What is the Prevention of Sexual Harassment at the Workplace Act (POSH Act)?

The POSH Act is a legislation in India that aims to prevent and address sexual harassment at the workplace. It mandates organizations to establish Internal Complaints Committees (ICCs).

Who does the POSH Act cover?

The POSH Act covers all women, irrespective of their employment status, including regular, temporary, or contract employees. It applies to all workplaces, whether in the public or private sector.

What constitutes sexual harassment under the POSH Act?

Sexual harassment encompasses unwelcome physical contact, advances, requests for sexual favors, making sexually colored remarks, or engaging in any other unwelcome conduct of a sexual nature that creates a hostile work environment.

What are the responsibilities of employers under the POSH Act?

Employers must create a safe and conducive work environment, establish an Internal Complaints Committee (ICC), conduct awareness programs, and ensure the timely resolution of complaints.

What is an Internal Complaints Committee (ICC), and how is it constituted?

An ICC is a committee that the employer establishes to inquire into complaints of sexual harassment. It must include a presiding officer, two members from among employees, and one external member from a women’s rights organization.

Is there a time limit for completing the inquiry under the POSH Act?

The POSH Act specifies that the inquiry process should be completed within 90 days. However, it may be extended under exceptional circumstances with written reasons provided.

What qualifies an individual to be a member of the Internal Complaints Committee (ICC) with expertise in matters pertaining to sexual harassment?

An eligible individual for this role may have a background as a social worker with a minimum of 5 years’ experience in fostering societal conditions conducive to the empowerment of women, particularly in addressing workplace sexual harassment. Alternatively, the person could have expertise in labor, service, civil, or criminal law, as specified in Section 4 of the Rules.

Who bears the responsibility for disbursing the fees and allowances to the specified member?

The employer is responsible for disbursing allowances.

To whom are payments directed for the Local Complaints Committee?

The District Officer is responsible for disbursing allowances.

What is the process for filing a complaint?

Any woman who feels aggrieved may submit a written complaint of workplace sexual harassment to the Internal Committee or Local Committee within three months from the date of the incident or the last incident in the case of a series of events. If the woman is unable to write, the Presiding Officer or any member of the Internal Committee, Chairperson, or any member of the Local Committee will provide all necessary assistance, as per Section 9(1) of the Act.

What should be the course of action when both parties involved are employees?

In cases where both parties involved are employees, they will have an opportunity to be heard during the inquiry process. Furthermore, the Committee will provide both parties with a copy of the findings, allowing them to make representations against the findings.

If the ICC or LCC determines that a witness has provided false evidence, the committee can recommend appropriate action to the employer of the witness or the District Officer, in alignment with the provisions of the service rules or as prescribed (Section 14(2) of the Act).

What alternatives and remedies are available to me as a complainant, i.e., the individual filing the complaint?

As a complainant, you have the right to choose between the casual method (conciliation) or the formal manner (inquiry). If you opt for the informal method and the respondent fails to abide by the duties of the conciliation agreement, you have the option to initiate the formal process. The IC’s role in the informal process is more limited compared to their role in the formal process.

What are my rights as a respondent in a case, i.e., a person against whom a grievance of sexual harassment has been raised?

In addition to the rights inherent in the principles of natural justice, the respondent has the following rights:

A) The right to receive copies of the proceedings, orders, and judgments made by the IC;
B) The right to respond to any allegations made against you, the respondent, in a timely manner; and,
C) The right to appeal against the decision of the IC if required.

Will I get into problem for being in a consensual romantic / sexual relationship at work?

You will not face trouble for engaging in a consensual relationship with any colleagues. However, if the relationship has the potential to disrupt the work environment for other personnel, such as a direct reporting relationship that could lead to favoritism, it is advisable to inform the management. Additionally, if a colleague in a consensual relationship has harassed you within the confines of that relationship, the Internal Committee (IC) may investigate the matter if it falls within their jurisdiction, as it could impact the health of the working environment for the individuals involved.

What is Quid Pro Quo harassment?

Quid Pro Quo harassment arises when a person attempts to exchange job benefits for sexual favors. It typically involves an employee and an authoritative figure, such as a supervisor, who possesses the authority to grant or withhold job benefits.

What type of penalties may be imposed by means of the Act?

Under the provisions outlined in the carrier regulations, the Act may impose various consequences. While service rules are not explicitly in place, the employer can institute disciplinary actions such as issuing a written apology, reprimand, warning, or censure. Furthermore, consequences may include withholding promotions, pay raises, or increments, and, in extreme cases, termination of employment. Additionally, individuals may be directed to undergo counseling or community service. Financial consequences, considering the respondent’s income, financial situation, as well as costs related to mental trauma, pain, emotional suffering, medical expenses, and missed career opportunities, may also be applied. If the financial responsibilities are not fulfilled, they can be collected as arrears of land revenue.

What does the ESI Scheme entail?

The Employees’ State Insurance Scheme in India is a comprehensive Social Security Scheme designed to offer socio-economic protection to employees in the organized sector. It aims to provide coverage against events such as sickness, maternity, disablement, and death resulting from employment injury. Additionally, the scheme ensures medical care for insured employees and their families.

How does the scheme benefit the employees?

The scheme offers comprehensive medical care to employees registered under the ESI Act, 1948, ensuring their well-being and the restoration of their health and working capacity during periods of incapacity. Additionally, it provides financial assistance to compensate for the loss of wages during abstention from work due to sickness, maternity, and employment injury. Furthermore, the scheme extends medical care to the family members of the registered employee.

What is the funding mechanism for the Scheme?

The ESI scheme operates as a self-financing system, with funds primarily derived from contributions made by employers and employees on a monthly basis. These contributions are calculated as a fixed percentage of the wages paid. Additionally, State Governments contribute 1/8th of the cost of Medical Benefit.

Area of Implementation

The ESI Scheme is rolled out in phases across various parts of the country through Gazette notifications. This process occurs after establishing the necessary infrastructure for the dispensation of medical and other benefits outlined in the provisions of the Act, ensuring accessibility to prospective beneficiaries.

Which establishments fall under the coverage of ESI in an area notified under Section 1(3) by the Central Government?

In areas notified under Section 1(3) by the Central Government, all factories where 10 or more persons are employed come under the coverage of Section 2(12) of the ESI Act. Additionally, establishments employing 10 or more persons in the following categories attract ESI coverage based on the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act:

(i) Shops

(ii) Hotels or restaurants not involved in manufacturing but engaged solely in ‘sales’.

(iii) Cinemas, including preview theatres;

(iv) Road Motor Transport Establishments;

(v) Newspaper establishments (not covered as a factory under Sec.2(12));

(vi) Private Educational Institutions (operated by individuals, trustees, societies, or other organizations) and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centre’s, pathological labs).

It’s worth noting that in some states, coverage extends to establishments with 20 or more persons employed under Section 1(5). Additionally, a few State Governments may not have included Medical and Educational Institutions within the scope of the scheme.

Which categories of personnel are mandatorily included in the ESIC deduction guidelines?

ESI fund managed by using ESIC, it’s miles mandatory for employees getting the income of Rs. 21,000 or much less in line with month to serve the cash advantage and medical blessings to the employee and their households.

What is the source of contribution and the share of ESIC deduction guidelines?

The ESIC vide notification has reduced the share of deduction, the contribution will be from corporation and employee as in step with the latest probabilities. An employee has to pay zero. Seventy five percent and the company has to pay 3.25 percent of the wages towards ESIC contribution.

What to do upon getting the ESIC registration?

After getting the registration the status quo has to file the month-to-month returns with the department. The last date to report the ESIC go back is the fifteenth day of every following month.

If there is no worker and the registration has been taken, then some other specific compliance?

If the organization has taken the registration and at any point in time there’s no employee in the business enterprise whose ESIC is deducted, then additionally the organization has to report NIL return.

What if go back now not stuffed or put off filling?

A company who does not pay the contribution quantity in the time limit shall be vulnerable to pay simple hobby at the charge of 12% in step with annum for each day till the default persists.

                                                                                                           BENEFITS

What benefits are provided to the family members under the ESI Scheme?

(i) Family members are eligible for comprehensive medical care whenever required.

(ii) Family members are entitled to artificial limbs and appliances as part of their medical treatment.

(iii) Medical benefits are extended to the family during the period the insured person is receiving unemployment allowance. If the insured person passes away during this period, the family continues to receive medical benefits until the receipt of unemployment allowance.

(iv) In the event of the insured employee’s death due to employment injury, the widow, widowed mother, and children are entitled to Dependents’ benefit.

(v) Funeral expenses up to Rs. 10,000 are covered and will be reimbursed to any family member or person who actually incurs the expenditure on the funeral.

What benefits are provided to an Insured Person who ceases to be in insurable employment due to permanent disablement?

An Insured Person who is no longer in insurable employment due to permanent disablement caused by employment injury is eligible to receive medical benefits for themselves and their spouse. This benefit is provided upon payment of Rs. 120 for one year until the date on which the individual would have retired at the age of superannuation, had they not experienced such permanent disablement.

Vocational Rehabilitation programs, as per Rule 60, are also conducted for insured persons below the age of 45 with a disability of not less than 40% due to employment injury. These programs involve training provided in government or government-accredited institutions, following the norms of the Vocational Rehabilitation center. The Insured Person is entitled to reimbursement of expenses at the rate of the center or Rs. 123 per day, whichever is higher. Additionally, conveyance charges at normal rates or second-class railway/bus fare, as applicable, are reimbursed to attend such training programs.

 What benefits are provided to an employee after retirement?

An Insured Person who retires due to superannuation or opts for voluntary retirement or premature retirement, having been covered for a minimum of 5 years, is entitled to receive medical benefits for themselves and their spouse. To avail of this benefit, proof of retirement must be provided, and a nominal contribution of Rs. 120 for one year is required. In the unfortunate event of the insured person’s demise, their spouse continues to receive medical benefits under Rule 61 by paying the specified contribution mentioned above.

What is Medical Benefit?

Medical benefit refers to the provision of medical attendance and treatment to individuals covered under the Act, namely the insured persons and their families, whenever required. This benefit is provided in kind through the State Governments, including Model Hospitals operated by the ESI Corporation (excluding Delhi). It is uniformly extended to all, irrespective of their wages and contributions, based on their individual needs.

How long is medical benefit available?

The insured person and their family have access to Medical Benefits from the very first day of joining insurable employment. A person newly covered under the scheme is eligible for primary and secondary medical care for themselves and their family for an initial three-month period. If the individual remains in insurable employment for three months or more, the benefit continues until the start of the corresponding benefit period.

Additionally, if the insured person has been under ESI coverage for at least 2 years from the date of Online Registration, contributed for not less than 156 days, and is eligible for Sickness Benefit for any one contribution period while suffering from one of the 34 specified long-term diseases, medical benefits are provided until the incapacity lasts or up to 730 days within a 3-year period for self and family.

Furthermore, if the insured person has been in ESI coverage for at least 2 years from the date of Online Registration, contributed for not less than 156 days before the date of diagnosis, and is eligible for Sickness Benefit in at least two contribution periods, they, along with their family members, are eligible for super specialty treatment. This contributory condition does not apply in case of an accident involving the insured person or their family member for SST treatment.

What’s gratuity?

Gratuity is a form of gratitude supplied in monetary phrases by means of the employer to the worker for the services rendered by the worker for a duration of 5 or more years.

What are the organizations for which payment of gratuity act is applicable?

Payment of gratuity act, 1972 applies to all stores or institutions having 10 or greater employees on any day during the previous one year.

 Who can obtain gratuity?

Someone working as a worker in any business enterprise, keep, production unit, agricultural enterprise or service industry is eligible to get hold of gratuity as in keeping with the situations of gratuity. An apprentice isn’t always eligible for gratuity.

 Whilst are the employees eligible for gratuity?

Employees who have rendered at least five years of non-stop carrier in an business enterprise are eligible to get hold of gratuity from the employer.

 When is gratuity payable?

A company is vulnerable to pay gratuity to an employee

On the termination of his employment after he has rendered continuous service for not less than 5 years or

On his superannuation, or

On his retirement or resignation, or

On his demise or disablement due to accident or disorder (the completion of non-stop carrier of five years shall not be considered for the case of death or disablement).

How is gratuity calculated?

Gratuity payable = last drawn profits *15/26 *No of finished years of provider.

Earnings for the purpose of the above computation = fundamental income + Dearness allowance

What’s the most quantity of gratuity that can be paid to a worker?

The amount of gratuity payable to an employee shall no longer exceed Rs. 20 lakhs.

Is the gratuity received taxable inside the fingers of the employee?

In appreciate of gratuity acquired with the aid of authorities’ employees: whole quantity of gratuity is exempt from profits Tax.

In respect of gratuity acquired via personnel other than authorities’ personnel

Amount exempted from tax is

20 lakhs (or)

Actual gratuity acquired (or)

Closing drawn revenue *15/26 *No of finished years of provider (or) (Whichever is less).

What’s the due date for price of gratuity?

Gratuity has to be paid within 30 days from the date it turns into payable.

What’s the penalty for default below the fee of Gratuity Act, 1972?

Any man or woman, for the cause of avoiding payment of gratuity by using making any fake declaration or false illustration:

Imprisonment for 6 months or nice as much as Rs.10,000 or with each.

An enterprise, who contravenes or makes default in complying with the provisions of the act:

Imprisonment for not much less than 3 months and up to 1 year or excellent now not less than Rs.10,000 but up to Rs.20,000 or with each.

Is there any interest for behind schedule price of gratuity?

In case of enterprise default:

Corporation shall pay interest on the simple interest rate (charge notified by using the central government), from the date on which the gratuity turns into payable to the date until it is paid.

In case of employee default:

No interest will be payable if the put off in the charge is due to the fault of the employee and the agency has obtained permission in writing from the Controlling Authority for the delayed charge in this floor.

Whether Gratuity can be allowed as a deduction at the same time as calculating taxable earnings of the agency?

Deduction is allowed most effective if gratuity is clearly paid.

No deduction will be allowed in admire of any provision made through the assesses for the price of as in step with segment 40A (7) of the earnings tax act, 1961.

Ought to the personnel beneath training or apprenticeship be covered for the reason of gratuity?

Sure, regardless of whether the man or woman is in schooling or apprenticeship, he is eligible for gratuity, supplied he completes a non-stop period of 5 years of carrier

Is it possible for me to avail of the nomination facility provided by the Gratuity Act?

Upon new employee onboarding, individuals are mandated to complete Form “F” as part of the initiation process. This form necessitates each employee to designate one or more family members, as defined in the Act, who would be entitled to receive the gratuity in the unfortunate event of the employee’s demise.

What is UAN?

• UAN, or Universal Account Number, serves as a universal identifier for individuals with multiple Member IDs from different establishments.
• It acts as a central umbrella, allowing the consolidation of various Employee Provident Fund (EPF) accounts under one UAN.
• The integration facilitates the linking and management of details associated with all EPF accounts on a unified platform.
• Members can conveniently view and oversee information related to all their EPF accounts through the use of a single UAN.

Why UAN?

• UAN addresses the challenge of high labor turnover resulting from a rise in short-term contractual employments.
• It simplifies the process of connecting various EPF accounts for a single member.
• Key KYC documents such as Aadhaar, Bank Account, and PAN are crucial for UAN identification.
• The digital authentication of KYC streamlines the consolidation of all previous PF account numbers.
• UAN serves as a lifelong account number, ensuring continuity for individuals throughout their career.
• Integration of Aadhaar with UAN will ultimately empower members to directly access EPF services.

EPF MEMBERS’ SERVICES.

• Accurate and up-to-date information regarding their EPF Account is available to members.
• Electronic notifications for transactions, both credits and debits, are provided for EPF Accounts.
• EPF Member Accounts are portable, ensuring seamless transferability.
• Each Member Account is uniquely identifiable for clarity and precision.
• Member accounts are digitally certified, preempting potential frauds and mis-credits.
• Claims settlement occurs directly without the need for intermediation by employers.

UAN ALLOTMENT & ACTIVATION

• EPF members who receive at least one contribution in or after Jan-2014 have UAN automatically allocated by EPFO.
• For EPF members without a UAN and no contributions since Jan-2014, they can request EPFO for UAN allotment.
• Any citizen, regardless of EPF membership, can request UAN allocation, which is then carried out by EPFO.
• To activate UAN, the holder can register their mobile number with EPFO.
• UAN holders also have the flexibility to update the mobile number associated with their UAN.

CORRECT UPDATED INFORMATION ABOUT MEMBERS’ EPF ACCOUNT.

• After activation, members receive SMS notifications regarding any transactions in their EPF account.
• Members have the option to obtain details about their PF account by giving a missed call.
• The EPF mobile app is available for download, enabling members to monitor and track their EPF account conveniently.
• Members can compile a list of all their existing EPF accounts, and EPFO will assist in consolidating these accounts.

UAN ENABLED MEMBER SERVICES.

• With Aadhaar-enabled UAN, members have the option to directly submit their claims to EPFO.
• Online applications are available for all EPFO services, eliminating the necessity to visit employers for claims attestation.
• Particularly beneficial for members undergoing frequent job or location changes.
• Members can independently download their UAN card.
• No need to rely on employers for claims processing.

EPFO REQUESTS MEMBERS TO

• Obtain UAN from the current employer.
• Activate the UAN by visiting UAN Members e-sewa at https://unifiedportal-mem.epfindia.gov.in/memberinterface/
• Furnish necessary KYC details, including Aadhaar, Bank Account information, and PAN.
• Compile a list of all previous EPF Account numbers with EPFO.
• For assistance, reach out to the UAN Help Desk at 18001-18005 or visit epfindia.gov.in -> Our Services -> For Employees -> Services -> UAN Help Desk.

MEMBERS ALREADY HAVING A UAN

• Upon joining a new establishment, share the KYC details with the new employer.
• If KYC information was not provided to the previous employer, ensure to furnish it to the new employer.
• If KYC details were already provided to the previous employer, hand over the same information to the new employer.
• This process streamlines the auto-transfer of the previous EPF account to the new establishment.

                                                                                        Advantages of EPF

Provident Fund for Employees:

• Mandatory participation for all employees earning up to Rs 15,000.
• Accrued funds disbursed upon retirement, resignation, or demise.
• Allows partial withdrawals for purposes like financing life insurance, acquiring a house or site, funding marriage, education of children, and medical treatment.

Pension Scheme for Employees:

• Eligibility for pension after completing 10 years of service and reaching the age of 50.
• Guaranteed minimum pension of Rs 1,000.
• Pension benefits extend to dependents, including widows, children, dependent parents, and nominees.

Deposit Linked Insurance Scheme for Employees:

• Maximum admissible amount is Rs 6 lakh.
• Offers insurance coverage to employees, providing financial security in the event of death.