India Regulatory Brief: Labor Rules Relaxed, Maternity Benefits (Amendment) Bill, 2016 Passed

Posted on by
New rules to reduce labor compliance burden for companies

On February 21, India’s labor ministry notified the Ease of Compliance to Maintain Registers under various Specified Labour Laws Rules 2017 (Ease of Compliance Rules). The new rules cuts down on the number of registers to be maintained under various labor laws. This will significantly reduce compliance burdens in the day-to-day operations of business establishments.

Professional Service_CB icons_2015 RELATED: Payroll & Human Resource Administration Services from Dezan Shira & Associates

Earlier, employers were supposed to maintain 56 registers, but in accordance with the Maintenance of Register Rules, this number is reduced to five under nine Specified Labor Laws. The five registers are employee register, wage register, register of loan/recoveries, attendance register, and register of rest days/leave account of employees/leave with wages. These may be maintained electronically or as hard copy.

The nine Specified Labor Laws affected by the reform are: the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996; Contract Labour (Regulation and Abolition) Act 1970; Equal Remuneration Act 1976; Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979; Mines Act 1952; Minimum Wages Act 1948; Payment of Wages Act 1936; Sales Promotion Employees (Conditions of Service) Act 1976; and Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act 1955.

Related Link Icon-IB RELATED: India Regulatory Brief: Maternity Leave to Increase to 26 Weeks and New FDI Rules for Non-Banking Finance Companies

Landmark Maternity Benefits (Amendment) Bill, 2016 approved

After parliament finally passed the Maternity Benefits (Amendment) Bill, 2016, India will be the country with the third most maternity leave in the world, following only Canada (50 weeks) and Norway (44 weeks). The bill, which will soon gain the President’s assent to become an Act of law, provides women in the organized sector with paid maternity leave of 26 weeks, up from 12 weeks, for the first two children. For the third child, the maternity leave entitlement will be for 12 weeks.

The bill also secures 12 weeks of maternity leave for mothers adopting a child below the age of three months as well as to commissioning mothers (biological mothers) who opt for surrogacy. The 12-week period in these cases will be calculated from the date the child is handed over to the adoptive or commissioning mother.

In other provisions, the bill mandates every establishment with over 50 employees to provide for crèche facilities within easy distance, which the mother can visit up to four times a day. The bill additionally permits women to negotiate work-from-home if they reach an understanding with their employers, after the maternity leave ends.

Professional Service_CB icons_2015 RELATED: Tax Compliance Services from Dezan Shira & Associates

UAE to share financial information with India from January 2018

In another blow to Indian tax evaders, Dubai will no longer be a safe haven for unaccounted wealth from January 2018, when new rules of financial reporting will get activated. UAE banks have already introduced more stringent norms for opening of new accounts.

Once the UAE begins sharing financial information, Indian tax defaulters will not be able to park their unaccounted assets in the country or camouflage ownership of shell companies under the identity of nominee directors.

Up until now, a popular strategy has been the RBI sanctioned liberalized remittance route that permits a resident Indian to invest up to US$250,000 a year in properties and securities abroad. This provision enabled individuals to buy companies in the UAE and use the Emirati company bank account to hold untaxed money.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email india@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight. 

Related Reading-IB

 

dsa brochure

Dezan Shira & Associates Brochure

Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax and operational advisory to international corporate investors. Operational throughout China, ASEAN and India, our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining and growing their business operations in the region. This brochure provides an overview of the services and expertise Dezan Shira & Associates can provide.

 An Introduction to Doing Business in India 2017

An Introduction to Doing Business in India 2017 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to stay up-to-date with the most recent and relevant policy changes.

Strategies for Repatriating Funds from India

In this issue of India Briefing Magazine, we look at issues related to repatriating funds from India. We highlight the unique regulations for sending funds back from India, examine the various strategies companies can make use of while repatriating, and look at remittance procedures for different types of Indian entities. Finally, we give some tips on how expats can remit their Indian money to their home countries.

Leave a Reply

Your email address will not be published. Required fields are marked *

Never Miss an Update

Subscribe to gain even better insights into doing business throughout the India. Subscribing also lets you to take full advantage of all our website features including customizable searches, favorites, wish lists and gift functions and access to otherwise restricted content.

Scroll to top