February 04, 2019 (Government to launch pension scheme for workers of the unorganized sector and more)

Government to launch pension scheme for workers in unorganized sector

As part of the Interim Budget presented on February 01, 2019, the Central Government has announced Pradhan Mantri Shram- Yogi Maandhan for the workers of the unorganized sector who earn up to a maximum of INR 15,000/- (Rupees Fifteen Thousand Only). As per the scheme, workers in the unorganized sector shall be provided with an assured monthly pension of INR 3,000/- (Rupees Three Thousand) per month once they attain the age of 60 (Sixty) years.

The pension contribution shall be made by both the worker and the government. Any worker that joins the scheme at the age of 18 (Eighteen) will just have to make a monthly contribution of INR 55/- (Rupees Fifty Five Only), and the government will make an equal matching contribution in the pension account of the worker.

Quick Views:

  • The unorganized sector comprises of 42 crore workers currently with very little social security coverage offered to them. With the introduction of this scheme, the government has initiated yet another measure to provide social security coverage to the unorganized sector workers.

 

Ministry of Corporate Affairs repeals Companies Act, 1956

The Ministry of Corporate Affairs, vide a notification dated January 30, 2019 has repealed Companies Act, 1956 with effect from January 30, 2019. With this notification, any applicable provision of the Companies Act, 1956 shall cease to remain applicable and going forward, only the provisions of the new Act, i.e., Companies Act, 2013 shall be applicable.

Quick Views:

With the repeal of the long-run Companies Act, 1956, companies will now be entirely governed by the Companies Act, 2013. However, it needs to be noted that all actions, notifications, proceedings, orders etc. done under the Companies Act, 1956 shall continue to remain in force by virtue of Section 456 (2) (a) of the Companies Act, 2013.

 

Availing maternity leave cannot defeat the right to undertake the examination

The Delhi High Court (“Court”) in the case of Dr. Ankita Baidya v. Union of India and Ors. has held that the right to undertake examination cannot be defeated by availing maternity leave.

In this case, a senior doctor of the All India Institute of Medical Science (“AIIMS”), was allowed to undertake her Doctorate of Medicines (“MD”) examination after a delay of 6 (Six) months on account of the fact that she availed the maternity benefit available to her. As per the conditions of her course, the Petitioner was entitled to 24 days of leave in the first year, and 30 days and 36 days of leave in second and third year respectively. While granting her maternity leave, her maternity leave was considered an “extra ordinary leave” and her MD examination was postponed for one session.

The petitioner also relied on a government directive dated March 14, 2018 which stated that maternity leave should be considered as part of tenure and not as an extension to the ordinarily available leaves.

Agreeing with the arguments of the petitioner, the Court held that the maternity leave availed by the petitioner during the currency of her DM course would not be covered as part of the “extra ordinary leave”.

 

Quick Views:

  • The Court has rightly held that maternity leave cannot be part of ordinarily available leaves, as also stated by the March 14, 2018 directive. Another important factor, that the Court considered in this case, was the applicability of the provisions of the Maternity Benefit Act, 1961 as the petitioner in question was a student at AIIMS. However, the Court held that social security legislations are to be interpreted in a manner to provide the maximum possible coverage. Consequently, the petitioner was granted relief.

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