous position of law if the eligibility is 21,000 >> ja >> okay then employer is liable to deduct ESI >> on 21,000 >> but there was also provision and practice when actually some overtime is being done by that employee >> or some incentive is being earned by that employee >> ja >> then that amount which also added >> ja >> over and above 21,000 and ESI is also deducted >> yes but this provision has been now finished so as per the new Provision of law overtime incentive is coming under the >> exclusion clause >> for which ESI cannot be deducted >> you're excluding part >> it will only be deducted when actually it is going to be more than 50% then the rest amount will go to the first part add it back to the wages then you are liable to deduct the ESI okay for first contribution period Second actually if sales goes more than 21,000 then it will not be deducted.

[00:24:07]>> Okay.

[00:24:12]Ankumar Singh. Uh please provide meaning of section 14 of the code of wage for the OTAA to the employee means manager a manag >> is correct actually what is going on the word came under the code on wages employee >> also get a double O. Yes.

[00:24:44]>> But I would like to submit yes clarify to all person or the legal experts that OT terms and condition is being regulated by the OS code not the code on wages. Okay. not from the code on wages and under the OS code only the worker are entitled to get the overtime.

[00:25:14]>> Okay.

[00:25:15]>> Not the employee.

[00:25:16]>> Right. The challenge >> only the worker >> is entitled to get the over double overtime >> if they are working >> more than 48 hour >> in a week >> per week more than then actually he's entitled to get the double overtime.

[00:25:40]>> Okay.

[00:25:41]>> Okay.

[00:25:43]So employee is not entitled. employee means actually supervisor and above they are not entitled to get the overtime >> supervisor concept money only I'm coming on that point because new definition of worker says if any supervisor and manager >> if any supervisor and manager getting is selling 18,000 or less than 18,000.

[00:26:17]>> Okay.

[00:26:19]>> By virtue of the definition of worker, >> he will come under the definition of worker.

[00:26:25]>> Okay.

[00:26:25]>> Okay.

[00:26:26]>> If he's getting a salary more than 18,000 then then the nature of duty will be examined by the court whether that person really come within the definition of workman.

[00:26:43]>> Okay. worker not worker workman worker.

[00:26:47]>> Okay.

[00:26:47]>> Okay. So now actually it is a clear law decided by the Supreme Court. First I say designation is not a criteria to examine whether that person is coming within the definition of worker or not.

[00:27:05]>> Okay.

[00:27:06]>> Not nomature not shy writer sir.

[00:27:13]Three will not come. Only the nature of duty will come.

[00:27:17]>> Nature of duty.

[00:27:17]>> Okay. And during the course of judicial proceedings only certain three or four question is being asked by the opposite council.

[00:27:29]>> What is your designation?

[00:27:31]>> Okay.

[00:27:32]>> You say that my designation is supervisor. M >> so definitely by virtue of the designation of supervisor that person doesn't fall within the definition of worker >> right >> okay okay take okay second actually who is working under you nobody is working under me >> working >> okay aa have you issued char sheet to any person when nobody is working under me how I can issue char sheet >> correct >> management has given any authority to you to sanction the leave >> to issue a char sheet to even a is write or some signature uh on the >> okay like that then actually merination of supervisor or assistant manager you are a workman workman right >> okay you're a workmanisum Kumar praati Mr. Assis Kumar rule number 185 of the OSH uh code says for 2% increment every year for contractor staff. What does it mean?

[00:28:52]The rule rule number 185 under OS code.

[00:28:57]>> Mhm.

[00:28:58]>> It says two person payment increment every year for contractor staff.

[00:29:06]What does it mean? Let's refer to the rule rule. Let me read the rule.

[00:29:15]Second.

[00:29:19]Yes. Yes.

[00:29:55]It's the IR rule.

[00:29:57]Exit. Then we go towards the striking.

[00:30:02]Yes.

[00:30:17]Let's move move towards the another question.

[00:30:19]>> Another question.

[00:30:23]>> Nitin Kumar from Astram. Okay sir. as well all are talking about restructuring of wages while section 124 of social security code restrict employer not to reduce wages. So the question is that how long this legally capable to stand on code.

[00:30:49]Correct.

[00:30:51]Actually basically I say like that while restructuring the wages >> as per the new provision of law >> I made a 8 10 principle.

[00:31:10]>> Yes >> I would like to clarify. Okay, first principle that actually when you are going to restricturing the wages of the employee >> at least first part of the wages should not be less than the minimum wages which has been decided by the central government or the state government.

[00:31:35]>> Okay.

[00:31:36]>> Okay. That will be a basic. Okay.

[00:31:38]Because actually DA basic and DA compulsory will come on the first part.

[00:31:45]>> Okay.

[00:31:46]>> And second actually my principle is this that whosoever your employee in the company.

[00:31:59]>> Okay. You have to bifurcate total manpower.

[00:32:06]>> Okay. because our ESI limit is 21,000.

[00:32:12]>> Okay. It means actually the employee who are getting a gross salary 42,000 >> they will get >> they will get all ESI benefit >> right >> because if 42 means the 21,000 will go in the first part and 21,000 will be go allowances >> right >> okay acha third my principle that our Definition of wages also say that 15% of the total wages you can give in kind.

[00:32:52]>> In kind >> okay that will not come within the definition of wages for any purpose >> 15% which is paid in kind >> in kind means kind voucher traveling voucher >> or anything you can give. Okay. But not in the form of the money kind of.

[00:33:16]>> Yes.

[00:33:18]My fourth principle that while doing a restructuring you have to give the allowances which has been mentioned in the definition of wages that is A to I right. The first actually you say like convince allows >> H normally two allows given across the country by all employer >> okay but I suggest while giving a H you have to make a written policy written policy >> yes convince key you have to make a written policy in your company >> okay >> but importantly actually I can tell you One principle when you are making a HR a policy in your company >> you say that the company is liable to pay the H up to 50%.

[00:34:21]Or up to 40%.

[00:34:24]basic B right okay so what will happen okay while doing a restructuring you can give it 20% HA >> 30% >> or 40% depending upon the structure of the >> salary >> salary right >> but don't make the policy okay employee is entitled to get a 40% of the basic then you have to give a 40% to everyone right when you are writing up to >> up to up to you can give it 20%. You can give it 30%. You can give a 40%. According to the CTC, >> according to the CTC of the employee, >> right?

[00:35:07]>> Like that you can use that up to in the convince allowance also.

[00:35:12]>> Okay.

[00:35:13]>> Okay. And you can adjust up third actually very important which parliament has defay expenses. Defenses if you have provide uniform in our company you can give a washing allows >> made the policy >> right >> but in the bossing allows you cannot write up to it is expenditure for maintaining the uniform right >> okay it may be a uniform for the supervisor separately and the worker separately >> or manager separately for that you can make a policy the manager will 1,000 >> 2,000 worker category will get 500 or 1,000 whatever it is you can mention.

[00:36:03]Second actually defay to get work from home but work from home only available for the clerical staff and the executive staff not the workers. Okay.

[00:36:15]So you have to remember when person is work from home internet, mobile, laptop maintenance, you can make the policy.

[00:36:26]>> Correct.

[00:36:28]>> Up. Now some employee actually their duty is in a field job.

[00:36:32]>> Huh?

[00:36:33]>> So actually when he's going to every day in the field you have to pay the expenses.

[00:36:38]>> Correct. So then actually you can make a policy that since your job is remaining in the outside of the field work. So management has decided as per the nature of work for expenses or special allowance this >> okay but it is not paid to all employee only the nature of duty >> only as per the nature of duty job >> to D frame lot of expenses which you are giving to the employee that can cover okay now third commission fourth commission Commission actually only can be given to certain category of employee not the all employees.

[00:37:24]Like just say if you are in the sales department >> increasing the sales you have given a some commission to the employee are the top executives chief executive finance head. So they are also part of the profit which has been earned by the company percent you will also given it from the profit of the company commission. So that actually will come under the exclusion clause subject to the rider of 50%. Okay. So this is the principle. Next principle have like if you are having a international worker in your company.

[00:38:04]Okay. Then what will happen for the international worker? The definition has not been changed with the four code. It means the old provision of law will continue to apply for another one year >> because that actually para has been added under the employee provident fund scheme and as per the uh section 144 164 which clearly says that the employee provident fund scheme regulation and uh rules that will remain applicable for one year. Means actually up to 20th November 2026 all will be applicable and in the meantime they can also change the rule.

[00:38:58]So under that actually para 83 international worker provision has not been changed. So I suggest all HR professional that whatever deduction is being done >> for the international worker Sally you have to continue.

[00:39:18]>> Okay. Now last actually I can tell cost to the company cost to the company has not been defined any provision of law.

[00:39:29]It is a balance sheet between the employee and employer while selecting the person.

[00:39:36]>> It has no connection with the remuneration. It has no connection with the salary. Okay. But out of the cost to the company, whatever money you are paying monthly that is coming within the definition of wages.

[00:39:51]>> Yes. Just say like I'm giving example your graduity is also included in the cost of the company G but that is only payable when you are going to complete five years in the company.

[00:40:06]>> Okay. Your bonus is included in the cost to the company. Correct. But bonus is only paid when actually at the end of year and depending upon the calculation.

[00:40:19]Right.

[00:40:20]>> Okay. A last actually I will let you know the last principle some amount to run the company there is a lot of company having a certain expenditure which is being given under the reimbursement.

[00:40:39]So that reimbursement does not fall within the definition of basic wages our wages. Okay.

[00:40:48]And last any incentive performance incentive which is being given to the employee that will not come because that question has been clarified by the ministry of labor and employment during the FAQ.

[00:41:05]Frequent question they say that performance, index based payment, variable payment or stock which is being given to the employee that all will not come within the definition of wage category. Okay.

[00:41:29]section 124 actually I would like to give my opinion 124 clearly say that employer is not going to reduce the salary okay >> right >> but actually when the code on wages has been legislated by the parliament >> Mhm. and I'm going to reorganize the wages of the employee.

[00:41:57]>> So it is as far as my opinion it is called if I'm doing by operation of law >> so it will not come under section 124 only apply when I have restructured the wages and thereafter we cannot do it.

[00:42:15]Okay, >> one time can do it restructuring as per the definition of wages later on we cannot reduce the wages as per section 124 but that have to be done by the employer as per by operation of law otherwise the restructuring it is very very difficult to correct very difficult when you are going to read 124 which clearly say you cannot reduce the wages.

[00:42:45]>> Yes, >> but we are doing the resting the wages as per the new definition of law. Okay.

[00:42:56]>> So, so anything is being done by the company by operation of law that will not come under section 124. This is my interpretation.

[00:43:22]Let's see.

[00:43:28]Fixed term employer employees sir. Some organizations appoints person on some period of time that is from 1st January 2026 to uh December 2026. But I see >> no word of fixed term is included in the appointment later. It is FTE or not.

[00:43:56]They have already issued the letter by mentioning that the employee is being appointed from 1st January 26 to 31st December. It is a fixed term employment.

[00:44:10]>> Yeah.

[00:44:11]>> Aa second actually I would like to submit Mr. Rahul this fixed term employment provision on which date was legislated 21st November.

[00:44:21]>> Yeah. Prior to that if you have issued any letter then it will not come and after 21st of November if you have issued the letter without mentioning that actually >> FT word >> FT word but actually the appointment letter which they have given >> the nature uh >> nature of that appointment letter it means fixed term number >> that nature is completely speaking but this is a fixed >> yes okay >> so what will happen at the end of the uh December Mhm.

[00:44:53]>> If his employment is going to be discharged, okay, then this employer is liable to pay the gratuitity to him. Okay.

[00:45:03]>> Okay.

[00:45:08]Sanjie when employer works overtime the overtime limit 125 hours. Now for overtime we need permission from the state government compulsory or without permission in court. Clarify sir actually I'm not aware from which state they are asking.

[00:45:33]>> Okay. Okay.

[00:45:36]State please me. I I will let you know.

[00:45:43]First of all, overtime limit >> has to be notified by the respective state.

[00:45:51]>> Yeah.

[00:45:52]>> Okay. This is for example I'm uh giving you right now state of Karnataka.

[00:46:00]They say that actually employer is only >> having a liberty to take the overtime 50 hours per quarter within a 3 months within 3 months. State of Hana 154 a month >> per quarter per quarter they can take a overtime from the employee >> limit as overtime limit >> overtime limit. Okay. So actually overtime limit will be notified by the respective state >> respective state wise >> and you can take up to that period.

[00:46:37]>> Okay.

[00:46:37]>> Now most important which Mr. Rahul everybody should aware prior to 21st of November 2025 >> there is no need to take a consent from the employee for >> asking the overtime if you have given instruction that Mr. Rahul you should come tomorrow on overtime >> you have to come subject to the rider of that state government limit >> okay >> per quarter >> okay >> but now new provision of law say if the employee has not given a consent >> Mhm. Means worker employee is not entitled to get the worker has not given a consent for coming on the overtime. You cannot force to come on over time >> means uh >> there should be a consent.

[00:47:39]>> Okay.

[00:47:41]Okay. Now let's see the another question that this is from the message deleted HR soul is graduity for fixedterm employee payable to fixedterm employee joined before 21st November 2025 or joined on and after 21st very good question. Very good question.

[00:48:12]They for giving a gratuitity for fixedterm employment that provision came on 21st November 25.

[00:48:22]>> Gi >> prior to this provision is not applicable.

[00:48:26]>> Correct.

[00:48:26]>> Okay. So onward 21st of November >> if you are going to appoint any employee under the fixed term of employment >> then he entitled to get the graduity if he has completed one year right but I would like to summit clearly to all audience okay if you are going to read the fixedterm definition under the IR act.

[00:48:54]>> Okay. So there is a A B and C.

[00:48:59]>> C clearly says that the graduity will be given to the fixedterm employment if he has completed one year.

[00:49:06]>> One year >> but that provision is absent in the social security subsequent provision of law not on the definition of the fixed ter.

[00:49:20]>> Okay. But when the rule was notified on the 8th May >> rule says of the social security that the fixedterm employee will be given graduity if he has completed one year.

[00:49:39]>> So I'm advising to all if the fixedterm employee has completed one year then you give also graity to that.

[00:49:52]from before actually 21st it is not applicable 21st he's not entitled to get the credit okay after 21st November >> because provision only came in 21st of okay >> okay okay suppose if somebody has joined this is I'm giving example somebody joined the June >> yes >> June 25 so He's going to complete fixedterm employment in the June of uh May >> correct >> 26.

[00:50:27]>> So that actually person is not entitled to get the graduity.

[00:50:30]>> Correct.

[00:50:31]>> Because when actually he was appointed prior to 21st of November, he was appointed with the old provision of law not the new notision. Right.

[00:50:49]This is Moiti.

[00:50:52]Okay. Does does this means that if we are paying overtime to an employee and the second part exceed 50%. Then ESIC will applicable on the access amount amount.

[00:51:10]Okay sir, if you are going to deduct the ESI up to 21,000 >> okay but the regulation clearly says that if it sell is going to exceed over and above 21,000 employer is liable to deduct the ESI first contribution period Second contribution period he's going to disqualify.

[00:51:44]His question is a during that 21st he has earned the overtime G and overtime is also going more than 50% >> of the second rider it will be added in the first. So the question is whether actually employer is liable to deduct the ESI 21,000 and added value of the wages. I can say no sir that is a case >> ESI will be deducted up to 21,000. So that is a case when the person is earning up to 21,000 as a wage. Let's say uh in a different scenario where a person is earning less than 21,000 but due to overtime certain amount get added added back to the first part right and it's bas is going to increase say 22,000 so his question is like whether ESI will be deducted on 22,000 as earlier practice or 21,000 I say no okay ESI will be deducted up to 21,000. Up to 21,000.

[00:52:54]>> Yes.

[00:52:55]>> Done. That's okay. So, let's move to another question. Now, uh HR saw cover.

[00:53:05]We have to see some uh live chats.

[00:53:11]Okay. There is one question by Asis Kumar 3 42.

[00:53:17]One female employee in the mid of maternity leave will she get maternity benefit salary on gross and then there's another question by Moika does this means yeah answer and what is the process of this section then there savant ESIC applicability has been kept in abience for medical and educational institutions in Maharashtra. What should the already registered institutions do?

[00:53:59]>> Good question.

[00:54:00]>> Should they continue?

[00:54:01]>> Yes. Yes. I will let him right.

[00:54:04]First of all, actually I made it very clear the establishment which is having a 10 or more >> j >> any establishment they will be covered under the ESI >> any establishment.

[00:54:21]>> Huh. Recently what happened actually during this uh notification 21st of November >> right >> the Maharashtra government has also notified >> for covering the education >> okay right >> but they have returned back this notification because somebody has also asked when I was in Bombay during this seminar during that period when this notification is wrong because right now State government or the central government will not issue any notification to covering the particular institute under the ESI.

[00:54:59]>> Right?

[00:55:00]>> Now the definition is say that any establishment is having a 10 or more across the country.

[00:55:08]>> Correct. That >> across the country there is no demarcation.

[00:55:14]Okay. implemented area or non-implement area >> that has been by the completely been omitted right >> any establishment which is having a 10 or more will be covered under the ESIC >> right >> and for the hijart industry only the one >> this is mentioned in section 16 of the social security code and a second one >> so that actually and uh I I made it clear that educate that notification has been returned back by the Maharashtra government >> right correct establishment then it will applicable ESI will be applicable basically 12,000 12,000 >> 12,000 >> okay >> and in kind 5,000 >> 5,000 the what will be the >> what will be the >> yes very good >> very good question >> first of all I would like to regarding the somebody has asked me the basis basic basis 12,000 >> ah >> and I have given a 100% H >> I can say you can give 100% >> absolutely >> there is no provision either under the ESI or under the provident fund >> any social security that the employer is liable to give a 20%, 40% or 50%.

[00:56:52]>> Maximum limit prescribed >> but because actually the rider has been fake the second part should not be more than 50%. You can also give a 100%. So this structure is good. Now another structure say 5,000 >> in kind >> in kind. Okay. Now 5,000 is more than 15%. Absolutely. It's more than 15%.

[00:57:13]>> Because the total wage is 24,000 >> right >> and 24,000 car >> 15% uh amount will come >> wage is 12,000 as of now.

[00:57:25]>> Yes.

[00:57:25]>> And HR is excluding part. So 12,000 is excluded. Yes.

[00:57:29]>> Now in kind is there >> in kind they are giving it >> 5,000 >> 5,000. Now if that amount is going to exceed more than 15% >> 15% >> then actually add it back to the first part >> again it will become wage >> first part >> right >> but I can made it clear you can give a 100% H >> no provision >> you can give a 100% convince allowance >> no problem >> there's no problem only what will happen >> total 50% >> under the income tax act 50% they will give non- taxable income >> section 10 >> over and above it will be taxable income >> right >> that's all >> right as per section 10 income >> procedi is silent how much employer can give a infinite for right >> 100% 100% okay so Ram is asking if company wish to pay any type of incentive as production as per the scheme based on production. What is the effect for PF and ESIC? Yes, I will come one by one.

[00:58:48]>> First of all, actually I say >> what is the limit of provident fund?

[00:58:55]>> PF mean >> 15,000.

[00:58:57]>> That's a 15,000. Okay.

[00:58:58]>> Right.

[00:59:01]>> If the amount of incentive >> is coming under the first part >> by way of wages.

[00:59:10]For example, employer is liable to deduct the provident fund up to 15,000.

[00:59:17]>> Correct?

[00:59:18]>> That is a 1,800 per month.

[00:59:21]>> G >> over and above no RPFC, APFC can assess the amount.

[00:59:31]>> Correct.

[00:59:31]>> Clear up. Now I'm coming ESI.

[00:59:35]>> Yes.

[00:59:36]>> ESI with the new provision of law. the ESI will be deducted up to 21,000.

[00:59:43]Okay, because the old definition has been repealed. New definition clearly says that first part only the ESI will be deducted >> on 21,000 >> up to 25 >> if 25 employee is going to exceed >> then first contribution as I repeatedly say employer is liable to pay in second contribution period he will be nonual employee >> aa up now actually his specific If the employee has earned production incentive, okay, production incentives to definitely as per the FAQ >> of the Ministry of Labor, anybody can go on the website, they can also download that FAQ which clearly says if the production incentive is earned by the employee, it is not coming within the definition of wages. purely excluded.

[01:00:47]>> Yes. For the purpose of deduction of ESI, for the purpose of deduction of the right conversation, we are uh we keeps on referring certain sections, provisions, FAQ. So for all our audience FAQs links after this entire live session chat discussion during this entire convers Possibilities in last three year company not provided PF only ESIC provided. What can I do?

[01:01:45]Central contract employee it is a default absolutely this is a non-compliance legal action only the question is coming if there is a possibility >> okay >> they Rahul GI is deducted when when the establishment is doing it 10 or more >> yes >> okay >> PF only deducted when actually your establishment 20 or more >> right >> that question is not clear >> ESI deducted if that establishment has a 10 >> correct >> how the PF can be deducted >> absolutely absolutely >> huh if that establishment having a 20 or more employee but he's going to deduct the ESI it is a totally violation correct and assessment can be done >> whenever Whenever any inspection is being done by the PF authority or any complaint is being done then actually that assessment will be done under section 125 of the code ones for the ESIPF both now okay no 45 have been deleted correct >> repealed >> seven is also repealed okay 7B actually has already been repealed 7 C Okay. The all assessment either ESI default or the PF default that will be assessed under section 125 of the code on pages. Okay.

[01:03:24]But this question is not clear whether they have 20 or more employees. If they are having a 20 then it is a totally default right. So employ non-compantic It means already more than 10 heads.

[01:04:14]Uh best tips for upcoming HR leader to ensure new code. This question is asked by Nages Nore. Okay.

[01:04:24]For the HR professional, I advise all HR professional if you have not restructuring the wages of your employee from my uh January 2026.

[01:04:40]Now the rule has been notified on 8th of uh uh May 2026.

[01:04:47]So I advise actually you go for restricting the wages as per the new definition of wages.

[01:04:53]>> Correct. and start deduction of the provident fund ESI as per the new base or restructuring contacts already. Yes, label reporter indas team. So it's a big uh or strong community in India and definitely we will help you out for restructuring policy making Yes. Yes.

[01:05:58]As per OS and WC code have notified what is the impact on shops and establishment act shop and establishment Mr. Rahul is being legislated by the state government.

[01:06:22]>> Absolutely.

[01:06:22]>> Okay.

[01:06:25]Now there is a difference or confusion among all HR professionals or the legal expert that whether we should go for registration under the OS code under section three. Right. Under section three which clearly says that as soon as the establishment is having a 10 or more person those all establishment from the date of notification of the rules within a 16 days such establishment has to get >> registered >> registered 60 days >> 60 days >> and within 7 days actually they will get a registration certificate correct A question is coming.

[01:07:14]I say if any establishment >> kindly hear me sir. If any establishment having a less than 10 it will be covered under shop and establishment >> state shops and establishment act.

[01:07:30]>> Okay.

[01:07:31]If any shop is going to increase from >> 10 >> 10 9 to 10 immediately. He has to convert his registration by filing a application in form number one >> under section three of that >> from shop to Os.

[01:07:52]So I say some notification has been issued only the one state has been issued that is a ponderich >> that has been issued that actually less than 10 you of the shop and establishment and more than 10 or more than you have to OS code and that is clear across the country it this law will be followed by all state government.

[01:08:30]establishment definition not employee actually basically Worker 10 or more means for worker categories.

[01:08:57]>> Worker category only work. No employ if any person >> in the company I'm taking a person huh >> it may be employee it may be a worker.

[01:09:19]Correct. Any person is the right word.

[01:09:21]>> Any person. Any person of the company.

[01:09:23]>> It may be a employee. It may be a worker.

[01:09:26]>> Huh?

[01:09:27]>> If any person is coming under the definition of worker, >> huh?

[01:09:33]>> Then he is a worker.

[01:09:34]>> Correct.

[01:09:35]>> If he does not fall within the definition of worker, then he's coming employee.

[01:09:40]>> Okay. Aa now under the four code for the code on wages only all it is treated as a employee either worker or employee supervisor manager >> everybody is treated as treated a worker >> because code on wages is only given a protection to employee okay now code on social security >> there's no category of worker only the employee is entitled to get all benefit either under ESI maternity benefit provident fund >> so for social security any person is a employee >> employee now under the IR code >> only the protection has been given to worker category >> where actually it is a whether you are a workman or you are a employee Okay, >> the workman actually only fall within the definition of workman category. He will be treated as a worker and other than workman >> any person will >> any person is a employee >> is employee and okay >> this is the simple theory okay Mr. Please advise on WC policy in case of ESIC code delayed during WC policy justify WC policy is not mandatory this is a practice >> this is I I would like to clear if any workman is covered under the ESI is protected by ESIC >> 100% there's no need to take a >> the workman compensation policy work compensation employee compensation.

[01:11:39]Okay.

[01:11:41]I would like to clear this is a very good question.

[01:11:47]As far as my survey and I say whosoever is watching us >> they can also do survey in your company.

[01:11:58]Sir only 5% of manufacturing organization sector 5% is getting a salary more than 50,000 95% employee is getting a salary in India less than >> 50,000 >> 50,000 and the person who are getting a 50,000 they are covered under the ESI when they are covered under the ESI >> 21,000 >> 50,000 >> 50 21,000 limit now this limit is going to increase 25,000 very soon because already directed to the government >> it is under pipeline and the objection has been invited from the general public okay how much the uh criteria should be >> I'm saying 21,000 Right now right now will talk be actually only the 7% as 5% is getting a salary in manufacturing sector 40,000 or more than 40,000 it means actually 90% at least person is going to cover under the ESI when they are covered under the SI there's no need to take a workman compensation policy or the employee compensation policy because all liability will be worn by Right.

[01:13:34]You have to take under because actually what is going on employee compensation policy there is no rider every employee which has been defined under the schedule. Secondh >> kindly note down >> under the schedule there is some schedule has been given under the social security act and it is having a three-page schedule >> correct >> and I have read that >> categories of employees defined all employees they are covered under the >> underly compensation >> compensation but not policy I can say those person who are not covered under the ESI you have to take a employee compensation policy But it may debate debatable.

[01:14:20]They are by default getting covered under the employee compensation.

[01:14:24]Correct. Chapter >> I would rather say chapter instead of word policy because in current code and the previous chap uh act uh nowhere it is mentioned that a company have to legally take policy.

[01:14:39]>> If they will not take policy they have to bear comp. they have to bear a cost >> but that's all >> that that is the only part >> if you are taking a policy then the insurance company insurance company right right so that that is one point which I was yes yes okay uh money if I am giving basic plus H plus other allowances and I am deducting PF and ESIC on basic only which is above 50% or up to minimum wage. Is it correct? It's correct. Open sir question.

[01:15:25]Go ahead. You go ahead. Right.

[01:15:30]So mavi pachi. Okay. Pratim Mavika telecommunication is a nature of work.

[01:15:43]Okay, there might be a tele caller. Uh what are the applicability to check to obtain trade license certificate in Maharashtra, Telangana, Tamil Nadu? Then I I will address to this sir trade license and we will response to you this question separately.

[01:16:23]as of now related.

[01:16:28]Okay. Now there's another question which is asked by Sachin Chri G 305.

[01:16:35]If a contract employee has worked continuously for the same principal employer for more than five years but the contractor changed during the period will that affect my graduity eligibility?

[01:16:52]>> Yes, I will let you know.

[01:16:55]They basically in the latest law code on social security. Huh?

[01:17:03]>> Prior to that actually there is no responsibility of the principal employer for payment of the graduity.

[01:17:08]>> Yeah.

[01:17:08]>> Now it's a new provision of law they have put the >> that liability is put on the >> but actually his question is very clear says that if any person exclusively worked with the principal employer more than five years >> but during the five years contactctor is going to change. It means >> it means actually >> he's going to file a case before the controlling authority and the evidence the principal employer is liable to pay the graity because he's working exclusively >> principal employ that evidence will come before the court is chang lot of Madras high court and this Bombay high court clearly says >> yes >> that principal employer is liable to pay I think if they need citation I can give you that thermal power audience.

[01:18:18]Yes. Contract worker contractor contractor it means principal employer intention to take the service from the contract worker not from the contractor. Then there's a relationship getting established between the principal employer and the contract worker. Correct. Then contract worker is having a capacity to claim the absility as a direct employee of the principal employer.

[01:18:56]OS code OS code the responsibility is fixed for all contactctor >> for all employer >> they will issue a experience certificate mandatory >> yes >> aa I say earlier contactctor was SK Gupta. Okay.

[01:19:19]>> Ah >> when he left the contact okay then he is not going to issue a experience certificate to >> correct >> okay then another Mr. Rahul came >> for the same principle and they have also taken the same employee.

[01:19:37]>> Correct.

[01:19:38]>> Okay. So for issuing a experience certificate is now compulsory >> and it is a violation. Bend's experience certificate for that three years is issued by the Rahul. Two years issued by me but the same employer and the experience certificate says name of the contractor name employer employee by default >> 100%.

[01:20:04]You just see actually it is a full page having a all detail of the experience certificate.

[01:20:40]as a princip.

[01:20:48]So please stop this practice legally.

[01:20:52]Okay. Supporting then we are here to provide you legal supporting legal guidance.

[01:21:10]So resign after employee resign after 18 month.

[01:21:25]Okay.

[01:21:27]Okay. Top three employee resign after 18th month. Will he eligible for twoear? No employee. No short-term gradu has been fixed by the latest law.

[01:21:46]>> I would like to graduity first fixedterm employment.

[01:21:51]>> Huh?

[01:21:52]>> One year writer.

[01:21:53]>> Absolutely.

[01:21:54]>> For media company are the print media or the >> journalist. Huh?

[01:21:59]>> Journalist. If they are going to complete three years then he's entitled to graduity.

[01:22:04]>> Correct. and the regular employment manufacturing organization if he has completed five years he's entitled. Now if any employee after eligibility of the graduity 1 year, 3 years or 5 years if he has worked more than six month >> six month then it will be treated as one year that's Yeah.

[01:22:46]21st number 25.

[01:22:53]Now please share details and all we will share with you right sir basic is 50% of CTC or gross first of all Actually they I again I'm going to make it very clear CTC is not defined under any provision of law.

[01:23:37]>> There is nothing called CTC.

[01:23:40]>> It is a again I'm saying it is a discussion of balance sheet or remmonation discussion between the employee and employer.

[01:23:50]>> Right? how much I'm giving to you as per the yearly CTC >> right >> when the CTC is going to transfer in the monthly salary >> then that component will be examined by the authority >> okay >> whether that component is coming within the definition of first part of wages or the second part >> second part >> CTS no connection >> correct >> with respect of the statuto payment Okay. Up. Now I'm giving example.

[01:24:24]>> CTC includes gra graduity also.

[01:24:28]>> Correct.

[01:24:29]>> But graduity will be paid either after 3 years or the five years.

[01:24:34]>> Five years as per the nature of industry.

[01:24:37]>> Yeah. And second actually bonus >> bonus is also tentative bonus they are going to include but bonus is only paid after completion of 30 days.

[01:24:48]>> 30 days menu.

[01:24:49]>> Okay. First, second the percentage is going to be decided based on the profit of the company. Right? So, CTC has no connection with the gross salary or the basic salary or the statuto salary or the first part of salary. So >> only whatever the monthly salary is going to be reflected in the payroll and under the payroll whatever the component is coming under the first part what is the component is coming the second part >> second part >> that's all >> that's all >> we have to depending on the total remission include and excluding right April 2020 26 11th April works of Raata code on Raju from states on social securityuring wage structuring PF, graduity, ESIC, maternity benefit, workman compensation, employment in detailed close and east portalational immediately from Somia.

[01:27:04]Okay. A subsequent question. If the worker approach to labor officer and does not report to work sorry approach to the labor office and does not report to the work during dispute period. Does the employer is eligible for payment during the disputed period? Not at all. Not at all. H definitely >> not at all.

[01:27:37]>> Actually approaching to the labor office does not means he that person should be treated as on duty.

[01:27:43]>> Absolutely.

[01:27:51]>> You issue a letter that you are required to report on duty within >> correct within 24 hours 48 hours whatever your standing order says.

[01:28:00]>> Correct. Correct. Correct. Failing B actually you will be treated as a friend from the duty that's allar in repeated question or so overtime allowance and overtime paid to the worker against extra working are same overtime allowance word overtime paid Overtime clearly says if a person is going to work more than 48 hours in a week or normal working hour which has been prescribed 48 hours per week. Huh? Subject two, you cannot take the work of any employee more than 8 hours in a day.

[01:29:00]>> H over and above 8 hours, it will be treated as a >> overtime.

[01:29:05]>> Overtime.

[01:29:07]But there's a rider fixed by the state government. If the state government is bringing any notification huh that the any establishment can take the work more than 8 hours say 12 hours.

[01:29:27]It means actually within a week he has to work 12 hours for 4 days.

[01:29:36]4 days absolutely and another 3 days will be a non- workinging days. are the weekly paid paid race day. Yes.

[01:29:45]So actually Rahul G I'm also want to clarify this misconception because actually neither OS code nor the establishment does not say that actually you cannot take a work from any employee more than >> 48 hours per week. Okay.

[01:30:10]So it means but only employee cannot work 8 hours per day. I will let you know the notification latest government that is notification has been issued by the central government on 13th of uh May.

[01:30:28]>> Okay. Specifically after expiry of five hour you have to provide compulsory half an hour interval.

[01:30:40]>> Yes.

[01:30:40]>> But you cannot take work more than 8 hours per day.

[01:30:44]>> Right.

[01:30:46]>> So actually in question overtime allows.

[01:30:53]Okay. Some company they are giving a overtime allowance >> but it has no connection with the double overtime statuto overtime means if he has work then actually he's entitled to get the over >> time up there is a difference overtime allowance is paid every month >> equally >> over time >> overtime allowance is paid equally every month >> a fixed overtime >> fixed overtime so this Not overtime but >> overtime is also vary from month to month employee to employ actual overtime >> actual it is totally depending how many hours more than 48 hours he has worked >> okay >> then it is going to be calculated separately >> okay >> and I would like to submit the register overtime is maintained separately for each and every employee. G >> there is a separate register >> foring over time according to that overtime uh uh payment it is going to transfer in the payroll or principal employer can create second ESIC or PF code for non-payment by contractor and absconding vendors employctor question is correct but practically he can't pay I'm telling sir prior to digital transfer of the provident fund huh You can principal employer can deduct the profit and fund and can deposit by making a chala in the bank.

[01:33:03]What will happen? Contractor is having a separate PF code number.

[01:33:07]>> Correct.

[01:33:08]>> ESI code number who is having a password to the contract password.

[01:33:14]>> Okay. Until unless you are having a password, you can't generate the chalan.

[01:33:20]When you are going to generate the chalan you have to pay the money >> up in the question of this and the contractor has already been >> absconded back okay >> and the labor is working for that I can advise frankly speaking >> you pay the wages of the workman >> correctly >> before expiry of 7 days because actually nowadays has been changes earlier 10 days or 7 days. Now the code on which clearly says that the payment monthly payment should be done on or before 7th day. Correct.

[01:34:01]>> Okay.

[01:34:03]You pay the wages deduct the provident fund deduct the ESI.

[01:34:08]>> You do not have the uh password. Better to just show the bonafide. You make the check of ESI and you make the provident fund check and send to the ESI mentioning the UN number of all employee.

[01:34:30]>> Yes.

[01:34:31]>> And their amount and also say that the >> bene and so actually it will show the bonafide intention of the principal.

[01:34:41]Right? That's all.

[01:34:42]>> That's the best way. So point of view why individual worker cannot raise industrial dispute against employer malified action like transfer demotion where there is no union or no support of union.

[01:35:09]>> Yes I am.

[01:35:14]First of all actually malified transfer are not giving increment or any gmances for that actually Mr. Rahul our IR act there is a also Gman's readers committee >> G grc every establishment which is having a 20 or more worker they are mandatory they have to make the gance redressal committee GRC >> GR >> okay under the GRC equal number of the workman representative and equal number of the employer representative and out of the it should not be more than 10 okay and less than six also but actually what actually it is better there will be a one chairman they will elect turn by turn and these all gvances >> individual are the only individual gants will be heard by the GRC committee >> yeah I mean Yes.

[01:36:32]One year.

[01:36:32]>> One year from the date of cause of action within a one year they can raise the gance before the gance committee.

[01:36:39]>> Correct.

[01:36:40]>> And I say gance committee is having a statuto force >> legal forcemen.

[01:36:47]Acha as soon as the gances is submitted to the GRC committee >> they are liable to decide under which time within 30 days and within 30 days decision taken by the GRC committee and the employer is bound to implement that decision in the factory work he can approach to the consulation he can approach to the industrial terminal. Labor court has been finished.

[01:37:22]Now easily actually up. Now the question of individual worker individual worker can also raise the >> right not through union.

[01:37:38]Or one employee is having maintenance case in the court and have to attain court proceeding or witness in some case. Will this be paid leave or EL or have to make mark something else?

[01:37:59]But this is a personal case. Personal case.

[01:38:02]Any employee is having any case which is not related to the company.

[01:38:08]You put the leave.

[01:38:13]Okay. Company has no connection with this.

[01:38:22]Sir during legal action period against company company uh he want to fight further in India. Yeah.

[01:38:52]>> Yeah.

[01:38:52]>> We are having a two type of employees.

[01:38:56]One employee is coming under the definition of >> worker category, >> right?

[01:39:01]>> And other non-workman.

[01:39:03]>> Yeah.

[01:39:04]>> Supervisor, manager and others.

[01:39:06]>> Yeah.

[01:39:06]>> Okay.

[01:39:07]>> For the workman category, you cannot state of terminate.

[01:39:14]>> Yes.

[01:39:14]>> It is illegal termination.

[01:39:16]>> Illegal termination. It can be reinstated by the industrial termin G.

[01:39:22]If you want to terminate any workman category dismissed, you have to issue a charge sheet.

[01:39:31]>> How process >> you conduct the dome state inquiry. If charge is proved according to the gravity of the charge, you can give the punishment >> determine what punishment to be penalized >> case. And this is not a immaterial. It does not come under the misconduct also.

[01:39:52]>> But if I have lost any case against you or the it does not come within the definition of misconduct >> is it right to file any case against any person. Aa up. Next up nonworkman category.

[01:40:10]Non workman category. If you don't require service, you're not satisfied with the service of any non-workman, you can terminate any time but that termination will be done as per the terms of appointment of employment one month, two month then you issue agreement according to terminate and that termination cannot be challenged by the nonworkman any court of law even a civil court also.

[01:40:42]>> Okay.

[01:40:43]>> Civil court is only having a power to enforce the contract of service, not the reinstatement of any employ. Right.

[01:40:54]Right. Okay. If I go right just hold on deep sodia earlier PF was directed at 12% on 40% basic wage post wage restructuring 40% basic plus 10% special alliance PF is still being deducted only on the 40% of the basic component. Uh is this compliant or not?

[01:41:30]>> Yeah, I will let it know.

[01:41:31]>> Okay.

[01:41:34]>> Percentage has no connection.

[01:41:35]>> Absolutely. First of all, any component which is come coming under the first category.

[01:41:43]>> Ah, >> first part of the wages.

[01:41:47]The employer is liable to deduct 12% up to 15,000.

[01:41:52]>> That's all correct. There is no correction 40% 50% or 10%.

[01:41:59]Maybe 40% 1 to 40,000.

[01:42:01]>> Correct. Correct. Correct.

[01:42:02]>> Maybe 50 40 20,000.

[01:42:06]>> But under the Provident Fund Act, >> employer is liable to deduct the Provident Fund up to 15,000.

[01:42:17]But that 15,000 must come within the first category of wages means employ and above. You're silly.

[01:42:51]Section 48 of IR code in GRC provision individual worker dissatisfy can go to the consulation by union.

[01:43:10]Individual worker can also raise a dispute.

[01:43:12]>> Absolutely. GRC directly actually he can also raise before the consilation. Okay.

[01:43:20]>> Okay. GRC directly directly.

[01:43:26]No.

[01:43:27]>> Right. Okay. Then there's another it means actually you are killing the fundamental right of the person.

[01:43:33]>> Absolutely.

[01:43:33]>> If he does not want to go to the union it means he can't raise the dispute. How it is possible? Definitely.

[01:43:46]Yes, that's a good thing that now Somia who's okay.

[01:43:56]Uh sir, what will be the minimum notice period to be considered for termination? Does 7 days notice in appointment letter is legally okay? Also if the temporary employee for six month shall have one month notice. Yeah.

[01:44:19]Notice period.

[01:44:30]There is I say again two category for employee one is the workman category another non-workman category >> for the workman category is all rules and regulation is being regulated by the standing order >> right >> huh >> okay supported by the appointment letter >> yes >> okay but in the appointment letter something is different and standing order is picking something else Yes, then the standing order will prevail over the appointment for the workman category. Okay.

[01:45:07]Now it is a between the employee and employer you have to mention the notice period. G okay notice period. Okay. If you want to resign you can resign by giving a one month notice, two month notice or 3 month notice.

[01:45:28]It should also either one but that condition is only applicable in case of nonworkman.

[01:45:46]>> Okay.

[01:45:47]>> For the workman category there is no notice period provision and standing order.

[01:45:53]>> Correct.

[01:46:04]without process need to be followed >> domestic inquiry >> you cannot terminate straight away >> correct >> it will be a illegal termination or illegal dismissal to notice period is not a criteria for the I think battery.

[01:46:42]So anyway, if an employee take during the notice periodic which speaks very clearly notice he treated as a employee employed.

[01:47:07]So you can also file a leave will be given as per the leave policy.

[01:47:27]Starting questions.

[01:47:55]compiance members WhatsApp bonus scheme apply only for workers in company paid it monthly then consider exclude wages category or not.

[01:48:30]Attendance bonus monthly as per the latest FAQ. Huh? Any performance incentive is given to the employee means worker >> or employee.

[01:48:59]>> It does not fall within the definition of wages.

[01:49:01]>> Wage.

[01:49:02]>> It is extra effort.

[01:49:03]>> Right.

[01:49:05]>> Attendance bonus uh is >> attendance bonus only given when actually he's going to complete certain credit number of days.

[01:49:15]If you have not completed then it is a wages then it's a wages then there must be a policy that if somebody has completed 26 days he will get the attendance more if he get 25 days this much amount right if he has complete 24 >> and less than 24 nil nil Sir wanted to know what all possible measures can be taken for vendor compliance as per the new labor code.

[01:50:01]Very questions cont first of all actually now two type of license has been framed by the under the OS code.

[01:50:24]>> One is the common license and another work specific.

[01:50:29]Now contractor has to take a license either common or specific by filing the prescribed form online on the portal >> and by depositing the fees also. Okay, >> that fees has been prescribed under the rule >> 1,000 rupees per 1,000 rupees actually up to more than 50 up to 100 >> like that that table is a slab >> and another actually rider 1,000 per person per person he has to give the bank guarantee to the government. Okay.

[01:51:15]Suppose if he wants to take a license for 100 people, >> it means actually he has to deposit 1 lakh rupees.

[01:51:25]>> Okay. As a bank guarantee and 1,000 rupees as a license fees. That license fees will remain for 5 years.

[01:51:34]>> Okay. And after taking a license he can do the >> and another actually basically for the establishment.

[01:51:46]Now there is no need for registration for engaging the contact labor jiha because by virtue of the law 11 type of job has already been notified by the under the OS code that if that job doesn't fall within the category of core activities of that industry >> he can also give on contract >> contract Right. Is a very good reform.

[01:52:19]>> And second actually there is another provision.

[01:52:23]>> If any job which is not being done by the regular employee and having a casual nature you can also give a contract.

[01:52:38]Second actually option provision very good provision if there is a increase in the production because of certain demand >> new demand >> you got a export order you got a some domestic demand right >> but it it should be temporary demand not >> for a certain period >> then for that actually you can also give a contract >> core activity contract >> otherwise it is a part of the core activity But for that actually you can give a so lot of reform has been done but for that I advise to all employer HR professional until or unless that contractor is having a license don't engaged >> engage wanted to know what Mr. If basic is 12 per 12k H plus conveyance is 12K and the linked yeah repeated question >> I have already given >> we already yes yes yes then calculation of PF wage rate as per my knowledge basic plus DA plus alliance included can we take other alliances also earning component.

[01:54:14]Quite challenging.

[01:54:37]Will ESIC and PF applicable special alliance is not making the part into excluding then it will become the part of wage hf up to 15,000.

[01:55:01]Similarly applicable for ESIC also. Then there's another question.

[01:55:18]Then there is Sanjie.

[01:55:22]We did not give suchin.

[01:55:35]How to regularly contract personal? How regularly contract personal?

[01:55:43]How to regularize contract personal? I think how to regularize contract person.

[01:55:52]PS reg.

[01:56:04]>> Okay.

[01:56:07]If that person if you have engaged >> for core activities so definitely actually he can raise a dispute.

[01:56:18]>> Correct. If you have engaged contact labor >> in the core activities >> regularly and if you are not giving a regular benefit or regularization he can approach to the labor for regularization.

[01:56:35]If that person working regularly for other than core activities which has been defined under the OS code >> under OS code >> then he cannot ask for regularization.

[01:56:48]>> Correct. Absolutely >> very clear very simple but there is no maximum limit in code for ESIC maxic 21,000 already. Yes.

[01:57:05]Sorry code on social security ceiling definitioning >> and that clearly says that ceiling will be decided time to time by the government right now.

[01:57:17]Yes, I see 21,000 and bonus 21,000.

[01:57:22]Okay, sir.

[01:57:24]No limit.

[01:57:26]Then sir, as all are taking Okay. Section 124 allow employer not to reduce not to. We have closed now. Maternity leave calculated on gross and wages wages maternity leave calculation.

[01:57:54]He already responded but Supreme Court is related to the prior lab. It may continue because Supreme Court one of the case clearly uh pronounced that whatever the Shi was getting a female prior going to maternity >> maternity leave she will continue to get the same wages. So during the phase of unless actually there is a guideline I can't say I am only saying first part >> first part then advocate vinod gupta jika sal the client is asking to pay monthly bonus Whether overtime alliance and wages against right overtime alliance and overtime wage and overtime overtime allowance is separate from the overtime wages Right. Overtime allows actually if you are giving a for the name sake overtime allows that will come within the second part of the wages.

[01:59:29]When you are keeping a person on overtime, you have to maintain separately a register, >> right? That will >> and the name will be entered and how much over time he has done, >> right?

[01:59:42]>> And you have to keep a watch >> that whatever the state government has notified Jiha >> that actually you should not allow to any workman to work >> beyond >> 25 per week or 50 hours per week, >> right?

[01:59:59]So you're liable to pay double overtime of debt.

[02:00:19]Section 14 under code on wage means 50 casual difference between contractual employee and fixedterm employee. Contractual employee and fixed term employee.

[02:00:39]Okay.

[02:00:41]employment fixed employment is a new category of employee right which has mean legislated permanent employed term employee to fixed term is a category of employee Mhm.

[02:01:10]>> Up. Now casual means actually if you are keeping a casual worker >> it means actually casual can only be engaged through contractor and directly employer can also keep >> contractor >> but casual can be keep only non-core activities means 11 category >> right. category.

[02:01:44]Okay.

[02:01:58]Additional liability graduual you have to adhere the minimum wages guideline.

[02:02:10]Okay.

[02:02:15]Okay.

[02:02:17]Agreement description role.

[02:02:27]Job description, role of duty mention in a company appointment later. How to possible every work details related job responsibility, job description.

[02:02:45]It is a part of service condition.

[02:02:47]>> Correct?

[02:02:48]>> You can anytime revise his job description and you can issue a letter to him, get it signature and keep it in personal file. Okay.

[02:03:07]Employee adverse in nature otherwise notice of change of service condition service condition as per IR >> for the workman category >> for the workman category for non workman it will not get covered.

[02:03:25]>> Okay.

[02:03:27]Premium member sir as we are talking for 2% Mr. Kumar Saly TV article says one year applicable to only people join after 21st November in this right interpretation correct right interpretation 8 May 202 thereafter Security.

[02:04:34]But uh social security for the fixed employment person has completed one year then he entitled ing point 15,000 code 18,000 ultimately they brought the notification for the code on they put 18,000 Yes, the rider has been fixed. Whatever the dis and all removal will be put before the >> right >> parliament camera >> six minute. So I think now we have to wind up this. Right. Right.

[02:06:11]Question answer.

[02:06:35]playing very good.

[02:06:47]Thanks for everyone that during this IPL knowledge they will earn the money by seeing IPL they can't earn the money right So actually there is no problem they can send the emails we will reply actually our job is not to earn the money >> right >> my actually devotion sharing the knowledge to others >> yes >> definitely >> support the academic or the community of the compliance yes actual agenda of the click next when who are connecting with us. Click next which is speak about compliance leadership and in intellectuals community of knowledge network.

[02:08:06]So Right.

[02:08:13]Thanks, sir.