Covid-19 FAQ

Frequently Asked Questions (FAQs) related to Covid-19

FAQ Questions Answers
Specifically are automobile industries and their tier 1 ..tier 2…. are permitted to operate from 20 April onwards? All manufacturing activities in rural areas i.e. outside municipal limits as well as SEZs, EOUs, industrial estates and industrial townships is permitted from April 20. So, if your units are in any of those areas you can operate from Monday. If you manufacture ambulances, then you can manufacture within municipal limits as well.
The Majarashtra Order does not refer to the Guidelines of MHA dated 15 April and only refer to the MHA consolidated guidelines of 14 April. Do you think Maharashtra came up with their order before MHA order dated 15 April and will revise it? You are right that the Maharashtra order only refers to the April 14 order. However, the way it is structured thereafter, it is safe to infer that the Maharashtra order is under the MHA15 order
Employee Covered under ESIC is required additional Medical Insurance because ESIC provide both medical & accidental?

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.

Is the permission required of state government by Manufacturing units to transport goods from its own warehouse to the warehouse of the e-commerce company if they are 2 separate states? For eg. Daman at Bhiwandi.

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.

Contract Worker are only those who fall under CLRA?  The MHA does not provide definitions or clarification on this. We are of the opinion that a strict and technical interpretation of this order should not be done especially if it is going to result in the letter or the spirit of the objects or the purpose of the legislation which is prevention of spread of COVID 19 spread. Therefore if the strict interpretation results in some category of “worker” having to face hardships/ move from one place to the other during the period of lockdown may run foul of the objects of the order. Further, this will fall in the category of beneficial legislation the courts are likely to interpret these in the favour the worker. Therefore broad meaning should be given to the words contract labour to include all off-roll workers including for example Inter State Migrant Workmen.
If a district is declared as hotspot does it mean rural areas under that district having any industry also cannot operate? Containment areas within hotspots – irrespective of whether they are in rural or urban areas – cannot be involved in any of the activities exempted under this order.
What happens after the lockdown. Can lay off be done? We are not in a position to answer this question with certainty yet, it would depend on which Central / State order remains and in which form. In the event the Central and State order relating to COVID 19 are all withdrawn, then the  lay-off will be governed by the labour laws (e.g. applicable provisions of Industrial Disputes Act for workers in an industry etc.) as was the situation prior to the COVID 19 order.
We are witnessing this pandemic not being declared as a force majeure by major IT / ITES firms rather just invoking BCP. What are your thoughts on this, please? It is an individual call of IT/ITeS companies and will largely depend on their contractual and longer term relationship with clients on one hand and their ability to continue with mission critical activities during this period on the other. 
Whether the question of vicarious liability will arise on Principal Employer if Contractor does not pay wages during the lockdown also? The Principal Employer’s obligation will continue in the same way under the Contract Labour Regulation Act as before i.e. they will have to take on the obligation to pay salaries if the contractor fails to do so. Please note that the MHA 15 does not address this point specifically.
As per point no 15 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. Can we open the industry if not able to make stay arrangement as mentioned? For Industrial establishments with access control in Special Economic Zones (SEZs) and Export Oriented Units (EoUs), industrial estates, and industrial townships the MHA Guidelines in point 15 (ii) states that “These establishments shall make arrangements for stay of workers within their premises as far as possible and/ or adjacent buildings and for implementation of the Standard operating protocol (SOP)…”.
The point goes on to further state that “The transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing.”
In our understanding, there can be 2 possible interpretations of this requirement:
a. That arrangement for stay is not a mandatory requirement but is to be provided in industrial establishments with access control in SEZs, EoUs, industrial estates, and industrial townships if possible.
The provision on travel arrangements is also made to ferry people from home to workplace in case accommodation is not provided.
b. This can also be interpreted as a mandatory requirement as the Guidelines mention that establishments shall make arrangements. The arrangements must be made in within their premises as far as possible and, if not possible, the arrangement must be made in adjacent buildings.
In this case, the travel requirement can be understood to be
(a) for getting the people to the office to start the operations and then they stay on premises till lockdown is over; or
(b) to ferry the workers from the adjacent places of stay if they have been accommodated in buildings adjacent to the work premises. 
Are the requirements mentioned under the heading “Workplaces” applicable to “Manufacturing Establishment”. especially social distancing rule? Yes it will apply to manufacturing as well.
Please clarify what is the difference between a hotspot and a containment zone.  Hotspots’ are areas of large COVID-19 outbreaks, or clusters with significant spread of COVID-19, will be determined as per the guidelines issued by Ministry of Health and Family Welfare (MoHFW), Government of India. Within these hotspots, containment zones will be demarcated by States/ UTs/ District administrations as per the guidelines of MoHFW.
In the list of hotspots notified, there are a few districts that is not covered. For example: Krishnagiri in Tamil Nadu is not mentioned either in the Hotspot with large outbreak/hotspot with cluster/no hotspot zone. What does no hotspot zone mean. If it means, there are no cases identified there, then why is a district like Krishnagiri not covered? Hotspots’ are areas of large COVID-19 outbreaks or clusters with significant spread of COVID-19. Within these hotspots, containment zones will be demarcated by States/ UTs/ District Administrations. A list categorising hotspot districts in India has been released by the Ministry of Health and Family Welfare under the following categorisation:
• Hotspot districts with large outbreak and hotspot districts with clusters – collectively called the red zone and covering 170 districts across the country
• Non-hotspot districts with clusters i.e. districts which are not hotspots but where cases have been reported – there are 207 of them now
• Non-infected districts or green zones.
Basis the above categorisation, a non-hotspot districts can have identified cases Covid-19 in cluster. In such case since the spread is not significant it has not been declared as a Red Zones. So, it will be incorrect to say that a non-hotspot district does not have any identified case of Covid-19. Only the districts covered under the green zones are the one’s where no cases of Covid-19 have been identified.
In the case of industries operating in EOU, SEZ, it is mandated that stay arrangements be provided in the factory/adjacent building. When it is mandated that stay arrangements need to be provided, why is the MHA order also talking about special vehicle arrangement for employees coming to the work location? For Industrial establishments with access control in Special Economic Zones (SEZs) and Export Oriented Units (EoUs), industrial estates, and industrial townships the MHA Guidelines in point 15 (ii) states that “These establishments shall make arrangements for stay of workers within their premises as far as possible and/ or adjacent buildings and for implementation of the Standard operating protocol (SOP)…”.
The point goes on to further state that “The transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing.”
In our understanding, there can be 2 possible interpretations of this requirement:
a. That arrangement for stay is not a mandatory requirement but is to be provided in industrial establishments with access control in SEZs, EoUs, industrial estates, and industrial townships if possible.
The provision on travel arrangements is also made to ferry people from home to workplace in case accommodation is not provided.
b. This can also be interpreted as a mandatory requirement as the Guidelines mention that establishments shall make arrangements. The arrangements must be made in within their premises as far as possible and, if not possible, the arrangement must be made in adjacent buildings.
In this case, the travel requirement can be understood to be
(a) for getting the people to the office to start the operations and then they stay on premises till lockdown is over; or
(b) to ferry the workers from the adjacent places of stay if they have been accommodated in buildings adjacent to the work premises. 
The 1 hour gap requirement is not mentioned under Manufacturing establishment is it still applicable to Factories?

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.

For IT/ ITES is overlap of shifts not allowed? if employees are in different floors?

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.

I would like to check with you on the relevance of a vehicle arrangement when stay has to be necessarily provided? For Industrial establishments with access control in Special Economic Zones (SEZs) and Export Oriented Units (EoUs), industrial estates, and industrial townships the MHA Guidelines in point 15 (ii) states that “These establishments shall make arrangements for stay of workers within their premises as far as possible and/ or adjacent buildings and for implementation of the Standard operating protocol (SOP)…”.
The point goes on to further state that “The transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing.”
In our understanding, there can be 2 possible interpretations of this requirement:
a. That arrangement for stay is not a mandatory requirement but is to be provided in industrial establishments with access control in SEZs, EoUs, industrial estates, and industrial townships if possible.
The provision on travel arrangements is also made to ferry people from home to workplace in case accommodation is not provided.
b. This can also be interpreted as a mandatory requirement as the Guidelines mention that establishments shall make arrangements. The arrangements must be made in within their premises as far as possible and, if not possible, the arrangement must be made in adjacent buildings.
In this case, the travel requirement can be understood to be
(a) for getting the people to the office to start the operations and then they stay on premises till lockdown is over; or
(b) to ferry the workers from the adjacent places of stay if they have been accommodated in buildings adjacent to the work premises. 
Is deduction of leave ok under this notification if employees are enabled to come; but still do not come due to a non Covid related reason? The current MHA order is silent on this. In the absence of anything specific notification or clarification on the issue from relevant State or Union Territory Government, standard labour laws will apply. Please note that if you wish to deduct leaves for reasons other than lockdown, etc., then you may be within your rights to proceed as per the provisions of applicable labour law(s). However, in the event the employee raises a dispute for deduction of leave, the enforcement authorities may be forced to act under the current circumstance. Therefore, we would suggest that you take a formal legal opinion by placing all the facts of the matter to assess the potential risks before deducting leaves amidst lockdown period.
Employees are covered under the ESIC scheme. Can this be considered as medical insurance?

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.

What about medical insurance for contract labourers? who needs to take? Company or contractor The MHA Order is silent on the aspect. Under the provisions of Contract Labour Act and Inter-state Migrant Workmen Act, the primary responsibility vests with the Contractor through whom such contract labourers or inter-state migrant workmen have been hired. In case of failure of such contractor, the responsibility shifts to Principal Employer. 
We are in to manufacturing of Labels for apparels in Bangalore Peenya, whether can we approach the Govt for re start the operations from 20th onwards pls clarify?

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.

NBFC is classified under essential services or not, and if not it comes under which services? NBFC is not classified as an essential service. However, the Ministry of Home Affairs through a clarification issued on April 17th, 2020 has allowed NBFCs to operate in areas outside of containment zones (as defined by the Ministry of Health and Family Welfare) from April 20, 2020. But they need to follow the guidelines and Standard Operating Procedures laid down in the order of the Ministry of Home Affairs on April 15, 2020. Further, do check your respective state’s subsequent order to see if you can operate in that state.
From which date NBFC’s can operate, can it operate in Red, Green & Amber or in all zone? NBFCs can operate from April 20, 2020 in all areas outside containment zones (as defined by the Ministry of Health and Family Welfares) as per a clarification issued by the Ministry of Home Affairs on April 17th, 2020. However, some states have decided to continue with total lockdown till May 3rd, 2020 and in some cases even beyond. So, do check for your respective state order before taking a call on this. On your specific question Red, Green and Amber zones, the districts of India have been classified in these zones depending on the number of COVID19 cases reported from there. However, the restrictions on operations are only within the containment zones, which have been identified within the red and amber zones. 
Can a NBFC operate at a city falling in these zones i.e. Red Zone and Amber Zone and offices open in these zones?  NBFCs can operate from April 20, 2020 in all areas outside containment zones (as defined by the Ministry of Health and Family Welfares) as per a clarification issued by the Ministry of Home Affairs on April 17th, 2020. However, some states have decided to continue with total lockdown till May 3rd, 2020 and in some cases even beyond. So, do check for your respective state order before taking a call on this. On your specific question Red, Green and Amber zones, the districts of India have been classified in these zones depending on the number of COVID19 cases reported from there. However, the restrictions on operations are only within the containment zones, which have been identified within the red and amber zones. 
Field moment (Field employees) is allowed or not as we are having collections and recovery employees who needs to visit customers house/offices/business locations to collect due payments, also can they operate in red, green and amber zone? There is no clear guidance on whether field employees can operate. In our view, it will depend on whether the activity that the field employee is involved in is allowed first of all by the Ministry of Home Affairs Order of April 15 or the subsequent clarification and secondly by the state where the field employee is supposed to operate. On your specific question Red, Green and Amber zones, the districts of India have been classified in these zones depending on the number of COVID19 cases reported from there. However, the restrictions on operations are only within the containment zones, which have been identified within the red and amber zones. Containment zones have been defined in an order issued by the Ministry of Health and Family Welfare in March.
What is contentment zone and red zone, are they different or same? Also confirm what will be the impact on NBFC Business? Hotspots’ are areas of large COVID-19 outbreaks, or clusters with significant spread of COVID-19 and are determined as per the guidelines issued by Ministry of Health and Family Welfare (MoHFW), Government of India. MoHFWclarified on April 15, that there are 170 districts whch have been identified as Red Zones – these are further classified in two – Hotspot districts with larg outbreaks and Hotspot districts with clusters. Within these hotspots, containment zones will be demarcated by States/ UTs/ District administrations as per the guidelines of MoHFW. So containment zones are a subset of red zones.

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?

For Industrial establishments with access control in Special Economic Zones (SEZs) and Export Oriented Units (EoUs), industrial estates, and industrial townships the MHA Guidelines in point 15 (ii) states that “These establishments shall make arrangements for stay of workers within their premises as far as possible and/ or adjacent buildings and for implementation of the Standard operating protocol (SOP)…”.
The point goes on to further state that “The transportation of workers to work place shall be arranged by the employers in dedicated transport by ensuring social distancing.”
In our understanding, there can be 2 possible interpretations of this requirement:
a. That arrangement for stay is not a mandatory requirement but is to be provided in industrial establishments with access control in SEZs, EoUs, industrial estates, and industrial townships if possible.
The provision on travel arrangements is also made to ferry people from home to workplace in case accommodation is not provided.
b. This can also be interpreted as a mandatory requirement as the Guidelines mention that establishments shall make arrangements. The arrangements must be made in within their premises as far as possible and, if not possible, the arrangement must be made in adjacent buildings.
In this case, the travel requirement can be understood to be
(a) for getting the people to the office to start the operations and then they stay on premises till lockdown is over; or
(b) to ferry the workers from the adjacent places of stay if they have been accommodated in buildings adjacent to the work premises. 

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?

While it is not mandatory that people above 65, those with co-morbidities and those will children below the age of five have to compulsorily work from home, the language requires employers to encourage them to do so. Thus, we would like to believe that an employer asking them to come to work unless their absence will lead to a complete process failure, will be seen as a violation of the MHA Order. It will be a different matter of the employee despite the employer encouraging the person to work from home insists on or volunteers to work from office.

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?

While point 11 of Annexure 1 requires work spaces to be be sanitised between shifts, for manufacturing establishments frequent cleaning of common surfaces is mandated. This is not just between shifts. There is an additional requirement for disinfecting with use friendly disinfectant medum all entrance gates of buildings and offices, cafeteria, canteens, meeting rooms, conference halls, open areas, bunkers, porta cabins, equipment and lifts, washroom, toilet, walls and all other surfaces as per Clause 1 of Annexure II. This will need to be  done for all factories. 

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?

Frequency has not been defined or subsequently clarified. Since the penal consequences under the Disaster Management Act are high, we would recommend to err on the side of caution and clean as often as practicable. 
Pls highlight about insurance requirements of workers resuming work from 20th April? Clause 5 of Annexure II requires all workers to be mandatorily provided medical insurance. Neither the nature nor the quantum of insurance required to be taken has been clearly laid down. Considering that the penal consequences of breaching this and other requirements under the MHA Order are under the Disaster Management Act, we would recommend that no worker is allowed to resume work till appropriate medical insurance has been procured for such person by the employer.
Amount of coverage, premium per worker and whether ESI can cover for the same? Clause 5 of Annexure II requires all workers to be mandatorily provided medical insurance. Neither the nature nor the quantum of insurance required to be taken has been clearly laid down. Considering that the penal consequences of breaching this and other requirements under the MHA Order are under the Disaster Management Act, we would recommend that no worker is allowed to resume work till appropriate medical insurance has been procured for such person by the employer. There is nothing in the MHA Order to suggest that those with ESIC will not be required to be covered by medical insurance.
Is Advisory issued by MHA mandatory or advisory?  The Order issued by MHA is mandatory. Having said that individual states, Union Territories and District Administrations have been told to operationalise this Order and they are allowed to come up with guidelines which re stricter than the MHA Order.
Does Disaster Management Act overrides other laws of India like the Industrial Disputes Act for private limited entities?  During the period when the Disaster Management Act is invoked it overrides any inconsistencies with any other law. Please refer Section 72 of the Disaster Management Act, 2005 which states: —The provisions of this Act, shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act. 
Do the exempted categories (like manufacturing) need to take any approval (like a collector’s approval) before commencing of  operations? This will depend on the specific requirements of each state and/or local administration. If a state/local administration does not mandate a separate approva or pass before commencing operations, then the same will not be required.
What are the relaxation for companies which do not have the resources to follow the SOPs under Annexure II? Do you think taking some preventive measure will satisfy the need compliance under Annexure II?  We would not strongly recommend not starting operations if all the steps listed in Annexures I and II have not been taken.
Where can we find the list of containment zones?    There is no common nationwide list of containment zones available in the public domain. Some states have published the list of containment zones in their state while others have not for reasons of public safety and order.
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? 1. No, the other workers cannot be considered laid off. Subject to the Central and state order which have been passed on not terminating employees during the period of lockdown, laying off of any employee will require the following the applicable labour laws as well as employment contracts
2. There is nothing on seniority in the MHA Order on deciding who should be called to work and who should not. As a matter of fact the order says that those above 65 years of age, those with co-morbidities and those wth children below the age of five years should be encouraged to work from hom.
For the above category if they are not laid off….can we treat them “as no work no pay”? No, they cannot be treat as “no work no pay by default”. Please consult Central and respective state orders requring employers to not terminate or reduce wages during period of lockdown. If your establishment is not covered by any such order, please check the applicable labour laws as well as your employment contract to come to a decision on this.
As the Govt have allowed construction activities .for movement of goods and its distribution we will require  some office employees as well to operate …and if the office  is falling in Restricted Zone…can we seek exemption? We are not sure what you mean by “Restricted Zone”. If you mean, Containment Zone, then the MHA Order specifically states that none of the activities which are allowed to operate can do so from Containment Zones. You can definitely seek an exemption but it is unlikely that you will receive one in most states
Can we offer workers ( Contractual/Casual) only minimum wages for the period of lockdown? There is nothing specific in the MHA Order of April 15 on the subject. However, if you see the order of the MHA of March 29, 2020, has clarified that all employers shall pay wages without any deductions. While your question is with regard to contractual and casual workers, whoever is there employer will have to pay the wages without deductions. If you are the principal employer with regard to these people, then your obligation to pay comes in only if their employer does not pay as per the Contract Labour and Regulation Act. So, in our view if you have paying the wages till now and if such wage is higher than minimum wages, then you cannot reduce the wages at this moment.
Say, for some contractor we have invoked the Force majuere clause in consonance with the agreement…and no work was carried out ..will it hold good or the Principal employer have to pay? This will depend on the specific fact situation and it is difficult to comment without know them. In general, if the contract has been validly terminated and both parties acknowledge that there is no contractual relationship prevalent between at that time, then the obligations thereunder will not be required to be fulfilled. Having said that labour laws and orders relating to employer employee relationships are often interpreted by courts in favour of the employee/workman/contract labour. 
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, also what how will WHITE COLLAR Employees be treated …do they have any legal recourse? We are not sure which specific notifications you are referring to. The March 29, 2020 Order of the Ministry of Home Affairs which deals with the issue of wages and retention is issued as an Order under the Disaster Management Act and cannot be considered as advisory in nature. The Order of March 29, 2020 and subsequent state orders on the same subject relate to all workers and will, therefore, in our view include white collar employees as well.
What are guidelines towards Overtime to be paid to employees working during COVID?   There are no separate guidelines with regard to overtime in the Ministry of Home Affairs order of April 15, 2020 and overtime will need to be paid as per the same laws and principles that were applicable before the lockdown.. Some states, such as Gujarat, have subsequently issues orders which allow factories to have longer working hours for workmen in factories. However, they have also clarified that wages will need to be proportionately higher.  
How to process Compensation for the contract staff who worked extra hours during COVID?  There are no separate guidelines with regard to processing compensation for extra hours for contract stfaff  in the Ministry of Home Affairs order of April 15, 2020. The process will remain the same as it was prior to the lockdown, unless a state has issued any specific order with regard to this.
What is the process towards AMC payments guidelines where services are not rendered during lockdown?  This will depend on the specific contract under which such AMC payments were being made. If the contract has a force majeure clause favouring the service provider then you may have to continue to pay them through the period of lockdown despite them not being able to provide services under the Annual Maintenance Contract.
Post opening Lockdown, are there any restrictions on meetings, trainings or internal events? Pertaining to count of attendees or duration of events.  There is no clarity on what kind of restrictions will be imposed on meetings, training and internal events once the lockdown is over. All restrictions on such activities as laid down in the MHA order of April 15, 2020, are, for the time being, applicable till the period of lockdown is over.
Are there any restriction on employee occupancy?  There are employee restrictions in certain industries, which has been specified in the MHA Order of April 15, 2020. For example IT/ITeS. For other industries while there is no specific restriction, there are social distancing norms, which require employees to be seated at a distance of six feet at all times. This may lead to some employers having to impose restriction on the number of employees who can operate in each shift. 
What are guidelines towards employee commuting to office? Mainly those commuting by Public Transportation.  Since public transport will not be permitted during the period of lockdown, it has been clarified in the MHA Order of April 15, 2020 that all employees will have to be provided transporation by the employer. For more details, kindly listen to our webinar of April 17, 2020.
How to make the Cafeteria operational? – space, staggered lunch hours?

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

Any specific instructions on opening Gym and Yoga activities?  According to Clause 1(x) of the MHA Order of April 15, 2020, gymnasiums are not allowed to operate during the period of lockdown. We will recommend such activities to be not permitted till the lockdown is over or further relaxations are provided.
Any particular point to be taken care of towards handling parking of two wheelers?  There are no separate points mentioned with regard to parking of two wheelers. All norms stated in the Ministry of Home Affairs Order needs to be followed.
Guidelines towards temporary vendor’s visitors?  There are no separate guidelines for vendor’s visitors and the same social distancing and other norms will have to be followed. However, we would like to draw your attention to Clause 12 of Annexure II of the MHA Order of April 15, 2020, which says that there should be a total ban on non-essential visitors.
What is stand on Sanitisation Tunnel?  As a compliance management company, we have no separate stand on santisation tunnel. The requirements with regard to sanitation and disinfection have been laid down in the MHA Order of April 15, 2020
Clarity on use of mask – Mandatory / Non mandatory, Company provided / employee procured?  Masks have been made mandatory for all people in work places at all times. There is no clarity on whether it has to be provided by a company. For more details kindly listen to our Webinar of April 17, 2020
Special instructions for HK, Cafeteria staff and Security Guards?  The same principles of social distancing, sanitation, provision of transportation laid down in the MHA Order of April 15, 2020 will apply to housekeeping, security and cafeteria staff.
How to handle Multiple entry of same employee on same day?  The same standards of sanitation, hygiene and social distancing will apply to an employee during their presence in a work place. This will not change depending on the number of times they enter.
Can any general meeting be held with quorum present over video-conferencing, during this period? We have noticed relaxations given for holding board meetings / Audit Committee meetings so far. Till date no similar relaxation has been issued for general meetings, though they are expected / anticipated. We will let you know as soon as one is issued.
Digital signature are accepted by Indian courts hence signing using DocuSign should not be a problem. Right? Yes, electronic contracts are valid under Section 10-A of the Information Technology Act. However, the stamping aspect that we discussed remains.
Please name fund where CSR contribution can be made towards COVID-19? Item no. (viii) of Schedule VII of the Act, provides that contribution to any fund set up by the Central Government for socio-economic development and relief qualifies as CSR expenditure. The PM-CARES Fund has been set up primarily with the object of providing relief to those affected by any kind of emergency or distress situation like that of COVID-19 pandemic, and accordingly, a contribution to the same will qualify as CSR expenditure under the Act.
Import / export cargo of manufacturer [non-essential items] freely allowed?  if yes, what to do if blocked? Free movement of non-essential goods is restricted and will happen after 14th of April, 2020 although the paper work related to such exports and imports may be conducted. A Helpdesk has been operationalized by DGFT for export and import related issues being faced in the current situation. You may reach out to them for clarifications.
As of now, not seen any financial support or deferment of taxes and duties by Central or State Govt for Companies more than 5 crores without interest of 9 – Right? The Press Release provides limited clarity on this issue. While the Press Release says that due date for compliance under the GST laws where the time limit is expiring between 20th March 2020 to 29th June 2020 shall be extended to 30th June 2020. At the same time, it talks about interest @ 9%. Hope relevant notification, once issued will provide further clarity.
Sorry, Export was physically moved on 24th and on roads.  Container worth of Rs.8million on road for exports??  How to handle such situation? The Ministry of Home Affairs (MHA) on 29th of March, 2020 has asked states to allow transportation of all goods, without distinction of essential and non-essential, during the national lock-down. Hence, it seems your goods should have now moved to the customs port. Also, the Ministry of Finance in its Press Release dated 24th March, 2020 had made informed that custom clearance will work 24/7. Hope your issue has been resolved. You may also contact a Helpdesk that has been operationalized by DGFT for export and import related issues being faced in the current situation.
Which are circumstances to apply Force Majeure Clauses? For e.g., contracts with fixed payment / minimum off-take [transport, canteen] etc., whether FM can be applied? In India, in general, FM can be applied when it is specifically incorporated as a part of a contract. And that too only for the circumstances listed. So to answer your question, it will depend on the terms of the contract.
The circular number 05/01/2019 -CSR issued on 23.03.2020 does not specify/ guide as to what kind of contribution will be considered as CSR activity. Will following activities be considered as CSR?
will contributing to set up a quarantine center or a hospital with necessary equipment’s or contribution to develop a vaccine or funding for creation of testing centre or funding to other organisations/ private players who will help in building hospitals/ quarantine centres/ testing centres, etc?

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?

The MCA has previously also clarified that items in Schedule VII must be liberally interpreted. As per our views any activity which is related to COVID-19 insofar it promotes healthcare including preventive healthcare and those towards disaster management, including relief, rehabilitation and reconstruction activities will qualify as CSR activity and as such a CSR spend.

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

The circular does not provide any timeline for this, it will continue till there is change in the circumstances resulting in further notification or clarification.  

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?

While MCA has extended to the gap between two board meetings from 120 days to 180 days, the Press Release does not indicate any relaxation with regard to holding of less than 4 board meetings. We will reach out to the Regulator and revert once we have sought the clarification. 
Are there any notifications on Port & CFS sector?

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.

Pharmaceutical Industry, research labs, etc. have been exempted from the scope of the lockdown. They have been allowed to remain operational. But is there a limitation to the number of staff, or working hours, etc.? The Ministry of Home Affairs and various State Govts. have brought in exceptions for Medical and Pharmaceutical Industry, including research labs, packaging industries for pharmaceuticals, etc. As of now, no instructions have been provided on the mandatory application of a certain amount/number of staff. So, the pharmaceutical industry, research labs, pvt. hospitals, etc. have been permitted to work as usual.

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

In an advisory dated 20th March, 2020  the Ministry of Labour and Employment has asked all private and public establishments not to terminate/reduce the wages of any casual/contractual worker and also consider their leave as “on duty”. Thereafter, in a clarification issued by the Home Secretary on 29th March, 2020, he has asked employers of all establishments to pay wages to their employees on the due date without any deductions. The clarification has been taken out on the nationwide lockdown order of 24th March and is it specified that people/employers failing to comply with the guidelines are liable to dealt with as per Section 51-60 of the Disaster Management Act, 2005 and Section 188 of the Indian Penal Code, 1860.
Import / export cargo of manufacturer [non-essential items] freely allowed?  if yes, what to do if blocked? Free movement of non-essential goods is restricted and will happen after 14th of April, 2020 although the paper work related to such exports and imports may be conducted. A Helpdesk has been operationalized by DGFT for export and import related issues being faced in the current situation. You may reach out to them for clarifications
Are additional fees chargeable if I have delayed in filing my return in March 2020 owing to the COVID-19 outbreak  The MCA has announced the moratorium period as 1st April 2020 to 30th September 2020 as such according to us prior periods will not be covered from a late filing perspective.
As a part of the session you mentioned that physical presence of directors is not required for matters relating to approval of financial statements, board report, takeover etc. my question is –  Is this only for only a specific period or is it a permanent change 

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.”. ‘

Whether the notification issued by the Ministry of Labour and Employment dated 20th March, 2020  requiring employers not to terminate employees and to pay wages, without deduction, during the period of lockdown due to the COVID-19 outbreak is recommendatory or mandatory?

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. 

Whether the clarification issued by the Ministry of Home Affairs on 29th March, 2020, in relation to curbing the movement of workmen during the period of the lockdown due to the COVID-19 outbreak is applicable to both blue collar and white collar workers and whether the same is mandatory in nature?

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.

There are a lot of third-party contracts with manpower agencies to provide manpower. The Manpower Agency is paid on the basis of their employee’s attendance. We do not pay if they don’t come. Do we have to pay even if they are not coming to work?

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. 

• 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

1
• 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 the Govt have allowed construction activities .for movement of goods and its distribution we will require  some office employees as well to operate …and if the office  is falling in Restricted Zone…can we seek exemption? As per the MHA order all activities including construction activities have been prohibited in Containment zone. There is nothing in the order which allows any process for seeking exemption from any provision of the lockdown including in relation to the restricted zones.  
Provide clarity on use of mask – is it mandatory / non mandatory, company provided / employee procured? As per the MHA order and the order of many states such as Assam, Delhi etc. require that wearing of mask is mandatory in all offices. Some go as far as saying it should be a 3 ply mask. However, none of them clearly specify whether the employer needs to pay or if the employee needs to get it. 
Needed clarifications on the post 20th April relaxation which it seems includes allowing IT/ITES staff to operate on rotational basis. Can you confirm is this is only applicable to the IT/ITeS organizations or does this have broader allowances to the IT staff in other sectors too?

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.

The MHA order in some parts permit  IT and IT enabled Services, with upto 50% strength to work and also allows Operations of tea, coffee and rubber plantations, with maximum of 50% workers and Processing, packaging, sale and marketing of tea, coffee, rubber and cashew, with maximum of 50% workers to continue. The question is does 50% workforce permit include contract workers or only on-roll? The MHA order does not clearly specific whether workers in this context would include contract workers or only on-roll employees. We may wish to await clarification in this regard from the Ministry
For transport of employees, does it have to be a company owned car or can we use rental cars or employees cars? Do I need to get a police/curfew pass for this? What are guidelines towards employee commuting to office? Mainly those commuting by Public Transportation.

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.