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Thursday 11 January 2024

HR News: 12 Jan, 2024

1.

Employee entitled to subsistence allowance during suspension: Bombay HC

The Bombay HC ruled that suspended employees should be given subsistence allowance during the suspension period without any need for them to mark daily attendance or fulfil any condition imposed by the employer.  A suspended employee does not have to mark daily attendance in order to get subsistence allowance said the Bombay High Court. In fact, no condition should be imposed on a suspended employee in order to get the subsistence allowance they are entitled to during suspension. According to the HC, Section 10A of the Industrial Employment (Standing Orders) Act, 1946, provides for an employee to receive subsistence allowance without the employer making it mandatory for the employee to mark daily attendance for the same. Subsistence allowance helps employees fulfil their own and their family’s needs during suspension period when their salary is not coming in. Natubhai Patel’s claim for subsistence allowance was rejected by the labour court in Daman. A writ petition was then filed by Hindustan Lever Employees Union challenging the rejection. Patel, an employer of Hindustan Unilever, was suspended pending an inquiry by his employer. The company wanted him to report and mark his daily attendance at the factory gate every dayIf he failed to do so, he would be marked absent for the day and lose pay for the day. The High Court, however, ruled that as per the provisions of Section 10A of the Act subsistence allowance is supposed to be paid to a suspended employee at prescribed rates without any condition being imposed. Therefore, the company could not cut his pay because of an attendance-marking practice that the company had imposed on the employee, reports LiveLaw.

 

2.

Avg. salary of Rs 24 lakh p.a. offered at IIT Bombay.

About 85 students were offered packages worth more than Rs 1 crore. While the average salary package offered to Indian Institute of Technology (IIT) Bombay students was Rs 24 lakh per annum, about 85 students bagged job offers of over Rs 1 crore. About 1,340 offers were made in total in first phase, which means about 1,188 students were placed. The first phase of the placement ended in December 2023, and the second one is scheduled for end of January 2024. The research and (R&D) domain received most of the high-paying job offers at the campus placement drive this year, which saw at least 2,000 students registering.


3.

Flipkart implements annual job cuts, 5-7% workforce reduction


This is part of Flipkart’s annual performance-based job cuts, a practice it has followed for the past two years. As per media reports, Flipkart, owned by Walmart, is undergoing a workforce reduction that could lead to a five to seven per cent decrease in its total team. This is part of the company’s annual performance-based job cuts, a practice that has been in place for the past two years. The process is anticipated to conclude by March or April, aligning with ongoing performance evaluations and the conclusion of the current fiscal yearThe workforce reduction is in line with Flipkart’s aim to use resources more efficiently in both its current and new ventures. The company plans to address and conclude the restructuring plans and the 2024 roadmap at an upcoming meeting of senior executives scheduled for next month. The report further added that the e-commerce company, which has 22,000 employees (excluding Myntra), has been actively controlling expenses by halting new hires in the last year.

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