Statutory Employee Benefits Every Employer Must Provide

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Statutory or mandatory employee benefits - list of statutory employee benefits compulsory be given to employee
Statutory or mandatory employee benefits Employee Benefits

Employee Benefits Introduction
Although most employee benefits are provided at the employer’s discretion, others are required by law
and mandatory. Statutory benefits include Social Security, unemployment compensation, and workers’ Statutory or mandatory employee
compensation. benefits
401(k) plan (Retirement
Benefit) [USA]
1. Earned leave: Top 5 Retirement Planning
Mistakes
Earned leave is mandatory for employees working in government sector but this leave is not Voluntary or Discretionary Benefits
mandatory and it is a voluntary benefit given to employees working in private and corporate sector. Severance Pay
Irrespective of casual leaves, medical leaves and optional holidays, earned leaves can be availed by
the employees for personal works. Unlike casual leaves some [USA]
organisations may not grant single earned leave. If an employee wants
to avail this sort of leave he/she needs to request for three or more in Family-Oriented Benefits
one stretch. in order to avail Leave under this benefit, he/she must inform
controlling/superior officer in advance but in case of casual leave giving
information in advance may not be necessary.
Why is it earned leave?

Unlike casual leaves, medical leaves and optional holidays, an employee can encash the unused earned leaves how many he/she has not availed or
unutilized during the calendar year that is from 1st January to 31st December. But encashment of earned leaves is allowed only at the time of
retirement of an employee or separation of employee other than suspension or dismissal from organization. Besides, few organizations allow to
encash maximum of 300 earned leaves from total earned leaves accumulated at the time of retirement or separation of an employee, but not all
unused earned leaves are allowed to encash.
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1/3/2020 Statutory or mandatory employee benefits - list of statutory employee benefits compulsory be given to employee - What is Human Resource? (Defined) Human Resource Management Topic…
INDIA undefined
Government Servant Not Entitled To Full

Employee can exceed earned leave limit: High Court
Pension/Gratuity During Pending
Lays down law for calculating accumulated unutilised
Disciplinary/Judicial Proceedings:
leave
Allahabad HC
Saurabh Malik
Tribune News Service
Chandigarh, October 15-2016 Download Judgement
In a significant judgment, the Punjab and Haryana High Court has ruled that the The Allahabad High Court has held that a Government
accumulated unutilised leave of an employee cannot be reduced to 300 days even servant is not entitled to full pension/death cum-retirement
if he is entitled to leave encashment for a maximum of 300 days. gratuity on/or during pending disciplinary/judicial proceedings
against the government servant.
The ruling came in case of Haryana Government employees after the High Court
was told that accumulated earned leave was reduced to 300 days time and again The full bench comprising of Justice Pankaj Mithal, Justice
during the course of service on the assumption that they were entitled to a Suneet Kumar and Justice Rohit Ranjan Agarwal observed
maximum of 300 days earned leave. that the entitlement to full pension /death-cum-retirement
gratuity to the government servant is subject to the outcome
Eventually, when the time came for encashment of unutilised earned leave, they of the disciplinary/judicial proceedings and issue of final
were granted the benefit for lesser number of days. orders thereon by the competent authority. The bench was
considering a reference to it on the issue of entitlement of the
“If an employee is entitled to leave encashment for a maximum limit of 300 days, government servant to receive death cum-retirement gratuity
that does not mean that the accumulated unutilised leave is to be reduced to 300 on superannuation or otherwise pending judicial proceedings.
days if it exceeds the limit. The earned leave will continue to accumulate till the
retirement of the petitioners and the petitioners are to be granted the maximum The court upheld a division bench judgment view that the
benefit of 300 days, as stated in the rules,” Justice Kuldip Singh ruled. term 'pension' would include 'gratuity' particularly in Article
351, 351-A of the Civil Service Regulations. Referring to
The ruling came on a petition by Jaipal Phogat and another petitioner against the these regulations, the bench observed:
State of Haryana and other respondents. Justice Kuldip Singh asserted the
Future good conduct is implied condition of ever grant of
“unfortunate controversy” was regarding the method used to calculate unutilised
earned leave of petitioners Jaipal Phogat and Jaibhagwan. pension. Full pension is not to be given as a matter of
course, or unless the service rendered has been
Retired mechanics, the petitioners had claimed that they were entitled to leave thoroughly satisfactory.
encashment of 300 days unutilised earned leave. Petitioner number one was is Article 351 and/or 351-A can be invoked by the State
entitled to 300 days leave encashment, but was granted the benefit of 257 days.
Petitioner number two, on the other hand, was entitled to 268 days leave Government or the Governor, as the case may be, if the
encashment, but was granted the benefit of 211 days. pensioner (a) be convicted of serious crime; (b) be guilty
of grave misconduct (c) caused pecuniary loss to the
During the course of the hearing, Justice Kuldip Singh asked both parties to file government in service. The power can be exercised in
calculation sheets. He added that the examination of calculation sheet regarding
Phogat showed mischief was done while calculating unutilised earned leave on either of the eventualities. The action thereunder is
April 27, 1999, May 22, 2003, and October 31, 2007. punitive.
The unutilised earned leave for 362 days, 375 days and 335 days, respectively,
Pendency of disciplinary/judicial proceedings on the
was reduced to 300 days on the assumption that the petitioner was entitled to a
maximum of 300 days earned leave. date of retirement, or instituted after retirement,
provisional pension equal to maximum pension as
Similarly, in Jaibhagwan’s case, earned leave was reduced on August 11, 2002, mandated under Article 919-A may be sanctioned to the
May 22, 2003, and August 22, 2003, from 308 days, 307 days and 305 days, government servant for the period upto conclusion of
respectively.
the proceedings.
“The calculation done by the respondents is not only mischievous, but wrong No gratuity is payable to the government servant during
application of the principle of calculation of unutilised earned leave is also there. As pendency of disciplinary/judicial proceedings/enquiry by
such, the calculations made by the petitioners are accepted and that of the Administrative Tribunal, until conclusion of the
respondents are set aside,” the High Court ruled. proceedings/enquiry and orders being passed thereon
by the competent authority.
The Regulations mandates that government servant is
2. SOCIAL SECURITY BENEFITS— entitled to provisional pension equal to maximum
pension during pendency of the proceedings until
The word ‘Social’ is adjectival form of society, i.e. anything relating to the society. The conclusion. The Regulations does not mandate the
word ‘Security’ is the measure of safety or protection from the danger or loss. Thus the
entitlement of full pension/gratuity on the ground of
phrase ‘Social Security’ refers to the measures of safety provided by the society to the
needy for their protection and releasing them ‘free from want’. 'hardship' being faced by the pensioner pending
proceedings.
The concept of such security is not new and some references of such measure are to be The nature of the charge/allegations against the
found in the ancient and medieval history where certain social or religious groups have government servant cannot be gone into during
endeavored to provide for similar security systems for the under-privileged or
pendency of the proceedings. The government servant
downtrodden people leaving in the same society. Therefore the realisation of a sense of
moral, pious and religious responsibility of the society towards the weak sections of whether guilty of 'serious crime' and/or 'grave
people is not unknown. However with the passage of time and the growing sense of civil misconduct' in the opinion of the competent authority
and ethical responsibility of a civilised society, the Governmental and Non-Governmental can be assessed/considered while passing final orders
efforts for the protection of the needy and to make them free from want also received upon conclusion of the disciplinary/judicial proceedings.
social recognition.
The impact on pension/gratuity would arise after the
In the field of industrial relations the phrase Social Security refers to those measures competent authority has had the occasion to consider
which are provided under the Labour Laws for the safety and protection of the and issue final orders upon conclusion of the
employees from the most common hazards of their occupational life. proceedings. The cause to the government servant
arises thereafter and not at the stage pending
The establishment of International Labour Organisation (ILO) ever since its inception in
proceedings/enquiry.
the year 1919 helped evolution of social Security legislation in the field of industrial
relations. Various ILO Conventions dealing with Social Security of Women, Children, and
employees in almost all types of industries are found enacted by various member-
countries in their Social Security legislations. The concept of Social Security is getting
enlarged to include in its gamut the human rights also. Govt. Servant Cannot File Complaint
About Service Conditions Or Retiral
Types of Social Security Benefits Before Consumer Forums : SC
As mentioned earlier, that the task of providing social security to the needy is taken
up both by governmental and non-governmental agencies and social [Read Judgment]
organisations. Their efforts can be classified into two branches on the basis of the
financial commitment and the contribution by the employees themselves towards The issue raised before the Court, in Ministry Of Water
such Social Security measure. Thus the two classifications of Social Security can Resources vs. Shreepat Rao Kamde, was whether in
be described as under:- respect of retiral dues, a complaint could be maintained
before the District Consumer Forum?
Thus Social Security concept is divided into two branches, namely, Social
The Supreme Court has reiterated that a government servant
Assistance and Social Insurance. is not a 'consumer' for the purpose of Consumer Protection
Act and cannot raise any dispute regarding his service
Difference between Social Assistance and Social conditions or for payment of gratuity or GPF or any of his
retiral benefits before any of the forum under the Act.
Insurance
Briefly speaking, the difference between Social Assistance and Social Insurance
as the two types of Social Security can be summarised as under:-
1. In case of Social Assistance, there is no contribution made by the employees and the financial burden is shared by the employer. Government
or social organisations. Whereas in case of Social Insurance, the workman himself is also contributing his share in the financial responsibility.
2. In case of Social Assistance, it is gratuitously provided to the workman by the society, i.e. Government, employer or social organisation and
therefore it cannot be claimed as a matter of right. Whereas in case of Social Insurance, it is a right of the workman to receive the social
protection as he is also contributing towards the financial fund of such Schemes.
3. In case of Social Assistance the benefit cannot always be claimed through Court’s intervention unless such scheme is provided as a statutory
duty. Whereas in case of Social Insurance, it is a legal right of the workman also to claim it through the Court of Law.
Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as
measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity benefits, paternity leave,
old age, unemployment, death, disablement and other similar conditions.
Following are some legal social security benefits for employees

1. Employees Welfare Fund.
2. Provision for Group Insurance Policies.
3. Provision for Provident Fund.
4. Provision for Pension.
5. Provision for medical and educational facilities for the clerks and their families/dependents.
6. Financial assistance to needy clerks.
7. Provision of payment of consolidated sum on death/disablement of any clerk.

8. Provisions for common rooms with books and newspaper akin to Bar Room for Advocates.
9. Provisions for periodical training programmes and symposiums to upgrade their skills and to train them.
Social Security for employees in India

Social Assistance is that measure of social action in which relief or protection is given by way of “assistance without taking any contribution from the
workman” and such social assistance is to be found in the Governmental Scheme for various welfare measures for medical, financial or legal assistance
gratuitously viz, Old-age pension, unemployment benefit, or various schemes for free medical treatment to the poor worker. Whereas in the case of ‘Social
Insurance’, the scheme is prepared where in the concerned workman also pays his contribution to such schemes and get benefit in case of any calamity,
disease or accidents. The good examples of these two types of Social Security can be found in the ‘Employee’s Compensation Act, 1923’ which is a non-
contributory assistance given to the affected employees and the financial responsibility is shared by the employer. Whereas the Employees’ State
Insurance Act, 1948 (ESI) is the measure of Social Security wherein the employees also contribute their share. The Employees Provident Fund and
Miscellaneous Provisions Act, 1952 is also a Scheme in which financial responsibility is shared between employers, employees and the Government.
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country. The State, here, discharges
duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies.
Article 41, 42 and 43 of the Constitution do talk about the same. Also, the Concurrent List of the Constitution of India mentions issues like-
Social Security and insurance, employment and unemployment.

Welfare of Labour including conditions of work, provident funds, employers' liability, workmen's
compensation,invalidity and old age pension and maternity benefits.
Below mentioned are the important employment laws on the Social Security benefits within India meant for
Online Payroll
the employees working in various industries and it is compulsory for employer to provide Social Security Software
benefits to his employees according to this acts. If any contrivance with laws mentioned below by the
Paybooks
employer shall be made liable for punishment by the Legislature.
Managing HR, payroll, and compliance
was never so easy.
a) Employee benefits through State Insurance Act, 1948
OPEN
Employees State insurance provides following benefits to the employees whoever got covered according to The Employees State insurance Act
1948.
APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.
Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh. The existing wage limit for
coverage under the Act is Rs.21,000/- per month (w.e.f. 01/01/2017).
Contribution
Currently, the contribution rate is 1% of wages of Employee and 3% payable by Employers for first 24 months(w.e.f. 6.10.2016) Employees in receipt
of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of
these employees.
Sickness benefit: ESIC provides 70% of average daily wages in cash during medical leave, upto 91 days in two consecutive benefit periods.
Medical benefit: ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.
Disablement benefit: ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent
disablement.
Temporary disablement benefit (TDB) : From day one of entering insurable employment & irrespective of having paid any contribution in case
of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.
Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the
extent of loss of earning capacity as certified by a Medical Board
Dependants Benefit (DB) : DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured
person in cases where death occurs due to employment injury or occupational hazards.
Maternity benefit: ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage,
during maternity leave and 12 weeks for commissioning mother and adopting mother.
Unemployment allowance: ESIC Provides monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of
employment or permanent invalidity due to non-employment injury.
Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering
insurable employment.
b) Maternity Benefit
Contractual Employees also entitled to Maternity Benefits, Kerala HC [Read Judgment]
The Kerala High Court recently reiterated that women-employees are entitled to maternity leave, regardless of whether their employment is
contractual or otherwise.
Allowing a petition filed by 35-year old Rasitha, who was denied maternity leave by the Calicut University on the ground that the terms of her contract
did not envision the grant of such leave, Justice A Muhamed Mustaq held,
“The maternity benefit is not merely a statutory benefit or a benefit flowing out of an agreement. This court consistently held that it is attached with the
dignity of a woman…. In Rakhi’s case (supra) it was held that a woman employee cannot be denied maternity benefits merely because her status is a
contractual employee. Therefore, the University is bound to grant such benefits notwithstanding anything contained in the agreement of contract.”
Rasitha had been working as an employee at the Calicut University for a decade on a contract basis. In August 2017, her contract was renewed for
another year.
While this was the case, the University denied her maternity leave, citing that since no such benefit was contemplated in her contract, at best she
could only claim 15 days of casual leave and abstention from duty on account of medical conditions of maternity.
On the other hand, Justice Mustaq pointed out that there are several cases that have established that a woman cannot be compelled to choose
between motherhood and employment. In particular, reference was made to the cases of Mini v Life Insurance Corporation of India and Rakhi PV and
Others v State of Kerala & Another.
Notably, in Rakhi PV’s case, the Court had specifically held that contractual employees cannot be denied maternity leave merely because of their
contractual status.
“In Rakhi’s case (supra) this Court has specifically referred to the claim of maternity leave due to women employees who are working under contract
and this court held that such women cannot be denied the maternity benefits. It is submitted in the Bar that the judgment in Rakhi’s case (supra) was
affirmed by the Division Bench as well.“
In view of these observations, the Court allowed Rasitha’s plea and directed the Calicut University to pay maternity benefits due to the Rasitha, as
applicable in the case of other employees of the University, within two months.
Under the Maternity Benefit Act, 1961, women employees are entitled to maternity benefit at the rate of average daily wage for the period of their
actual absence up to 12 weeks due to the delivery. In cases of illness arising due to pregnancy, etc., they are entitled to additional leave with wages
for a period of one month. They are also entitled to six weeks maternity benefit in case of miscarriage. The Maternity Benefit Act, 1961 also makes
certain other provisions to safeguard the interest of pregnant women workers.
Section 8 of the Maternity Benefit Act, 1961 provides that every woman entitled to maternity benefit shall also be entitled to receive from her employer
medical bonus of Rs. 1000/-, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.
The Maternity Benefit Act, 1961 regulates the employment of women in factories, mines, the circus industry, plantations and shops or establishments
employing 10 or more persons except the employees who are covered under the Employees' State Insurance (ESI) 1948 for certain periods before
and after child-birth and provides for maternity and other benefits.
As the Act provides maternity leave up to 12 weeks for all women. THE MATERNITY BENEFIT (AMENDMENT) ACT, 2017 NO .6 OF 2017 passed,
extends this period to 26 weeks. However, a woman with two or more children will be entitled to 12 weeks of maternity leave.
March - 2013: The Madras High Court held that the government employees opting for children through surrogacy would be entitled to maternity leave
in the form of child care leave. Honourable High Court said that if law can provide childcare leave in case of adoptive parents, then it should also
apply to parents who obtained child through surrogate agreement. The object of such a leave is to take care of the child and develop a good bond
between the child and the parents.
No Maternity Benefits for govt servants with two or more children: Uttarakhand HC upholds
State Rule
Read Judgment
The Uttarakhand High Court has upheld the validity of a State rule denying maternity benefits to female government servants having two or more
children. - State of Uttarakhand ...........Appellant Vs. Smt. Urmila Masih and others. ...Respondents
In doing so, the Division Bench of Chief Justice Ramesh Ranganathan and Justice Alok Verma set aside a judgment passed last year by a Single
Judge of the High Court, which had struck down the said rule.
As per Rule 153 of the Uttar Pradesh Fundamental Rules (which were adopted by Uttarakhand after the reorganisation), female government servants
having two or more living children shall not be granted maternity leave for the birth of the third child. The Rule states:
“FR 153. Maternity leave on full pay which a female government servant, whether permanent or temporary, may be drawing on the date or proceeding
on such leave may be granted to her by the head of the department or by a lower authority to whom power may be delegated in this behalf subject to
the following...
...Provided that such leave shall not be granted for more than three times during the entire service including temporary service:
Provided also that if any female government servant has two or more living children, she shall not be granted maternity leave even though such leave
may otherwise be admissible to her. If, however, either of the two living children of the female government servant is suffering from incurable disease
or is disabled or crippled since birth or contracts some incurable disease or becomes disabled or crippled later, she may, as an exception, be granted
maternity leave till one more child is born to her subject to the overall restriction that maternity leave shall not be granted for more than three times
during the entire service…”
L’Oreal India enhances maternity leave to 26 weeks

L’Oreal India has enhanced maternity leave to 26 weeks from 14 weeks earlier in an effort to retain high-potential employees.
The new parental benefits include pre-commute assistance for expecting women employees starting from the sixth month of pregnancy and
child care allowance for two years from the date of delivery. “The business case of an enhanced maternity leave policy and other parental
benefits is to retain high potential talent, enhance productivity and make the company an attractive employer,” said Mohit James, director,
human resources, L’Oréal India.
To help new mothers ease back into work, they can also avail of reduced work hours for two continuous weeks immediately after resuming
work, said James. The policy also entitles fathers to paid leave of two weeks. Additionally, the adoption leave has been increased to 12
weeks for mothers and one week for fathers. L’Oréal India will also offer flexible working options to each parent as well as pre- and post-natal
support and employee well-being sessions and dedicated HR and management support.
Deloitte declares 26 weeks of maternity leave for women employees; PWC, EY, KPMG to follow
suit
The labour ministry is busy putting the amended Maternity Benefit Act together that would entitle working women in private sectors to 26 weeks
of maternity leave from the existing 12, the big four consulting firms have already taken a leap. While Deloitte has declared 26 weeks of
maternity leave for its woman employees, PricewaterhouseCoopers, EY and KPMG are in the process of finalising such policies.A severe
crunch of woman employees at the top has pushed these companies to not only extend the maternity leave benefit, but also in introducing a
slew of other initiatives to retain the valuable resource.
To be piloted for the first time in India, EY is also working out a programme called 'Maternal Coaching', where all the women at the leadership
and senior positions will be trained to coach other women in their teams before and after maternity leave on not quitting the job.PwC is planning
to retain women who leave for maternity with an 'umbilical cord' of up to seven years or so. This would allow women on maternity leave to be on
the rolls of the company without actively working and without pay. "Though this is in the pipeline, they intend to offer all the training and updates
to the women who go on maternity leave so that they are connected with the firm.
ET Bureau | Feb 19, 2016, 06.07 AM IST
International Comparison of Maternity Leave
Country Maternity Leave Paternity Leave Percentage of wages Source of Funding
India Act: 12 weeks No provision 100% Employer

Bill: 26 weeks Despite there being
no legislation
15 days is allowed for

male Govt Employee
UK 52 weeks Women: 6 weeks paid at 90% of Mixed (employers reimbursed up

14 consecutive
average weekly earnings; flat rate or to 92% by public funds)
days 90% (whichever is less) for weeks 7-
39; weeks 40-52 unpaid
Men: Flat rate benefit or 90% of
average weekly earnings, whichever
is less
South Africa 17 weeks 3 days Women: 60% Women: Mixed (contributions

Men: 100% from employer, employee,
government)
Men: Employer Liability
Mixed (8 weeks employer and 8

Singapore 16 weeks 7 days 100% for first and second child
weeks public funds)
Brazil 17 weeks 5 days 100% Women: Mixed (contributions

from employer, employee,
government)
Men: Employer Liability
Employer contribution via

China 14 weeks No provision 100%
insurance scheme
France 16 weeks 11 days 100% up to a ceiling Social insurance scheme
Australia 52 weeks 14 days Women: 18 weeks at the federal Public funds

minimum wage level
Men: Federal minimum wage
Canada 17 weeks No provision 55% for 15 weeks up to a ceiling Public Funds

(federal)
USA 12 weeks No provision Unpaid No provision

(federal)
Ref:http://www.prsindia.org/uploads/media/Maternity%20Benefit/
LB%20Maternity%20Benefit%20Bill%202016.pdf
Various countries have implemented different funding models in relation to maternity benefits. A 2014 ILO study on maternity leave
provisions in 185 countries observed:
In 25% of the countries, maternity benefits are paid solely by the employer (e.g. Kenya, Puerto Rico, Nigeria, Pakistan).
In 16 % of the countries, maternity benefits are financed by a combinations of funds from the employer and the government (e.g. United
Kingdom, Germany).
In 58% of the countries, cash benefits are provided to pregnant women through national social security benefits (e.g. Norway, Australia).
In the remaining 1% of the countries, there was no provision for maternity benefits (namely, US and Papua New Guinea).
Improved maternity benefits could prove counterproductive: Survey

A little over one year after India increased the maternity leave benefit to 26 weeks from 12 weeks, a survey said the move
ET Bureau Updated: May 01, 2018,
could be counterproductive to the cause of a diverse workplace in certain sectors unless other support measures are also undertaken.
According to a survey on the costs and benefits of the new regulations by leading employment services company TeamLease, at least 26 per cent of
the 350 startups and small and medium enterprises (SMEs) that responded said they will prefer hiring a male candidate, given the cost of the six-
month maternity leave benefit. About 40 per cent of respondents said they will hire women but will consider whether such a cost is worth the
candidate.
However, 39 per cent of organisations said the move will have a positive impact and will lead to a happier workforce but 35 per cent of the
respondents said that the six-month maternity leave will impact both cost and profitability.
“While many of the startups and SMEs are progressive, a significant number seems to be considering the consequences of this regulation.” Plus,
even when organisations do have a policy of non-discrimination in hiring, the recruiting manager could take a short-term view. Therefore, just
changing the law is not enough; reinforcements are needed at multiple levels.
c) Leave for miscarriage or medical termination of pregnancy.

In case of miscarriage or medical termination of pregnancy, a woman shall, on production of such proof, Online Payroll
be entitled to leave with salary for a period of 6 weeks immediately following the day of her miscarriage
or her medical termination of pregnancy. [Section 9 of the Maternity Benefit Act, 1961,] Software
Paybooks
d) Leave with wages for tubectomy operation Calculate salary in minutes and directly
In case of tubectomy operation, a woman shall, on production of such proof as may be prescribed, be transfer it to employees' bank accounts.
entitled to leave with wage or salary for a period of 2 weeks immediately following the day of her
tubectomy operation.[Section 9A of the Maternity Benefit Act, 1961,]
OPEN
e) Paid leave to adoptive mothers.
According to the 2016 Working Mother and AVTAR 100 Best Companies for Women in India, 70% of the companies offer paid leave to adoptive
mothers. Only a few companies in India are treating adoption on a par with maternity leave.Among the jet-setting few is Accenture, which on Monday
announced that it will provide 22 weeks leave irrespective of whether the child is biological, adopted or birthed through surrogacy.And among these,
the ones that are most adoption friendly are IT majors, banks, insurers, FMCG players and automotive, chemical companies.
Accenture joins a club of corporates such as Standard Chartered, Citibank, Barclays, Murugappa group and HCL who choose to give 22-28 weeks
leave for adoption surrogacy.Accenture increased its adoption leave from the current eight weeks to 22 weeks and included a clause that puts
surrogacy leave at 22 weeks. The move gains particular significance as the current statutory requirement is at three months or 12 weeks.
While some companies choose to give parents as much as 28 weeks leave, others give their workforce one week leave, said the study.
On average, Indian companies choose to give their workers nine weeks leave to celebrate the latest entrant to their family. IT majors like HCL Tech
lead the pack with 26 weeks surrogacy leave -on a par with maternity.Not far behind is Infosys with 16 weeks for the primary caregiver.International
banks such as Standard Chartered, Citibank and Barclays, who choose to give between 22 and 28 weeks leave, have a liberal adoption policy
globally. In India, they retain the same guidelines -proving highly beneficial to heterosexual couples who want to adopt, couples in a live-in
relationship, same-sex couples and the rising population of single dads. Barclays, which has revised its maternity policy from 84 days to 154 days,
introduced adoption leave in 2014.
At Mondelez India, mothers, who choose to adopt, get three months leave versus six-month maternity leave.But the company is offering a 15-month-
flexi work option for all new parents, irrespective of whether they chose to adopt. Family-run business Murugappa Group also offer 24 weeks for
adoption.
Read more at:
http://economictimes.indiatimes.com/articleshow/56214740.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
f) Paternity Leave (INDIA)

Though it is the mother who actually delivers the child, father plays an equally important role. A father is expected to be emotionally and physically
available for both, mother and child, before and after the delivery. Infact, legally accepting and providing two months of paternal leave has resulted in
a reduced divorce rate in Sweden.
In India, the Central Government in 1999 by notification under Central Civil Services (Leave) Rule 551 (A) made provisions for paternity leave for a
male Central Government employee (including an apprentice and probationer) with less than two surviving children for a period of 15 days to take
care of his wife and new born child. He can avail this leave 15 days before or within 6 months from the date of delivery of child. If such leave is not
availed within the period, it shall be treated as lapsed. For paternity leave he shall be paid leave salary equal to the pay last drawn immediately before
proceeding on leave. Also, the same rule applies when a child is adopted.
While paternity leave is sanctioned for government employees, there isn't any such law that indoctrinates the private sector to make it obligatory.
Hence, paternity leave is open to interpretation by individual companies.
We all know and understand that for a healthy work culture and to get the optimum efficiency out of an employee, an employer must ensure to provide
certain basic amenities like a comfortable work place, healthy working hours, giving the employee enough physical and mental rest etc. Being India
where family is of first and foremost importance, an employer needs to keep in mind that having a child is a start to the chapter of family for almost
all, hence, it is an utter necessity to provide reasonable amount of maternity as well as paternity leaves. We must not forget that for a vulnerable new
mother and her newly born child, father is the most important person to be around.
CA Technologies rolls out parent leave policy to promote greater work-life-balance

CA Technologies has rolled out a new parent leave policy to promote greater work-life-balance for parents across all countries for its employees.
The company is offering all employees globally — male and female — a minimum of 12 weeks paid leave during the first 12 months following
the birth or adoption of their child.
While the women employees at CA (India) continue to be eligible for a maternity leave of 26 weeks; the paternity leavepolicy allows all male
employees who have babies born or adopted; a 12-week paid leave, according to a release.
“Our new family leave policy demonstrates that CA not only champions and supports diversity and inclusion, but also recognizes the importance
of giving employees time to spend with their young families. We believe that this will encourage male as well as female employees to be actively
involved in the initial months of caring for their new child," said Sunil Sankar, VP People Business Partner, CA India.
Male employees will be eligible for the paternity leave if they have 12 months service at the date the child is born, or for adoptive parents where
a child is matched or newly placed with them. "Employees can opt to take a shorter period of leave if they choose, and salaries and benefits will
continue to be paid in the normal way," the company release stated.
g) Payment of Gratuity Act, 1972 >>

provides for payment of gratuity @ 15 days’ wages for every completed year of service or part thereof, in excess of seven months
maximum amount of gratuity payable under the Act was raised from Rs. 1.00 lakh to Rs. 3.50 lakh with effect from 24.9.97
no wage ceiling for coverage under the Act
h) Pension benefit after retirement/superannuation (A superannuation pension shall be granted to a Government

servant who is retired on his attaining the age of 60 years. )
The minimum eligibility period for receipt of pension is 10 years. A Central Employer's Financial Difficulty Not A
Government servant retiring in accordance with the Pension Rules is entitled to
receive superannuation pension on completion of at least 10 years of qualifying
Ground To Restrain The Pension
service. Benefits Of Retired Employee: Punjab
In the case of Family Pension the widow is eligible to receive pension on death of
and Haryana HC
her spouse after completion of one year of continuous service or before even
completion of one year if the Government servant had been examined by the Read Judgment
appropriate Medical Authority and declared fit for Government service.
The employer's financial instability is not a valid ground to
W.e.f 1.1.2006, Pension is calculated with reference to average emoluments suppress the pension benefits of a retired employee as the
namely, the average of the basic pay drawn during the last 10 months of the pension is the only source of livelihood for a pensioner to live
service or last basic pay drawn whichever is beneficial. Full pension with 10/20 a dignified life after retirement held by Punjab and Haryana
years of qualifying service is 50% of the average emoluments or last basic pay High Court.
drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than
33 years, amount of pension was proportionate to the actual qualifying service The petitioner who served as Inspector in Municipal Council,
broken into completed half-year periods. For example, if total qualifying service is Abohar has raised contention that she retired at the age of
30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as superannuation and entitled for the retirement benefits which
under:- was delayed by the respondents without any valid justification
and paid incomplete pension without gratuity and leave
Pension amount = R/2(X)61/66 encashment after five years of her retirement.
where R represents average reckonable emoluments for last 10 months of The petitioner argued that she is entitled for interest on the
qualifying service or the last pay drawn as opted by the govt servant. said delayed payments keeping in view of judgment given by
this court in A.S Randhawa v. State of Punjab.
Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is She has further stated that she had earlier approached the
50% of the highest pay in the Government of India (presently Rs. 45,000) per High Court through writ petition where court directed the
month. Pension is payable up to and including the date of death. respondent to pay her all benefits without any delay. In
pursuance of this court direction, the respondent passed an
Commutation of Pension order where they admitted that they could not release all the
A Central Government servant has an option to commute a portion of pension, not pensionary benefits due to financial instability and 'paucity of
exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No funds'. They also admitted that leave encashment and gratuity
medical examination is required if the option is exercised within one year of has not been paid to the appellant.
retirement. If the option is exercised after expiry of one year, he/she will have to
under go medical examination by the specified competent authority. The High Court observed that the Division Bench has already
laid down the precedent in Ram Karan v. Managing Director,
Pepsu Road Transport Corporation and another that financial
instability is not a valid argument to derail the life of a retired
employee as the pension is the only source of living which
he/she is entitled to live a dignified life.
The court stated that under Article 21 of the Indian

Constitution where life is interpreted as a dignified life where
mere existence not enough but to enjoy the facilities, proper
living condition with adequate standard of life which a person
is entitled to. It is the duty of the state to preserve these
human rights of a citizen by taking appropriate steps to
ensure the recognition of these fundamental rights.
On Article 21 the Supreme Court of India laid down in

Chameli Singh v. State of U.P. 1996(2) SCC 549 that-
"In any organised society right to live as a human being is not

ensured by meeting only the animal needs of man. It is
secured only when he is assured of all facilities to develop
himself and is freed from restrictions which inhibit his growth.
All human rights are designated to achieve this object. Right
to live guaranteed in any civilised society implies to right to
food, water, decent environment, education,medial care and
shelter. These are basic human rights known to any civilised
society".
The fundamental question of standard of living and a dignified

life interpreted in many landmark judgments pronounced by
the Apex Court, where right to shelter is a guaranteed right
and state is under obligation to provide the shelter to the
citizens. In this case the financial uncertainty is the main
ground in violation of the fundamental right of the petitioner

and on this issue Supreme Court in cases like Municipal
Council, Ratlam, (1980)4 S.C.C. 163, B.L Wadhera v. Union
of India, All India Imam Organisation and Ors. v. Union of
India and Ors., Kapila Hingorani v. State of Bihar. All India
Organisation's case already laid down the principle that
"Financial stringency may not be a ground for not issuing
requisite directions when a question of violation of
fundamental rights arises and Financial difficulties of the
institution cannot be above the fundamental right of a citizen".
The Court has allowed interest @ 9% per annum from the

date of which amount was due. The court directed the
respondents to paid the said amount within the period of two
months after this order.
Facts [+]
In India, states like Andhra Pradesh government had removed the pension scheme for government employees those who had joined after 2004,
November with the motive to cut down the state expenditure and retain revenues. Eventually lead to initiation of pension schemes by the different
bankers and insurance companies like MetLife India Insurance Co. Pvt. Ltd., an Indian affiliate of the U.S.-based Metropolitan Life Insurance
Company. some of pension scheme by different companies are Met Pension –Par , LIC Pension Plus, ICICI Pru Life Link Pension SP, SBI Life –
LifeLong Pension,Bajaj Allianz Pension Guaranteed, HDFC Personal Pension Plan,TATA AIG Life Nirvana, Birla Sun Life Immediate Income Plan,
Reliance Life Traditional Golden Year Plan. etc.
In fact private and public own companies are providing better incentives and benefits to their talented employees especially in the IT and Automobile
sector to protect the morale of employees and retain them in organization for long period. Retirement Pension plans in India detailed >>
Facts [+]
The Health Insurance Portability and Accountability Act was enacted by U.S. Congress in 1996. HIPAA specifies national standards to protect
individuals' medical records and other personal health information. HIPAA also regulates the security of health information, national standards for
electronic healthcare transactions, and national identifiers for providers, health plans and employers.
i) Employees' Provident Fund

Employees’ Provident Fund is compulsory for every company in which 20 or more people are employed.
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
To go into the background of Provident Fund, it is basically a social security provision and provides some financial stability post retirement to
employees. It isn't an idea specific to India, and may generally be found across the globe. The United States imposes Social Security and Medicare
contributions towards old age, disability, pension and medical benefits. As early as the 1880s, Germany had built a social insurance programme (one
requiring contributions from workers) that provided for sickness, maternity, and old-age benefits. Volatility of income especially hurt the older workers,
as they often bore the brunt of economic downturns.
India: Employee’s Provident Fund or EPF is probably the most popular retirement saving scheme amongst salaried people. The government-run
scheme is a savings scheme which is good for people who are looking for risk-free, guaranteed-return plans for retirement.Employees' Provident
Fund is applicable to every employee who works under following establishments and takes salary less than or equals to Rs. 15000/- per month.
Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central
Government in the Official Gazette. (List of Industries/Establishments)
Employing 20 or more persons .
Cinema Theatres employing 5 or more persons.
Contributions
By employee 12% of his/her salary
By employer 12% which is an amount equal to an employee contribution.
Withdrawal of Employee’s Provident Fund
(in-case of unemployment)
Employee who is a members can now withdraw 75% of their funds after one month of unemployment and maintain their PF account with the
body. The retirement fund body also gave an option to its members to withdraw the remaining 25% of their fund after two months of
unemployment.
On retirement from service after attaining the age of 55 years. A member who has not attained the age of 55 years at the termination of the
service shall withdraw the full amount standing to his/her credit.
In cases of migration from India for a permanent settlement abroad, the withdrawal is allowed. In cases of taking employment abroad,
withdrawal is allowed.
In case of permanent disablement

A member can withdraw the total amount from the retirement kitty on retirement on account of permanent and total incapacity for work due to
bodily or mental infirmity. This incapacity has to be certified by a medical practitioner. A member who is suffering from tuberculosis or leprosy
even if contracted after leaving the service of an establishment on grounds of illness but before the payment has been authorised, shall be
deemed to have been permanently incapacitated for work.
j) Employee’s Deposit Linked Insurance Scheme Provident Fund, Pension Fund, Gratuity
(EDLI) Fund not part of corporate debtor's
The EDLI scheme was launched in 1976, and is available to all employers who liquidation estate for distribution under
provide EPF provision to their employees. The scheme offers life insurance
Sec 53 IBC: NCLAT
coverage to the employees. All the employees who subscribe to the EPF scheme
automatically get enrolled in the EDLI scheme. Read Order
The National Company Law Appellate Tribunal (NCLAT) has

– EDLI contribution by Employee: none. held that Provident Fund, Pension Fund and Gratuity Fund
payable to workmen are not part of the liquidation estate of
– EDLI contribution by Employer: 0.50% (subject to a maximum of Rs.75)
the corporate debtor for the purpose of distribution of assets
EDLI scheme features and benefits: under Section 53 of the Insolvency and Bankruptcy Code,
2016.
The claim amount under the insurance scheme is 30 times the salary,
according to a BankBazaar report. Salary is calculated as (DA + Basic The judgment was passed by a three-member bench of
Salary) Chairperson, Justice SJ Mukhopadhaya, Member (Judicial),
There is also a bonus of Rs 1.5 lakh which will also be paid along with Justice AIS Cheema and Member (Technical) Kanthi Narahari
the claim amount. in an appeal preferred by the State Bank of India against an
The quantum of coverage is directly linked to the salary of the order passed by the National Company Law Tribunal, New
employee. Delhi (NCLT).
Claim of EDIL Pursuant to an application under Section 7 IBC, a Corporate

Only in case of the death of employee who is an contributor to EPF. The Insolvency Resolution Process was initiated against the
EDLI claim is only admissible if the deceased person was in active service at Corporate Debtor.
the time of death.
Finally, an order of liquidation was passed by the NCLT and
Example: the workmen stood discharged under Section 33(7) of IBC.
Let us assume person X was employed and was an active contributor in EPF, Subsequently, the Liquidator denied the preferential payment
EPS and EDLI schemes. His monthly salary was Rs 15,000. Mr.X died on of the gratuity fund, the provident fund and the pension fund
duty. Now when his nominee files for the EDLI claim, it will be (30 x Rs to the workmen and included the same for the payments
15,000) + (Rs 1,50,000), which is Rs 6,00,000. under the waterfall mechanism under Section 53.
As a result, Moser Baer Karamchari Union moved an

J) General provident fund (GPF) application before the NCLT, praying for directions for the
exclusion of the amount due to them towards Provident Fund,
General Provident fund is a Social Security benefit specifically for the Pension Fund and Gratuity Trust Fund from the purview of
purpose of state and central government employees working in the India. To Section 53.
become a member of general provident fund, employee has to subscribe for
its membership by way of contribution from his monthly salary. The Adjudicating Authority ruled in favour of the Union and
held that the Provident Fund, Pension Fund and Gratuity
Rate of Subscription Fund did not constitute part of the liquidation estate of the
The amount of subscription is fixed by the subscriber himself. However, it corporate debtor.
cannot be less than 6% of the basic pay and not more than the basic pay(For
class IV employees the percentage is…..). The minimum subscription is Aggrieved by the order, State Bank of India who is a secured
determined on the basic pay drawn on 31st March of the preceding financial creditor moved the NCLAT in appeal.
year. Subscription may be enhanced twice and/or reduced once during
the financial year. Placing reliance on the Explanation to the Section 53, SBI
BENEFITS TO THE MEMBERS OF THE GENERAL PROVIDENT argued that ‘workmen’s dues’, which are mentioned under
FUND Section 53(1)(c), shall have the same meaning as assigned to
it in Section 326 of the Companies Act, 2013 and would thus
1) Advance for Purchase of Dwelling Site. include Provident Fund.
2) Advance for Purchase of Dwelling House/Flat.
3) Advance for Construction of a House. SBI also relied on Explanation (iv) and (iv) below Section 326
4) Advance for Repayment of Housing Loan to State Government and Section 327 of the Companies Act, 2013 to state that all
Housing Board or any other Government recognised Housing Finance Body. sums due to any workman from the provident fund, the
5) Advance for Illness viz. Hospitalization for more than a month major pension fund, the gratuity fund or any other fund for the
surgical operations or suffering from T.B.,leprosy, paralysis, cancer, heart welfare of the workmen, maintained by the Company is
ailment etc. covered by term “workmen’s dues”.
6) Advance for Marriage of Self/Son/Daughter/Sister/Brother.
7) Advance for Post Matriculation Education of Son/Daughter. The Resolution Professional submitted that as per Section
8) Advance for Damage to the property Due to Natural Calamity 36(3) read with Section 36(4) of the IBC, all sums due to any
(Flood/Earth Quake). workman or employee from the provident fund, the pension
9) Advance for Member affected by cut in the supply of electricity. fund and the gratuity fund were excluded from the liquidation
10) Advance for Member who is physically handicapped. estate. Thus, it was submitted that workmen had the first
charge on these funds.
The employees can withdraw their money and receive payments within
15 days. Employees can withdraw GPF for select purposes after completing After hearing the parties, the NCLAT noted that from Section
10 years of service, as against 15 years of service earlier. The money can be 36(4)(a)(iii), it was clear that all sums due to any workman or
withdrawn for purpose of education (which includes primary, secondary and employee from the provident fund, the pension fund, and the
higher education), marriage of self and family members, in emergencies such gratuity fund were not to be included in the liquidation estate
as illness, buying property, cars and servicing bank loans. assets and could not be used for recovery in the liquidation.
key points: Therefore, the question of distribution of the provident fund,

pension fund or the gratuity fund in order of priority and within
1. The relaxed rule for GPF withdrawal benefit central government such period as prescribed under Section 53(1) did not arise, it
employees as subscribers can withdraw the outstanding money for purpose added.
of children education - including primary, secondary and higher education,
covering all streams and institutions. The NCLAT further stated that since ‘workmen’s dues’ is
specifically mentioned in Section 53(1)(b)(i) as dues for the
2. Money can also be withdrawn for expenses such as marriage and other period of twenty-four months preceding the liquidation
ceremonies of self or family members and dependents, illness of self, family commencement date, its meaning could not be derived
members or dependents and purchase of consumer durables. through Section 326 of the Companies Act, 2013.
3. Government has permitted GPF withdrawal of up to twelve months pay or While clarifying that there was a difference between the
three-fourth (75%) of the outstanding money in the General Provident Fund, distribution of assets and preference/priority of workmen’s
whichever is less. In some cases such as for illness, the withdrawal may be dues under Section 53(1) (b) of the IBC and Section 326(1)
allowed up to 90 per cent of the amount standing at credit of the subscriber. (a) of the Companies Act, 2013, the NCLAT stated that for
Section 53 IBC, Section 326 was relevant for the limited
4. 3/4th or 75% of the total outstanding amount in GPF can be withdrawn for purpose of understanding ‘workmen’s dues” which could be
purpose of buying a house, repayment of outstanding housing loan, purchase more than provident fund, pension fund and the gratuity fund
of land for building a house, constructing a house, reconstructing or making kept aside and protected under Section 36(4)(iii).
additions on a house already acquired and renovating, additions or
alterations of ancestral house. It concluded,
5. GPF money can also be withdrawn for the purpose of purchasing vehicles, "..as the provisions of the ‘I&B Code’ have overriding effect in
repayment of car loans, repair and overhauling of vehicles and making case of consistency in any other law for the time being
deposit to book a vehicle. enforced, we hold that Section 53(1) (b) read with Section
36(4) will have overriding effect on Section 326(1) (a),
6. For purchase of vehicle, a central government employee can withdraw 75 including the Explanation (iv) mentioned below Section 326 of
% of the amount at disposal in the GPF account or 75 per cent of the cost of the Companies Act, 2013."
vehicle whichever is less.
In view of the above, the appeal was dismissed with the
7. Employees can also withdraw 90% of the money without giving any reason finding that the provident fund, the pension fund, and the
from their provident fund accounts two years before retirement from the job. gratuity fund do not come within the meaning of ‘liquidation
Earlier the employees were allowed to withdraw 90 per cent of money only a estate’ for the purpose of distribution of assets under Section
year before their retirement. 53.
8. In further relaxation, head of department of the concerned employee will have the power to sanction withdrawal from the provident fund
accounts and no documentary proof will be required to be furnished. An employee would be required to give a simple declaration for the
purpose of withdrawal.
9. In case of emergencies such as illness of employee or his or her family member the money from the GPF can be withdrawn within 7 days.
10. The notification on GPF was dated March 7, 2017.
3. SABBATICAL BENEFIT
[Sabbatical :any extended period of leave from one's customary work, especially for rest, to acquire new skills or training, etc.]
Coming soon: Up to 2 years' sabbatical for women bank staff

New Delhi, March 2012 : Come April, and women employees of public sector banks (PSBs) may be able to get sabbatical of up to two years during
their career.
The Finance Ministry has asked PSBs to place this proposal before their respective boards for decision and its introduction with effect from April
1,2012, official sources said.
This follows the Government agreeing to the Khandelwal Committee's recommendation to introduce sabbatical for women employees of PSBs. The
sabbatical benefit will be available only to employees who have put in a minimum of five years of service. The leave will have to be taken for a period
of at least three months at a time and it should not be taken more than once in a year.
But, the Government's decision has somewhat irked trade unions, as they contend that such a move would be unilateral and in violation of the service
conditions provided in the bilateral settlement between the Indian Banks' Association (IBA) and the unions.
The Khandelwal Committee was set up in October 2009 to study human resource issues in public sector banks. The Committee had made 105
recommendations, of which the Centre has given its green signal for 56.
United States
401(k) plan (Retirement Benefit)
Employer-sponsored employee benefit scheme supported by the US tax code. Under this plan, a limited amount of an employee's before-tax salary is
deposited into tax-deferred retirement plan where it accumulate free of tax. Withdrawals by the employee before he or she reaches the age of 59½ years
attract penalties except in certain cases of hardship. More Detailed >>
The long-term viability of the social security system is facing serious issues. People are living longer, baby boomers are nearing retirement, and the
birth rate is low. The result is the worker-to-beneficiary ratio has fallen from 17 to 1 in 1950 to 3 to 1, and within 40 years 2-to-1. At this rate there will
not be enough workers to pay scheduled social security benefits at current tax rates.
A survey of recent retirees conducted by Putnam Investments found over 78 percent regretted not saving more during their work years. Fifty-nine
percent felt they should have started saving for retirement earlier in their careers. More than a third wished their employer or plan manager had
encouraged them to save more aggressively.
4. Leave Travel Concession

Leave Travel Allowance which means is an benefit/allowance paid to the employee by the employer when He/She is travelling with their family or alone. In
many organisations, the year-end holidays are a norm. In others, the employees apply for long leave in advance, well ahead of their travel schedule. And if
the travel costs are reimbursed by the employer,The LTC allows the grant of leave and ticket reimbursement to employees who are entitled under the rules
to travel to their home towns and other places.
Any incidental expenses and the expenditure incurred on local journeys shall not be admissible under LTC. In case of a journey between places not
connected by any public means of transport, the government employee will be allowed reimbursement for journey on transfer for a maximum limit of 100km
covered by the private/personal transport based on self-certification.
5. UNEMPLOYMENT COMPENSATION
In USA an individual laid off by an organization covered by the Social Security Act may receive unemployment compensation for up to 26 weeks. Although
the federal government provides certain guidelines, unemployment compensation programs are administered by the states, and the benefits vary state by
state.
India: can withdraw 75% money from PF account in case of unemployment

The Employees’ Provident Fund Organisation (EPFO) announced that its members can withdraw 75% of their funds after one month of unemployment and
maintain their PF account with the body. The retirement fund body also gave an option to its members to withdraw the remaining 25% of their fund after
two months of unemployment. When applying for the withdrawal offline, you are required to fill out the Composite Claim Form which serves the purpose of
three forms- Form 19 (For Final PF Settlement), Form 10C (For Pension Withdrawal) and Form 31 (For Part Withdrawal of PF amount).
Facts [+]
Feb 2012, WASHINGTON: The US House of Representatives passed a compromise bill on Friday extending a payroll tax cut and jobless benefits
through 2012, measures aimed at boosting the US economy. The bill passed by a vote of 293 to 132 and nine abstentions, with broad support from
Democrats and Republicans, after a bipartisan deal was reached to end a long and bitter fight over a key proposal by President Barack Obama. The
cost of the package has been estimated at $150 billion.
The plan is expected to extend a cut in the Social Security tax rate -- from 6.2 to 4.2 per cent -- for another 10 months, and extend unemployment
benefits through the end of the year. It will mean a salaried worker making $50,000 a year will be getting about $1,000 more in take-home pay over
the course of the year.
6. WORKER'S COMPENSATION
Until the early part of the 20th century, workers had little recourse in the event that they were to become the victim of a workplace accident. But the new
processes and machines that were incorporated into many jobs with the spread of industrialization created a sufficient increase in the level of occupational
danger to warrant the attention of legislators. In response to the growing problem, laws were enacted to grant workers access to financial benefits that their
employers would be obligated to provide, free of any considerations about liability. In some ways, it was a tremendous victory, and in others it was less
so.Workers’ compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or
illnesses. More Detailed >>
7. PAID LEAVES
Employees who work all day, every day, without a break in sight, will generally be less productive on the job. Offering paid vacation as part of your benefits
package will create a more positive work environment and will help your employees avoid burnout. According to Salary.com, there are several ways in
which paid vacation can be structured.
For example, some employers offering basic employee benefits allow employees to "earn" paid vacation through years of service. It is also important to
determine whether or not your employees will be allowed to carry over unused paid vacation days when a new year begins.
Facts [+]
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive
an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen
vacation days per year.
Statutory holiday entitlements:
U.K. (28 days)

Poland (26 days)
Greece, Austria, France, Sweden, Luxemburg, Finland and Denmark (25 days)
Venezuela (24 days)
Brazil, Peru, Spain, Portugal, United Arab Emirates (22 days)
Norway (21 days)
Argentina, Italy, Belgium, Germany, Cyprus, Ireland, Switzerland, the Netherlands, Latvia, Russia, Slovenia, Serbia, Slovakia, Lithuania, Croatia,
the Czech Republic, Romania, Japan, Australia and New Zealand (20 days)
South Korea (19 days)
There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of
their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and
rejuvenate. The typical U.S. worker receives ten vacation days per year.
It takes twenty-five years of service in the United States to achieve the mandated minimum vacation allotments in other comparable countries,
according to an Economic Policy Institute study. France, Austria, and Denmark mandate at least 25 vacation days per year to employees. There is
no mandated vacation time in the United States.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days,
according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees
do not take all their vacation days.
Every legal worker in the U.S. is entitled by federal law to three basic benefits. Workers' compensation provides insurance for work-related injuries or
death. Social security provides retirement income and disability coverage for workers and their dependents. Unemployment insurance provides
payments for a period of time presumably long enough to allow workers to find new jobs.
Many U.S. employers recognize 10 federal holidays, if not more.
Organizations commonly provide nine or ten days per year as public holidays, although there is no standard. Federal holidays, or legal public holidays, are
recognized by Congress but are not observed by all employers.
Legal public holidays:
1. New Year's Day, January 1

2. Martin Luther King, Jr. Day, the third Monday in January
3. Washington's Birthday, the third Monday in February

4. Memorial Day, the last Monday in May
5. Independence Day, July 4
6. Labor Day, the first Monday in September
7. Columbus Day, the second Monday in October
8. Veterans Day, November 11
9. Thanksgiving Day, the fourth Thursday in November
10. Christmas Day, December 25
India
It consists of holidays which have to be observed compulsorily across India.These holidays are:
1. Republic Day,
2. Independence Day,
3. Mahatma Gandhi's Birthday,
4. Budha Purnima
5. Christmas Day
6. Dussehra (Vijay Dashmi) An additional day for Dussehra
Holi
Janamashtami (Vaishanvi)
Ram Navami
Maha Shivratri
Ganesh Chaturthi / Vinayak Chaturthi
Makar Sankrantili
Rath Yatra
Onam
Sri Panchami / Basanta Panchami
Vishu / Vaisakhi / Vaisakhadi / Bhag Bihu / Mashadi Ugadi / Chaitra Sakladi / Cheti Chand / Gudi Pada 1st Navratra / Nauraj
7. Diwali (Deepavali)
8. Good Friday
9. Guru Nanak's Birthday
10. Eid ul-Fitr
11. Eid al-Adha (Bakrid)
12. Muharram
13. Prophet Mohammad's Birthday (Id-e-Milad)
14. Dussehra (Maha Navami)
15. Dussehra (Vijay Dashami)
16. Deepawali
17. Eid al-Adha (Bakrid)
18. Guru Nanak's birthday/Kartik Poornima
19. Dr. B R. Ambedkar's Nirwan Diwas

20. Moharram
21. Christmas
Details of Hindu festivals >>
8. MEDICAL BONUS Online Payroll

Every woman entitled to maternity benefit under Maternity Benefit Act,1961 (Maternity Benefit (Amendment)
Act, 2017)b& also be entitled to receive from her employer a medical bonus of Rs.1,000/-, if no pre-natal Software
confinement and post-natal care is provided for by the employer free of charge. Pre-natal Confinement Care Paybooks
means all the care before expected delivery and post natal care means care after delivery of child.
Calculate salary in minutes and directly
transfer it to employees' bank accounts.
Is this medical bonus paid in addition to maternity leave?
Yest it is given to take care of the above pre-natal and post natal expenses.
OPEN
9. NIGHT-SHIFT ALLOWANCE
According to the labour law, mandates the employer to pay double wage to the worker who works beyond the prescribed working hours or for extra working
hours. In addition to the payment of double wage for extra working hours, Night-shift allowance is paid to the workers who does job at night-shift or who
does job beyond the prescribed day working hours. Under this allowance, employee will pay some amount for the purpose of transportation/commuting
from his residence to workplace.
In fact, especially in the software companies, many employees who are working at night-shifts are complaining about non-payment of night-
shift allowance, but it has mentioned as paid in their salary payslip.
10. Conveyance allowance

Conveyance allowance is one of the compulsory employee benefits provided for meeting an expenditure incurred by an employee ( especially government
employee) for commuting from home to office and office to home. In order to claim conveyance allowance by an employee, he or she should reside and
work in towns only.
11.City compensatory allowance

City compensatory allowance is one of the employee benefits provided for meeting additional cost of living for working in cities.
12.Dearness allowance
13.Expenditure towards funeral in case of death of an employee.

It is mandatory for an organisation to pay expenditure towards funeral in case of death of an employee while in the course of employment. According to the
Section 4(4) of Employee's compensation act 1923, employer is liable to pay funeral expenditure to the dependents of an employee who was killed or if
dependents do not exist in such case, funeral expenditure should be paid to the person who actually incurred such expenditure.
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Statutory Employee Benefits Every Employer Must Provide

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1/3/2020 Statutory or mandatory employee benefits - list of statutory employee benefits compulsory be given to employee - What is Human Resource?

ource? (Defined) Human Resource Management Topic…

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Statutory or mandatory employee benefits Employee Benefits

Why is it earned leave?

Government Servant Not Entitled To Full

Following are some legal social security benefits for employees

7. Provision of payment of consolidated sum on death/disablement of any clerk.

Social Security for employees in India

Social Security and insurance, employment and unemployment.

L’Oreal India enhances maternity leave to 26 weeks

International Comparison of Maternity Leave

Country Maternity Leave Paternity Leave Percentage of wages Source of Funding

India Act: 12 weeks No provision 100% Employer

15 days is allowed for

UK 52 weeks Women: 6 weeks paid at 90% of Mixed (employers reimbursed up

South Africa 17 weeks 3 days Women: 60% Women: Mixed (contributions

Mixed (8 weeks employer and 8

Brazil 17 weeks 5 days 100% Women: Mixed (contributions

Men: Employer Liability

Employer contribution via

France 16 weeks 11 days 100% up to a ceiling Social insurance scheme

Australia 52 weeks 14 days Women: 18 weeks at the federal Public funds

Canada 17 weeks No provision 55% for 15 weeks up to a ceiling Public Funds

USA 12 weeks No provision Unpaid No provision

Improved maternity benefits could prove counterproductive: Survey

c) Leave for miscarriage or medical termination of pregnancy.

introduced adoption leave in 2014.

f) Paternity Leave (INDIA)

CA Technologies rolls out parent leave policy to promote greater work-life-balance

g) Payment of Gratuity Act, 1972 >>

h) Pension benefit after retirement/superannuation (A superannuation pension shall be granted to a Government

The court stated that under Article 21 of the Indian

On Article 21 the Supreme Court of India laid down in

"In any organised society right to live as a human being is not

The fundamental question of standard of living and a dignified

ground in violation of the fundamental right of the petitioner

The Court has allowed interest @ 9% per annum from the

i) Employees' Provident Fund

Withdrawal of Employee’s Provident Fund

In case of permanent disablement

The National Company Law Appellate Tribunal (NCLAT) has

Claim of EDIL Pursuant to an application under Section 7 IBC, a Corporate

As a result, Moser Baer Karamchari Union moved an

key points: Therefore, the question of distribution of the provident fund,

10. The notification on GPF was dated March 7, 2017.

Coming soon: Up to 2 years' sabbatical for women bank staff

4. Leave Travel Concession

India: can withdraw 75% money from PF account in case of unemployment

Statutory holiday entitlements:

U.K. (28 days)

Many U.S. employers recognize 10 federal holidays, if not more.

Legal public holidays:

1. New Year's Day, January 1

3. Washington's Birthday, the third Monday in February

19. Dr. B R. Ambedkar's Nirwan Diwas

Details of Hindu festivals >>

8. MEDICAL BONUS Online Payroll

10. Conveyance allowance

11.City compensatory allowance

13.Expenditure towards funeral in case of death of an employee.

Retirement Pension plans in India detailed >>

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