There is a specific requirement for medical insurance for “workers” in the MHA Guidelines dated 15th April 2020 in Annexure II point number 5.
ESI contribution covers sickness, employment injury, miscarriage, disablement (permanent / partial). Sickness has been defined as – “a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds”

Given that the intent of the requirement is to make sure all workers have healthcare coverage in the event they contract COVID-19, it may be interpreted that workers covered by ESIC need not require a separate medical insurance. However, a strict interpretation could be that if the government wanted exclude the workers who are covered by ESI, it would have specifically excluded them. Since it has not, you should get an insurance for all workers.
Though there is no specific clarification from ESIC or MHA whether workers covered under ESI will need to take an additional insurance. We would suggest that a clarifcication is sought from the authorities.

There is no specific permission requirement under the MHA order. However, individual states have their own requirements. So you will need to check that.
  The movement, loading/ unloading of goods/ cargo (inter and intra State) is allowed wherein:
i. all goods traffic will be allowed to ply,
ii. transportation of goods through railways have been allowed,
iii. air transport for cargo movement have been allowed,
iv. operations of seaports and inland container depots for cargo transport including authorized custom clearing and forwarding agents;
v. Operations of Land Ports for cross land border transportation of essential goods including petroleum products and LPG, food products and medical supplies are allowed.
vi. Movement of all trucks and other goods/ carrier vehicles with two drivers and one helper subject to the driver carrying a valid driving license;

Given the above-mentioned, it is fair to assume that interstate transport of goods are allowed. Considering that States have been allowed to put measures which are more stringent than the MHA 15 Order, we would urge you to check with the individual State authorities as well.

A strict reading will suggest that there is no specific requirement of one hour gap. However, considering the following:

a) The objective and purpose of the order viz to prevent the spread of the COVID 19 virus,
b) The restrictive interpretation that the requirements covered under “workplace” will not apply to “manufacturing” will mean that “manufacturing” units are only required to comply with points 13, 14, and 15 of Annexure A, which may be very aggressive interpretation under the current circumstance,
c) that there is a requirement of no overlap of shifts to avoid potential contact between workers coming in and going out, to name a few,

we would recommend erring on the side of caution and complying with the requirement of 1 hour between shifts.

There is no distinction made between people working in different floors. There is a specific requirement to have a gap of one hour between shifts in work spaces. Considering the following:

(a) The objective and purpose of the order viz to prevent the spread of the COVID 19 virus,
(b) that there is a requirement of no overlap of shifts to avoid potential contact between workers coming in and going out at any place (including in elevators, parking, etc.), to name a few,

we would recommend erring on the side of caution and complying with the requirement of 1 hour between shifts irrespective of whether the employees are on different floors.

There is a specific requirement for medical insurance for “workers” in the MHA Guidelines dated 15th April 2020 in Annexure II point number 5.
ESI contribution covers sickness, employment injury, miscarriage, disablement (permanent / partial). Sickness has been defined as – “a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds”

Given that the intent of the requirement is to make sure all workers have healthcare coverage in the event they contract COVID-19, it may be interpreted that workers covered by ESIC need not require a separate medical insurance. However, a strict interpretation could be that if the government wanted exclude the workers who are covered by ESI, it would have specifically excluded them. Since it has not, you should get an insurance for all workers.
Though there is no specific clarification from ESIC or MHA whether workers covered under ESI will need to take an additional insurance. We would suggest that a clarifcication is sought from the authorities.

As per Clause 15(i) (ii) and (viii) of the revised guidelines as issued by MHA, in addition to specific manufacturing activities that have been exempted for being a part of essential service, the following have been permitted to start operations:
i. all industries operating in rural areas – clarified as outside of municipal limits [Clause 15(i)]
ii. all industries operating from SEZs, EOUs, Industrial estates and townships having access controls, [Clause 15(ii)]
iii. all manufacturing units of packaging material [Clause 15(viii)]

subject to compliance with requirements relating to transportation and accommodation of workers in addition to the Covid-19 directives as stated under Annexure I and Annexure II of the guidelines, are allowed to operate from 20th April 2020.
The unit mentioned above in Peenya, Bangalore is situated within the Municipal limits, hence will not be allowed to commence operation under Clause 15(i) of the revised guidelines. 
If the said unit in Peenya is getting covered under Clause 15(ii) and/or Clause 15(viii) of the revised guidelines, then operations can be initiated from 20th April 2020. 
Please note, the revised guidelines state that all facilities in the supply of essential goods – including manufacturing will be allowed. In case you are manufacturing labels of apparels, which is facilitating supply of essential goods then you may approach the local authority to seek a clarification to allow you to operate.
However, in addition to above conditions, it should be kept in mind that none of the exemptions under the said guidelines will apply to containment zones within hotspots as demarcated by States, Union Territories and District administrations. Similarly, if you initiate operations from 20th April 2020, while deciding which employees/workers can be considered to come to work, among other considerations, you need to check if the person resides in a containment zone.

Point no 15 (ii) of MHA15- The establishment shall make arrangement for stay of workers within their premises as far as possible and / or adjacent buildings and for implementation of the standard operating protocol (SOP) as referred to in para 21(ii) below. The transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing. 

Can we open the industry if not able to make stay arrangement as mentioned above?

As per point on 9 of Annexure I of MHA 15- Person above 65 years of age and persons with co-morbidities and parent of children below the age of 5 may be encourges to work from home.

Does it mandatory to work from home for the people who are falling under above conditions or can be called at site as per process requirement?

As per point on 11 of Annexure I of MHA 15-All organization shall sanitize their work places between shifts.

Does it says to sanitize whole site/plant area or only common places/common touch point?

As per point on 13 of Annexure I of MHA 15-Frequent cleaning of common surfaces and mandatory hand washing shall be mandate.

What should be the frequency of cleaning in a shift of 8 hrs?

All cafeterias will have to be operated as per the guidelines laid down in Annexures 1 and 2 of the MHA Order of April 15, 2020. These would include:
1. Frequent disinfection with user friendly disinfectant mediums
2. Frequent disinfection of entry and exit of the cafeteria
3. Frequent disinfections of walls and other surfaces in cafeteria
4. Frequent disinfection of washrooms in cafeteria
5. Staggering lunch breaks
6. Not allowing more than five people to gather in the cafeteria at any time
7. Maintaining a minimum of six feet of distance between people at all times
8. Providing adequte hand sanitisers

In the clarification issued by MCA it has clarified that CSR funds can be spent for various activities related to COVID-19 under item (i) and (ix) of Schedule VII i.e. (i) promoting health care including preventive health care  and (xii) disaster management, including relief, rehabilitation and reconstruction activities.

While the Circular has not further elaborated the kinds of activities which will be considered as a CSR spend we believe that the activities mentioned by you if they relate to COVID-19 would qualify to be considered as a CSR spend since these are broadly preventive activities and promote healthcare. It may be a good idea to seek a clarification from the MCA on this issue so that there is no ambiguity.

What other activities can be considered as CSR spend other than contributing to set up a quarantine center / contribution to develop a vaccine?

Are activities relating to COVID-19 included in CSR activities list for a limited time?

Section 173 of the Companies Act also talks about conducting at least 4 board meetings in a financial year.

In view of the relaxation, will it be a violation to have conducted less than 4 board meetings in this financial year or do we still have to ensure that at least 4 meetings are conducted?

There have been a couple of notifications on the ports and CFS sector. Firstly, in view of the different nationwide lockdowns, the Ministry of Shipping on 23rd March, has clarified that transport service for carriage of goods by water and any service connected with loading, unloading, movement or storage of goods in any port is to be considered as an essential service.

Further, the Directorate General of Shipping has also released a guideline on 20th March for Major and Minor Ports to deal with cases of the novel coronavirus at their ports as well as for incoming vessels. Lastly, in an addendum to the 24th March nationwide lockdown order, the Ministry of Home Affairs has on 26th March clarified that operations of Railways, Airports and Seaports for cargo movement, relief and evacuation and their related operational organization along with Inter-state movement of goods/cargo for inland and exports are also to be considered as an exempted essential service.

Has the Government given any mandate/ obligation to make payment to the contractual employees during the period of lockdown who are on leave?

This is only a temporary relaxation given upto 30.06.2020 as of now on account of COVID-19

If you see the amendment it specifically mentions that “period beginning from the commencement of the Companies (Meetings of Board and its Powers) Amendment Rules, 2020 and ending on the 30th June, 2020, the meetings on matters referred to in sub-rule (1) may be held through video conferencing or other audio visual means in accordance with rule 3.”. ‘

The Ministry of Labour and Employment (“Ministry”), in the DO letter dated 20th March 2020, advised all employers to not terminate or reduce the wages of employees, particularly workers who are engaged on a casual or contractual basis. Employers have also been advised that:

i. if during this period any employee takes leave, to consider him/ her to be on duty and not make any consequential deduction from his / her wages for such period

ii. in case the place of business/establishment is rendered non-operational during the lockdown period, to consider the employees to be on duty

Given that the DO issued by the Ministry does not refer to any statue or whether it has been issued under the powers given under a stature and from a plain reading of the contents thereof, it appears that the DO is an advisory. The document also informs that the Ministry has requested all Employer’s associations to circulate this document amongst all employers and owners registered with their respective associations. Therefore, it can be construed that this was an advisory or a request. However, it is important to note the developments after the date of issue of the DO. 
Subsequent to the issue of the subject DO, the Ministry of Home Affairs through Order ‘No. 40-3/2020-DM-I(A)’ dated 29th March, 2020 issued under the powers conferred by Section 10(2)(l) of the Disaster Management Act, 2005 (“DM Act”) directed all employers to pay wages of workers at their workplaces on the due date, without any deductions, for the period the establishment remains closed during the lockdown.

Further, please note that in addition to the above, several State Governments have issued notifications, circulars, orders, advisories, etc., under the Epidemic Diseases Act, 1897 and DM Act, requiring employers to pay wages to the employees, on the due date without any deductions.

In view of the Order issued by the Ministry of Home Affairs under the DM Act, the requirements of not terminating or reducing the wages of the employees during the period of lockdown, as had been advised in the Ministry’s Advisory, without limitation, have to now be mandatorily followed. 

At the outset, the clarification does not differentiate between white collar Vs. blue collar or any other categorization. It only refers to workers. If we were to interpret conservatively, it would include both blue-collar and white-collar workers as the underlying concept of this is to eliminate financial hardship which could result to them travelling from one place to another and thus leading to the spread of COVID-19.

Further, in relation to whether this clarification is recommendatory or mandatory, please note that this is issued under the powers conferred by Section 10(2)(l) of the Disaster Management Act, 2005 and at the very end of the clarification, it states that:

“It is further directed that in case of violation of any of the above measures, the respective State/UT Government, shall take necessary action under the Act…”

If we were to read this clarification harmoniously with the nationwide lockdown order of 24th March, 2020, it is apparent that for any violation of the lockdown order or these clarifications issued thereunder, persons and employers would be liable under Sections 51 to 60 of the Disaster Management Act, 2005 and Section 188 of the Indian Penal Code, 1860.

Therefore, in light of the above, this clarification issued by the Ministry of Home Affairs is, without limitation, mandatory to all employers.

The Advisory dated 20th March 2020, issued by the Ministry, advises employers not to terminate or reduce wages of employees, particularly casual or contractual employees.

We have been given to understand that you have entered into contracts with third-party agencies for providing manpower to you. Hence, in this case, the third-party agency is the contractor and the manpower provided are the contract employees.

In this context, as per the Ministry of Home Affairs Order ‘No. 40-3/2020-DM-I(A)’ dated 29th March, 2020, it states that employers shall pay wages to workers on the due date without deductions for the period their establishments are under closure during the lockdown. 

In addition to the above, several State Governments have issued notifications, circulars, orders, advisories, etc. requiring employers to pay wages to the employees, on the due date without any deductions. Andhra Pradesh and Maharashtra have further mandated full payment of wages/ salaries to workers and employees as well as the workers under contract and outsourcing; the other State Governments have asked employers to mandatorily pay wages, without any deductions, and not terminate the employees during lockdown.

Therefore, if the contract workers are not coming to work on account of COVID 19 related lockdown/ closures etc. then these workers will be entitled to payments as mentioned in the various documents. 

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• Now that the Govt is allowing a small % of the workforce to be deployed , many of them cannot be deployed ( to ensure social distancing at workplace)….for those who we cannot offer work..can they be considered as “Laid Off”…also while taking in people shall we be required to follow any seniority –
• For the above category if they are not laid off…. can we treat them “as no work no pay”
• Can we offer workers (Contractual/Casual) only minimum wages for the period of lockdown
• As most of the notifications related to payment of wages/retention of employees are advisory in nature ..what will be the legal position if not complied to
The Advisory issued by the Ministry of Labour and Employment urging employers not to terminate employees during this pandemic while would not only deepen the crisis but also weaken their morale, was not issued pursuant to powers given under any enactment. However, the subsequent Ministry of Home Affairs invoking its powers under the Disaster Management Act, dated 29th March, 2020 passed an order directing all employers be it in industries, shops or commercial establishments to make payment of wages to their workers on the due date without any deduction for the period their establishment is closed during lockdown announcing that any violation of this order would attract penalty under the DM Act.

Further to this Order from the MHA dated 29th March, 2020 many States such as Tamil Nadu, Chandigarh, Andhra Pradesh and Goa have come out with orders and notifications directing all employers in the industries or in shops and commercial establishments to pay wages to their workers on the due date without any deduction for the period their establishments are under closure during the lockdown. All these have been issued under the Epidemic Disease Act or the DMA, therefore mandatory in nature.

Therefore, under the current circumstance where the earlier mandatory orders have not been withdrawn, we do not think that the conditions (of social distancing, closure, etc.) imposed by the orders, resulting in employers not being able to utilize the workers would entitle the employers to lay off the employees.

As regards, question on whether you need to start taking senior people in, there is nothing in the order to specify that. Needless to add all employees whether being taken in to work or not, will have to be paid deduction and cannot be terminated.

As regards offering the contract workers minimum wages, please note that the orders cover contract workers in the purview and these orders require the payment to be made without deduction. 

An important point to be emphasized here is that the Disaster Management Act has an overriding effect over any and all Acts which are inconsistent with this Act. 

As per the MHA commercial and private establishments in the IT and IT enabled Services have been permitted to operate, with upto 50% strength subject to the social distancing etc. norms. Since this question was asked by our client operating in Mumbai, please note that Maharashtra has a more restrictive requirement i.e. IT & ITES establishments only in the essential services have been permitted to operate. They had an opportunity to bring the requirement in line with the MHA Order, but they have not done the same for IT ITES while they did it for many other industries.  

There are no specific exclusions we have observed to ‘IT staff in other sectors’.  For IT staff in other sectors to be excluded it will have to been specifically excluded in order. Just like while allowing the Banks and its branches and ATMs to function the order specifically allows, IT vendors for banking operations to operate.

Under the MHA Order all buses meant for public transport , Metro rail services and Taxis including auto rikshaw cycle rikshaw and cab aggregators have been prohibited from operations in the prevailing period of lockdown upto 3rd May, 2020.

As an employer of an establishment which is allowed to continue operations during the period of lockdown, since public transport will still remain prohibited you would be required to provide transportation facility for the workers. Further, while arranging the transportation system, it must be kept in mind that the vehicles will be allowed to work only with 30-40% of the passenger capacity given the social distancing norms.

And when these vehicles enter the premise of the establishment, they must be mandatorily disinfected by spray.

For movement of your vehicle (carrying your employees) in the State, you may have to obtain passes from the Local Authority/Police which the State Government will inform from time to time. State governments have come up with process to issue these passes.

For instance, The Government of Haryana has, through a notification dated 27th March 2020, launched a system of granting movement passes electronically for both Government Employees as well as Public Persons who have emergency situations wherein they need to travel despite the strict lockdown in place.

Chhattisgarh Government has also launched CG Covid-19 e-Pass which is an Android App to facilitate issuance of Vehicles Passes for inter and intra district movement of Vehicles during lock down in Chhattisgarh state.

Please note that There cannot be any inward/outward movement of population of the hotspots/ containment zones.