Demystified - Obligations & Compliances of Employers due to COVID 19 lockdown

Date: 1st April 2020

Author: Subramanyam.S


The world is facing a catastrophic situation due to the COVID-19 pandemic, which has raised many challenges for the society, Government bodies, and enforcement agencies. In addition to the health challenges, it has brought about many economic challenges as well, because of which many industries are on the verge of closing down.
The critical business issue which almost all employers are facing now is how to manage their staff and to reduce employment costs rapidly while still being compliant. There are many issues to be considered depending on the business licenses / registrations obtained and the place where the establishment is registered. Some of the key legislations to analyse, under these circumstances are:

    • The Industrial Disputes Act, 1947
    • State wise Shops and Establishments legislations
    • Contract Labour (Regulation and Abolition) Act, 1970
    • Employees Provident Fund and Miscellaneous Provisions Act, 1952
    • Employees State Insurance Act, 1948
    • Factories Act, 1948


The provisions of these legislations which used to directly impact employment laws, should now be read together with notifications issued by the Central government and most of the State governments which have invoked provisions of Epidemic diseases Act, 1897, Disaster Management Act, 2005 and relevant provisions of Indian Penal Code in prohibiting terminations and reductions of wages of employees whether directly employed by the establishment or through contract labour.

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