Compliance News

​The Ministry of Labour and Employment issued guidelines for processing Digital Signature Certificate (DSC) e-sign requests from employers on 10 October 2024. The guidelines require that at least one (1) DSC of the employer or authorized signatory must be registered with EPFO. The e-sign feature is a part of the e-governance initiative and facilitates the authentication of establishment-related documents and statutory returns. The notification emphasizes on the submission process of the DSC and mandates compliance with these guidelines, requiring that the requests be processed within fifteen (15) working days of receipt. Additionally, the guidelines stipulate that at least one DSC from the employer or authorized signatory must be registered with the Employees’ Provident Fund Organization (EPFO). The notification provides detailed instructions on submitting DSC/e-sign requests, including necessary forms, stamps, and information such as the applicant’s name and mobile number.

The Employees’ State Insurance Corporation (ESIC) has issued a critical directive mandating the immediate seeding of Aadhaar for all Insured Persons (IPs), ESIC employees, and pensioners. The directive, issued on 21 October 2024, introduces several channels for Aadhaar seeding, including the Employer Portal, and a new bulk Aadhaar seeding facility for employers. ESIC has launched the ‘AAA+’ mobile app with face authentication to enhance user convenience and streamline the process.

Further the Determinative Factors for ‘Workman’ Under the Industrial Disputes Act, 1947 Reaffirmed.

In the case of Lenin Kumar Ray v. M/s Express Publications (Madurai) Ltd. [2024 INSC 802], the Supreme Court of India clarified that when there is a lack of concrete evidence about the nature of an employee’s duties, management-issued employment orders will take precedence. The ruling upholds that the determination of workman status under the Industrial Disputes Act, 1947 relies on the actual duties performed, not just job titles. The employee’s appeal for reinstatement was rejected. It was further reaffirmed that the key determinant for being classified as a ‘workman’ under Section 2(s) of the Industrial Disputes Act, 1947, is not the designation but the principal duties and functions performed by an employee in the establishment. The Court also noted that the onus of proving the nature of employment lies on the person claiming to be a ‘workman’ within the definition.

In the case of Matthew Johnson Dara v. Hindustan Urvarak and Rasayan Ltd. [W.P. (C) 11818/2024], the Delhi High Court ruled that once an employee has been offered a position, the employer cannot revoke the offer without any specific barriers to the employee’s joining. The revocation by the new employer, as per the facts of the case was solely due to the employee’s inability to provide a relieving letter within thirty (30) days.  This decision upheld the employee’s rights to the job offer once extended.

The Delhi High Court in Punjab National Bank v. Niraj Gupta and Anr. [ 2024 SCC OnLine Del 4763] has ruled that under Section 4(6) of the Payment of Gratuity Act, 1972, an employer cannot withhold an employee’s gratuity unless criminal allegations are proven in a court of law. A criminal conviction is necessary for the forfeiture of gratuity benefits, and mere allegations are not sufficient grounds for withholding them.

In Sharad v. The Chief General Manager, Telecom (R.E.) Project and Ors. [ 2024 LLR 1320 (Bom. HC)], the Bombay High Court upheld the compensation award for a casual labourer whose services were terminated orally and without notice. The court found the termination violated the due process requirements of the Industrial Disputes Act, 1947, particularly Section 25F. The employer’s claim of willful absenteeism was disputed, and no notice was issued. As a result, the court awarded the labourer INR 30,000 in compensation rather than reinstatement or back wages.

The Central Consumer Protection Authority (CCPA) released new guidelines on 15 October 2024, to prevent greenwashing and misleading environmental claims in advertising. These guidelines define environmental claims as any representation suggesting a product or service’s eco-friendliness and greenwashing as deceptive practices that exaggerate or conceal harmful environmental impacts. The guidelines require companies to substantiate any such claims with clear, actionable plans and mandate transparency in advertising. Penalties for violations are imposed under the Consumer Protection Act. The objective is to protect consumers and promote genuine environmental responsibility in business.

FSSAI, through an order dated 13 November 2024, has mandated linking the Permanent Account Number (PAN) with FSSAI licenses and registrations. Food business operators (FBOs) with existing licenses or registrations, who are not due for renewal or modification soon, must update their PAN details in the food safety compliance system. FBOs applying for registration without a PAN must provide a declaration confirming its non-possession. This new requirement ensures enhanced compliance and traceability within the food industry.

The Ministry of Environment, Forest, and Climate Change (MoEFCC) has issued notifications on 12 Nov­​-ember 2024, granting exemptions under the Air (Prevention and Control of Pollution) Act, 1981 for industrial plants with a pollution index score of up to twenty (20) .Such plants are exempted from provisions under Section 21(1) of the Act, provided they inform the State Pollution Control Boards (SPCBs) and Pollution Control Committees (PCCs) in writing. Plants that have previously obtained environmental clearance under the notification S.O 1533 (E) dated 14 September 2006, of the Environment Protection Act, 1986, are also exempted from these regulations.

The Ministry of Environment, Forest, and Climate Change (MoEFCC) on 12 November 2024, has notified the Hazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2024, and the E-Waste (Management) Second Amendment Rules, 2024. These amendments, in line with the Jan Vishwas (Amendment of Provisions) Act, 2023, decriminalize offences under the Hazardous Waste and E-Waste management rules. Non-compliance or contravention of these rules will now incur penalties under Section 15 of the Environment Protection Act (EPA) instead of criminal charge.