Legal Update : National Minimum Standards and Protocol For Creches (Operation & Management) 2024

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Labour Laws

National Minimum Standards and Protocol For Creches (Operation & Management)

The Ministry of Women & Child Development issued a notification dated February 23, 2024 specifying the minimum standards to be followed for setting up of creche facilities.

It applies to every individual/ service agencies/ corporations/ companies/universities/ hospitals/ care service providers/ government organisations/ non-governmental organisations etc, having 50 or more employees to have a creche, extending to both males and females. Additionally, Section 48 of the Factories Act, 1948, mandates creche facilities for factories with over 30 female workers.

Date of enforcement: February 23, 2024.

Key Highlights:

1. The creche is defined as a creche provides a safe and nurturing environment for youngsters while their parents or guardians work. These facilities prioritize children’s health, provide nutritional meals, and ensure a safe environment. It offers age-appropriate instructional activities.

2. Key considerations to consider when opening a créche:

a. Facility of creche may be provided from the age group of 6 months onwards.

b. The creche may also be set up in any office space, in a residential apartment/society, school, hospitals, cooperative office or any other place as per requirements.

c. It is mandatory that CCTV cameras are installed for ensuring security and supervision at the creche. Parents/ Guardians may preferably be provided with access to CCTV cameras, wherever possible, enabling them to monitor the creche remotely from their workplace.

d. The local police stations, the Women and Child Development/Social Welfare Department, and the Labour Department should invariably have the information about the location and details of the créche for safety purposes and information to be maintained by these offices.

e. Play materials and toys (essential ECCE Study material and play materials, sports materials, blocks etc.) should be provided to the children. Audio-visual equipment may be provided where appropriate and feasible to stimulate age-appropriate learning and cognitive development.

3. The Indicative composition of Creche Administrative Committee is as follows – i) Créche Administrator – To be nominated by institution/organisation operating the créche ii) Créche supervisor iii) Parents/ Guardians (preferably 3) of beneficiary children

4. Duties of creche supervisor:

a. The creche Supervisor will be overall in charge of the créche.

b. Planning and implementing age-appropriate educational activities to foster holistic development of the children.

c. To maintain/monitor records of children’s attendance and other statutory records.

5. Services available at the creche facilities are as followed:

a. Parent/Guardian and Administration meeting

b. Engagement and training of creche workers

c. Health, Medicine and First Aid Kits

d. Record maintenance

5. An administrative committee should regulate safety standards at the creche

a. Verifying and controlling access to CCTV surveillance, as well as processes for dealing with visits and pickups.

b. Conduct community-based inspections at least once a quarter to verify the creche is child-friendly and meets basic requirements for facilities and systems.

Enclosed is the Notification copy for your reference to implement this in your organisation.

 

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Universal Account Number (UAN)

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FAQs

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.

India’s Regulatory Compliance: Business Impact Unveiled.

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As India’s entrepreneurial culture flourishes, regulatory compliance becomes pivotal for business success. The government’s emphasis on startup growth and support for MSMEs underscores the importance of adherence to regulations, contributing to the diverse and expanding nature of Indian businesses. A harmonized approach across ministries fosters cooperation, ultimately boosting the nation’s economy. In this evolving landscape, maintaining successful businesses necessitates a keen focus on regulatory compliance.

Over time, the growing significance and necessity of regulatory compliance have continued to expand. As organizations evolve structurally and operationally into more intricate entities, the focus on regulatory compliance becomes increasingly imperative for seamless functioning. Businesses now acknowledge transparency as a fundamental asset, and a systematic approach to regulatory compliance plays a pivotal role in achieving this goal. Stakeholders, including shareholders, customers, and the general public, actively endorse and support businesses that adhere to ethical practices.

A rising trend in public and stakeholder engagement is evident in overseeing corporate compliance with internal policies and regulatory frameworks, aligning with legal standards. Regulatory compliance ensures that businesses adhere to financial terms, mitigating the potential for mismanagement. The importance of regulatory compliance has gained widespread recognition from the Indian Government, collaborating with industry leaders and other stakeholders to establish a more robust system. This collaborative effort aims to enhance regulatory compliance, ensuring smoother operations for businesses in India.

Delving into the realm of compliance, let’s closely examine its tangible impact on Indian businesses. To unveil its effects, it’s essential to grasp the concept of regulatory compliance first. Subsequently, this article will explore the key advantages that Indian businesses have gained through their dedicated commitment to regulatory compliance.

What is Regulatory Compliance?

Government Emphasis on Startup Growth and MSME Support.

Regulatory Compliance, to put it simply, requires the adoption and enforcement of a set regulatory framework by Indian legislation and relevant authorities. Corporations within its purview must adhere to these regulations, specifically designed for the industry or sector in which the organization operates. Complying with these regulations not only encourages transparency but also guarantees ethical operation for businesses.

What is the Need for Regulatory Compliance in Indian Business?

Challenges Faced by Startups and the Importance of Awareness.

India has experienced a notable surge in startup establishment, where entrepreneurs register ventures almost daily, contributing to the nation’s rapid economic growth. However, amidst this growth, a noteworthy trend emerges — startups cease operations at a relatively higher rate.

Upon closer examination of these startups’ trajectories, a significant factor contributing to their struggles becomes apparent: a lack of awareness regarding regulatory frameworks and compliance. Whether in personal life or the business realm, compliance plays a crucial role in determining success by ensuring a disciplined approach to internal operations. The absence of such adherence inevitably leads to long-term failure. The sustained success of an organization is intricately tied to its commitment to compliance practices.

Enhancing Credibility and Trust through Regulatory Compliance.

Building Trust through Regulatory Compliance.

Indian enterprises adhering to regulatory compliance gain a distinct edge, acquiring credibility and trust. Moreover, this commitment cultivates dependable and trustworthy partnerships while nurturing robust connections with customers and investors. Undoubtedly, the heightened trust factor can seamlessly translate into a competitive advantage within the business market.

Regulatory Compliance Serves as a Driver for Internal Optimization.

Meticulous Examination for Enhanced Risk Management.

As Indian businesses embrace regulatory compliance, they undergo a meticulous examination, entailing a comprehensive review of their internal processes. This practice contributes to enhanced risk management and streamlined business operations, thereby elevating the overall efficiency of the organization.

Ensuring Regulatory Compliance Contributes to Establishing a Sustainable Business Model.

Alignment with Global CSR Trends.

Generally, companies prioritizing corporate social responsibility (CSR) receive more favorable recognition on the global stage. The regulatory compliance framework in India is progressively aligning with these global trends. This alignment offers an open gateway for Indian organizations to actively participate in global socially responsible practices. Consequently, Indian companies prioritizing ESG (environmental, social, and governance) considerations not only achieve sustainability but also construct a robust business model.

Embracing Regulatory Compliance Drives Toward Digitalization.

Leveraging Technology for Compliance and Innovation.

In this era dominated by technology, it is prudent for organizations to embrace digitalization for innovation. Indian companies can leverage digitalization to gain a competitive edge by implementing data security measures to adhere to data protection compliance, employing advanced software for seamless GST compliance, and adopting various other technological advancements.

Government Initiatives and Support

Initiatives under ‘Ease of Doing Business’ Model.

Undoubtedly, any initiative inherently comes with its set of challenges. While regulatory compliance is pivotal for business improvement, the journey towards it is not devoid of its difficulties. Challenges encompass the cost implications of compliance, the need to modify established operational mechanisms within companies, and, significantly, a lack of awareness regarding the associated benefits. However, the Government of India has introduced and is in the process of introducing several schemes and benefits that companies can leverage in the future.

To address these challenges, the government has implemented various measures. For instance, it has introduced online portals for various departments, thereby eliminating the reliance on specific offices and providing businesses with readily available information. Other initiatives include the introduction of the Goods and Service Tax (GST) in 2017, aimed at simplifying the indirect taxation process. The implementation of the Companies Act, 2013, by the government promotes responsible business practices within Indian companies, benefiting both the public and the economy.

Furthermore, under the “Ease of Doing Business” model, the Government of India has introduced multiple initiatives to create a more business-friendly environment. These initiatives serve to simplify the regulatory process and reduce bureaucratic hurdles faced by Indian businesses in complying with regulations, ultimately contributing to the growth of the Indian economy.

The Influence of Regulatory Compliance on Indian Business is Diverse.

Positive Impact on Operations and Corporate Practices.

In summary, regulatory compliance exerts a profound influence on businesses, both domestically and globally. Adhering to regulatory compliance not only ensures clear and structured operations but also fosters trust within society and among the customer base, resulting in a positive impact on a company’s operations. In conclusion, Indian businesses stand to gain significant benefits and achieve a high return on investment by choosing to comply with applicable regulations and legislations. This commitment allows them to stand out and flourish in the business world, contributing not only financially but also in terms of corporate practices.

Karnataka Gratuity Rules 2024

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Moreover, leveraging the authority granted by Section 4A (4) of the Payment of Gratuity Act, 1972, the Karnataka government has issued a crucial notification, unveiling the ‘Karnataka Compulsory Insurance Rules, 2024.’ This strategic move not only showcases the government’s dedication to structured regulations but also emphasizes the paramount importance of legal adherence and the reinforcement of financial security for both employers and employees. Additionally, these rules mark a pivotal shift in the landscape of gratuity management, reflecting the state’s unwavering commitment to employment welfare and a well-defined compliance framework.

Karnataka Government’s Authority Action:

The Karnataka government, under Section 4A (4) of the Gratuity Act, has proactively issued the ‘Compulsory Insurance Rules, 2024,’ regulating gratuity-related matters.

 

Wide Applicability:

These rules, inclusive for all employers governed by the Payment of Gratuity Act in Karnataka, ensure comprehensive coverage of entities operating within the state.

 

Jurisdiction Clarity:

This provision specifies that the rules pertain to employers under the purview of the Karnataka Government, providing clarity on the jurisdiction where these regulations apply.

 

Insurance Deadline:

To comply with the rules before the March 10, 2024 deadline, existing establishments must secure a Life Insurance Corporation (LIC) policy within 60 days.

 

Registration Mandate:

Facilitating efficient compliance, employers must promptly register using Form-I within thirty days of obtaining insurance.

 

Quick Reporting:

To ensure transparency and adherence to regulatory requirements, employers must promptly report any changes in insured employees or policies to the Controlling Authority.

 

Premium Management:

Promoting financial integrity and consistency, employers are strongly advised to manage premium payments and policy renewals in a timely manner.

 

Gratuity Fund Compliance:

Emphasizing transparency in fund management, large employers with existing or new gratuity funds must submit Form II to ensure compliance with the rules.

 

Trust Requirements:

To promote fairness and accountability, employers opting for gratuity funds must undergo mandatory registration, ensuring equal representation from both employers and employees.

 

Flexible Trust Management:

Allowing for private, insurance, or joint management options based on the preferences and needs of employers, the rules offer flexibility in the management of gratuity trusts.

 

Contributions and Withdrawals:

Ensuring the fund’s dedicated use, contributions to the gratuity fund are exclusively made by the employer, and withdrawals are strictly reserved for gratuity payments to eligible employees.

 

Adherence to Standards:

Ensuring a standardized and compliant approach to financial management, the gratuity trust must adhere to Indian Accounting Standards 15 and other relevant laws.

 

Non-Payment Consequences:

To avoid consequences and ensure the financial well-being of employees, employers failing to make payments are obligated to settle the gratuity amount, including interest, immediately.

 

Penalties Alert:

Acting as a deterrent to non-compliance and reinforcing the seriousness of adhering to the regulations, violations of the rules may result in fines up to ten thousand rupees, with additional daily charges for continuing offenses.

EPFO Proposes 8.25% Interest for Subscriber Well-being

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Blogs

Introduction:-

In a noteworthy development for EPFO members, the Central Board of Trustees has proposed an annual interest rate of 8.25% for EPF accumulations in the fiscal year 2023-24. This pivotal decision was reached during the 235th CBT meeting on February 10, 2024, representing a commendable step towards improving the financial well-being of EPF contributors. This recent development underscores the dedication to delivering substantial returns to EPFO subscribers, thereby reinforcing their economic stability.

1. Unprecedented Dividend Allocation:

The proposal involves a groundbreaking income distribution of Rs. 1,07,000 crores directly credited to the accounts of EPF members. This not only underscores the organization’s commitment to maximizing returns but also demonstrates its dedication to enhancing financial benefits for EPF contributors. This distribution, calculated based on a total principal amount of approximately 13 lakh crores, signifies the highest-ever total income distribution on record, further solidifying the organization’s reputation for providing substantial returns to its members.

2. Solid Financial Achievement:

This resolution follows a period marked by robust financial performance, showcasing an impressive income surge of 17.39% and a simultaneous 17.97% increase in the principal amount compared to the previous fiscal year. Such remarkable growth underscores the EPFO’s adept investment strategies and its expertise in delivering compelling returns for its members. The noteworthy financial results further emphasize the organization’s commitment to ensuring substantial financial gains for EPF contributors.

3. Trust in EPFO:

The interest rate presented by EPFO surpasses those offered by comparable investment avenues, indicating robust confidence in the organization’s creditworthiness and its ability to provide competitive returns to its members. This demonstration of trust is vital for subscribers aiming to instill stability and growth in their long-term financial strategies. The EPFO’s dedication to offering attractive interest rates further solidifies its position as a reliable and beneficial investment option for individuals seeking to secure their financial future.

4. Government Backing:

The suggested interest rate is contingent upon approval from the Ministry of Finance, underscoring the government’s commitment to safeguarding the interests of EPF subscribers. Upon approval, EPFO will expeditiously credit the sanctioned interest rate to its members’ accounts, ensuring timely and efficient benefits. This streamlined process reflects the government’s dedication to facilitating and prioritizing the financial well-being of EPF contributors through the swift implementation of beneficial measures.

5. Promoting Financial Inclusion:

EPFO’s endorsement of a substantial interest rate not only prioritizes the interests of existing subscribers but also fosters financial inclusion by encouraging greater participation in the EPF scheme. Through the provision of attractive returns, EPFO actively assumes a role in establishing a secure financial future for millions of workers across diverse sectors. This commitment to favorable returns acts as a catalyst for broader participation, thereby contributing to the organization’s mission of promoting financial security and inclusivity for a wide range of individuals.

Conclusion: –

The Central Board of Trustees’ proposal of an 8.25% interest rate for the fiscal year 2023-24 stands as a testament to the organization’s commitment to maximizing returns and enhancing the financial well-being of its subscribers. Bolstered by robust financial performance, prudent investment strategies, and government support, EPFO remains a steadfast cornerstone in securing the financial futures of millions of workers in India. This dedication to providing competitive returns firmly solidifies EPFO’s position as a reliable and influential entity in the realm of financial security for its members.

Legal Update : Karnataka Compulsory Gratuity Insurance Rules, 2024

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Labour Laws

Karnataka Compulsory Gratuity Insurance Rules, 2024

Dear All,

The Government of Karnataka on January 10, 2024 released the Karnataka Compulsory Gratuity Insurance Rules, 2024.

Impacted Party(ies): It applies to every employer in Karnataka

Key Highlights:

(1) As per rule 3(1), every new employer shall subject to fulfillment of sub-section (2) of Section 4A of the Act, within a period of thirty days from the date on which these rules becomes applicable to such establishment shall obtain valid insurance policy in the manner as prescribed under sub-section (4) of Section 4A of the Act.

(2) As per rule 3(2), the employer of an establishment which is in existence at the time of commencement of these rules shall obtain a valid insurance policy within sixty days from the date of commencement of these rules.

(3) As per rule 3 (3) , the employer of the establishment who has obtained a valid insurance policy shall make all payments by way of premium to the insurance company and renew the same periodically and intimate the same to the Controlling Authority within fifteen days from the date of renewal of the policy. The employer shall initiate the process of payment of premium and renewal of policy before the lapse of the policy.

(4) As per rule 5, Every employer shall submit an application in Form-I to get his establishment registered with the Controlling Authority of the area or any other officer notified for this purpose by the State Government within thirty days from the date of obtaining insurance along with the list of its employees insured.

(5) As per rule 6, Every employer of an establishment who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement and every employer employing five hundred or more persons who establishes an approved gratuity fund may opt to continue or adopt such arrangement by submitting an application in Form II, provided such existing approved gratuity fund covers the entire liability of all the employees of the establishment under the provisions of the Act.

(6) As per rule 8, Every employer of the establishment to whom these rules apply shall take all measures to fulfill his obligations under the provisions of the Act.

For further details, request you to find the attached PDF for your reference.

 

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Legal Update – Maternity Benefit Act

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Labour Laws

Maternity Benefit Act

 

In a landmark judgment dated August 17, 2023, the Supreme Court of India delivered a decision that has far-reaching implications for women’s rights and employment conditions. The case of Dr. Kavita Yadav, a Senior Resident in Pathology, highlighted the critical issue of maternity benefits beyond contractual employment. This ruling sets a precedent that ensures women’s rights to maternity benefits are protected, regardless of their employment status.

Enclosed is the case law extract for your reference.