December 2024 Policy Updates

1. POSH Act Compliance Checklist Issued in Gurugram

   The District Office, Gurugram, has issued a compliance checklist under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) for the 2023 calendar year. Released on December 20, 2023, the checklist assists organizations in meeting compliance requirements ahead of the April 30, 2024, annual report submission deadline. Key elements include creating and implementing a sexual harassment prevention policy, displaying anti-harassment notices, conducting employee awareness programs, forming an internal committee (IC), and following IC recommendations promptly. Organizations must also ensure compliance with Rule 8 of Companies (Accounts) Rules, 2014. The checklist promotes accountability and ensures that organizations uphold workplace safety standards for women. This initiative reflects the district’s proactive stance in reinforcing adherence to the POSH Act and fostering a harassment-free work environment across government and private organizations in Gurugram.

   
   

2. Mandatory Issuance of e-Pehchaan Cards for Insured Persons

   The Employees’ State Insurance Corporation (ESIC) has mandated immediate issuance of e-Pehchaan cards to all Insured Persons (IPs) as part of its digital initiative under Project Panchdeep. A circular dated February 2, 2024, directs employers to download and distribute the e-Pehchaan cards from the ESI portal, ensuring all employees have access to a hard copy upon registration. The e-Pehchaan card serves as an identification tool to simplify processes and improve services for IPs under the ESI scheme. Employers must also provide these cards to existing IPs. This initiative aligns with ESIC’s drive to modernize its systems and enhance operational efficiency, ensuring better accessibility and streamlined communication between the ESIC and its beneficiaries. By making the issuance of e-Pehchaan cards mandatory, ESIC reinforces its commitment to providing seamless and effective support to employers and employees under its jurisdiction.

   
   

3. Aadhaar Removed as Proof of Date of Birth by EPFO

   The Employees’ Provident Fund Organisation (EPFO) has removed Aadhaar from its list of acceptable documents for date of birth verification, as per a circular issued on January 16, 2024. This decision is based on guidelines from the Unique Identification Authority of India (UIDAI), which clarified that Aadhaar can verify an individual’s identity but is not sufficient proof of birth. The move follows regulatory updates from the Aadhaar (Enrolment and Update) Regulations, 2016, and a 2023 Bombay High Court judgment that Aadhaar lacks inherent authenticity as a date of birth document. Employers and employees must now use alternative documents for birth date verification. This change ensures stricter compliance with verification norms and mitigates potential misuse of Aadhaar in processes that require accurate date of birth validation. EPFO advises all stakeholders to adhere to the updated list of valid documents to avoid delays or rejections.

   
   

4. Revised Guidelines for ESIC Home Drug Delivery

   The Employees’ State Insurance Corporation (ESIC) has issued updated guidelines for home drug delivery services to beneficiaries, effective January 10, 2024. The revisions build on earlier guidelines from November 3, 2023, and target specific groups, including senior citizens with chronic illnesses, handicapped or bedridden patients, and beneficiaries using e-Sanjeevani consultations. Hospitals are required to procure delivery services through the Government e-Marketplace (GeM) portal and ensure proper packaging, cold chain maintenance (where necessary), and timely notifications to beneficiaries. SMS or WhatsApp updates, including parcel tracking details and delivery confirmation, must be provided by vendors. Hospitals must appoint nodal officers to monitor the delivery process and adopt Standard Operating Procedures (SOPs) to address local needs, vendor guidance, and grievance redressal. This initiative enhances access to medications for vulnerable groups while streamlining operations for ESIC medical facilities.

   
   

5. Deadline for Pension Wage Updates Extended by EPFO

   In response to employer requests and the backlog of over 3.6 lakh applications, the Employees’ Provident Fund Organisation (EPFO) has extended the deadline for employers to update wage details for higher pension contributions. Initially set for December 31, 2023, the new deadline is May 31, 2024. This extension allows more time for employers to validate options for pension on higher wages and process joint declarations. The revision addresses widespread delays and ensures that eligible employees can benefit from enhanced pension contributions under the Employees’ Pension Scheme (EPS). Employers are encouraged to expedite the updating process to avoid future administrative challenges. EPFO’s decision reflects its responsiveness to stakeholder concerns and its commitment to implementing pension reforms effectively.

   
   

6. Restrictions on Paytm Payment Bank Accounts by EPFO

   The Employees’ Provident Fund Organisation (EPFO) has imposed restrictions on deposit and credit transactions linked to Paytm Payment Bank Limited (PPBL) accounts. Effective February 23, 2024, the decision follows the Reserve Bank of India’s (RBI) January 31, 2024, press release citing compliance failures and concerns identified in the bank’s comprehensive audit reports. EPFO field offices have been directed to reject claims associated with PPBL accounts and advise stakeholders to provide alternative banking details. This measure aims to safeguard the interests of EPF account holders and maintain the integrity of financial transactions within the system. Employers and employees using PPBL accounts are urged to make necessary changes to avoid disruptions in EPFO-related processes.

   
   

7. Written Consent for Female Employees in Meghalaya

   The Meghalaya Labour Department, on January 10, 2024, issued a corrigendum requiring written consent from female employees working beyond 7 PM. This amendment revises the July 19, 2023, notification allowing establishments to operate 365 days a year. Employers must ensure adequate safety measures during late hours and arrange safe transportation for women employees after work. The regulation promotes workplace safety and accountability, mandating that employers prioritize the welfare of female employees. By formalizing consent and enforcing safety provisions, Meghalaya underscores its commitment to gender-sensitive labor practices while maintaining operational flexibility for businesses.

   
   

8. ESIC Allows Settlement of Physical Claims Without Aadhaar Seeding

   The Employees’ State Insurance Corporation (ESIC), via Notification No. WSU/2020/Claim settlement without UAN-clarification/8726, has permitted alternative identification documents for specific categories of individuals. These include international workers, Indian workers who have permanently migrated and acquired foreign citizenship, citizens of Nepal, subjects of Bhutan, and Non-Resident Indians (NRIs). For these groups, Aadhaar seeding with the Universal Account Number (UAN) is not required due to unavailability. Claims can now be settled physically using passport ID, Citizenship Identification Certificate, or equivalent documents upon verification of authenticity. This step ensures accessibility to ESIC benefits for those unable to obtain Aadhaar.

   
   

9. EPFO Mandates UAN Activation and Aadhaar Seeding for ELI-Scheme Benefits

   The Employees’ Provident Fund Organisation (EPFO), through Notification No. ELI/UANActivation/2024, has directed employers to ensure that employees activate their Universal Account Number (UAN) and link their Aadhaar with bank accounts. This is necessary to avail benefits under the Employees Linked Incentive Scheme (ELI-Scheme) announced in the Union Budget 2024-25. Employers must comply with this mandate to enable eligible employees to access financial incentives and other associated benefits effectively. The directive aligns with EPFO’s push for streamlined processes and integration of Aadhaar for improved service delivery.