In the era of influencers and Digital marketing, appearance is a crucial aspect and an essential part of a product. It defines everything; it determines a product’s marketability & sales, along with the consumers’ appeal to the product. To protect the intellectual property rights associated with designs, a legal framework, the Designs Act, 2000, was brought in by Indian legislation that provides a mechanism for the registration and protection of designs, ensuring that creators and innovators receive due recognition and reward for their efforts.
Definition
Section 2(d) of the Designs Act, 2000, provides the definition of ‘design’. It states that design means only the features of shape, configuration, pattern, ornament or composition of lines or colours applied to any article, whether in two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical, chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye.
Essentials and prohibitions
As per Section 4 of the Designs Act, 2000, it prohibits certain designs from registration, such as:
Is not new or original.
Has already been disclosed to the public in tangible form before the filing date.
Is similar to the known designs, i.e., not distinguishable from known designs.
Comprises scandalous or obscene matter.
It is crucial for the designs to adhere to and comply with the following:
Originality and novelty
The primary aspect of a design’s registration is that it must be unique and original. A novel design has the quality of being new or original. It should not have been disclosed to the public anywhere in the world prior to the filing date in any tangible form.
In the landmark case of Whirlpool of India Ltd vs. Videocon Industries Ltd. (2014), the Bombay High Court delved into the crucial aspects of novelty and originality in the context of design registrations. The court’s decision upheld Section 4 of the Designs Act, emphasising that a mere imitation of existing designs cannot qualify for registration and subsequent protection under the law.
The case involved a dispute between two prominent companies, Whirlpool of India Ltd. and Videocon Industries Ltd., over the registration of a design for a washing machine. Videocon had applied for the registration of a design that bore a striking resemblance to an existing design owned by Whirlpool. Whirlpool challenged the registration, arguing that Videocon’s design lacked novelty and originality and, therefore, did not meet the requirements for protection under the Designs Act.
In its judgement, the Bombay High Court thoroughly analysed the provisions of Section 4 of the Designs Act, which outlines the conditions for the registration of designs. The court held that the primary purpose of design registration is to encourage creativity and innovation in industrial designs, and that granting protection to unoriginal designs would undermine this objective.
The court emphasised that a design must possess both novelty and originality to be eligible for registration. Novelty refers to the requirement that the design must be new and not previously published or used in India or any other country. Originality, on the other hand, pertains to the requirement that the design must be the result of the independent creative effort of the designer, and not merely an imitation or adaptation of existing designs.
Applying these principles to the case at hand, the Bombay High Court found that Videocon’s design lacked both novelty and originality. The court observed that Videocon’s design was substantially similar to the existing design owned by Whirlpool and that it did not exhibit any distinctive or unique features. The court concluded that Videocon’s design was merely an imitation of the existing design and, therefore, did not meet the threshold of originality required for registration.
The decision of the Bombay High Court in Whirlpool of India Ltd. vs. Videocon Industries Ltd. has significant implications for the protection of industrial designs in India. It reinforces the importance of originality and creativity in design creation and emphasises the need to prevent the registration of unoriginal designs that lack novelty. The judgement serves as a valuable precedent for future cases involving design registrations and helps uphold the integrity of the design protection system in India.
Protection of visual appearance
The act merely protects the visual appearance of the articles and not the functional aspects of them. As per Section 2(d), design means only the features of a shape, configuration, pattern, composition of lines and colour applied to the article.
The Coca-Cola Company vs. Bisleri International Pvt. Ltd. & Ors. (2009)
The Coca-Cola Company vs. Bisleri International Pvt. Ltd. & Ors. (2009) is a landmark case in Indian intellectual property law that established the importance of visual appearance in determining design infringement. The case involved the alleged infringement of the Coca-Cola Company’s iconic bottle design by Bisleri International Pvt. Ltd., a leading Indian beverage company.
Background of the Case:
The Coca-Cola Company has used its distinctive bottle design, commonly known as the “contour bottle,” since 1915. The bottle’s unique shape and design have become synonymous with the Coca-Cola brand and are recognised worldwide. In 2007, Bisleri International introduced a new bottle design for its mineral water product that bore a striking resemblance to the Coca-Cola contour bottle.
Legal proceedings:
The Coca-Cola Company filed a lawsuit against Bisleri International, alleging infringement of its registered design. The Delhi High Court heard the case and was tasked with determining whether Bisleri’s bottle design constituted an infringement of Coca-Cola’s design.
Key considerations:
The court considered several factors in its analysis, including:
Visual similarity: The court compared the visual appearance of the two bottles and found that they shared significant similarities in terms of shape, contour, and overall design.
Functionality: The court acknowledged that both bottles served the same functional purpose of holding and dispensing beverages. However, it held that the distinctive shape of the Coca-Cola contour bottle extended beyond its functional purpose and had acquired a secondary meaning associated with the Coca-Cola brand.
Consumer confusion: The court considered the likelihood of consumer confusion resulting from the similarity between the two bottle designs. It opined that consumers might mistakenly believe that Bisleri’s mineral water was affiliated with or endorsed by Coca-Cola, leading to potential damage to the Coca-Cola brand’s reputation and goodwill.
Judgement
The Delhi High Court ruled in favour of The Coca-Cola Company, holding that Bisleri’s bottle design constituted an infringement of Coca-Cola’s registered design. The court granted an injunction restraining Bisleri from using the infringing design and awarded damages to The Coca-Cola Company.
Significance of the case
The Coca-Cola Company vs. Bisleri International Pvt. Ltd. & Ors. case set a precedent for design infringement cases in India. It emphasised the importance of visual appearance in determining design infringement and established that a product’s design can acquire secondary meaning and become associated with a particular brand.
The decision served as a reminder to businesses that they must exercise caution when designing their products to avoid infringing on the intellectual property rights of others. It also highlighted the need for effective protection of design rights to safeguard the interests of innovators and creators.
Applicability of design
Section 2(d) outlines that for a design to be registered under the act, it must be applied to a tangible product or an article. The Act ensures that designs are tangible and capable of being reproduced in industrial or commercial contexts, contributing to their practical utility and commercial significance.
In the landmark case of Titan Industries Ltd. vs. M/S Ramkumar Jewellers (2012), the Indian court provided significant insights into the interpretation of the Designs Act, 2000. The court’s ruling centred around the requirement for designs to be applied to tangible articles in order to be eligible for protection under the Act. This decision has far-reaching implications for designers, manufacturers, and consumers alike.
The court emphasised that the application of a design to a tangible article is an essential element in determining its registrability and the scope of protection afforded under the Act. This means that designs must be embodied in a physical form, such as jewellery, watches, or other consumer goods, in order to be considered for registration and subsequent protection.
The court’s ruling underscores the Act’s focus on tangible articles as the subject matter of design registrations. This approach aligns with the international understanding of design protection, which typically encompasses the application of designs to products or articles that can be manufactured and sold. By requiring designs to be applied to tangible articles, the court ensures that the Act remains consistent with global design protection standards.
The decision also provides clarity and certainty for designers and manufacturers seeking to protect their designs. By establishing a clear threshold for design registration, the court helps to prevent frivolous or speculative registrations that may not result in the production of tangible products. This, in turn, promotes innovation and encourages designers to create new and unique designs that can be translated into commercially viable products.
Furthermore, the court’s ruling recognises the importance of the relationship between design and functionality. By requiring designs to be applied to tangible articles, the court ensures that designs are not merely abstract concepts but are instead linked to real-world products that can be used and enjoyed by consumers. This approach helps to strike a balance between protecting the intellectual property rights of designers while also ensuring that consumers have access to a wide range of innovative and functional products.
Scandalous or obscene matters
The design must not be prohibited under Section 4 of the Act in the case of having an obscene or obscene nature in the design of the article. It should adhere to the moral grounds of the general public and shall not be opposed by the government or any authorised authority or institution.
Myntra has changed its logo after receiving a complaint from Naaz Patel, who is the founder of a Mumbai based NGO- Avesta Foundation, alleging that the Myntra logo was aggressive and resembled a naked woman. The complaint was filed and lodged with the State Cyber Police of Maharashtra.
Mode of registration of designs
The registration process for designs under the Designs Act, 2000, in India involves several key steps. It begins with the filing of an application with the Designs Office, which operates under the Controller General of Patents, Designs, and Trademarks.
As outlined in Section 5(1) of the Act, the Controller has the authority to register a design if an applicant meets specific criteria. The applicant must claim to be the proprietor of a new or original design that has not been previously published in any country. Additionally, the design should not be contrary to public order or morality.
To initiate the registration process, an applicant must submit a duly completed application form, along with the prescribed fees. The application must include details of the design, such as its description, drawings, or images, as well as information about the applicant, including their name, address, and contact details.
The Design Office examines the application to ensure that it complies with the requirements and formalities set forth in the Act. If the application is found to be in order, it is published in the Designs Journal, giving an opportunity for third parties to oppose the registration within a specified period.
If no opposition is filed or if any opposition is successfully defended, the Controller proceeds to register the design. The registration is valid for a period of ten years from the date of registration and can be renewed for two further consecutive periods of five years each.
Throughout the registration process, it is crucial for applicants to seek the guidance of experienced professionals, such as patent attorneys or design experts, who can assist with drafting the application, handling any objections or oppositions, and ensuring compliance with the provisions of the Designs Act, 2000.
Identification of the design
Before filing an application, one must ensure that the design complies with Section 4 of the Designs Act, 2000, after which a representation of the design needs to be prepared. i.e., a representation in terms of a similar drawing, photograph or tracing of the design to be prepared. After which, the design shall be identified and classified from the classes & sub-classes of goods listed in the Third Schedule of the Designs (Amendment) Rules, 2008.
Conducting research
Before filing an application with the controller, it should be ensured that such a design has not already been registered. Any such details of such designs, which are registered, can be easily found by searching the Patent Office Website.
Application for registration
If no prior registration exists, an application for the design can be made either online or offline.
For an online application, one can visit the site here and apply for the same.
For an offline mode of application, the patent offices are located in Delhi, Mumbai, Chennai and Kolkata, to which the offline applications must be sent, along with a brief statement of novelty claimed for the design, to be included aside from the representation.
This application shall be in Form 1 and in four copies, along with the fee of Rs.1000/-
Examination
The respective application that was filed will be sent to examination, upon which an examination report will be prepared. If the Controller is of the opinion that the design satisfies the conditions as per Section 4 of the Designs Act, 2000, will register the design.
Objection
In case of an objection, the Controller may provide a 3-month time period to address the issues prevalent, an applicant may also request a hearing at this stage in many cases.
The application shall be abandoned if the applicant does not complete the registration procedure for a period of 6-months from the date of application.
Register of designs
At the instance of acceptance for the designs applied, all the information regarding the same, including its number, class, reciprocity, and any such matters that would affect the validity and proprietorship of the design, shall be entered into the Register of Designs.
Cancellation of registration
Section 19 of the Act states that cancellation of registration of a design happens if:
Any person interested may present a petition for the cancellation of the registration of a design at any time after the registration of the design, to the Controller on any of the following grounds, namely:
that the design has been previously registered in India; or
that it has been published in India or in any other country prior to the date of registration; or
that the design is not a new or original design; or
that the design is not registrable under this Act; or
it is not a design as defined under clause (d) of section 2.
An appeal shall lie from any order of the Controller under this section to the High Court, and the Controller may at any time refer any such petition to the High Court, and the High Court shall decide any petition so referred.
Certificate of registration
As per Section 9 of the Act, the Controller shall grant a Certificate of registration to the owner or Proprietor of the Design when registered.
Transfer of registration
Section 30 of the Designs Act, 2000, deals with the transfer of the proprietorship or rights in a registered design. It outlines the procedure for transferring the rights in a registered design from one person (the transferor) to another person (the transferee).
It states that if a person becomes entitled by assignment, transmission or other operation of law to the copyright in a registered design, he may make an application in the prescribed form to the Controller to register his title, and the Controller shall, on receipt of such application and on proof of title to his satisfaction, register him as the proprietor of such design and shall cause an entry to be made in the prescribed manner in the register of the assignment, transmission or other instrument affecting the title.
Term of the design
The owner of the registered designs would be granted copyright protection for their design, which would last for a period of 10 years from the date of registration. This copyright protection provides the owner with exclusive rights to the design, including the right to reproduce, distribute, and publicly display the design. If the owner wishes to extend the copyright protection beyond the initial 10-year period, they can do so by paying the prescribed renewal fees within the stipulated time frame. This renewal process allows the owner to extend the copyright protection for an additional period of 5 years, effectively giving them a total of 15 years of exclusive rights to the design.
It is important to note that the renewal fees must be paid on time to maintain the copyright protection. If the owner fails to pay the renewal fees within the stipulated time frame, the copyright protection will expire, and the design will enter the public domain, meaning that anyone can use, reproduce, or distribute the design without permission from the original owner.
The renewal process for registered designs provides owners with the opportunity to extend their exclusive rights to the design and continue to benefit from their creative work. By paying the prescribed renewal fees, owners can ensure that their designs are protected for a longer period of time, allowing them to fully exploit the commercial potential of their designs and maintain control over how they are used and disseminated.
Rights inferred by registration and infringement
The registration of a design provides certain exclusive rights to the owner or proprietor of the registered design. These rights include the right to prevent others from making, importing, selling, or using the design without authorization. Section 22 of the Designs Act, 2000, delineates the rights conferred by the registration of a design and specifies the acts that constitute infringement of those rights.
Infringement of a registered design occurs when someone else uses the design, or a substantially similar design, without the proprietor’s consent. Section 22(4) of the Act provides remedies such as damages, injunctions, and seizure of infringing articles to address such violations.
Exceptions
Though there are various methods outlined for the infringement and remedies for such infringement, there are, however, certain exceptions, as outlined in Section 22(3) of the Act, to such infringements, such as:
Acts done privately and for non-commercial purposes
Acts done for experimental purposes
Acts of reproduction for the purpose of teaching or instruction
Conclusion
The Designs Act, 2000, provides a legal framework for the registration and protection of designs in India. By securing exclusive rights by owners or proprietors and offering remedies against infringement, the Act encourages creativity and innovation among various industries. Through an efficient registration process and effective enforcement mechanisms, it facilitates the growth of a vibrant design ecosystem, contributing to economic development and cultural enrichment. As demonstrated by relevant case laws, adherence to and compliance with the Act’s provisions promotes clarity and fairness in design protection, benefiting both creators and consumers alike.
This article on the landmark case Alamgir vs. State of Bihar (1958) and Section 498 of the Indian Penal Code was written by Thejalakshmi Anil. This article provides an in-depth analysis of the Alamgir case, which dealt with the interpretation and application of Section 498 of the IPC. It breaks down the facts, legal issues, arguments, and judgement of this significant Supreme Court case. The article goes beyond just summarising the case to offer a critical examination of Section 498 and the adjacent Section 497 (adultery law).
Table of Contents
Introduction
The Indian Penal Code has come under heavy criticism in recent years, considering its retention of many colonial and anachronistic provisions. The formulation of the Bharatiya Nyaya Sanhita Bill was done in order to overhaul some of these often criticised provisions. This was hailed as a major revamp of a code that has not undergone major amendments over the course of the hundred and fifty years in which it has been in place. However, we see that even under the new penal codes, many draconian provisions have been retained. This article deals with one such section, which is Section 498 of the Indian Penal Code (1860) and its application in this case, Alamgir vs. State of Bihar (1958) .
The Indian Penal Code was drafted at a time when the British perceived women to be merely properties of their husbands. They were seen as mere passive agents who had to bear children and manage their households without any agency. She was subordinate to her husband and was under his protection. This case is particularly relevant to understanding the mindset that prevailed. While the respondent in this case tried to offer a narrow interpretation of the phrasing of the statute, this was ultimately denied by the Court, which followed a conservative approach. In this article, we will be discussing the facts of the case along with the interpretation of the section.
Details of the case
Name of the case
Alamgir & Another vs. The State Of Bihar
Equivalent citations
1959 AIR 436, 1959 SCR SUPL. (1) 464, ILR 38 PAT 334, AIR 1959 SUPREME COURT 436, 1959 ALL. L. J. 417, 1959 BLJR 514, 1959 SCJ 457, 1959 MADLJ (CRI) 293
Type of the case
Criminal Appeal
Parties to the case
Appellant
Alamgir & Another
Respondent
The State of Bihar
Court
The Supreme Court of India
Bench
Justice P.B Gajendragadkar and Justice A.K. Sarkar.
Date of the judgement
14 November 1958.
Laws involved
Section 498 of the Indian Penal Code
Facts of the case
This case concerned the alleged detainment of Rahmatia, who was the legally wedded wife of the complainant, Saklu Mian. Rahmatia disappeared from her marital home on October 21, 1952. After several days of searching, the complainant was able to trace her location to the house of the two accused in this case. The accused persons refused to let Rahmatia go with the complainant. The first appellant, Alamgir, informed the complainant that he had married Rahmatia and the second appellant threatened the complainant that if he did not leave, he would be driven away. This version of events was confirmed by the three witnesses, Shakoor Mian, Musa Mian and Suleman Mian who accompanied the complainant to the house of the accused persons. The accused were subsequently charged with illegally detaining the wife of the complainant.
The Magistrate found them guilty and sentenced them to simple imprisonment for two months. The accused then appealed to the Sessions Judge, who confirmed the conviction but reduced the sentence both accused to pay a fine of Rs 50/-. The appellants filed a revision petition before the Patna High Court. However, the High Court dismissed the revision petition and enhanced the punishment of the accused to a sentence of rigorous imprisonment of six months for both accused.
Law discussed
Section 498 of the Indian Penal Code
Section 498 effectively punishes a man who takes, entices away, conceals or detains a woman whom he knows or has reason to believe is the wife of another man with the intention of having illicit intercourse with that woman. This provision is clearly meant for the protection of the interests of the husband. Only the husband is eligible to institute prosecutions under this offence, which effectively empowers him to control the sexual agency and autonomy of his wife. Her will and consent are absolutely immaterial to determining the guilt of the accused, who is seen to be dispossessing the husband of his chattel.
Ingredients of the Section
This Section lays down four different scenarios where the provision would be operationalised. A wife may be:
Taken away – This refers to assisting or facilitating a woman’s departure from her husband’s home.
Enticed away – This involves coaxing or luring a woman away from her husband through persuasion or allurement. The focus is on the act of enticement itself, not necessarily the woman’s consent. However, if the husband has already forced the wife out, subsequent enticement may not be considered criminal.
Concealed – While not explicitly defined in the given text, concealing generally refers to hiding or keeping the woman secret from her husband or those who might return her to him.
Detained – This means keeping the woman from returning to her husband. It doesn’t require physical force or holding her against her will. Rather, it involves any action by the accused that prevents or discourages the woman from going back to her husband. This could be through persuasion, control, or other means of influence.
In all four instances, the consent of the wife is immaterial if the prosecution can prove that this consent is premised on the words or actions of the accused. The determination of whether the woman actually acted upon or was influenced by the actions of the accused is a factual determination based on a case to case basis. In such cases, the consent of the woman can only be used as a defence if it is proved with evidence that the woman was not acting under the influence of the allurement or encouragement of the accused. If this is proved, then this would bring the case within the three classes mentioned under Section 498.
In the case of Jnanendra Nath Dey vs. Kshitish Chandra Dey (1935), the court ruled that ‘taking’ does not include taking by force or mean something that is different from enticing. Assisting the woman to get away from her husband would be sufficient to encompass some taking. In Chhotey [1955] ALJ 894, it was held that arranging transportation for a woman so that she could leave her marital home would amount to taking her away from the house of the husband. Therefore, taking involves some act or assistance.
Enticement refers to any kind of coaxing employed by the accused to lure her away from her husband. However, if the husband had already expelled his wife out of the house before the alleged enticement took place, then no criminality would apply. Therefore, it is the enticement or taking from the husband that is important, not the enticement of the woman. In Queen vs. Pochun Chung [1865] 2WR (Cr) 35, where the wife was deserted and went of her own free will to live with another man, the conviction was set aside since there was no enticement to take away.
Detains, in its ordinary meaning, refers to ‘keeping back.’ This need not be with persuasion but can also be with any kind of enticement, control or persuasion. Proof of persuasion is necessary to constitute detention. This does not mean evidence should be adduced that the woman is being kept against her will but rather that there must be evidence that the accused did something that prevented the woman from returning to her husband. Therefore, detention could be with or without physical force.
In the case of Adikanda Samal vs. Madhabananda Nayak (1979), the accused was the first cousin of the wife, who left the house on account of the unfriendly attitude shown by her father in law. The court refused to convict the accused on the ground that there was no evidence that the accused prevented or obstructed the woman from returning to her husband and rather, it was the wife who refused. Therefore, he was acquitted under this section.
Reason to believe that the woman is the wife of another person
In such cases, the prosecution should prove that the woman in question must actually be the wife of another man and that it was known to the accused or that he had reason to believe that she was the wife of the complainant.
This section will not apply if the marriage is voidable. In the case of Emperor vs. Madan Gopal (1912), the accused enticed a woman who was the illegitimate daughter of a Brahmin father and a Bania mother and had married a Bania. The accused was held to be guilty since this marriage would be considered valid under Hindu law.
However, in another case, Isa vs. Ranam (1911) 31 PLR 258, the case concerned the subsequent remarriage of a woman who had married a man during the ‘iddah’ period. Such marriages during Iddah are considered null and void. Therefore, there was no criminality in the second marriage. Moreover, the mere sighting of a woman outside the house of the complainant is not sufficient evidence that the accused had ‘reason to believe.’
Intent to have illicit intercourse
Even if the first two ingredients are present without the intention of having illicit intercourse, a charge under Section 498 would not be sustained. In Naurang vs. Emperor (1915), a person enticed a married woman to marry her off to someone else. However, it was held that he committed an offence under this Section since this would constitute illicit intercourse if she were to have sexual intercourse with the person to whom she had been given in marriage. In Srimotee Paddae [1864], when the accused induced a married woman to leave her husband and become a prostitute, it was held that he was guilty since the wife would not have had the opportunity to leave her husband without the presence of the accused.
Section 439 of CrPC
Section 439 of the Code of Criminal Procedure vests the power with the High Court to enhance the sentence given by the trial court. This jurisdiction is to be exercised only if the court is satisfied that the lower court, in passing the sentence, was unduly lenient or failed to consider certain facts that may be relevant.
Constitutionality of Section 497
This section effectively criminalised adultery; it has been struck down in Joseph Shine vs. Union of India (2018). While the first draft of BNS made references to this provision, it has been struck down in the second. While this section is not immediately relevant in the present case at hand, it will facilitate a more comprehensive analysis of Section 498.
Section 498 made adultery an offence that could be penalised with imprisonment extended up to a period of 5 years. It is important to note that women were excluded from culpability under this offence and could not be prosecuted even as abettors to the crime. It is also pertinent to note that married men who engaged in sexual intercourse would not be penalised under this offence.
Three judgements before the Supreme Court had upheld the constitutional validity of Section 498 before it was struck down in the Joseph Shine judgement. The first judgement upholding its validity was Yusuf Abdul Aziz vs. State of Bombay (1954). This was based on an erroneous interpretation of Article 15(3), wherein it held that non penalisation of women for the commission of the offence of adultery is on account of the ‘special provision’ under the article. In Sowmithri Vishnu vs. Union of India (1985), the other discriminatory element, which is a married woman not being able to prosecute her husband for adultery under this section, was raised. However, this too was unsuccessful. In V. Revathi vs. Union of India (1988), a challenge against adultery was made on the basis of Section 198 of the CrPC.
In the Joseph Shine case, a five judge constitution bench unanimously struck down Section 497 of the IPC. The bench unanimously held it to be discriminatory against women and violative of their fundamental rights under Articles 14, 15 and 21 of the Constitution. The offence under Section 497 was held to be an excessive penal provision that needed to be decriminalised. Further, the bench overruled its judgements in Sowmithri Vishnu, Vishnu Revathi, and Y Abdul Aziz, which held the same to be constitutionally valid.
This was held to be a paternalistic and archaic law that violated the dignity and autonomy of women. This exceedingly progressive judgement recognised that women could not be considered the property of men, as implied by this provision and placed reliance on the string of progressive jurisprudence evolved by the courts.
With respect to Article 14, CJI Mishra held that the provision is manifestly arbitrary and creates distinctions that are based on gender stereotypes and hence is excessive and disproportionate. Moreover, the Court also held that Article 15(3) would not protect Section 497.
The Court also held Section 497 to be violative of Article 21 since the effect of Section 497 effectively infringes on the dignity of women and affects their personal autonomy. Additionally, CJI Mishra also held that criminalising adultery would be an unwarranted state intrusion into the privacy of an individual since the state cannot criminalise actions that occur within the private realm of marriage. Hence, while adultery can be a civil wrong, it cannot be a criminal one.
The case was filed by Joseph Shine, who filed a public interest lawsuit that challenged the constitutionality of this offence under Section 198(2) of the Code of Criminal Procedure, 1973.This case was taken up by a three judge bench headed by CJI Dipak Mishra. This was subsequently referred to a five judge bench, which struck down this law. The Court noted that while the act of adultery is committed by both parties, only one is being penalised under this provision while the other is absolved. Additionally, in this provision, the concept of gender neutrality is absent.
Judgement of the Patna High Court
Appeal to Supreme Court
Issues raised before Supreme Court
Whether the word ‘detain’ in Section 498 of the IPC includes situations where the married woman is willingly staying with the accused?
Whether the High Court is justified in enhancing the punishment of the accused persons?
Whether there was sufficient evidence against Appellant No. 2 to sustain his conviction under Section 498 of the IPC?
Arguments of the parties
Appellants
The appellants in this case argued that Rahmatia was not validly married to the complainant. She had grown tired of living with the complainant and had left the house out of her own free will and came to stay with them.
According to the appellants, if Rahmatia had voluntarily left the house, then this case would not fall under the ambit of Section 498 since this would only cover those cases where the woman who is being detained is being compelled or forced to stay with the accused. It was contended that the word ‘detain’ necessarily implies that the woman is unwilling and does not desire to stay with the detainee. Therefore, if Rahmatia, out of her own volition, decided to stay with the accused persons in this case, it cannot be said to be detention.
The appellant also argued that sections 497 and 498 should be scrapped from the Indian Penal Code (1860), considering the discriminatory phrasing and sexist notions underlying the policy of the legislation.
Respondent
The prosecution in this case contended that the two appellants had wrongfully detained the complainant’s wife with the intent to have illicit intercourse with her, thereby depriving the husband of his control over his wife. The prosecution argued that the conduct of the appellants in this case amounted to “detaining” the wife under Section 498 of the Indian Penal Code, even if the wife was initially willing, as the appellants had induced or encouraged her to leave her husband’s protection.
Judgement in Alamgir & Another vs. State of Bihar (1958)
The court held that the first appellant was rightly convicted under Section 498 since his actions constituted detention. The Court based its decision on the finding that he had encouraged the wife to leave the house of the complainant on the inducement of marriage.
On the second issue pertaining to the question of sentence imposed on account of the revisional jurisdiction of the High Court, the Supreme Court held that the enhancement of the sentence to six months was not justified. With respect to the conviction of the second appellant, the court held that the charge under Section 498 was not made out since no evidence was adduced to show that he had offered some kind of encouragement to the wife to leave the protection of her husband or to refuse to return to him. Therefore, the order of conviction and sentence passed against him were set aside and he was acquitted.
Rationale behind this judgement
Whether the word ‘detain’ in Section 498 of the IPC includes situations where the married woman is willingly staying with the accused
The primary rationale offered by the court for upholding the conviction of the first appellant was that, considering the text of the IPC along with its occurrence in Chapter XX, it shows that provisions such as Section 498 and 497 were intended to protect the rights of the husband. Chapter XX deals with those offences that pertain to marriage. Under Section 498, the consent of the wife to deprive her husband of his proper control over her was therefore held to be immaterial.
The court held that the conviction under Section 498 would include those instances where the wife is being kept from her husband or any other person who is taking care of her on behalf of her husband. This might be using force but can also include instances where the woman has voluntarily left with the other person due to persuasion or allurement, which may have either induced the woman or encouraged the initial inclination to leave her husband. The court reasoned that if ‘consent’ cannot be a defence in the first three instances mentioned in the statute, which are ‘taken away, entice or concealed’ then it cannot act as a material factor in the last category of cases.
With reference to the questions of fact, it was proved that Rahmatia left her marital home on the promise of the accused that he would marry her. It was this inducement that also persuaded her to stay with the accused and not return to her marital home. It is also evidence that he knew that she was married. Additionally, the claims of marriage made by the first appellant also show his intent to have illicit sexual intercourse. Considering that all three elements were fulfilled, the court held the accused guilty under Section 498.
Whether the High Court is justified in enhancing the punishment of the accused persons
The Court held that the High Court was unjustified in enhancing the punishment. It was noted that the High Court might have been of the belief that the Sessions Court was unduly lenient and the show cause notice to that effect might have been justified. However, the Court held that while enhancing the sentence, it should have simply restored the sentence that was passed by the trial judge.
Additionally, the Court held that considering the fact that Rahmatia was a woman of ‘loose moral character’ who had voluntarily left her marital home to marry the accused, a two month imprisonment as initially imposed by the trial court could not be considered unduly lenient.
Whether there was sufficient evidence against Appellant No. 2 to sustain his conviction under Section 498 of the IPC
The court held that the case of the second appellant can be clearly distinguished from the first. Rahmatia acted upon the persuasion and blandishment proffered by the first appellant and not the second. The only evidence adduced against the second appellant is that he threatened the compliant. Therefore, this would not attract the penalty under Section 498.
Precedents relied on
In the case of In Re Sundara Das Tevan (1868), 4 M.H.C.R. 20, the Madras High Court held that detention would constitute depriving the husband of proper control of his wife for the purpose of illicit sexual intercourse by offering certain allurement or other kinds of persuasion. On the question of whether ‘detention’ would require force, the High Court held that the deprivation forseen in the judgement need not only be effectuated by physical force but can also happen through allurement or blandishment. On the facts of this case, however, the Court was not satisfied that the accused offered any such kinds of influencing. Therefore, the conviction was set aside.
This application of the section was likewise followed by the Bombay High Court inEmperor vs. Mahomed Dawood (1946), where it was held that even if the woman accompanied the accused out of her own will, this will not be a defence if evidence of allurement or blandishment can be concretely found. Similar to the Madras High Court case, such evidence was not found here.
This question was again taken up by the Bombay High Court in Emperor vs. Mahiji Fula(1933), in whichthe wife was taken away by her brother, who subsequently got her married to the accused. When the husband asked the accused to allow his wife to go back with him, the accused threatened the complainant to return to their village. The Court held that the conduct of the accused would not fall under the category of detainment.
In a Calcutta High Court judgement in Prithi Missir vs. Harak Nath Singh (1936), a similar interpretation for ‘detention’ was upheld, wherein it was interpreted that this word is ejusdem generis with enticement and concealment. Further, the Court held that for an action to fall into this category, while lack of consent is not necessary, there must exist evidence that the accused’s actions precluded the woman from returning to her husband.
InBanarsi Das vs. Emperor (1930), the Patna High Court held that providing shelter to a married woman would constitute an inducement and amount to detention under Section 498. Therefore, the facts of this case led to an inference against the accused. This view was supported by the decision of the Lahore High Court in Bansi Lal vs. Crown, 319 Pun LR 1913, where the court held that providing a house for the woman to stay after deserting her husband was an act of active conduct sufficient to bring it within the ambit of Section 498.
However, there are also judgements cited in this case where the courts have deferred the construction of the word detention. In Harnam Singh vs. Emperor (1918), the Lahore High Court held that detainment would imply unwillingness on the part of the woman.
Analysis of Alamgir & Another vs. State of Bihar (1958)
This case, while recognising the anachronistic basis of the law, refused to strike it down, citing policy reasons. This kind of judicial evasion is similar to the court’s reasoning in refusing to strike down marital rape, saying that it constitutes a judicial encroachment into law making sphere and that it is protecting the privacy and sanctity of marriage.
In examining the legal status of adultery, it becomes evident that Section 498’s indirect enforcement of adultery laws through references to illicit intercourse lacks a robust rationale in modern jurisprudence. Principles of criminal liability emphasise the need for sound reasoning behind criminal statutes. Section 497, which criminalises adultery, fails to meet these standards and instead perpetuates outdated notions of marital subordination.
The existing legal framework, particularly Sections 359 to 369, adequately addresses issues of kidnapping and abduction regardless of age, gender, or marital status. This renders the specific criminalization of adultery redundant and raises questions about its necessity. Furthermore, the criminalization of a married woman’s exercise of free will in matters of personal relationships does not demonstrably impact society to an extent warranting criminal sanctions.
Consequently, the continued criminalization of adultery represents an unjustified intrusion of the State into the private sphere of individuals. This stance not only conflicts with evolving societal norms but also challenges fundamental principles of personal autonomy and privacy. In light of these considerations, there is a compelling argument for the reevaluation and potential decriminalisation of adultery, aligning legal standards with contemporary understandings of individual rights and social dynamics.
Additionally, as described above, such provisions violate Articles 14, 15 and 21 of the individuals and is based on consideration of ‘woman as chattel.’ Considering that such provisions demean and degrade the status of women, they violate modern constitutional values. This provision targets women alone, restricts her free will and is therefore violative of Articles 14 and 15(1) of the Constitution. It considers women as the subject of her husband and seems to consider that her sexual autonomy and dignity are traded away upon marriage. Additionally, in the case ofNavtej Singh Johar vs. Union of India (2018), sexual privacy was held to be a natural right that is fundamental to the dignity and liberty of an individual. Section 498 is clearly at odds with these values. This is also violative of the right to move freely throughout India as under Article 19(1)(d) and the right to reside and settle in any part of India as under Article 19(1)(e).
As mentioned by the facts, Rahmatia was someone who, out of her own will, left her marital home to stay with someone of her choosing. However, in this whole trial, she becomes invisibilized, with her wishes and desires being sidelined. Indeed, the judgement reads like a property dispute between the husband and the accused, with Rahmatiah being reduced to the chattel of her husband. Indeed, the judgement explicitly acknowledges that Section 498 gives precedence for the rights of the husband over the wife, thereby violating the substantive equality of the wife and denying them equal protection.
Additionally, while redacting the enhanced sentence which was passed by the High Court, the Supreme Court made certain assertions about the morality of Rahmatia, describing her as having ‘loose moral character.’ Therefore, non legal misogynistic considerations about the character of the woman influenced the decision of a purely legal matter concerning the validity of the enhancement of punishment. Hence, this judgement is clearly regressive, paternalistic, discriminatory and based on harmful gender stereotypes and prejudices about marital relations.
Conclusion
This case brings to light the deeply problematic and outdated nature of Section 498 of the Indian Penal Code. The Supreme Court’s decision to uphold the conviction under this archaic provision exposes the law’s paternalistic and discriminatory foundations. By prioritising the husband’s “rights” over the wife’s autonomy and consent, Section 498 essentially reduces married women to the status of their husbands’ property.
The court’s rationale is steeped in outdated concepts of female subjugation and marital hierarchy, which are incompatible with the principles of a modern, constitutional democracy. By criminalising a married woman’s exercise of free will, Section 498 infringes upon fundamental rights to privacy, dignity, equality, and freedom of movement as guaranteed by Articles 14, 15, 19, and 21 of the Constitution.
Furthermore, the court’s disparaging comments regarding the complainant’s “loose moral character” highlight how such laws perpetuate and legitimise regressive societal attitudes that undermine women’s sexual autonomy. This case ultimately emphasises the urgent need for a comprehensive reform of the Indian Penal Code to eliminate outdated, discriminatory provisions like Section 498 that conflict with constitutional values of equality, dignity, and personal liberty. Legal reforms are crucial to eradicating the law’s ingrained biases against women.
Frequently Asked Questions (FAQs)
How is Section 498 different from kidnapping?
The offence of kidnapping under Section 366 is distinct from the offence under Section 498 and is considered relatively minor. While the court acknowledged that the offence under Section 498 is inconsistent with modern notions of marriage and the status of women,. However, the courts refused to consider this point further, saying that this was a question for the parliament, which the courts are not concerned with.
What is Section 198(2) of CrPC?
According to Section 198(2), only the husband or any person with whom the husband entrusted his wife can raise a complaint against a third party under Sections 497 and 498. This was rendered unconstitutional by the Joseph Shine case. Therefore, there exists a legal vacuum with respect to who can file a complaint and against whom under Section 498.
What is the implication of the Joseph Shine judgement on members of the Armed Forces?
Section 69 of the Army Act, 1950, punishes members of the armed forces for committing civil offences. In 2020, the Centre filed an application before the Supreme Court asking for clarification with respect to the Joseph Shine judgement and whether it would be applicable to members of the Armed Forces or not. Subsequently, a 5 Judge Constitutional Bench was set up to look into the same, led by Justice KM Joseph, who passed the final order on the matter in 2023. The Court held that while decriminalising adultery, they were not concerned with the laws of the armed forces and that consequently, this would not impact them.
Has adultery been made an offence under the Bharatiya Nyaya Sanhita?
While the first draft of the BNS constituted a provision under clause 84 that was very similar to Section 498, this was later omitted. The Parliamentary Standing Committee had suggested that the BNS be amended to make adultery a gender neutral offence. This was proposed to be done in order to preserve the sanctity of marriage.
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The term “property” has a broader meaning in the real sense. It includes money, gold, and other things equivalent to value. Also, it includes intangible rights like stocks, land, and other sources of income. An individual has a right to enjoy his interest in the possession/ ownership of certain things. Moreover, the individual can enjoy his rights and interests and be used in an absolute manner, provided that the things do not contradict what is prohibited by law.
A property can be anything an individual or a business entity carries as possession/ownership of certain things and enjoys certain rights over them. Examples of properties that are either tangible or intangible include industrial, machinery, automobiles, electric vehicles, furniture, clothes, and real estate.
Some of the property has potential monetary value that can form assets. Similarly, there can be liabilities, such as if a customer receives any injury on the company’s property, the owner is liable to pay for the medical bills for the injured person.
The two most common types of property are real property and personal property. For instance- The real property cannot be moved from its places like land, house, or building, whereas personal property can be movable like a four-wheeler vehicle, furniture, or jewellery. Furthermore, personal property falls into sub-segments of intangible assets like stock, goodwill, songs, music, etc.
Understanding the tangible personal property and intangible personal property
Tangible personal property
This kind of property operates in everybody’s daily lifestyle through different types of business operations or by an individual. Generally, the property is often concluded to have a depreciating value based on an accelerating period or 3-5 years of duration. For example – cars, mobile phones, laptops, jewellery, art, electronics, and furniture. However, it can also be taxed on the actual price ( the difference between the sale and purchase price ) and the depreciating value.
Intangible personal property
This kind of property is related to things that cannot be touched physically. It has no physical size, but it constitutes something of value. Intellectual property is a famous form of intellectual personal property. Some examples are images, social media, reputational capital, and other personal digital assets. Individuals and companies have patents, copyrights, life insurance contracts, securities, investments, and partnership interests.
The common forms of intangible personal property are goodwill, research and development, capital assets, patents, and trademarks. It is associated with the benefits and value recognition of the business entity or by an individual shown in the financial assessment of a company’s balance sheet. For example- a trademark or patent can be mounted as an asset on the balance sheet.
Primarily, intangible personal property determines the actual price of objects; one must follow up on independent research. Once the value evaluation assists the product, the company waives some incurred costs for making an intangible intellectual product.
Real property meaning in the real estate sense
Real property refers to land and things attached permanently to it, such as buildings, structures, minerals, water, natural resources, plots of land, public squares, farms, factories, commercial industries, and trees. According to real estate law, it provides the right to use, manage, and dispose and things attached to land.
Real property, known as real estate or immovable property, encompasses the portion of land or things attached to it. Real property is subject to property taxes that the local government puts a levy on. In many jurisdictions, taxation is incurred differently on real property and personal property. Real property taxes are inclined towards physical land. At the same time, personal property taxes are closely inclined towards movable or intangible assets with respective rates and parameters.
The assets are duly registered according to law and only hold validation status because they act as proof to the corresponding authority. In personal property registration, movable items like a car are an essential obligation for a person. But a penny thing like furniture is less required.
Types of real estate property
Residential real estate- It comprises houses and undeveloped land
Commercial real estate- It comprises constructions, commercial buildings, and the tertiary sector of the service industry.
Industrial real estate- It includes buildings, extensive lands, and plots for agriculture or the manufacturing sector.
Difference between real property and personal property
Difference
Real property
Personal Property
i) Meaning
In real property, tangible or immovable things are permanently attached to the land. Example – building
In personal property, movable things are not attached to the land. Example- furniture, car
ii) Registration and transfer
In real property, it is transferred through a deed. Registration is mandatory
In personal property, sale, contracts, bills, agreements, and other methods are transferred. Registering of items is less necessary depending upon the nature of the commodity
iii) Fixture and fittings
These items are initially personal property but when attached to the land or building, they become real property.
In personal property, no fixtures and fittings are required as they are not part of real estate or real property.
iv) Possession
It involves the possession of land itself, its minerals, natural resources, etc.
It includes the possession of goods, which are movable things e
v) Examples
Land, houses, trees, minerals, etc.
Furniture, electric vehicles, jewellery, etc
vi) Rights
The person has the right to sell, use, mortgage, and lease the land.
The rights are limited here as compared to real property. Although they have the right to possess, use, and transfer personal property.
vii) Regulations
The concerned authorities regulate real estate property laws, exclusive size, tax, and land usage regulations.
In personal property, less regulation and no complex legal procedure are there.
viii) inheritance
In real property, the inheritance is operated through probate
This type of inheritance is functional either orally or in the form of a written agreement because the movable items inheritance process runs with ease.
ix) Main focus
In real property, it focuses on the land and their related rights
The personal property, emphasis is more on possession held by individuals and entities
x) Importance in law
It is highly significant in real estate laws
It is highly essential in tort and sales contracts.
xi) Investment and value
The investment in real estate increased over time. It has more significant value than personal property.
It also has some value in things, but in personal property, depreciation of things occurs quickly.
Features of personal property
Movability: Personal property is movable and can be easily transported from one place to another. For example, you can move your furniture, clothes, and electronics from one apartment to another.
Transferability: Personal property is easily transferable from one owner to another. You can sell, gift, or bequeath personal property without having to go through a lengthy legal process.
Ownership: Personal property can be owned by individuals, businesses, or other legal entities. Ownership of personal property is generally evidenced by a bill of sale or other written document.
Taxes: Personal property is subject to taxation, such as property taxes and sales taxes. The tax rates for personal property vary from jurisdiction to jurisdiction.
Estate planning: Personal property is subject to estate planning laws. You can use a will or trust to distribute your personal property to your heirs after your death.
Features of real estate
Immovability: Real estate is not movable and cannot be easily transported from one place to another. For example, you cannot move a house or a commercial building from one lot to another.
Transferability: Real estate is less transferable than personal property. To transfer real estate, you must go through a legal process known as a real estate transaction. This process involves obtaining a title search, signing a purchase agreement, and recording the deed with the local government.
Ownership: Real estate can be owned by individuals, businesses, or other legal entities. Ownership of real estate is generally evidenced by a deed or other legal document.
Taxes: Real estate is subject to taxation, such as property taxes and transfer taxes. The tax rates for real estate vary from jurisdiction to jurisdiction.
Estate Planning: Real estate is subject to estate planning laws. You can use a will or trust to distribute your real estate to your heirs after your death.
Personal property and real estate are two distinct categories of property with different legal characteristics. Understanding the distinction between personal property and real estate is important for many legal purposes.
Modes of acquisition of property
According to Salmond, there are five types of property that can be obtained. The following are:
Possession
Generally, it means taking custody of physical property. It is prima facie evidence pertaining to the ownership of property. There is little difference between ownership and possession. The person who is said to have possession of an asset is considered the owner of goods or assets on such property unless there is a contract involved. Both de jure and de facto rights occur in property. For example, A landlord gives his house to tenants. The tenant is said to have held possession of the house, but ownership is left with the landlord only. The possession of property or ownership of property in the same house can lie with different persons or individuals.
Prescription
According to Salmond, the prescription shows the effect of time constraints on creating new rights and destroying some old rights. Therefore, it needs to prove that a person is using his rights over real estate for a very prolonged period without any hindrance, interruptions, or continuous exercise of his rights. It is known as a doctrine of prescription. For example- Right to way, sunlight, sewage, etc.
Agreement
The agreement is the most preferred method for acquiring property. It is a process of formal agreement between two persons, that is, the buyer and seller, for an exchange of property concerning the consideration of something of value.
Inheritance
Inheritance is the legal process by which property and assets are passed down from a deceased person (the “decedent”) to their legal heirs or beneficiaries. It involves the identification, valuation, and distribution of the decedent’s estate, including real property, personal property, financial accounts, and other assets.
The rules and procedures governing inheritance vary across jurisdictions, but there are some common principles. In many countries, inheritance is primarily governed by the laws of “intestacy,” which outline how an estate is distributed in the absence of a valid will. These intestacy laws typically specify the order of priority in which different family members inherit, such as surviving spouses, children, parents, siblings, and more distant relatives.
In the presence of a valid will, however, the deceased person’s wishes regarding the distribution of their assets take precedence. A will is a legal document that outlines the decedent’s instructions for how their property should be distributed after their death, including specific bequests or gifts to individuals, organisations, or charities.
The process of administering an estate can be complex and time-consuming, involving tasks such as probate (the legal process of validating a will and authenticating the executor), inventorying the estate’s assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries. In some cases, an executor (or personal representative) is appointed to oversee the administration of the estate and ensure that the deceased person’s wishes are carried out.
Inheritance laws and procedures can have significant implications for individuals and families. Factors such as the presence or absence of a will, the size and complexity of the estate, and the relationships among the beneficiaries can influence the distribution of assets and potential legal disputes.
Estate planning, including drafting a will, can help individuals ensure that their wishes are respected and that their assets are distributed according to their intentions. Seeking legal advice from an estate attorney can provide guidance and support throughout the estate planning and inheritance process.
Gift
As mentioned in Section 122 of the Transfer of Property Act of 1882. It is the most commonly followed for acquiring property offered under love and affection. It is an instrument in which a person’s property is transferred to another without receiving any consideration in return. The essentials must be fulfilled for a valid gift to meet certain criteria:
True ownership
Free consent
Real Property
Made without any considerations
Supreme Court’s view
In the case of Suraj Lamp & Industries (P) Ld.Tr.Dir vs. State Of Haryana & Anr, the Indian court held on October 11, 2011, that a power of attorney alone does not constitute a valid transfer of immovable property. The court emphasised that only a deed of conveyance, such as a sale deed, can effectively transfer ownership rights in real estate.
The court’s decision underscores the importance of adhering to legal formalities when transferring immovable property. A power of attorney, while it may authorise an individual to act on behalf of another person, does not convey ownership rights in and of itself. The court reasoned that without a formal transfer deed, no right, title, or interest can be effectively transferred in relation to immovable property.
This ruling aims to protect the interests of both parties involved in real estate transactions and ensure that property ownership is clearly established and documented. By requiring a deed of conveyance, the court ensures that the transfer process is transparent, verifiable, and legally binding.
In the absence of a valid transfer deed, individuals may face legal challenges or complications if disputes arise regarding ownership or rights to the property. The court’s decision emphasises the need for individuals to seek legal counsel and follow proper procedures when engaging in real estate transactions to avoid potential legal issues and protect their rights effectively.
In the landmark case of State of Maharashtra v. Vishwanath Tukaram Umale, the court established a crucial precedent regarding the definition of theft. The court held that the unauthorised transfer of movable property without the consent of the rightful owner constitutes theft, regardless of the duration of possession by the unauthorised party. This ruling has significant implications for property rights and theft-related offences.
According to the court’s interpretation, the essence of theft lies in the unlawful taking and carrying away of movable property without the consent of the owner. This definition encompasses both temporary and permanent dispossession of property. Therefore, even if an individual gains possession of another’s movable property without their consent, intending to return it later, their actions still meet the criteria for theft.
This ruling aims to protect the rights of property owners and ensure that individuals cannot arbitrarily take and use others’ belongings without legal consequences. It recognises that even temporary deprivation of property can cause inconvenience, loss, and potential financial harm to the rightful owner.
The court’s decision in State of Maharashtra v. Vishwanath Tukaram Umale serves as a reminder that individuals must respect the property rights of others and seek their consent before taking or using their movable belongings. This precedent helps to maintain order and fairness in society by deterring unauthorised possession and safeguarding the interests of property owners.
Conclusion
In conclusion, the concept of property is multifaceted, encompassing a wide range of tangible and intangible assets. Whether it is real property, personal property, or intellectual property, individuals and businesses hold various rights and interests over possessions that contribute to their overall value. Tangible personal property, such as cars and electronics, contrasts with intangible personal property, like patents and copyrights, highlighting the diverse nature of assets.
Real property, particularly in real estate, involves land and permanent attachments, subject to distinct regulations and taxation. The differences between real property and personal property extend to aspects such as registration, possession, rights, and inheritance procedures, each playing a crucial role in legal and financial contexts.
Modes of property acquisition, as outlined by legal scholar Salmond, include possession, prescription, agreements, inheritance, and gifts. These modes illustrate the varied ways individuals acquire and transfer ownership of property, reflecting legal, contractual, and familial dynamics.
Understanding the nuances of property, its types, and modes of acquisition is essential for navigating legal frameworks, financial transactions, and estate planning. As individuals and businesses engage with diverse assets, the intricate interplay of tangible and intangible elements underscores the significance of property in shaping legal, economic, and personal landscapes.
Before we learn what risk management is, let’s try to understand what risk is. Risk is a chance or probability of gaining success in our venture, in simple words! So, it is the positive or negative impact of external or internal factors on the delivery of any commodity or service by a project, a business unit, or a company. Hence, risk management is the process of identifying, evaluating, and planning responses to both positive and negative events that occur during the delivery of a commodity or a service. Through risk management, we try to increase the impact and probability of opportunities (positive events) while decreasing the impact and probability of threats (negative events). Risk identification is an ongoing process that requires commitment from employees at all levels of the company. Though it is not possible to control uncertainty in a business, businesses are expected to be risk-averse to gain the required business agility and profits in the long run.
Risk Management and Corporate Governance
Corporate governance refers to the sets of rules, practices, systems, and processes by which a company is directed, administered, and controlled. The primary objective of corporate governance is to ensure that an organisation’s resources are used efficiently and effectively to achieve its goals while maintaining ethical and legal standards. Promoting transparency, accountability, fairness, and protecting shareholders’ interests is the primary goal of good corporate governance. This primary goal should foster a balance between risk-taking and value creation in the best interest of the company, supporting the short-term and long-term goals of promoters and shareholders.
The interdependence of risk management and corporate governance improves effectiveness by promoting transparency, accountability, and informed decision-making. Here are the ways risk management enhances good corporate governance:
Map risks to corporate goals and objectives: By mapping risks identified to a company’s goals and objectives, a more informed decision is supported, reducing stakeholders and promoters conflicting interests. Based on the company’s risk tolerance and appetite, more viable strategic goals can be set.
Promotes better transparency and accountability: As risk identification and assessment provide a holistic view of the risk faced by the company, stakeholders are aware of the mitigation plans and roadway ahead. Accountable managers and impact are also well known.
Investor Safety: Since effective risk management envisions future dangers and has mitigation plans, the financial stability of the company is guaranteed against all odds. Companies are in a position to perform better in controlled environments.
Better Decision Making: All risks, threats, and opportunities are visible forehand, so the board of directors and stakeholders can make better decisions on options to choose from the overall business strategy.
Sustainability: With identified risks and changing market conditions, companies can adapt to changing market needs and remain resilient to market dynamics.
Opportunities and New Ventures: Identifying positive events or opportunities can provide companies with new business ventures to grow on the drive.
Company law and risk management
As per the Companies Act, 2013, a risk management committee shall be formed by the top 1000 listed companies based on market capitalization. The majority of members shall be from the board of directors. The Companies Act of 2013 doesn’t have any mandatory requirements for the number of meetings or the procedure for the risk management committee.
SEBI and Risk Management
As per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the top 1000 listed companies or high-value debt listed companies shall form a risk management committee. The Risk Management Committee is to have a minimum number of 3 directors, including 1 (2 for outstanding SR equity shares) independent director. The chairperson shall be a member of the board of directors, and senior executives are expected to be part of the committee. The committee shall meet at least twice a year, and the gap between two meetings cannot be more than 210 days. Mininum 2, or 1/3rd of the total number of members, shall form the quorum.
Implementing risk management process as per PMI
As per PMI (Project Management Institute), the following are the processes we need to implement for successful risk identification, classification, assessment, and response:
Plan risk management
Identify risk
Perform a qualitative risk analysis
Perform a quantitative risk analysis
Plan risk response
Implement risk responses
Monitor risks
To discuss the same in detail:
Plan risk management: It answers the question of how much time has to be spent on risk management in a project or delivery cycle.
This process involves:
Identifying the risk appetite of management.
Key stakeholders and identifying who will be involved.
How the team will go about performing risk management.
Organisational procedures and templates related to risk, probability, and impact matrices are identified and adapted.
Identify risk: The entire team contributes to identifying risks related to the delivery of the project. This is when the risk register is created along with the risk category. SWOT and BrainStorm sessions are used as tools for risk identification.
Perform a qualitative risk analysis: Once the risks are identified with their probability and impact, the next step is to categorise those risks as high, medium, or low on a scale of 1 to 5 or 1 to 10. After analysis, risks are prioritised based on impact, and a list of highly prioritised risks is created. Assumption logs and issue logs are updated with the necessary information for future use and reference.
Perform a quantitative risk analysis: After qualitative risk analysis, we use risk probability and impact to calculate the amount at stake or consequence. Expected Monetary Value (EMV) is used to estimate the impact of a risk by calculating its probability times its estimated cost.
Example: EMV = P*I = 65% * $40,000 = $26,000, where P = 65% of risk occurrence and I = $40,000 (impact cost). So, $26,000 is at risk or at stake.
Quantitative risk analysis is an optional step and can be used based on time and budget availability.
Plan risk response: After qualitative and quantitative risk analysis, the registered risk is evaluated, and a response is planned for each risk. Following are the types of responses for any risk.
Accept: It is accepted that a risk will occur, and based on the stakeholder’s appetite, proceed with the project or delivery.
Avoid: Analysis is done, and an alternate or optional path is chosen to avoid the risk completely.
Mitigate: Analysis is done, and risk is mitigated by reducing probability and impact. The risk no longer remains a risk and is removed from the risk register.
Transfer: Analysis is done, and risk is transferred to another party by purchasing insurance or assigning tasks to a third-party contractor with a specialised skill set.
Implement risk responses: As and when risk occurs, risk response plan is followed as per the planned response in risk register.
Monitoring risk: Risks are continuously monitored during the project or delivery, and the risk register is updated accordingly. The above processes are followed repeatedly in a continuous cycle throughout the life cycle of the project or delivery.
Types of risk management models
The following table provides an overview of the top risk management models, comparing their key advantages and disadvantages and the industries where they are most actively used.
Model
Advantage
Disadvantage
Industry
FRM (Financial Risk Manager)
This model provides a comprehensive understanding of financial risk and is recognised globally
This model needs a lot of experience and rigorous study for implementation.
Finance, Banking, and Investment Management
PMI-RMP (PMI Risk Management Professional)
This model is specialised in project risk management and is recognised globally
Requires prior risk management experience and PMP certification
Project Management, Construction, and IT
PRM (Professional Risk Manager)
This model focuses on financial risk management and is globally recognised
Less recognised compared to FRM.
Finance, Investment, and Banking
CRISC (Certified in Risk and Information Systems Control)
This model combines IT risk management with enterprise risk management
Requires continuous education and prior experience
IT, Cybersecurity, and risk management
CERA (Chartered Enterprise Risk Analyst)
This model integrates actuarial principles with enterprise risk management
It is relatively new and is less recognised.
Insurance, Finance, and Risk Management
ISO 31000 (International Standard for Risk Management)
This model provides a broad framework applicable to various industries
Difficult to adapt and use.
Various industries, including manufacturing, finance, and healthcare
COSO ERM (Committee of Sponsoring Organisations of the Treadway Commission)
This model is a comprehensive framework for enterprise risk management
Complex to implement
Corporate Governance, Finance, and Healthcare
RIMS-CRMP (Risk and Insurance Management Society Certified Risk Management Professional)
This model is the most practical and easy-to-use framework.
Less recognised globally.
Insurance, Risk Management, and Corporate
Case study : Hydro One
One of the most successful implementations of enterprise risk management in Canada is Hydro One. Executives wanted to implement ERM when the company split out from Ontario Hydro due to the scheduled deregulation of electricity markets and increased scrutiny of corporate governance. Hydro One wanted to look at risks and opportunities in an integrated way to better allocate corporate resources.
External consultants were initially used to address the ERM implementation, but their efforts were not successful. So, the Corporate Risk Management Group was formed, and two documents, ERM Policy and ERM Framework, were created.
ERM Policy: Establish governing principles and identify responsible people for the specific aspects of the risk.
ERM Framework: Set up a procedure for the ERM in a detailed manner.
A small workshop was conducted in a subsidiary with a list of 80 identified risks. Using the Delphi Method, 8 risks were discussed, and it was found that issues that managers had never discussed openly before were addressed, and new risks were identified. After the success of the pilot programme, the Audit and Finance committee approved the documents and laid down the roadmap for implementing ERM at Hydro One.
The overall aim at Hydro One was to maintain an optimal balance between business risks and business returns. The business category of risk at Hydro One included strategic, regulatory, financial, and operational risks.
The Risk Management Group at Hydro One prepares a corporate risk profile twice a year. The main purpose of the corporate risk profile is to share a common understanding of the principal risks the organisation is facing and proper resource allocation to address risks based on priority. All risks were aligned to business goals and objectives in a structured way, providing a holistic view of the challenges faced by the company.
Benefits of ERM
The following are the benefits of ERM at Hydro One:
Effective and better coordinated process for capital allocation.
The company’s credit rating improved, and capital costs were lowered.
As a result of ERM implementation, management feels that the company is in a better position today to respond to new business development than it was 5 years ago. In the end, risk management is everyone’s responsibility, from the Board of Directors to individual employees.
Suggestions
The Company Act, 2013 & SEBI LODR, 2015 have established guidelines for companies to have a risk management committee to monitor the business for uncertainties that may arise over time. It is recommended that companies have at least the top 10 industry specific risks identified, and companies should position themselves with competitors, the global market, regulation, the industry sector, and changing market dynamics. The risk index should be part of financial statements as part of regulatory requirements from SEBI, indicating the company’s risk performance on a scale of 1 to 5, where 1 is very low risk and 5 is very high risk. This information will help investors and stakeholders understand the company’s risk management and operational resilience.
Conclusion
Overall, this article covers all the aspects of risk management and helps understand that being risk averse helps companies sustain long term success and create value, safeguarding the interests of investors, customers, and promoters. ERM (Enterprise Risk Management) is the only way to align risks and challenges with corporate goals and objectives.
In today’s world, the variety of processed foods (for instance, biscuits, chips, bread, meat, and eggs) available is vast. The food industry is blooming with innovations and has been making tremendous breakthroughs, from producing food to customer delivery. The shift in consumer demographics outgrows the supply of products, which then makes the inspection of the food product complex. This is where artificial intelligence (AI) steps in, ensuring the safety of the product with its efficiency and high accuracy.
Food quality management
It is a direct process of controlling the creation, production, handling, and distribution of food products throughout the supply chain. It also verifies that the food products meet established standards of quality, safety, and consistency.
Objective
The objective of food quality management is to achieve food quality and safety by producing and distributing reliable and safe food products to consumers. This includes understanding and adhering to the laws and guidelines set by regulatory bodies. So many food manufacturing companies use certain food quality management systems to certify their products to gain consumer’s trust.
The food quality management system in use are
HACCP(Hazard Analysis and Critical Control points)
ISO Certified 22000
The Global Food Safety Initiative (GFSI)
International Food Standard (IFS)
British Retail Consortium
Safe Quality Food (SQF 2000)
HACCP (Hazard Analysis and Critical Control points)
HACCP is the international standard system procedure opted for by many food factories. It is a management approach that effectively identifies and evaluates the likelihood of potential risks and establishes actions to prevent them without compromising food quality. The creation of an HACCP plan is important as it is used as a guideline for all the processes in the supply chain. The scope of this plan is to segment all the production processes separately and address all kinds of known potential hazards.
Prerequisites to create HACCP Plan
Assemble a HACCP team
Describe the Product and the Process
Identify the Targeted Audience
Construct a flow diagram
On-site confirmation of flow diagram
HACCP Principles
HACCP operates through the following seven principles:
Conducting hazard analysis: Analyse the potential hazards like bacteria, viruses, contaminants, foreign bodies, or additives in the sampling of raw materials.
Establish Critical Control Points (CCP): A critical control point is a point or step in which control needs to be applied in the process to prevent or eliminate food hazards in an effective way. For instance, in the production of biscuits, the biscuits should be cooked for 30 minutes. This baking step is a CCP.
Define Critical Limit: A critical limit is a minimum/maximum value at which biological, physical, & chemical hazards are controlled at each CCP. For instance, in the production of biscuits, the biscuits should be cooked for 30 minutes. The critical limit is 30 minutes. If breached, the biscuits will be burnt.
Monitoring the Procedure: Monitoring all the processes in the supply chain is necessary so that the data are documented to analyse food hazards if there is any deviation.
Establish corrective actions: If there is any known deviation at a CCP, take corrective action as defined in the HACCP Plan. If it is a new one, alert the HACCP team for further action. This can be done by finding the root cause of the hazard. For instance, if the biscuits are burnt, that specific batch of biscuits needs to be discarded.
Verification and Validation Procedures: Verification is a process to verify that the HACCP plan is adequate and working. This may involve regular internal audits and reviews. Validation is evidence that shows the HACCP Plan is controlling the potential food hazards in the supply chain.
Record keeping and documentation: This tracks down all the process and product data, from sampling raw materials to analysing and evaluating the food hazards and actions taken for them, as well as the testing of the final food product, storage, packaging, and shipments. The recordings of all known and new deviations at all CCPs need to be documented for further use.
Experts conduct audits to verify that the food product is in compliance with the regulatory standards so that the food manufacturer gets a licence to sell the food products on the market. The hazard analysis tests are mostly done in a laboratory and require human intervention. All the data is manually entered and stored here. Any human error may result in the brand losing its reputation.
IndiaHACCP Certification
In India, the FSSAI (Food Safety and Standards Authority of India) is a statutory body that grants licences to food manufacturers and restaurants to maintain food quality. The licence is required by all the food businesses that operate in India.
Source: Britannia Industries
In the IndiaHACCP scheme, the food manufacturers will get certification from the certified bodies under this scheme. It is based on the best international practices and global standards to ensure internationally acceptable certification. It would provide an alternative to foreign certificates.
Traditional methods vs AI
There are various limitations of traditional methods and benefits of using AI over traditional methods, which can be summarised as follows
Limitations of traditional methods:
Time consuming
Extensive labour
Large expenses
Prone to human error
Benefits of AI over traditional methods:
Speed
Accuracy
Efficiency
Reduced Labour
Cost Effective
Effective Risk Management
Role of AI in enhancing food quality
By integrating AI with HACCP, risk assessment and management will be smooth. AI has a wide range of tools to analyse, predict, detect, and prevent anomalies in the supply chain.
Predictive analysis: AI algorithms can analyse historical data (for instance, food safety reports, temperature, working conditions, speed of machines, and environmental conditions) to predict anomalies and prevent risks in the production process. It helps in risk management.
Real-time monitoring and data analysis: IoT (Internet of Things) with sensors can analyse working and environmental conditions in real time. It analyses the data for any risks, like changes in storage conditions or different temperatures.
Quality control and inspection: Machine vision-based systems can analyse the image of the product to detect contaminants, impurities, and foreign objects. If anything is contaminated, they will alert the team with high accuracy. This reduces the time and labour involved in the traditional method.
Pathogen testing: Machine learning algorithms and biosensors can detect microorganisms like bacteria and viruses in the raw materials or in the production area. These pathogens can spoil the product if they are not removed.
Traceability: Blockchain technology can track food products throughout the supply chain. All the data is collected from the sensors and documented to identify any potential harm.
Stress Testing: AI helps in finding the shelf life of the products by stimulating scenarios at different temperature and moisture levels.
Customer Feedback: AI-powered systems collect the feedback in both online and offline modes and respond to queries and concerns effectively. The data are stored and analysed to find areas for improvement in the quality of the product.
Regulatory Compliance: AI assists agencies to verify the food products are in compliance with the food regulations. Automated systems can analyse the food inspection data and identify any non-compliance issues.
AI makes the job easier by automating systems to increase efficiency, accuracy, and speed. This results in analysing vast amounts of data in seconds, thus reducing hard labour and the cost.
FAQs
What is the supply chain?
It’s the process of the actual production of the food product and its shipments before consumption. It includes the selection of raw materials, the production process, testing, storage, and the final shipment of the product.
What is HACCP?
Hazard Analysis and Critical Control Points (HACCP) is a food quality management system with international quality standards to ensure the quality of the product. It will analyse both the process and the product and pinpoint the potential risks that need to be mitigated.
What is artificial intelligence?
Artificial intelligence, simply called AI, was invented to perform tasks through the deployment of computer systems that require minimal human interaction to improve efficiency, speed, and accuracy.
What is FSSAI?
The Food Safety and Standards Authority of India is a statutory body that operates under the Food Safety and Standard Act, 2006. It grants licences to all the food businesses in India.
Conclusion
By leveraging AI, the food industry can detect and mitigate the risks related to food safety, thereby protecting public health and reducing the risks of foodborne diseases. AI enhances risk management through predictive analysis, enabling the industry to boost its production value with quality standards. As AI continues to evolve, its role in food quality management will only become more integral, setting new standards for safety in the food industry.
This article is written by Aditya Shrivastava and Adv. Komal Arora. It delves into the important labour laws as well as other related laws that every HR professional should know. It includes the provisions of these legislations, a brief checklist for compliance and frequently asked questions on the topic.
Introduction
HR managers have a big role in shaping how a company grows. Right from recruiting, inducting, training and development and later to performance assessment and grievance resolution, they are responsible for performance, retention and satisfaction level of employees.
Labour law has a very important role to play in what any HR manager does in a day. For instance, hiring is accompanied by contracts and possible negotiation but firing may require one to follow provisions of different contracts, ensure that any Intellectual Property created by an employee or a consultant is protected and secured in favor of the company and that proper disciplinary proceedings are taken if someone is being fired for a breach in the code of conduct or for committing the offence of sexual harassment etc. Many HR managers perform these tasks without having any indication about the legal underpinnings of these functions, especially at a junior level. This can be quite risky from the company’s perspective. Having knowledge of labour law is thus crucial for HR professionals as it ensures that the company adheres to regulations related to wages, working hours, benefits to workers and their safety standards etc. and avoids any disputes.
This is one of the primary reasons why every HR course needs to have a legal module. However, this is usually covered in the way that very scared patients go through a root canal. You close your eyes through the ordeal and try to forget the experience as soon as it is over. With exceptions, of course, most fresh candidates who have specialised in HR have precisely little practical knowledge about labour and employment laws, or any other law that may be relevant to their work.
However, as you go up the chain, legal knowledge becomes indispensable. Let’s say you are drafting a leave policy for an organisation, and fail to check the relevant Shops and Establishments Act of the state, you will almost certainly get it wrong. The consequence can be paying heavy fines by the company if an inspector comes visiting, a potentially negative report in the media, and your bosses being very cross at your lack of relevant legal knowledge thereafter.
Let’s take another example. If an organisation has more than 25 or more employees, the Employment Exchange (Compulsory Notification of Vacancy) Act, 1959 mandates a private establishment to give a public notification to certain employment exchanges. Most HR managers have no clue about this law and their employers may have to end up paying big fines and dealing with legal hassles because of the non-compliance.
Human Resource personnels are often the first ones to register or discover internal turmoil, decline in productivity of individuals, unhealthy leadership, retention failures, corruption and even nepotism. Most of such issues have various legal implications and angles that need to be considered at a senior level to be addressed. When disastrous and expensive legal proceedings are assessed retrospectively, it is often found that the root was in unaddressed concerns. A good HR can see these concerns ahead of time and address them, therefore saving the resources of the company in a big way.
Let’s take an example. Let us imagine that in a company the workers who are working overtime are not being paid the extra amount. Non-payment of this amount can result in a legal dispute and the employer being sentenced to 2 years imprisonment or fine of Rs. 1 lakh or both. This can be very well avoided by a smart and legally aware HR manager who frames policies to ensure that it complies with the overtime rules.
Why should HR professionals learn labour laws
An HR professional needs to be updated about labour laws while doing mundane tasks such as drafting employment agreements, creating appointment letters, complying with labour laws or dealing with disciplinary proceedings etc.
The knowledge of these laws is important for legal compliance and regulatory adherence.
Understanding such laws leads to ensuring fair treatment of employees, builds trust between all the stakeholders and creates a positive work environment where the rights of the workers are respected.
Companies have in-house legal teams but they are not always readily available to help the HR professionals in their daily tasks. HR professionals should have a basic understanding of these laws so that they can sort out any petty issues before raising them to the legal team.
In case of violations of these laws, there can be imprisonment, fines, compensations as well as reputational damage. Knowing the legal implications of your actions is the best way to avert such punishments.
Issues related to labour and employment are important for the overall growth of a company and relying on external consultants blindly to manage these issues may not be the best approach.
Adherence to these laws will boost satisfaction of the employees and it promotes retention of the employees which build up the image of the company.
These laws enable the HR professionals to make informed decisions regarding hiring, firing, promotions and disciplinary actions in a company.
How can knowledge of labour laws help HR professionals in their career
HR professionals who also have labour law knowledge can prove to be an invaluable asset to the company in the following way:
Legal compliance
Legal compliance is the term which denotes the process of adhering to legal rule and regulations. HR professionals have to ensure that their organisation is adhering to the labour laws of the state. HR professionals ensure legal compliance by staying up to date with the laws and policies and setting up relevant workplace policies in accordance with such laws. By ensuring legal compliance, HR management helps the organisation avoid any penalty and legal disputes. HR professionals develop policies, regularly train management on legal concepts and maintain accurate records which are noteworthy qualities HR professionals.
Broadly speaking, an HR professional deals with 3 stages of employee relations i.e. (i) Recruitment and onboarding; (ii) Employee management (iii) Termination or retirement. In all the said stages, HR professionals have to ensure compliance with the applicable labour laws. Let’s understand the roles and responsibilities of HR at these stages.
Recruitment and onboarding- In this stage, an employment contract is signed which contains clauses for fixed remuneration, leave policy, insurance policy, provisions of bonus and gratuity, if application, fixing working hours etc. There are legal provisions for each of these subjects. So, to have an error free contract an HR professional should be well aware of legal intricacies around recruitment and onboarding of employees.
Employee management- Once an employee is inducted into the organisation, his day to day working starts. Here, once again HR has to ensure that the employee is not exploited, he gets equality in pay structure and should be equally eligible for promotion on merits. Along with that he has to ensure that he gets recognition and pay for the overtime works in accordance with law. Further, safety and security of the employees shall be of paramount importance. All this can be properly done if the HR management is well versed with the prevalent labour legislations and rules and regulations thereof.
Termination or retirement– Before termination of employment, a prior legal notice has to be served to employees in accordance with Industrial Dispute Act, 1947 (Now, Industrial Relation Code, 2019). Payment of gratuity, if any, has to be done in accordance with provisions of Code on Social Security, 2019.
In this article, we have explained all the important labour laws which should be complied by all the organisations to avoid expensive lawsuits, penalties and tarnished reputation and goodwill of the organisation. An HR professional must understand and implement these laws in the organisation he is working with.
Protects the rights of employees
HR professionals have a duty towards protecting the rights of employees. It builds trust and loyalty among the employees, contributes to a high retention rate and creates a positive work environment. Let’s understand the role of HR in protecting rights of employees:
Grievance redressal mechanism: HR professionals are responsible for establishing a formal grievance redressal mechanism where the employees can freely raise their concerns. HR should ensure confidentiality of the information shared, conduct fair investigation into the matter and take appropriate actions to protect employee’s rights. They can also create feedback mechanisms to improve the company. For example- there is provision of constituting Internal Complaint Committee in POSH Act for complaints of sexual violence.
Conduct training for employees: HRs also conduct regular training sessions for employees to make them aware of their rights and responsibilities as per Indian labour laws. They should display the rights of employees in conspicuous places of their workplace.
Establishing policies: HR is responsible to develop and communicate policies related to rights of employee such as sexual harassment, non-discrimination, health and safety, maternity benefit or working hours etc. There is a company policy on such important matters and it is the duty of HR to ensure that it complies with laws and is in the interest of the employee as well.
By fulfilling these responsibilities in accordance with the labour laws HR can become indispensable to the management of the company.
Workplace safety
By ensuring that the duties of employers and employees are fulfilled, the HR professional makes sure that the workplace and its environment are employee friendly. HR can ensure workplace safety in the following ways:
Inspections and audits: HRs conduct regular inspections of the workplace to ensure that there is compliance with safety regulations. It includes checking of machinery and equipment in the workplace, checking fire safety and looking for potential hazards in time.
Safety training: HRs are mandated to provide safety training to all the employees about workplace hazards, emergency procedures and use of first aid etc. This training is done periodically by HR and is an important part of workplace safety.
Reporting of incidents: To ensure workplace safety it is crucial to establish a procedure to report any incident, occupational disease or injuries. HRs establish such procedures to report and investigate incidents to determine root causes and take corrective actions for it.
Thus, HR must conduct safety training, safety audits, assess risk and report incidents to foster a culture of employee safety and it can be done right only when HR is aware of the laws regarding it.
Growth in career
The HR professionals who are aware of their responsibilities and comply with legal regulations can grow rapidly in their career in the following way:
Knowledge of needs of companies: HRs who know about labour laws get promoted faster as they are better at framing policies, and dealing with regulators and they know what the company needs to do to comply with the law.
Better career growth: Knowledge of these laws adds credibility and value to the role of HR in a company, which leads to their career growth and advancement opportunities. With this powerful combination, they can climb up the corporate ladder faster. With the right skill set, networking options and mentorship they can take more leadership roles in the company. The entry level positions such as HR Assistant or coordinator can become HR Manager or Director of HR.
Shows adaptability and flexibility: Labour laws evolve with changing needs of the industry, being influenced by legislature and courts and it isn’t easy to stay updated with it. HRs who can adapt to changing laws get an added advantage in their career by staying ahead of the regulatory requirements.
Thus, knowledge of labour laws can also help HRs to advance their career and become the company.
New labour codes
In India, we have many labour laws in regard to minimum wages, health and safety of workers or maternity benefits etc. There are a set of four new laws which consolidate 29 of old central legislations. If you are an HR manager, below is a list of statutes and regulations you can learn about and help your organisation succeed. Let us understand each one of them in a brief manner.
Code on Wages, 2019
As an HR it is your responsibility to see that the wages are duly credited to the workers on a monthly basis and without unnecessary deductions. You need to make sure that the workers consent to overtime work and are paid fairly for it. This Code is a guide to ensure that any such discrepancies can be avoided. It provides the standards for assessing the remuneration of the employees and ensures that the salaries are governed as per the industry standard. This is an Act meant to give you and your employee equal bargaining powers. It is a must know to avoid any future conflicts.
The Code on Wages, 2019 regulates the wage and bonus payments in all employments. It replaces laws such as:
The Minimum Wages Act, 1948: Under this Act, the appropriate government may fix the minimum amount of wages for employment if more than 1000 employees are working in an industry in the state. This amount of wages can be fixed and revised by the government.
The Payment Of Wages Act, 1936: This Act targeted the individuals in industry who earn less than Rs.24000 per month. It aims to provide and regulate timely payment of wages for a specified group of workers.
The Payment Of Bonus Act, 1965:This Act governs payment of minimum and maximum bonus in establishments. Bonus is reward for work done well. The minimum bonus was 8.33% and maximum was 20%, payable within 8 months from the close of the accounting year.
The Equal Remuneration Act, 1976: As the name suggests, this Act provides equal remuneration for both men and women. The employer is under a duty to not discriminate on the grounds of sex and pay remuneration equally for the same amount and nature of work which is done by females.
Application of Code on Wages
This Code is applicable to all employees working all over India. It is applicable to all the factories and establishments unless exempted by the Code. So, it applies uniformly to the organised and unorganised sector.
Important definitions under Code of Wages
Appropriate government
Section 2(d) defines appropriate government as in relation to an establishment which is carried on by or under the authority of the central government, railways, mines, oil fields etc. established by the central Act or central public sector undertaking it would be the central government. In case of any other establishment, it would be the state government.
Employee
Section 2(k) defines an employee as any person who is employed on wages by an establishment to do skilled, semi-skilled or unskilled, manual operational, supervisory, technical, clerical work for hire or reward. It also includes a person declared to be an employee by the appropriate government but does not include members of Armed forces or persons engaged under the Apprentices Act,1961.
Employer
Section 2(f) further defines employer as a person who employs, directly or indirectly, employees in his establishment carried by any department of the government.
Wage
Wage is defined under Section 2(y) as remuneration which includes salary, allowance or any other form of monetary component. It also includes basic pay, dearness allowance and retaining allowance but does not include bonuses, value of house accommodation, conveyance allowance, house rent allowance and overtime allowance etc.
Other important provisions
Minimum wages
Section 3 prohibits discrimination in the matters of wages on the ground of gender.
Section 5 states that no employer shall pay wages less than a minimum wage to the employee. Minimum wage is the basic wage, below which workers cannot be paid. It is above floor wage. It is reviewed by the appropriate government every 5 years.
Section 6 provides that the appropriate government shall fix the minimum wage for time work or piece work. Wages can be fixed either daily, weekly, fortnightly or monthly. To fix the minimum wage, the appropriate government shall take into account the skill of the workers, arduousness of work and norms as prescribed.
Section 9 provides that the Central government decides the floor wage. It is the wage which is decided with regard to the living standard of workers.
Section 10 states that if an employee whose minimum wage rate is fixed on a daily basis, works on any day for less than required number of hours, he shall be entitled to wages for the work done on that day as if he had worked for the full day. But if he doesn’t do work due to unwillingness to do work or such other reason then he will not be entitled to wages.
Section 13 provides that the appropriate government may fix the number of hours for work. A day of rest in a period of 7 days should be provided to the workers and if he works on the day of rest he shall be paid an amount for it which shall not be less than the overtime rate.
Section 14 states that where an employee works overtime, in excess of normal working hours as fixed, he shall be paid at an overtime rate which shall not be less than twice the normal rate of wages.
Section 16 provides that the employer shall fix the wage period which can be daily, weekly, fortnightly or monthly.
Further Section 17 states that employer shall pay wage:
At the end of shift, if it is on daily basis,
On the last working day, if it is on weekly basis,
Before the end of second day after the end of fortnight if it is on fortnightly basis,
Before expiry of the 7th day of the succeeding month if it is on a monthly basis.
Section 18 states that deductions from wages can be made as a result of fines, absence from duty or advances given to employees etc.
Section 19 states that no fine shall be imposed on an employee for acts and omissions on his part. He shall also be given the opportunity of showing cause against fine. The amount of fine shall not exceed 3% of wages payable in that wage period. If an employee is under 15 years, no fine is to be imposed.
Payment of bonus
Section 26 provides that employees with wages not exceeding the amount decided by the appropriate government and who have worked at least 30 days in the accounting year shall be eligible for annual minimum bonus of 8.33% of wages or Rs.100 whichever is higher.
Section 29 states that the employee shall be disqualified for bonus in case of fraud, theft, violent behaviour or conviction for sexual harassment.
Section 39 provides that all amount payable to employees as bonus shall be paid by crediting it in the bank account of the employee within 18 months from the closing of the accounting year. This term can be extended to 2 years upon application by the employer to the appropriate government.
Payment of dues
Section 43 states that every employer shall pay all the amount which is required under this Code to every employee. If he fails to make such payment, then the proprietor of the establishment shall be responsible for it.
Section 44 provides that all amounts payable to an employee under this Code if cannot be paid due to death or the employee being unknown, then it shall be given to the nominated person or be deposited as prescribed.
Provision for offences and punishment
Section 54 provides punishment for offences, which is as follows:
Section
Offence
Punishment
Section 54(a)
The employer pays wages to an employee which is less than the amount due
Fine of Rs.50,000
Section 54(b)
Offence of Section 54(a) is repeated again within 5 years from the date of commission of first or subsequent offence
3 months imprisonment and fine of Rs.1 lakh or both
Section 54(c)
If any other provision of this Code is contravened
Fine of Rs.20,000
Section 54(d)
Offence under Section 54(c) is repeated within 5 years from the date of commission of the first or subsequent offence
1 month imprisonment or fine of Rs.40,000 or both
Section 63 provides that where an employer is charged with any offence in this Code, he can file a complaint to have the other person to be brought before the court for hearing of charge. If the employer proves to the court that he has exercised his due diligence or act was done without his knowledge, consent or connivance, then the other person shall be convicted and he will be discharged from liability.
Quick compliance checklist for Code on wages, 2019
The HR professional must ensure to comply with the following requirements:
The Central Government fixes floor wage for different geographical areas which is decided by asking the Central advisory boards and state governments.
There is a minimum wage which is to be paid to every worker irrespective of their skills or nature of work. This amount has been reviewed and updated to make it just the cost of living in India.
The minimum wage is never lower than the floor wage fixed by the appropriate government.
The maximum number of overtime hours is 125 hours in a quarter across all industries. Workers who work extra shall be entitled to overtime pay at the rate which is twice their regular wage. The consent of employees is required for overtime.
The Code specifies the frequency of wage payments, whether at the end of the shift, last working day or before the end of the 7th day of the succeeding month.
If any issue arises of dismissal or resignation, then wages must be settled within 2 working days.
If an employee works in an establishment with 20 or more workers and has worked a minimum of 30 days, then a bonus is given to him. It is equal to 8.33% of wages earned during the year or Rs.100 whichever is higher.
Payment ex-gratia is also paid to employees at the discretion of the employer.
Employers are required to maintain records of these wages and bonuses paid.
The Code also prohibits discrimination on the basis of sex in respect to the wages paid to workers.
Industrial Relations Code, 2020
HR professionals manage employee grievances, mediate their disputes and are responsible for maintaining a positive work environment. They need to keep records and advise the company on how to manage industrial disputes. With an aim to settle the employer-employee disputes amicably, this Code is a tool for peaceful resolution. Mostly the issues such as wages, holidays, working hours etc, or anything that can cause a dispute, which must be adhered to forms a part of this Code. Can you imagine the kind of power that can vest with you if you know how to take care of these disputes? Let us take a look at this Code in brief. The Industrial Relations Code, 2020 is a legislation which consolidates the laws for trade unions, settlement of industrial disputes and conditions of employment etc. It subsumes the previous laws such as:
Industrial Disputes Act, 1947: This Act provides for settlement and investigation of industrial disputes by means of conciliation, arbitration and adjudication. It was passed with the objective of maintaining a peaceful work culture in industries.
The Trade Unions Act, 1926: A trade union is a group of workers with the purpose of upholding the rights of employees and ensuring that there is no discrimination in the workplace. This Act provides the registration of trade unions, their incorporation and their rights and liabilities.
Industrial Employment (Standing Orders) Act,1946: Standing orders set out the rules for employees and working conditions in any employment relationship. This Act was framed with the objective to set out rules for working conditions in factories and industries with an engagement of more than 100 workers.
Definitions
Employee
Section 2(l) defines an employee as a person who is employed by an industrial establishment for skilled, semi-skilled, unskilled, manual, operational, technical, supervisory or clerical work for hire or reward. It does not include members of the Armed forces and apprentices under the Apprentice Act, 1961.
Employer
The term employer is defined under Section 2(m) as a person who employs workers in his establishment, whether directly or through others. In the case of the department of the government it shall be the head of the department, in a factory it is the occupier or manager of it, in other cases the person who has the ultimate control over the affairs of the establishment is the employer.
Industrial dispute
Section 2(q) defines an industrial dispute as a dispute or difference between employer and employees or workers connected with employment and conditions of labour. It also includes disputes arising out of discharge, dismissal, retrenchment and termination of workers.
Lay off
Section 2(t) states that lay off means failure, refusal or inability of an employer to give employment to workers due to shortage of power, coal, materials or natural calamity etc whose name is on the muster roll and has not been retrenched.
Lock out
Lock out is defined under Section 2(u) as the temporary closing of a place of employment, or when work is suspended, or when the employer refuses to continue to employ a person employed by him.
Retrenchment
Section 2(zh) states that retrenchment is the termination by the employer of the service of a worker but not as a punishment. It does not include voluntary retirement, age of superannuation, termination due to non-renewal of contract, termination due to ill health or completion of fixed tenure of employment.
Strike
Strike is defined under Section 2(zk) as when work is ceased by persons acting in combination employed in industry, who together refuse to work or accept employment and it includes concerted casual leave on a day by 50% or more workers.
Trade union
Section 2(zl) states that a trade union is a combination, whether temporary or permanent, which is formed to regulate relations between workers and employers or between workers or employers.
Important provisions
Work Committee and Grievance Redressal Committee
Section 3 provides that in case of industrial establishment of 100 or more workers, the appropriate government may by order require the employer to constitute a Work Committee. The number of representatives of workers in such committees shall not be less than the number of representatives of employers. That means both workers and employers will have equal representation in the work committee.
Section 4 states that every industrial establishment of 20 or more workers shall have a Grievance Redressal Committee which shall consist of an equal number of members from the side of workers and employer. The maximum number of members can be 10. The proceeding of the committee shall be completed within 30 days.
Trade unions
Section 5 deals with the registrar of trade unions, who is appointed by the State government.
Further, Section 6 deals with the criteria for the registration of trade unions. It provides that any 7 or more members of a trade union may subscribe their names to rules of trade union and apply for registration. Subsection 2 of this Section states that no trade union shall be registered unless at least 10% of workers or 100 workers, whichever is less, employed in industrial establishment are members of trade union. A registered trade union shall at all times continue to have not less than 10% of workers or 100 workers whichever is less, subject to minimum 7 workers as members.
Section 10 provides for an appeal against the refusal to grant registration to trade unions.
Section 14 recognises negotiation union or council in industrial establishment. Its purpose shall be to negotiate with the employer on matters as prescribed.
Strikes and lock-outs
Chapter VIII of the Code deals with strikes and lock-outs. Section 62 states that no person who is employed in an industrial establishment shall go on strike:
without giving notice of it to the employer within 60 days before the strike or,
within 14 days of giving such notice,
before the expiry of the date of the strike as given in the notice,
during the pendency of conciliation or arbitration proceedings or before a tribunal etc.
Section 63 also provides for when a strike or lockout is illegal. It is considered to be illegal if it is in contravention of either Section 62 or Section 42 (7) which provides that when industrial dispute is referred to arbitration and its notification is issued, the appropriate government may prohibit continuance of strike or lockout in its connection.
Layoff and retrenchment
Section 67 provides for the rights of compensation to the workers who are laid off. This amount shall be equal to 50% of the total of basic wages and Dearness Allowance (DA) that would have been paid to them had they not been laid off.
There are some cases where compensation is not provided, which is specified under Section 69. It provides that no compensation shall be paid if:
The worker refuses to accept alternative employment in the same establishment from which he has been laid off or,
If he doesn’t present himself for work at the establishment at the appointed time during normal working hours at least once in a day,
If such laying off is due to a strike or slow down of production on behalf of workers in another part of the establishments.
Section 68 states that it shall be the duty of every employer to maintain a muster roll and make sure that workers make entries when they come to work during normal working hours.
Under the purview of Section 83, a Worker Re-Skilling Fund is set up by the appropriate government. It shall consist of a contribution of the employer of an industrial establishment of an amount equal to 15 days’ wages of the worker and such other contributions. This fund focuses on providing skills to employees so that they can transition into new roles.
Section 84 states that no employee or a worker or trade union, whether registered or not, shall commit any unfair labour practice as specified in Schedule II. Interfering, coercing or refraining workers from exercising their right to form, join or assist a trade union for collective bargaining or showing partiality and granting favours, and discouraging workers from being a part of a trade union are examples of such unfair labour practices.
Quick compliance checklist for Industrial Relations Code, 2020
The HR professional must ensure to comply with the following requirements:
It provides that any 7 or more members of a trade union can apply for registration.
It explicitly states that strikes can only be called after 60 days’ notice to the establishment and they can’t go on strike until 14 days after giving notice.
It establishes an industrial tribunal and a civil court has no jurisdiction for the matters.
It establishes a Grievance Redressal Committee, which can have 10 members and shall dispose of the matter within 30 days.
There is a Negotiating Union or a Council as the sole group to have a word with the employers of an industrial establishment on the prescribed matters.
The employers who fire an employee set up a reskilling fund to help them gain new skills.
Code on Social Security, 2020
If you are an HR, you need to know the kind of liabilities your organisation might have in case of any labour accident. Although, there are security departments in the factories which ensure that every individual is following the safety guidelines but as an HR, it is your responsibility to ensure that the necessary tools and equipment are provided and complied with. You need to know that all of the regulations and guidelines are created in adherence to this Act so that unnecessary future liabilities can be avoided. This Code provides financial protection to the workers or their dependents in case of an injury or accident at the time of work. It provides for financial compensation in the case of any such accident. In case of non-compliance, the employer is liable for a criminal offence.
It is aimed at providing a kind of social security to the industry employees. The benefits like retirement pension, medical care, housing, family obligations, education, and benefits arising out of insurance, rights of older employees post-retirement, are a few aspects which are covered under this Code.
Also, an employee is entitled to gratuity if he/she has completed one year of service in an organisation. An HR manager is required to know about this Code, so that in case of an unfortunate death of an employee who has completed one year of continuous service in a company, or in case of retiring individuals, basic gratuity is awarded. As we know that knowledge of this Code is paramount for HR professionals, now let us understand the important dimensions and significance of this Code along with its provisions.
Code On Social Security, 2020 deals with the social security of employees and workers in an organised or unorganised sector. It has widened the scope of the earlier statutes and is applicable to everyone on wages in an establishment irrespective of their occupation. It has replaced a number of previous legislation such as:
Employees Compensation Act,1923: It is an Act to provide payment in the form of compensation to the employees for any injuries they have suffered or disablement caused during any accident while working.
Employees State Insurance Act,1948: This Act was framed to help employees get monetary help in the form of insurance in the cases of any disablement, injuries or ailments.
Employees Provident Fund and Miscellaneous Provisions Act, 1952: This is a beneficial legislation which is enacted for providing retirement benefits to the industrial worker. This amount is also given to the dependents of the worker in case of his death. Thus, it is aimed at providing social security and stability to the employee and his family.
Payment of Gratuity Act, 1972: This Act guarantees the payment of gratuity to employees on the termination of their employment after he has served continuously for not less than 5 years in a single organisation.
The Unorganised Workers Social Security Act, 2008: It is an Act to provide social security and welfare to the unorganised sector workers which includes home-based workers or daily wage workers etc.
Building And Other Construction Workers Cess Act,1996: It is an Act to provide for the levy and collection of cess on the cost of construction which is incurred by the employers in order to increase the resources of the building and other construction workers welfare board under this Act.
Cine-workers Welfare Fund Act, 1981: It is an Act to provide for the financing of activities to promote the welfare of certain cine- workers and creates Cine-workers welfare fund.
Important provisions
Social security organisations
Section 4 states that the central government shall constitute a board of trustees of Employees Provident Fund which shall be the central board and will be responsible for administration of funds. It shall consist of a chairperson, vice-chairperson appointed by the central government, 5 persons appointed by the central government, 15 representatives of the state, 10 persons representing employees and employers and a Central Provident Fund Commissioner.
Section 5 provides that the Central Government shall constitute an Employees State Insurance Corporation to provide medical and financial assistance to the employees and their families. A medical benefit committee shall also be composed by the central government for the administration of medical benefits.
Section 6 specifies that a National Social Security Board is constituted by the central government which has the Union Minister for Labour and Employment as chairperson, Secretary of the Ministry as Vice-Chairman and 40 members nominated by the government. The term of the Board shall be 3 years and it shall meet thrice every year. It will recommend suitable schemes for unorganised workers, gig workers, and platform workers. It shall also advise the central government on issues of administration, monitor social welfare schemes and review the records and expenditures. There shall also be a State Unorganised Worker Board in every state with a term of 3 years and shall meet once in a quarter.
Section 8 states that any member of the Social Security Organisation shall be disqualified in case of:
Adjudged an insolvent,
Found to be lunatic or unsound mind,
Convicted of offence of moral turpitude,
Default in payment of dues etc.
Section 14 provides that the central government appoints the Central Provident Fund Commissioner as the CEO of the Central Board and head of the Employees Provident Fund Organisation.
Under Section 15 the central government may frame schemes for Employees Provident Fund, Employees Pension Scheme, employees deposit linked insurance schemes or any other schemes for this purpose.
Section 21 states that in an establishment with 100 or more employees, the central government may authorise the employer to maintain a Provident Fund Account.
Insurance of workers for injuries sustained in the course of employment
Section 34 raises a presumption that the accidents which are caused in the course of employment shall be presumed to have arisen out of that specific employment only. If an accident happens while commuting to the place of employment, or in premises where he is working, then the presumption is that it arises out of that employment.
Under Section 35, accidents shall be deemed to arise out of employment or in the course of it even if it is in breach of law or without instructions of the employer if it is done for the purpose of the employer’s business, and it would have been deemed to arise if it wasn’t against the legal principles.
If an employee gets any disease called occupational disease, then it is deemed to be an employment injury and benefit for it is given under Section 36.
If an insured person dies due to such employment injury, then his dependents shall be given benefits under Section 38.
Injured employees are also entitled to medical benefits under Section 39. It can be given in the form of out-patient treatment, attendance in the hospital, by a visit to the home of that person etc.
The central government may frame schemes for the unorganised sectors, gig workers and platform workers and their family members under Section 45.
The state government also constitutes the Employees Insurance Court under Section 48. Any person who is or has been a judicial officer or legal practitioner for 5 years is eligible to be a judge. Section 49 provides matters which are to be decided by the Insurance Court, it includes:
Whether a person is an employee or not,
Rate of wages of an employee,
Rights of person to any benefit, its amount and duration,
Rate of contribution payable by employer
Claim against an employer for recovery of contributions etc.
No civil court has the jurisdiction to decide these matters. Further, Section 50 states that this court shall have all the powers of a civil court.
Gratuity
Gratuity is a part of salary, received by the employees from their employers as a token of gratitude for the services performed by them during their employment tenure.
Section 53 states that gratuity is payable to an employee when his employment terminates after he has given continuous service for at least 5 years:
On his superannuation,
On his retirement or resignation,
On his death or disablement,
On termination of contract,
Any other event as notified by the central government.
The employer shall pay gratuity to the employee for every complete year of service at the rate of 15 days wages.
The amount of gratuity is determined under Section 56. The person eligible for it, gives a written application to the employer and when it becomes payable, notice is given to the employee and competent authority to determine it. It is paid within 30 days from when it becomes payable, otherwise simple interest is charged on it at a rate which should not exceed the rate notified by the central government. If there is any dispute then the competent authority shall decide it after giving the parties opportunity if being heard.
Section 57 deals with compulsory insurance. Every employer except the one is under the control of the government shall obtain insurance for his liability to pay gratuity.
Maternity benefit
Earlier, The Maternity Benefits Act, 1961 provided maternity benefits by providing leave to all women employees. The Act provided full benefits and protection to the mother and the child during the time of maternity in the form of paid maternity leaves. Now, it is repealed and forms a part of the Code on Social Security. It is extremely important for an HR professional to be able to support their female employees by knowing the legal rights bestowed to pregnant working women. So, let’s get into the provisions that every HR professional should be acquainted with:
Section 59 provides that no employer shall employ a woman in any establishment during the 6 weeks before the day of her delivery. No woman shall even on her request do work which is arduous in nature or involves long hours of standing or any act likely to cause her miscarriage or adversely affect her health. This provision is applicable for a period of 1 month immediately preceding the 6 week term before her delivery or any period during these 6 weeks when she doesn’t avail of her leave of absence.
Section 60 provides maternity benefits to women at the rate of average daily wage during the period she remains absent. To be eligible to claim this benefit, she should have worked in that establishment for a period not less than 80 days in the last 12 months from the date of her expected delivery. The maximum period of maternity benefit is 26 weeks out of which not more than 8 weeks should precede the expected date of delivery.
The maximum period of maternity benefit shall be 26 weeks of which not more than 8 weeks shall precede the date of her expected delivery. In cases, where a woman already has 2 or more children, this period shall be 12 weeks of which not more than 6 weeks shall precede the date of her expected delivery.
If a woman dies during this period, the maternity benefit shall be payable only for the days before and the date of her death. If a woman has adopted a child below 3 months age, maternity benefit shall be for 12 weeks from when the child is given to the adopting mother. Very importantly, in cases where the nature of her work is that she can easily do it from home, it may be allowed by the employer on terms and conditions as they mutually agree.
Section 63 states that if a woman is entitled to maternity benefit and dies before receiving it or the employer is liable to pay it under section 60, then it shall be paid to the nominate person or legal representative.
Further, Section 64 states that every woman who is entitled to get maternity benefit shall also receive a medical bonus of Rs.3500 if the employer has not provided her pre-natal confinement and post-natal care free of charge.
Section 65 provides leave for miscarriage and tubectomy operations. The leave would be for 6 weeks for miscarriage and 2 weeks for operation.
Section 66 simply states that when a woman delivers a child and returns to work, she shall be given rest and two breaks for the nursing of the child unless the child reaches the age of 15 months. Further, under Section 67 , every establishment which has 50 or more employees shall have the facility of creche and 4 visits per day are allowed to the woman.
Under Section 69, no deductions shall be made from the normal and daily wages of a woman who is entitled to maternity benefit due to the nature of work given to her under Section 59 or nursing breaks.
Section 70 states that a woman who works for remuneration during the period when she is permitted to be absent shall not be entitled to receive maternity benefit.
Knowing these provisions of this Act ensures legal compliance and avoids legal penalties. It is also necessary for the health and safety of the employee which in turn will retain female employees and be of advantage to the company in the long term. It builds a positive and inclusive image of the company.
Role of HR professionals in compliance with the Maternity benefits
An HR professional has some responsibilities to implement maternity leave, such as:
Every pregnant woman should be treated as equal to other employees. Pregnancy cannot be treated as a disability. As HR you should be aware of the procedure of maternal benefits as per the policy of the company. The policies should comply with the provisions stated above.
The pregnant employees should be made aware about their rights, duration of leave and the process to apply for it.
It is important to coordinate with the employee and manage their workload if necessary. They should assist in the transition of going to maternity leave.
When the woman returns after her maternity leave, she should be treated without any discrimination. There should be flexibility, work from home, or remote work or such other arrangements made for the woman.
Employees compensation
Section 73 states that where an accident occurs in an employer’s premises which results in death or serious bodily injury, notice shall be given within 7 days to the competent authority. Under Section 74, if a personal injury is caused by such an accident or disease, the employer shall pay compensation. It will not be the employer’s liability to pay compensation if the injury does not result in disability for a period exceeding 3 days, or it was caused under the influence of drugs, wilful obedience of the employee etc. Section 76 specifies that the amount of compensation shall be 50% of monthly wages if it results in death and 60% in case of total permanent disablement.
Social Security and cess
Cess is an additional tax which the government imposes to raise funds for a specific purpose. Section 100 provides that cess shall be levied and collected for the social security and welfare of building workers at a rate not more than 2% but not less than 1% of the cost of construction. The proceeds of it shall be deposited by the local authority to the Building workers’ welfare board.
Section 101 deals with interests payable on delay in payment of cess. Under Section 102 the appropriate government may exempt any employer from payment of cess.
Quick compliance checklist for Code on Social Security, 2020
The HR professional must ensure to comply with the following requirements:
This Act constitutes some important statutory bodies such as the Employee Provident Fund (EPF), Employees State Insurance Corporation, Social Security Organisations etc.
The EPF will be applicable to every establishment with more than 20 employees. The employer and employee need to contribute 10% of their wages to this fund.
The Insurance Corporation provides for medical treatment, establishing hospitals and for the audit cost and expenditure of the insured person. Every person in an establishment must be insured.
The Social Security Fund is for the implementation of welfare schemes for unorganised workers.
It also provides social security for the unorganised sector and gig workers which is an appreciated change.
It provides maternity benefits to women in detail for every case and gives the facility of creche in certain cases. Now, the maternity break is for 26 weeks.
The employer of an establishment must maintain records such as wages, leaves, attendance etc., file returns and issue electronic or paper slips at the time of payment.
Occupational Safety, Health and Working Conditions Code, 2020
HR professionals are responsible for handling workplace safety, addressing health concerns and frame best practices for a healthy workplace. To be able to take care of their employee’s working conditions, they should be aware of this Code. The Occupational Safety, Health And Working Conditions Code, 2020 subsumes 13 previous labour laws and consolidates them into one Code. Some of the previous laws were:
Factories Act, 1948: This Act was framed with the motive to establish adequate safety measures and to ensure the health and welfare of workers in the factory. It regulated working hours for workers’ welfare.
The Mines Act, 1952: It is an Act to provide labour and safety for mine workers. It regulates laws related to the betterment of labourers and workmen working in mines.
The Dock Workers (Safety, Health And Welfare) Act, 1986: This legislation deals with the safety and health of dock workers. The appropriate government may inquire into cases of accidents or disease and provide compensation for it.
The Plantations Labour Act,1951: This Act provides for the welfare of labour and regulates the condition of work in plantations. It limits working beyond certain hours and restricts women and children from working at night.
The Motor Transport Workers Act, 1961: It is an Act enacted for the welfare of the motor transport workers and to regulate their working conditions. It makes it obligatory for the employers of motor transport undertaking to have their undertaking registered.
The Contract Labour (Regulation And Abolition) Act, 1970: Contract labour means the employment of labourers through a contract for a specified time period. This Act regulates the functioning of contract labourers to prevent exploitation of these workers.
The Inter-state Migrant Workers Act, 1979: This legislation stipulates that every migrant worker must be registered with the district magistrate before being employed in an establishment. The employer must also have a licence to employ any migrant worker.
The Working Journalist and Other Newspaper Employees Act, 1955: This legislation regulates and fixes the rate of wages in respect of and for matters connected with working journalists and other newspaper employees. It ensures that their rights are protected and they are given reasonable working conditions.
HR professionals should understand the provisions of this Code to be able to protect the safety and health of their workers. Its knowledge helps in managing risk, preventing accidents and maintaining a positive work environment by upholding the rights of employees. If your organisation operates in manufacturing or has factories, it is crucial to be aware of this Code. So, now let’s understand the important provisions of this Act:
Important definitions
Contract labour-Section 2(m) defines contract labour as a worker deemed to be employed in an establishment when he is hired by or through a contractor with or without the knowledge of the principal employer. It shall also include inter-state migrant workers but doesn’t include workers who are regularly employed by contractors for his establishment and get periodical increments in pay and other welfare benefits.
Employee-Section 2(t) gives definition of employee as given by above stated laws, a person employed on wages to do skilled, semi-skilled, unskilled manual work etc. Similarly, an employee is defined under Section 2(u) as a person who employs persons in his establishment whether directly or indirectly.
Factory- Section 2(w) defines a factory as premises including precincts where 20 or more workers are working on any day of the previous 12 months and the manufacturing process is carried on some of its part, or, where 40 or more workers are working on any day of previous 12 months and similarly manufacturing is carried.
Important provisions
Duties of employer and employees
The duties of employer and employee are crucial for HR as when employers fulfil their duties towards employees it ensures legal compliance and a positive work culture. The role of HR is to monitor, enforce and support them to fulfil their duties that enhance employee satisfaction and lead to organisational success. In the same line, it is also important for HR professionals to know the legal rights of employees so as to prevent any infringement of such rights. So let’s understand the duties of employers as well as the rights and duties of employees.
Duties of employer
Section 6 provides that every employer shall have the following duties:
To ensure that the workplace is free from hazards which are likely to cause injury or occupational disease to employees,
To comply with the safety and health standards under this act or rules or orders etc.
To provide free health examinations or tests to employees as specified by the appropriate government,
To maintain a safe work environment for the overall health of employees,
To ensure disposal of any hazardous and toxic waste etc.
The duties of an employer in regard to a factory, dock, building or mine shall be as follows:
Maintain the plant and system of the workplace, ensure its safety and health,
Make arrangements in the workplace for safety and absence of risks to health, handling, storage and transportation of articles and substances,
Provides for infraction, instruction, training and supervision for safety of employees,
Maintain all places in a safe condition and provide access to and egress from such places,
Monitor and maintain the working environment.
Duties of employee
Section 13 provides for the duties of employees at the workplace, which include:
Taking reasonable care of the health and safety of employees,
Compliance with health and safety requirements,
Cooperate with the employer to comply with the statutory requirements,
Report about the unhealthy situation to the employer,
To not interfere with the misuse or neglect of any appliance, convenience or thing provided at the workplace,
To not wilfully without reasonable cause do anything likely to endanger himself and others,
Perform other duties as prescribed.
Rights of employees
Section 14 deals with the rights of employees. It shall include the right to obtain information about the employee’s health and safety from the employer and represent to the employer either directly or through a member of the safety committee regarding inadequate provision for safety and health in the workplace. In case of such existence of immediate danger, the employer shall take immediate remedial action and send a report to the Inspector-cum-facilitator.
Section 15 also specifies that no person shall intentionally or recklessly interfere with or damage anything which is given for health, safety or welfare.
Occupational safety
Section 16 provides for the National Occupational Safety and Health Advisory Board. It is constituted by the central government to perform functions such as: advising the government on standards, and rules under this code, implementation of this law, framing policies and programmes in relation to it, or any other such matter. Their term is 3 years. Similarly, under Section 17 the state government constitutes the State Occupational Safety and Health Advisory Board.
Under Section 18, the central government shall declare standards on occupational safety and health for the workplace. These include the norms for hazards, their symptoms, exposure, medical examination of employees or such other safety and health measures at the workplace.
Health, safety and working conditions
Section 23 states that the employer shall be responsible for maintaining health, safety and working conditions in his establishment which includes hygiene, ventilation, humidification, potable drinking water, an environment free from dust etc.
Welfare provisions
Similarly, Section 24 deals with welfare facilities in the establishment such as:
Washing facilities for male and female employees separately,
Bathing places and locker rooms,
Sitting arrangements, facilities of canteen,
Medical examination in case of employees in mines,
First aid boxes readily accessible during work hours etc.
The central government shall also provide ambulance rooms, uniforms, raincoats, suitable separate shelters, restrooms, welfare officers in factories or mines with 250 or more workers etc. The crèche facility is to be made available for children under the age of 6 years.
Hours of work and leave
Section 25 specifies the number of hours for workers which is 8 hours a day. Section 26 states that no worker shall be allowed to work in an establishment for more than 6 days in 1 week.
Section 27 provides that there shall be double wages for overtime work done by the employee. Section 28 deals with night shifts and Section 29 prohibits overlapping shifts.
Employment of women
Section 43 states that women shall be entitled to be employed in all establishments and with their consent before 6 a.m. and after 7 p.m.
Further, Section 44 provides that if the appropriate government considers that employing women is dangerous for their health and safety in an establishment, then it may require employers to provide adequate safeguards for it.
Section 70 states that no person who is below the age of 18 years shall be allowed to work in a mine. No apprentices or trainees who are below the age of 16 years, may be allowed to work in a mine except under proper supervision.
Quick compliance checklist for Occupational Safety, Health and Working Conditions Code, 2020
The HR professional must ensure to comply with the following requirements:
It fixes the minimum number of working hours as 8 hours per day.
It includes provisions for the constitution of the National Occupational Safety and Health Advisory Board.
It simplifies the registration process for establishments with 10 or more employees.
It has changed the definition of a factory with 40 workers instead of 20 workers.
This Act provides some rights and duties of employers and employees.
It has expanded the list of benefits to inter-state migrant workers as well.
It provides for mandatory free health checkups for workers who have attained the age of 45 years and are working in industries such as factories, mines, and plantations etc.
Letters of appointment are appointed for all workers. It is a mandatory document which formalises employment.
Other laws relevant for HR professionals
The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013
This Act (hereinafter referred to as POSH Act, 2013) has been a very important legislation which fosters respect and equality among the employees. In most of the cases, HR managers are the first recipients of a sexual harassment complaint. They are also actively involved in drafting of sexual harassment policies and formation of Internal Complaints Committee as per the provisions of POSH Act, 2013. HR managers are also responsible for the performance of the Internal Complaints Committee. What if the committee completely botched up a hearing? Would that reflect well on the company or the HR manager? Hence, even if the HR manager is not a part of the Internal Complaint Committee, he or she should have a good understanding of the law, compliances and procedures involved. So, let’s dive into understanding this law:
The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013 is framed to punish and provide redressal and protection against sexual harassment to women at workplaces. It also provides that sexual harassment violates the fundamental right to equality of the aggrieved women under Article 14 and Article 15 as well as their right to live with dignity under Article 21 of the Indian Constitution.
Definitions
Aggrieved woman
Section 2(a) defines an aggrieved woman as a woman of any age who in relation to a workplace, whether she is employed or not, alleges sexual harassment by the respondent. In relation to a dwelling place or a house, a woman of any age who is employed in such a dwelling place or house is the aggrieved woman.
Employee
Section 2(f) states that an employee means a person who is employed in a workplace whether on a regular, temporary, ad hoc or daily wage basis. It also includes contract workers, trainees, apprentices and probationers.
Employer
Section 2(g) defines an employer as the head of any department, establishment, organisation, institution, office etc, or the person responsible for management, supervision and control of the workplace.
Sexual harassment
The term sexual harassment is defined under Section 2(n) as an unwelcoming act or any such behaviour which includes:
Physical contacts and advances,
A demand or request for sexual favours,
Making sexually coloured remarks,
Showing pornography,
Any other unwelcome physical, verbal or non-verbal conduct of a sexual nature.
Any department, organisation, institution, office, branch or unit which is owned, and controlled whether wholly or substantially financed by the appropriate government or local authority.
Any private actor organisation, society, undertaking etc, which carries on commercial, professional, educational, industrial or financial services which also includes production, supply, sale, distribution or service,
Hospitals or nursing homes are also included,
Sports institutes, stadiums, whether residential or not used for training or other related activities,
Any place that is visited by an employee arising out of or during the term of employment,
A dwelling place or a house.
Important provisions
Prevention of sexual harassment
Section 3 simply talks about the prevention of sexual harassment. It provides that no woman shall be subjected to sexual harassment at the workplace. Any implied or explicit promise of preferential treatment, threat of detrimental treatment, interference with her work, creating hostile or intimidating her, or humiliating her may amount to sexual harassment.
Constitution of Internal Complaints Committee
The Internal Complaints Committee is constituted under Section 4 of the Act. Every employer of a workplace shall by a written order, constitute this committee which shall consist of the following:
The presiding officer who will be a woman working at a senior level at the workplace,
Minimum 2 members from the employees who are committed to the cause of women or have relevant experience in social work or possess legal knowledge,
1 member from a non-governmental organisation which is committed to the cause of women or has dealt with issues of sexual harassment.
It is pertinent to mention that at least one-half of these members shall be women and the term of presiding officer shall be 3 years.
Local committee
Under Section 6, in every district, there shall be a local committee constituted by the district officer to receive complaints of sexual harassment from establishments where ICC is not constituted as there are less than 10 workers. It shall consist of the following:
A chairperson who would be a woman working in the field of social work or committed to the cause of women,
One member of the bloc,
Two members from NGOs (at least 1 woman)
Officer dealing with social welfare or women and child development as an ex-officio member. The term of their tenure shall be 3 years.
Complaint by aggrieved woman and inquiry thereof
Section 9 states that any aggrieved woman can file a written complaint of sexual harassment to the ICC or local committee within period of 3 months from the date of the incident. This term can be extended not for more than 3 months if the committee is satisfied that there were circumstances justifying it. If a woman is not able to file a complaint due to her physical or mental incapacity, death or other condition, then her legal heir may make a complaint.
Under Section 10, ICC or local committee may before starting an inquiry into the complaint, try conciliation at the request of the aggrieved woman. Compensation or monetary settlement shall not be the basis of conciliation.
Section 11 provides that an inquiry into a complaint shall be made by the committee and forwarded to the police within 7 days. For this purpose, the committee shall be given the same powers as are vested in a civil court. This inquiry is to be completed within 90 days.
Under Section 13, when the inquiry is completed, the committees shall prepare a report of its findings and submit it to the employer or district officer within 10 days from the date of its completion. If the conclusion is that the allegation against the respondent is true and is proven, then action will be taken against him for the offence of sexual harassment or deduct his salary. This action shall be taken within 60 days.
The aggrieved woman is awarded compensation which is determined under Section 15. The factors to determine it are such as mental trauma, loss of career opportunities, medical expenses, income and financial status and feasibility of payment etc.
Duties of employer at the workplace
Every employer has certain duties which are specified under Section 19. The following are the duties of the employer:
Provide a safe working environment,
Display the penal consequences of sexual harassment at a conspicuous place in the workplace,
Organise workshops and awareness program aimed to sensitise employees
Assist in securing the attendance of respondents and witnesses before the committees,
Give necessary facilities to the committees to assist in complaints and conducting inquiries,
Assist the woman if she chooses to file a complaint under IPC or any other law,
Treating sexual harassment as misconduct and initiating action against it,
Monitor the submission of reports by committees to be given on time.
HR professionals play a very important role in addressing and preventing sexual harassment in the workplace. Here are some simple yet effective ways to deal with it:
HR professionals should be trained to be able to understand the law related to sexual harassment and they should be well versed with the company’s sexual harassment policy. The need to know how to handle complaints by aggrieved women and take disciplinary action against the respondent.
HR professionals are also involved in the framing of the sexual harassment policy of the company, so they should remember to clearly define what is sexual harassment and state remedies for the aggrieved party. It helps the aggrieved woman possess faith that her concerns will be fairly addressed by the company.
HR professionals should also ensure the constitution of ICC is done in compliance with the laws.
It is also their duty to make sure that all the complaints related to sexual harassment are resolved effectively.
It is their job to create awareness about the policy and laws on sexual harassment. There should be training sessions and sensitisation programs for all employees. They should foster a culture where the bystanders speak up against such offences and it is not tolerated at any cost.
All complaints of sexual harassment should be taken seriously and be treated confidential. HR professionals should proactively work with employees, regularly seek their feedback and incorporate their suggestions.
Implementing sexual harassment laws at the workplace can be quite a challenge at times. HR professionals should learn more about it and in fact, develop specific expertise and sensitivity regarding this. It would not just act as a huge advantage to your organisation but would be of immense help to you personally. More and more companies look for HR professionals who are well-equipped with the knowledge and skills to tackle sexual harassment at the workplace. You could be the ideal choice if you are specialised in such a rare skill.
The Child and Adolescent Labour Act,1986 is a very important piece of legislation which prohibits employment of children in all occupations and adolescents in hazardous occupations.
Important provisions
Section 2(ii) states that any person who has not reached the age of 14 years is a child. Section 3 of the Act states that there are 57 jobs and 13 activities given in the schedule which are completely forbidden from employing children, for example: handling of toxic or explosive material, mines, plastic units, domestic servants, bidi making process, manufacturing of cement, glass, soaps etc.
As per Section 3A which was added by the 2017 Amendment Act, no adolescent shall be employed or permitted to work in hazardous occupation. The central government may specify the nature of non-hazardous work which they may be permitted to do. Section 2(i) defines adolescent as a person who has completed the age of 14 years but has not completed 18 years of age.
Section 7 provides that no adolescent shall be permitted or required to work in an establishment in excess of the fixed number of hours. The maximum number of hours shall be 3 and no adolescent should work for more than 3 hours before he has rest for at least 1 hour. No adolescent shall be required to work between 7 p.m. and 8 a.m. and to work overtime.
Under Section 8, every adolescent employee shall be given 1 whole day as holiday.
If in any establishment, an adolescent was employed or permitted to work then the occupier shall send a written notice regarding it to the Inspector.
Section 13 provides that the appropriate government may make rules for health and safety of adolescent employees. It shall include provisions for cleanliness, ventilation, lighting, drinking water, urinals and protection of eyes etc.
Punishment is provided under Section 14. Section 14(1) provides that when a person employs any child or permits him to do work in violation of Section 3, punishment would be 6 months imprisonment which may extend to 2 years imprisonment or fine Rs.20,000 which may extend to Rs.50,000.
Section 14(1A) states that when an adolescent is employed or permitted to do work in violation of Section 3A, its punishment would be the same as above, imprisonment of 6 months extending to 2 years or fine Rs.20,000 which may extend to Rs.50,000.
Further, Section 14(1B) provides that notwithstanding stated above, parents or guardians of a child or adolescent shall be liable to punishment if it is their first offence.
If a person violates Section 3 or 3A twice, then he shall be punishable with imprisonment for a term not less than 1 year but may extend to 3 years. If a parent or guardian commits such offence twice, then its punishment shall be a fine of Rs.10,000.
It is important that an HR manager is well aware of the legislation and makes significant contributions through various policies. Legal awareness and human resources if combined can produce a very inclusive workspace which could significantly enhance a company’s productivity.
Important labour law judgments for HR professionals
There are various important judgments on labour laws which HR professionals need to know. Let’s take a look at some of these judgments:
Randhir Singh vs. Union of India (1982)
In this case, R is a driver with the Delhi Police force and he claimed that his salary was not as per the standard with other drivers. It was held that the Constitution of India through Article 39(d) provides equal pay for equal work. And R should be paid equally as other drivers in Delhi Administration.
B Mohan Reddy vs. A.P.S Co-op. Marketing Federation (1990)
In this case, it was held that the Payment of Gratuity Act does not authorise the employer to withhold gratuity for reason of negligence or unauthorised leave. It can be withheld only if services of employees are terminated for willful omission or negligence which causes damage, loss or destruction to employers property.
Syndicate bank and ors. vs. K. UMesh Nayak (1995)
In this case, the Supreme Court held that strike could be held illegal if it violates the provisions of Industrial Disputes Act, 1947. In order to decide the legality of a strike, the court must consider demands of workers and whether their issues are justified or not. It was held that strike is an outcome of a long struggle between employer and employee and the rights of workers should be respected. Thus the employer was ordered to pay workers for the strike period.
Dr. Sohail Malik vs. Union of India (2023)
It was held in this case that The Sexual Harassment of Women At Workplace (Prevention, Prohibition and Redressal) Act, 2013 is applicable even in cases where the complainant and harasser work in different departments. It is a significant judgement to ensure protection of women at the workplace.
To know more about the judgments which are important for HR professionals, click here.
Conclusion
It is deciphered from this article that understanding and implementing key labour laws is crucial for HR professionals. It ensures legal compliance through the knowledge of the laws such as: labour laws, POSH, Maternity Benefits Act etc. HR professionals who possess this knowledge can be extremely helpful to ensure that the company adheres to the laws and regulations. This in turn reduces the risk of disputes and promotes policies that safeguard the rights of employees. These laws are made in the best interests of the employees. These laws promote fair treatment of employees; they include provisions for their leaves, wages, compensation, safe working conditions etc. It builds trust and loyalty among the employees, contributes to a high retention rate and creates a positive work environment. By staying informed about these laws, HR professionals can mitigate legal risks and make strategic decisions regarding hiring, termination, promotions or employee relations etc. This helps the company in framing policies and rules to align with the laws and be legally sound. It builds the reputation of the company and also creates an inclusive work environment.
Having sufficient knowledge of the labour laws and other laws relevant for the employees is a trait which also adds credibility to the career prospects of an HR professional. It denotes that he has expertise over law and their knowledge can be a valuable asset for the company. Thus, HR professionals are fundamental to building employee relations in a company. They sort conflicts and disputes, maintain a harmonious work environment, boost morale and productivity of the employees.
Frequently Asked Questions (FAQs)
What are the key labour laws that an HR professional should be aware of?
Some of the major labour laws that an HR professional must be aware of include the Code on Wages, 2019, the Industrial Relations Code, 2020, Code on Social Security, 2020, Occupational Health, Safety and Working Conditions Code, 2020, Child Labour Act, 1986 etc.
Why is it important for HR professionals to understand labour laws?
HR professionals need to be aware of these laws to ensure compliance, operational efficiency, and decision-making, professional growth, employee satisfaction etc.
How can HR professionals stay updated with the changes in these laws?
HR professionals should be aware of the amendments in these Acts and Codes, attend workshops, seminars and training sessions which help them increase their knowledge. They should subscribe to online newsletters, online resources etc. on these laws. Also, there are courses and diplomas specifically tailored for HR professionals for which one can have a glance over here.
Can HR policies be framed stricter than labour laws?
Yes, it is possible as long as the labour laws are not violated.
What are the major changes brought by the new labour laws?
Changes in the Code on Social Security, 2020:
Earlier there was no time period for initiating proceedings to determine dues from the employer, now the limitation period for it is 5 years.
The term ‘fixed term employee’ is now defined and can also claim gratuity benefits.
Social security extends to unorganised sector, gig workers and platform workers.
Changes in the Industrial Relations Code, 2020:
It has changed some important definitions such as worker, employee, industrial dispute etc.
It has changed provisions related to lay off and retrenchment, strikes and lockouts.
It introduced a reskilling fund, voluntary arbitration for workers etc.
Changes in the Code on Wages, 2019:
Earlier Minimum Wages Act, 1948 was applicable only to employees under wages of Rs.24000 now this threshold is removed.
It provides equal remuneration to male and female employees.
It has a consolidated definition of wages.
Changes in the Occupational Safety, Health and Working Conditions Code, 2020:
Changes have been introduced for the employer to take consent from the employee for overtime work, for which the worker shall receive twice the rate of wages.
There was a provision for regular checkups for employees.
There is the appointment of welfare officers, provisions for canteen facilities etc.
What steps can HR professionals take to ensure workplace safety in accordance with the labour laws?
An HR professional can develop workplace safety policies, conduct regular training for employees and establish a clear process for reporting and addressing workplace accidents.
Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.
LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:
This article is written by Ashutosh. In this article, the author has discussed in depth the remote work opportunities available for women. This article also covers various other information related to women and their careers in AI, such as scope, opportunities, types of jobs, contributions, etc.
Table of Contents
Introduction
Artificial intelligence is currently the most booming sector, almost all the companies all around the World are using AI to enhance the productivity of their product. Other than the benefits to companies, AI has also benefited various individuals in landing job opportunities. The evolution of AI has given birth to numerous job opportunities, and people all around the world are grabbing these opportunities.
Women have special chances in AI jobs because all companies now need diverse minds to help their developers develop solutions that benefit all people. AI has also given special opportunities to all those women who were on a career break for personal reasons; those women can now easily get work opportunities from their homes and make a living.
What is AI
AI has become a part of everyone’s life nowadays. It not only makes life easier but can also help people in earning. If you are someone who would like to make a career in AI, you should first understand what AI is and how it works.
In simple terms, artificial intelligence is a field of computer science that enables computers to solve problems by stimulating human intelligence. Thus, AI can perform tasks that require human intelligence or human intervention. Some of the few examples of AI include digital assistants, GPS guidance, and generative AI tools like Chat GPT, Claude AI, etc.
Also, work through machine learning and deep learning which means that AI tools make their decisions like human brains and how it makes the decision by learning from the available data and subsequently increasing the accuracy of the decision through predictions over time.
How AI has evolved in the past few years
Although AI has become very popular these days, it has its roots way back in history and in order to understand the evolution of AI over the years, one must first understand the roots.
Early roots
Although, it can be said that the inception of AI had started with the invention of Computers, but it was the great philosophers and thinkers like Aristotle who developed the concept of deductive reasoning system. During the 4th century BC, Aristotle gave the syllogistic system. This system helped in laying the foundation of logical thinking and critical reasoning. These two aspects are the basis of artificial intelligence.
Genesis
The introduction for the basis of artificial intelligence had taken place way back in history but the genesis or foundation of the AI itself had started in the mid-20th century. This century marked the development of a possibility under which machines could generate human-like intelligence. The 1950s decade was one of the landmark years for the development of AI as it was the first time that an AI program was made that was capable of playing checkers and solving mathematical algebra problems.
Experimentation period
During the 1960s and 1970s, people had realised the power of AI and how it had the power to revolutionise the world. Thus, this period saw significant funding for the research and development of AI. This time also marked the innovations of a few most important fundamental algorithms. It is important to mention here that although women could not be a significant or major part of AI development during this time, however with time their contributions in the field had started to become more and more significant.
Dark period: first AI winter
Just like every great innovation, AI had also had its dark phase when there were many sceptics of AI, and spreading it to a large scale only used to look like a dream. In the late 1970s and 1980s, the world witnessed the first AI winter. This period marked scepticism towards AI, reduction in funding, etc. due to the limitations of the field. The major limitations included its heavy building and usage costs, limited capabilities, and hindrances in scaling. Due to such hindrances in the development of AI, the developers started focusing on the development of AI in a way that would ensure realistic expectations and usage of AI.
Revival of AI
In the late dark period, the AI developers had started focusing on the realistic development of AI, and the 1990s marked to be a turning point for artificial intelligence due to the developments that were made. This could only be achieved due to the invention of highly efficient algorithms, an increase in databases, and the development of computers. The basis of AI i.e. deep learning was majorly developed during this period which in turn led to setting the stage for the modern AI era.
Modern AI era
The 21st century has become the modern AI era because it is in this era that AI has become a part and parcel of everyday human life. Some groundbreaking developments have been made in the field of AI and it can be said that AI has become fully developed in this era and is capable of assisting humans with various tasks. At the same time, it is also open to new changes to be made in it.
Is AI a good career option for women
We have already discussed what AI is and how it has grown over the centuries. As far as women’s career in AI is concerned, it is important to point out first that just like AI, the role of women in various fields has also evolved over the centuries. Although men have historically been a part of the development of AI, there have been efforts to increase participation and encourage women to work in AI. There was a time when women were not even given voting rights, but we have come a long way today where not only do women actively participate in voting, but they have also become a significant part of every field, from law, medical, administrative services or now even AI for that matter.
The main basis of AI is that it includes the component of inclusion and diversity which means that the greater the number of viewpoints, opinions, and diverse creativity it would be fed with, the better it would develop. And women have distinctive opinions that are unique to each one of them. Moreover, their thought process and creative abilities are very different from those of men. Thus, the inclusion of such a wide range of opinions, thoughts, etc. would help the AI to make biassed free judgments and decisions.
Thus, the participation of women in the field of AI is not an option but rather a requirement.
Now coming to the question, of whether the AI career is good for women or not. For women who are interested in AI and computer science, AI is definitely a very lucrative and comfortable career option. Also, women in the AI field will have a variety of career options in this field like engineering related to AI, experts in data, advisory for ethical AI, product manager in AI, etc.
Although a high rise in the percentage of women in AI has been seen in the recent decade, still the proportion is not 50:50 in any AI related field. However, we can be assured that over time this ratio is going to rise and soon the ratio of women to men in the workforce will be equal. In order to achieve an equal ratio, women must upgrade their skills to fulfil the demands of AI companies. AI has given an opportunity to women to fill the gender disparities in the AI field as it does not require any gender specific role. Women have the chance to upskill and reskill themselves as per the requirements of the AI roles that they seek to get.
The AI field, not only has created a number of jobs for women in the field but it has also led to the development of unlimited possible jobs for future technology roles.
Payment gap for women in AI
As per the statistics of the USA, women earn 82 cents for every dollar which is earned by the men. However, when it comes to AI specific roles, it can be said that the younger women have come to parity in earnings with their male counterparts. Thus, as a woman in AI, one should not worry about payment disparity.
How has AI created more opportunities for women
As mentioned above, AI has given an opportunity to women to have more and more career opportunities. Moreover, it has also helped women in overcoming the gender barriers, gender specific roles, pay parity, and bias towards men. AI has helped women in achieving their dream roles and jobs in the following ways:
Creating equal opportunities
AI has helped a great deal in creating equal opportunities for men and women in the workplace. This has been done by letting AI to recruit employees at certain levels of the recruitment process. Although the AI cannot carry out all the processes without human intervention. It cannot be used to carry out all the tasks but it can only be used to assist the humans in carrying out such tasks. Since AI is free from any kind of gender based bias unlike humans, its assistance can be taken in the starting point of recruitment where it can recruit without any gender bias and further the task can be completed by the humans based on the candidates’ skills.
Taking on gender specific ‘office housework’
There are certain office related tasks like scheduling and organising events and conferences, taking notes of the meetings, ordering food, etc., which although essential for the smooth functioning of the office are still usually regarded as mere clerical and thankless tasks. And it has been noticed in various studies that either the corporation does not hire any specific person for such tasks and they approach some women from their team to carry out these tasks or if they hire anyone for the position, it is usually women. There is no courses or specific skills required to carry out such tasks except for the basic corporate skills that are required for any job, still, women are chosen for such jobs because of the gender stereotype that women are supposed to be good at household work and thus it is assumed that the women in the workforce must also be good at such office housework.
Nowadays, corporations have started using AI to complete such office housework tasks or any such housework that cannot be done with the help of AI is now being given to people who are selected by AI for the role. Thus, AI has taken off the extra load from women’s shoulders which has in turn helped them to focus more on work.
Diverse workforce
AI has helped women in achieving jobs without gender bias. AI is the kind of artificial intelligence that requires human input and the more diverse the input is, it can lead to better results and decisions from the AI. Thus, AI has empowered women by giving value to their opinions, thoughts and reasonings, equally to that of women. And similarly, AI shall also help to diversify the workforce to third genders in the future.
Opportunities in healthcare
There are a lot of women working in the healthcare sector, and now most of the organisations prefer hiring women members to develop advanced AI solutions for their patient care. There are various female therapists and psychologists that are creating advanced AI therapy applications and chatbots.
Opportunities in beauty and fashion
There are various women out in the fashion and beauty industry who are creating innovations such as enhanced styling, custom product creation, etc. women know a lot about beauty and fashion there is no other gender on earth who can teach beauty and fashion more appropriately than women. Thus, varios beauty and fashion companies are hiring women for creating easy AI enhanced solutions for their customers.
Gender neutral roles
Unlike other industries which specifically include on-field works like sales, factory related works etc. used to hire only men for their work as they considered women as physically weak to carry out such tasks. However, changes have been seen in these industries as they started to hire women also in the recent past but the ratio is still far less than 50-50. But when it comes to the AI industry, it has never required gender specific roles except during the time of its development when the overall development of women in any workforce used to be far less than that of men’s. In the AI field, anyone who has the requisite qualifications, skills and experience can easily apply for the job and if she or he is found to be good enough for the job, they will get it irrespective of the gender. Thus, AI has helped women in securing jobs without any gender bias. And many AI based corporations today hire equal men and women.
Scope for women in AI remote jobs
Due to the stereotypical roles given to women in the society, many women have often ended up giving up their jobs and careers to fulfil their responsibilities. The same is never expected from men as their role in the society is to be the breadwinner for the family. Though these roles have changed over the years and women have started taking part in building and prioritising their careers, there are still studies and surveys that show otherwise.
The concept of remote jobs or work from home jobs has mainly developed during the covid period and it has proved to be a boon for women ever since. Remote jobs are especially beneficial for women as it gives them the opportunity to balance professional and personal life. They do not need to give up their jobs for any personal responsibility. Time and location does not matter in remote jobs rather factors like hours spent and quality work matter. A survey done by LinkedIn showed that women are more inclined towards applying for remote jobs in comparison to men.
When it comes to AI related remote jobs, there are definitely more options available than in any other field as AI jobs can easily be done from home. There is little to no requirement for fieldwork in this sector except for a few posts.
How can women advance their careers by embracing AI
AI is being implemented across all the industries during the current time and every manual role is being transformed in some way or another. As of now, there is a huge opportunity for all women to give themselves the benefit of reskilling and upskilling with all the latest future AI-driven roles.
By doing so they will not only increase their job potential but they can also create unlimited possibilities with the evolving AI technology to take on all the highly in-demand future roles.
All the underrepresented groups, especially women, can boost their career and job opportunities by developing the best and highly demanding AI skills now to make sure that they are ready to embrace these new tools that are going to become more widespread and integrated. AI can be extremely helpful for everyone who wants to take his/her career to the next level. It is not going to replace any job but eventually, it will replace those people who don’t learn to use these AI tools.
Organisations all around the world are looking for employees who know how to use AI tools to enhance the creative process and improve work facets and other problem-solving needs.
As AI is going to have an impact on each and every job, women can easily advance their careers by upskilling or reskilling. Women and all other underrepresented people can embrace their careers by developing extraordinary AI skills, by learning how they can use those skills in their work, by staying updated with all the latest AI trends, and by using and learning those trends before anyone in their field.
Opportunities for women in AI remote work jobs
There was a common confusion in the minds of all the individuals that in the coming future they are going to lose their jobs to AI. However, that is not the case, in fact, AI has created a lot of job opportunities for people all around the World, these are not only job opportunities but these flexible remote job work opportunities that people can do from their homes. One category of people that have been immensely happy because of this is the category of Women, Women all around the World who are in their motherhood phase, or had to lose their job because of some or other reason and have got an opportunity to kick start their career, and this is all because of job opportunities created by AI.
Here, in this article, we will be exhaustively discussing some of the highly demanding remote job work opportunities for women, we will also discuss its job responsibilities and the skills required to get that job opportunity.
The list of job opportunities that we will be discussing are listed below:
Data scientist and analyst
AI and machine learning expert
AI subject matter expert
AI engineer
AI architect
Data scientist and analyst
Data scientists are the people who have a responsibility to simplify all the complex data puzzles that are capable of changing the way a company functions. Basically, the data scientist is an individual who is responsible for finding all the insights and hidden patterns in datasets. Data scientists are also required to handle massive tabular data on LLMs (large language models), they play an extremely crucial role in leveraging their expertise in tabular data analysis to extract the insights, drive decisions that are data driven, and also in building predictive models.
Recently there has been a lot of opportunity for women in this field, though the field is dominated by males still women are making a decent attempt to set their foot in this field. Women who have upskilled their AI skills and who know how to use AI tools to make their work more effective as a data analyst and scientists are getting fair opportunities and a decent salary.
Responsibilities of a data scientist/ analyst
Here are the main responsibilities of a data scientist/analyst
Knowing how to utilise LLMs (large language models)- Data scientists are required to harness the power of LLMS to analyse all the massive volumes of data tables effectively and efficiently.
Analysing various tabular data – All the data scientists are required to use the advanced statistical techniques and machine learning algorithms to uncover all the trends, patterns, and anomalies in complex data tables.
Predictive modelling– They are also required to deploy and develop predictive models using the large language models to forecast all the future trends, and identify all the potential risks, and optimise all the business outcomes that are based on large scale data tables.
Pre-processing and data handling– Data scientists are required to make lead efforts in pre processing, cleaning, and transforming all the raw tables of data to make sure that their scalability, quality, and consistency are up to the mark for the purpose of analysis.
Product enhancement- Data scientists work closely with the product managers for the purpose of identifying all the market trends and customer needs, they also provide data driven recommendations to improve the features of the product to provide overall customer satisfaction.
How can women get these job opportunities
There are various online websites such as Naukri, Indeed, LinkedIn etc that have various job opportunities for data scientists and data analysts for women.
Here is a live example of such a job opportunity.
This is a screenshot showing a similar job opportunity of a senior data scientist being listed on a website.
Women who are interested in working as senior data scientists can simply click on this link, or visit the website of Glassdoor and apply directly from their website.
How can women make a comeback in this field
There are various women who have to leave their job for some personal reasons or because of pregnancy. AI has come up with enormous opportunities for all those women who have a career interruption because of their motherhood or any other reason. Here we have mentioned a few things that all women must follow in order to make a successful comeback in the field of data scientist/analyst.
Portfolio creation– One of the most important things every woman can do to make a comeback is to create their own profile or portfolio highlighting all their skills and past experiences.
Taking online courses and attending webinars– Currently, a lot of emphasis is being laid upon increasing the women workforce and bringing equality of opportunity among men and women, there are various online courses and webinars available on the internet that teach how to land a remote AI driven job. Click here to check out one such course.
Attend returnship programs– There are a lot of professional women in India who have taken a pause from their work, keeping this in mind a lot of companies in India are providing returnship programs for those women to restart their careers. In these returnship programmes they provide mentorship, training, and various other networking opportunities to women. Companies that offer returnship programmes in India are Deloitte India, Amazon India, Goldman Sachs India, SAP India, etc.
AI and machine learning expert
There are a lot of opportunities for women when it comes to artificial intelligence and machine learning, this is because they need diverse minds to create AI software that can work for everyone, other than this women are generally better than men in having soft skills, thus explaining all the difficult AI stuff to non technical members becomes a lot more easier.
There are various companies that are looking for an AI and machine learning expert who also knows how to handle ML operations and data pipeline engineering.
Responsibilities of AI and machine learning expert
These are the main responsibilities of an AI and machine learning expert.
The most important responsibility is to develop, design, and deploy various models of machine learning for various applications.
Driving the end-to-end machine learning lifecycle, including model development, data processing, evaluation, and monitoring.
Ensuring reliable creation of machine learning models and monitoring their performance in the production environment.
Designing and implementing data pipeline to support analytics workload and machine learning.
Working closely with the data scientists, data engineers, and software engineers to make sure that there is seamless integration of ML models into applications.
How to apply
These are the steps that are required to be followed to successfully apply for these remote jobs.
The first thing that you need to do is go to any search engine and type remote AI and machine learning opportunities. Or you can simply go on any online website such as Indeed,LinkedIn, or Naukri.com, and search for AI and machine learning expert jobs.
After that, you will get to see a lot of work opportunities available for AI and machine learning experts.
Image showing job opportunities available at Indeed.
Once you get to see all the job opportunities that are available, you can tap on the apply now button on any of the jobs that you find fit for yourself.
After you tap on the apply now button, you are required to fill all the necessary details about yourself and your experiences,
After filling in all the necessary details, tap on the submit button and your online application will be submitted.
Other than these steps, you can also apply for these jobs by writing an email directly to the recruiter, explaining and convincing him why you would be the best pick for the opportunity.
Can women who have taken career breaks make a comeback as AI and machine learning expert
Yes, for sure all the women who were on a career back can make a comeback and get remote AI driven job opportunities such as AI and machine learning. These are a few things that will help them in getting back on track.
Upskilling- One of the most important things that every woman who went on a career break needs to do is to upskill themself. There are various online courses available online through which they can easily acquire new skills. Websites such as Skill Arbitrage, Coursera,edX, etc have some excellent online courses on AI, click here to check out one such course.
Portfolio creation- Yes, once again. This is the most important thing that an individual needs to do in order to get remote jobs, no matter whether you are on a break or anything else. You must have a portfolio. Write blogs, complete your courses, do freelancing work, develop new skills, and create a profile for yourself.
Networking- Networking is also extremely essential to get remote work opportunities, and now the best part of networking is that you can do it from your home through LinkedIn or various other websites. Make sure to connect with women who are experts in AI and machine learning, attend virtual conferences and follow all the leaders, and make sure to engage in the posts of your favourite ones.
Returnship programmes– Returnship programs are other great initiatives taken by big companies such as IBM to kick start the stagnant life of a woman. You can get good guidance and mentorship through these returnship programmes which will help you a lot in landing a remote AI work opportunity.
AI subject matter expert
Subject matter experts are those individuals that bridge the gap between real world applications and AI technology. They are the experts who know how to utilise AI in various domains and industries. Subject matter experts are those individuals who have deep knowledge about the AI models, their main responsibility is to work along with the AI and tech teams to develop solutions that work for the betterment of people.
Women professionals who are in this field have a great opportunity, women who have previously worked in Healthcare, finance or education industry are highly demanded for this job. This is because they know the needs of the people and can help in delivering a perfect solution helping in fulfilling the needs of the people.
One of the biggest advantages of this field is that in order to become an AI subject matter expert you don’t need to be a coding pro. All you need to have is the knowledge of your field and a basic understanding of the workings of AI, and the brains to put both the fields together.
Women who are looking for remote jobs can easily get an opportunity here, this is because the main purpose of this job is to bridge the gap between the business and technology teams, and this can be done from any place in the World. This can be an amazing opportunity for all women as it provides flexibility and thus, they can easily do it.
Responsibilities of an AI subject matter expert
These are the main job responsibilities of an AI subject matter expert.
Their main duty is to bridge the gap between the technological teams and business units, they are required to have a basic knowledge of both these things.
They are required to review the AI models created by the data science team.
They are required to do extensive research on their field and provide ideas for solutions that can be used for the betterment of the public by delivering exceptional solutions.
Evaluating, researching, and making recommendations on all the latest and emerging technologies.
Providing strategic advice and support to advanced artificial intelligence and machine learning concepts, initiatives, and system technologies.
How to apply for these jobs
Applying for these jobs is extremely easy, here below we have mentioned all the steps that you need to follow in order to apply for these jobs.
The first thing that you need to do is to go to any online website that puts job posts.
Here, for example, we have selected a website named Indeed for reference.
As you can clearly see that on top there is a search bar asking for a job title, simply click there and write AI subject matter expert.
Once you search for it, you will get to see various options like this.
Tap on the job post in which you want to apply, and you will get to see an apply now option.
Click on the apply now option, and then a separate page will open in which you will have to fill in all your personal details along with your CV.
Once you successfully submit all the details, click on the submit now button, and your application will be submitted.
You will receive an email after a few days about the status of your application.
How can women on career breaks resume their careers in this field
All the women who want to make a career in this field and want to resume their work can easily do it by learning AI skills and complementing it with their knowledge. Make sure that you attend a few courses and webinars that teach how to use AI and other aspects of machine learning.
One of the best things about being an AI subject matter expert is that it gives value to the life experiences of an individual. Your previous years of work and the knowledge that you have gained in your field are not wasted, in fact, that is the most important ingredient that will help you in getting that remote job. You can get various remote work opportunities through reference so make sure that you connect with influential people in your field.
Companies are looking for women from different perspectives. There are various healthcare, financial and educational companies who are looking for women with past experiences to help them build AI solutions for their fields. So, make sure that you keep an eye on all the job posting websites and grab the opportunity.
AI engineer
These engineers are the individuals who are responsible for building the AI world. In other words, we can also say that they are the architects of the AI World. AI Engineers are the persons who are responsible for creating all the amazing AI concepts that make them function in the real world.
AI engineers are the ones who are responsible for building, developing, and designing the various AI systems. They are the ones who create machine learning models, chatbots, and other AI functions. They have a sound understanding of data science, software engineering, and programming, they are also experts in using various AI tools and techniques.
Traditionally the field of AI engineering is dominated by males, but in the past few years that has changed rapidly. This is because there are various companies that want to build a diverse team to develop better AI. Because of that, they are actively hiring women engineers who will bring different approaches and perspectives toward problem solving. There are various paths through which women are getting AI driven remote work opportunities. One of the main reasons that women are becoming AI engineers is that the tasks that are done in AI engineering can be easily done from any place, all you need is a good and stable internet.
Responsibilities of an AI engineer
These are some of the main responsibilities of an AI engineer.
Converting the machine learning products into application program interfaces so that they can be used by other applications.
Building various AI models from scratch and helping different components of the organisation such as the stakeholders and product managers to understand what outcome they are going to get from the model.
Automate the structure that will be used by the data science team
Develop data ingestion and data transformation infrastructure
Manage and set up the product infrastructure as well as AI development
Coordinate with all the other members of the team and act like a good team player.
Skills required to become an AI engineer
These are some of the most useful skills that every AI engineer must possess.
programming skills– The first and the most important skill that every AI engineer must possess is programming. To become experienced in using AI tools it is very important to learn programming languages, such as Java, Python, C++, etc.
Problem solving skills– In order to become a successful AI engineer you must have the capacity to think creatively and solve problems. This is because artificial intelligence seeks to address all the problems that emerge in the real-time and it necessitates the development of problem solving skills that are both creative as well as critical.
Business intelligence– Most of the issues that are related to the management of an organisation may be fixed with the help of successful AI initiatives. If you possess business intelligence, you will be able to easily transform your technological ideas into a productive commercial venture. You must try to develop a fundamental knowledge of how companies work, the audience they serve, and their rivalries in the industry regardless of the industry in which you currently work.
How to apply for these jobs
You can easily apply for these AI driven remote jobs from your laptop from anywhere, below we have mentioned all the essential steps that you must follow in order to apply for these jobs.
The first thing that you need to do is to go to any of the job posting websites, such as LinkedIn, naukri.com, etc.
Next, you need to type the job opportunity in the search bar of the website that you have selected.
Once you type the job that you are looking for, you will get to see various opportunities that are being posted on that website.
Go through all the job options and select the one that you like the most.
Tap on the job post in which you want to apply, and you will get to see an apply now option.
Click on the apply now option, and then a separate page will open in which you will have to fill in all your personal details along with your CV.
Once you successfully submit all the details, click on the submit now button, and your application will be submitted.
You will receive an email after a few days about the status of your application.
How can women on career breaks resume their careers in this field
The field of AI is evolving very rapidly and it is expanding, and because of this new opportunities are also coming up. Women can take this advantage and set foot in this field, even the women who have taken career breaks can get remote work opportunities if they do the right thing. There are a few things a woman needs to do in order to successfully land such a job opportunity, and they are as follows:
Portfolio creation- Creating a portfolio is one of the most important things that you need to do in order to get a job. Your portfolio plays a great role when applying for jobs. Especially in such situations when you were on a work break. Slowly start your work and try to do some small freelance projects or any other personal project. This will help you showcase your work and your potential to the employers and they will think of you as an eligible person for the job.
Do online courses– Another most important thing that you must do before getting back into work is to do some online courses. There are various online teaching websites that have online courses on profile building and freelancing, make sure you check out those courses and get yourself enrolled in any of those. Click here to see one such course that is highly demanded as of now.
Networking- Yes, networking can also help you in various ways, you can land a remote job through reference. For that make sure that you will connect with people and engage with them.
AI architect
AI architects are those individuals who are responsible for developing solutions that challenge the usage of machine learning and artificial intelligence applications. These architects work with the IT teams, software developers, and machine language engineers to identify those areas within technical systems and data modules that need improvement to enhance the functionality of the computer and the software. They are the ones who sketch the blueprint for an organisation’s whole AI strategy.
There is a lot of scope for women in this field and this is mainly because in this field other than the technical skills, various other skills such as strategic thinking, communication, and the ability to collaborate with other teams are also required and women are usually better in this field thus, there are companies who want to hire women employees.
One of the greatest advantages of working as an AI architect is that they can work remotely, and this thing is a game changer, especially for all the women. It provides greater flexibility, so, women who are stuck at their home or are on breaks can also get a fair opportunity. Women can easily take up the role of AI architects without having to shift to some other place.
Responsibilities of an AI architect
These are some of the main responsibilities of an AI architect.
Developing AI solutions to solve all the complex and difficult problems across various domains.
Collaborating with the cross-functional teams in order to design, deploy, and build AI powered applications using programming languages.
Auditing AI tools and practices across various models, data, and software engineering.
Working closely in collaboration with the risk and security leaders to overturn and foresee all the risks and challenges.
Collaborating with data scientists and other AI professionals to augment all the digital transformation efforts by piloting and identifying use cases.
Skills required to become an AI architect
These are the skills that an individual needs to possess in order to become an AI architect.
Pipeline planning and AI architect– It is very important for an AI architect to understand the pipeline architecture and workflow of machine learning. They need to have an in-depth knowledge of all the components of architectural trade-offs that are involved across the data management.
Software engineering- AI architecture must have the knowledge of various AI tools and DevOps such as Git and Kubernotes.
Advanced analytics and data science- They must also have knowledge of all the advanced analytical tools such as Python, along with machine learning.
How to apply for these jobs
You can easily apply for these AI driven remote jobs from your laptop from anywhere, below we have mentioned all the essential steps that you must follow in order to apply for these jobs.
The first thing that you need to do is to go to any of the job posting websites, such as LinkedIn, naukri.com, etc.
Next, you need to type the job opportunity in the search bar of the website that you have selected.
Once you type the job that you are looking for, you will get to see various opportunities that are being posted on that website.
Go through all the job options and select the one that you like the most.
Tap on the job post in which you want to apply, and you will get to see an apply now option.
Click on the apply now option, and then a separate page will open in which you will have to fill in all your personal details along with your CV.
Once you successfully submit all the details, click on the submit now button, and your application will be submitted.
You will receive an email after a few days about the status of your application.
How can women on career breaks resume their careers in this field
If you are a woman who was on a career break and now you want to resume your career as an AI architect, then don’t worry because you can do it by just doing a few simple things. Do not panic because of your career gap, the AI field is still in its evolving phase and everyone in this field is still learning and there is a lot more to learn for everyone out there.
Online courses– Start with the basics, learn about AI and machine learning, and make sure that you enrol in some high quality online courses. Make sure that you highlight a course in which you learn multiple things related to AI.
Build your portfolio– Creating a portfolio is one of the most important things that you need to do in order to get a job. Your portfolio plays a great role when applying for jobs. Especially in such situations when you were on a work break. Slowly start your work and try to do some small freelance projects or any other personal project. This will help you showcase your work and your potential to the employers and they will think of you as an eligible person for the job.
How can businesses get more women in AI, remote work jobs
AI has the power to increase the percentage of women in AI industries, but as per various reports, women are still not represented adequately in these fields. As per a 2020 World Economic Forum Report on gender parity, only 26% of the data and AI positions have been held by women. Thus there is a need to get more women in the AI industry and many companies are taking steps towards incorporating steps to add more and more women in the workforce. Here are a few steps that the companies can take to promote gender diversity in their companies.
Flexible work environment
Just like any other industry, the AI industry should also make its work environment and culture flexible. This shall include offering remote employment to employees, part- time work, or flexible working hours. This is even more significant for women because they have concerns about their safety when working late at night. Thus, incorporating such flexible working hours and remote working days would be beneficial for women in the industry as they would be able to take part in the work without any other apprehensions regarding their safety.
Equal pay for equal roles
There has been a constant fight for equal pay ever since women have started working. There was a time when women were not even paid half of what men were being paid for the same work. But times have changed now, and there has been a great development in the payment parity. Although there are still many industries where payment parity has not been achieved, yet women have come a lot closer to men’s payment as compared to earlier times. The AI companies that want to hire women in their team must offer equal pay to them from the beginning. These companies should also conduct regular pay audits to ensure that there are no pay gaps in the company.
Equal opportunities
Many companies still have implicit gender biases when it comes to recruiting employees. These biases act as a hindrance for the women who are qualified enough for the job but are still rejected due to their gender. Sometimes, instead of rejecting women, the companies apply bias by creating job titles and descriptions specifically for men.
Such bias in the hiring process should be done with and companies should aim for at least 50% women in their companies rather than making positions for men because AI algorithms cannot work without the valuable inputs of women.
Mentorship from successful women in the industries
In order to achieve the best possible outcome in any career field, mentorship is very important since it helps the people to understand the intricacies related to work and various other practical aspects that are not taught in schools and colleges. When the mentorship comes from someone who has gone through the same hurdles and obstacles as the mentors, it is like the cherry on top.
Earlier only academic institutions or some associations used to offer mentorship programmes and not from companies. However, this has changed and nowadays many companies offer mentorship to the new employees when they start their work. The AI companies can also inculcate these programs and provide mentorship to their employees from the successful female leaders of their company only. Many AI companies have already started such programmes through AI based apps where the app is used to connect and provide mentorship to the entry level and mid-level workers.
Education and training
Though the employees who have been selected for the jobs, already have degrees and qualifications. However, in order to instil practical problem solving methods in the female employees, the companies can hold online training programs, courses, and even workshops. Many companies hold workshops for women in AI where they are taught not only the practical aspects of AI but also how to overcome gender based biases and hurdles. Companies can also hold conferences and industry events where they can call the top female leaders from the AI industry to motivate and encourage the female employees.
Role models
There must be women in top positions in the AI industries, the companies should promote such women and encourage them so that it would boost their confidence and give them self assurance. These women in turn could act as role models for the new female employees and give them encouragement and hope to work harder so that they can also achieve such positions in their team.
Work life balance
Although work life balance should be promoted in every industry and for all employees irrespective of their gender. But due to the gender norms and stereotypes, women still have some extra roles and duties to fulfil when it comes to house chores and especially taking care of the kids. Many working women end up giving up their careers after their babies are born. This norm needs to be changed and companies can bring a change in this field by offering certain benefits to pregnant women like, on-site childcare, and parental leaves both to men and women because only providing maternal leave would signify that taking care of the child is the sole responsibility of women. By providing a significant number of leaves to fathers if not equal to that given to mothers, companies can take a step ahead in promoting gender equality in house chores. Moreover, AI companies can also give the work from home option to women after the maternity leave is over so that they can keep a healthy balance between personal and professional lives.
AI driven remote job posts for women
These are some of the most popular remote AI jobs available on the internet.
AI developer trainee
There are various organisations that are looking for a remote AI developer trainee who can design and develop a state of the art AI chatbot and can utilise the natural language processing techniques and machine learning algorithms to increase the capabilities of the chatbot.
Image showing an AI developer trainee job opportunity available on the indeed website
About this job
This is a remote work opportunity at Dezy It organisation. They are offering a full time job opportunity with a salary of 30-35 thousand rupees per month. They are a team of designers and creators who have come together to create a creative community with a common vision of innovation and growth. They are looking for an AI developer trainee for their team who can help them develop chatbots and provide technical support and guidance to other team members.
Click here, to get the full details of this job opportunity.
Senior technical architect
There is a high demand for AI architects at the current time. Many of the companies are looking for senior technical AI and ML architects who are proficient in machine learning and know how to develop complex AI solutions.
Image showing a senior technical AI architect job opportunity available at the indeed website.
About the job
This particular job opportunity is posted on the Indeed website, by an organisation named Bookit Digital Technologie Pvt Ltd., they are looking for a senior technical AI architect for remote work. The job of the architect will be to develop and implement cutting edge, to develop solutions to solve complex problems related to AI, they are looking for a candidate who has a deep understanding of programming language and of machine learning algorithms. They are offering a package of 25 lakhs to 32 lakhs per year for this job.
There are several companies who specialise in providing artificial intelligence solutions, these companies often look for talented content writers to help them in marketing and promoting their products. They need a content writer who has enough knowledge of AI and its tools and knows how to market and promote their products.
Image showing an AI content writer job opportunity available at the Indeed website.
About this job
This content writing job is posted by TEROBOTS ENTERPRISES AI PVT LTD, they are a cutting edge technology company that specialises in AI solutions. They are looking for a talented content writer who can create compelling content across all the formats, they want to hire someone who has a deep understanding of all the latest AI and technology trends. They want their employees to create high quality, informative and engaging content for all the platforms and websites including social media, newsletters, etc., they are offering a salary of 20-50 thousand rupees per month.
Click here, to learn more about this job opportunity.
Skills for women to get AI remote jobs
As more and more AI related remote jobs are getting created, it is also increasing the number of opportunities for women in this field. However, in order to get the dream remote AI job, women must adapt and upskill themselves for the upcoming best chances. This field requires specific skills and knowledge so not anyone with some degree can land a job in this field. Here is a list of the most important skills that women must have to get AI related remote jobs:
Programming
While this may come as a very basic skill that is required for any AI related jobs, it still remains as one of the most important ones. Be it any AI related job, any candidate must ensure to have a strong knowledge of the programming languages. There are many different AI based career options that involve a strong programming language knowledge, such as Machine Learning engineering, Algorithm developer, SLAM engineering, etc. The interested AI candidates must learn how to implement and test the programs and must also have practical programming knowledge or experience. The most important programming languages include Python, Java, Apache Spark, Pandas, and Python 3.
Machine learning and deep learning
As mentioned before Artificial intelligence works on machine learning which means that it is fed data and using the data it gives its results and decisions. Machine learning involves feeding data into the computers so that the computer can learn from the data and improve the accuracy of its outcomes. Deep learning is also a subset of machine learning which involves using neural networks with layers so that the computer can analyse data factors. These skills are important for various applications like speech recognition, image processing tasks, and predictive modelling.
Natural language processing
It is the technology that helps computers to understand and interpret human language. In order to develop and learn this skill, the candidates must learn and understand linguistics and computer algorithms and learning libraries like NLTK. Natural language processing is mainly used in chatbots, apps for translations, and social media analysis apps.
AI ethics
AI systems give their output after learning from the data that is fed to it. But sometimes, the data have inherent biases which might affect the interpretations and decisions given by the AI. Thus, the AI professionals must have the requisite skills to recognise such problems in the data and address them accordingly. AI ethics is the learning of this skill which would help in data auditing and using tools to detect such biases in the data. This skill is used in AI deployments, loan approvals, and law enforcement.
Future of women in AI
The future of the tech world is definitely dominated by AI. All the big companies like Google, Amazon, Facebook, Apple, etc. all claim again and again that the daily lives of the common people are going to be majorly transformed by Artificial Intelligence and this future is not far. These companies have recognised the power that AI is going to hold in the near future and thus they have started working on the future AI products and requirements. The job field in AI is getting bigger and bigger and soon there are going to be an endless number of opportunities in this field. Thus, it can be said that the future of AI is very bright and there are many opportunities for people in this field.
If we talk about the current statistics, it is rather unfortunate to see that women do not have the adequate representation that they deserve. A recent survey done at Google Company showed that only 21 percent of the technical roles in the company are filled by women. Facebook had also released its company figures which showed that 22 percent of the technical workers in the company are women. The AI research group of the company consisted of 115 people, out of which 15 percent were women.
According to a report of the World Economic Forum, women make up only 22% of the AI professionals in the world. These numbers show the disparity in the number of women and men in the AI field in the leading companies. However, the future of women in AI holds a different view than the one depicted in the current numbers.
Contributions of women towards AI
In order to understand what the future holds for women in the field of AI, we must first have a look at the contributions made by women towards the development of AI in the past.
Though it might seem as if women never took part in the development of AI, especially in the past because none of the textbooks, papers, or publishings talk about their contributions, we still cannot keep ignoring their contributions however tiny they might seem. It is most definitely true that there was a time when the world did not consider women to be capable of anything except for doing house chores. Especially when it comes to more complex topics like science, and maths, people could never digest if a brilliant idea came from a woman. This was the reason that many of the contributions made by women towards the development of AI have never been recognised by this world.
One such woman was Ada Lovelace, a 19th-century mathematician whose brilliant work inspired Alan Turing to give his foundational concepts related to AI. Most people in AI must have heard of Alan Turing but there must be only a handful of men who would have heard of Ada Lovelace.
The New York Times had recently released a ‘Who’s Who list’ which consisted of the names of the AI leaders whose contributions have significantly impacted the development of AI. The list consisted of 12 names, all 12 of which were men. It is rather appalling to see that the writers could not find the name of a single woman who has made noteworthy contributions to the field of AI.
As a reply to the report, Sephora Bemba, who is an engineer in data and AI product development, prepared a list of her own in which she included the names of 12 women leaders in AI. Some of the names in the list included the name of Fei Fei Li who has done some recommendable work in AI. She is a computer scientist and Stanford professor. The list also included the name of Joy Buolamwini who is a creative science communicator, a bestselling author, etc.
Top AI companies hiring for remote jobs
Here are some top AI companies that are hiring employees for remote jobs.
Zeta Global
It is a data powered marketing cloud that is said to leverage advanced artificial intelligence and trillions of customer signals in order to make it easier for all the marketers to retain, acquire, and grow customers more efficiently.
Zeta Global wants to transform the current sophisticated market into a simple one with the help of Zeta Marketing Platform by unifying the intelligence, identity, and omnichannel activation into one single platform. Some of the recent jobs that they have posted include senior account manager, data science manager, database architect, etc.
How to get a job in Zeta Global
Here are the steps that you need to follow in order to get a job at Zeta Global.
Make sure that you follow their official pages and keep yourself updated with all their job openings, and apply directly from there, or
You can directly visit their website and check for Job openings.
Apply for the job that you like the most and submit your application, you will receive an email either confirming or rejecting your application.
OpenAI
OpenAI is a research based organisation that is dedicated to advancing the usage of AI in a beneficial and safe manner. This organisation was founded in the year 2015 by a group of huge tech industry people, including people like Sam Altman and Elon Musk. Recently OpenAI created huge headlines for its innovative language model, namely ChatGPT. This model created by them can create amazing human-like responses and give answers to all the queries. Their current company size is 200-500 members, and they are still actively hiring employees for the positions of sales, legal, engineering, and operations. They are offering hybrid work opportunities with flexible hours.
How to get a job in OpenAI
These are the steps that you need to follow in order to get a job in OpenAI.
The first thing that you need to do is to go to their official page.
Tap on the careers option, once you tap on the career option you will get a long list of job opportunities.
Check out all the career options that are listed there, and select the one you like the most.
Tap on the apply now option, fill all the necessary details and submit your application.
After you submit your application, you will receive an email after a few days either confirming or rejecting your application.
Grammarly
Grammarly is also a very renowned tech startup that provides an online writing tool that helps its users to correct all their grammatical errors and spelling mistakes while working on a document. They have an AI-powered assistant that is designed for the purpose of providing reliable suggestions for improving the overall quality of their content. Recently Grammarly has achieved a milestone, they have crossed the amount of 30 million active users per month. To accommodate its growing customer base and expand its services, Grammarly is looking for employees for various roles. They have positions in engineering, operations, marketing, design, and as well as sales. They are also offering remote work with flexible working hours.
How to get a job in Grammarly
These are the steps that you need to follow in order to get a job in Grammarly.
The first thing that you need to do is to go to their official page.
Tap on the careers option, once you tap on the career option you will get a long list of job opportunities.
Check out all the career options that are listed there, and select the one you like the most.
Tap on the apply now option, fill in all the necessary details, and submit your application.
After you submit your application, you will receive an email after a few days either confirming or rejecting your application.
Hive
It is also an AI startup that mainly focuses on developing the next generation of intelligent automation solutions. They are known for offering cloud based AI solutions for understanding the content and for providing developers with a profile of best-in-class and already trained AI models. They have recently collected a fund of 120 million dollars from their investing investors such as 8VC, Glynn Catalyst, etc, and they are looking for employees for dozens of roles to support them in growing and expanding their business. They have openings for engineering, product, operations, design, sales, and legal fields.
How to get a job in Hive
These are the steps that you need to follow in order to get a job in Grammarly.
The first thing that you need to do is to go to their official page.
Tap on the careers option, once you tap on the career option you will get a long list of job opportunities.
Check out all the career options that are listed there, and select the one you like the most.
Tap on the apply now option, fill in all the necessary details, and submit your application.
After you submit your application, you will receive an email after a few days either confirming or rejecting your application.
Conclusion
In this article, we have exhaustively discussed the AI-driven remote work opportunities for women. We have also tried to understand the role and contributions of women in AI and what is their future in AI.
The evolution of AI has opened several doors for women, even the women who are in their motherhood phase and have taken career breaks due to some or other reasons have got an opportunity to resume their work with various AI job opportunities available on the internet. Thus, AI is helping a lot in the upliftment of women who were devastated because of their career breaks.
Frequently asked questions (FAQs)
Is it necessary to have a degree in computer science in order to get an AI job?
No, it is not at all necessary to have a degree in computer science to get an AI job. There are various professionals working in the field of AI who are not from the technology field. There are various companies as well that hire individuals who work in different fields such as healthcare, education, and finance. However, having a technical background can help you in understanding things more quickly.
Is it possible for women who have been on a career break for a very long time to start a career in AI?
Yes, it is extremely possible. All those women who were on a career break can kick-start their careers in the field of AI. Not only that but they can get a remote work opportunity in which they can work from any corner of the world. However, there are a few things that they must do in order to increase their chances of getting jobs. Make sure that when you make up your mind to start a career in AI, you do a few courses and attend webinars on AI and how to use it. Various big companies such as IBM and Deloitte conduct returnship programmes for women who want to return to work after a career break, make sure that you attend those too.
How to build a portfolio to get a remote AI job opportunity?
Start working on personal projects, make sure that you also check freelancing websites and look for small works. Try to collaborate with local businesses and help them with AI-related tasks. If you are having difficulty in finding work, start working for free, complete a few projects for free, and add them to your portfolio. Mentions all your results and progress and represents your problem solving attitude and skills.
What are the most important skills to get an AI job?
There are a few skills that you must master in order to get a job in AI. you should know how to use AI tools, you should know how to interact and communicate with team members and most importantly you must possess a problem solving ability so that you can easily develop solutions to help others.
Are there any specific challenges that women face in the field of AI? And how can they overcome it?
Yes, there are a few challenges that women face in this field, some common challenges that women face in this field are underrepresentation and bias. However, the situations are changing with time, and companies all around the world are understanding the importance of women in employment.
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This article is written by Shivani. A. This is an exhaustive article analysing the case of Kashmira Singh vs. State of Punjab. This judgement is considered a landmark, as the Supreme Court in this case provided interpretation of the law pertaining to the grant of bail to a person convicted of life imprisonment during the pendency of his appeal. This article provides the brief facts of the case, the issues involved and the judgement of the case. It also deals with the important provisions of the law used by the judges while delivering the judgement.
Table of Contents
Introduction
It is a well known principle of the criminal justice system that “Bail is the rule, and jail is the exception.” The term ‘bail’ refers to the release of a person from legal custody on some surety and on the condition that the person will appear before the Court whenever he is required to do so. The right to bail is one of the rights recognized under Article 21 of the Constitution of India, which provides for the right to life and personal liberty of an individual. However, the High Courts and the Supreme Court used to follow a common practice that, whenever a person was convicted for imprisonment for life and the accused person filed for an appeal, he would not be granted bail even if his appeal was pending before the appellate court and the hearing was not likely to take place anytime soon. This practice is not followed at present and has been abolished as it is considered to be detrimental to the rights of the accused. The Supreme Court abolished this practice of not granting bail to a person convicted of life imprisonment even when his appeal is pending in the appellate court for the first time in the case of Kashmira Singh vs. State of Punjab (1977). By delivering this judgement, the Court ensured that the rights of the convict were protected by the court(s).
Details of the case
Case name: Kashmira Singh vs. State of Punjab
Case number: Criminal Miscellaneous Petition No. 1907 of 1976
Important provisions: Section 302, Section 323 of the Indian Penal Code, 1860 and Section 389 of the Code of Criminal Procedure, 1973.
Court: Supreme Court
Bench: Justice P.N. Bhagwati, Justice A.C. Gupta
Appellant: Kashmira Singh
Respondents: State of Punjab & Ors.
Judgement Date: 2nd September 1977
Facts of the case
In this case, the appellant was charged under Section 323 (Punishment for voluntarily causing hurt) and Section 302 (Punishment for murder) of the IPC . He was then convicted by the trial court under Section 323. When an appeal was filed by the State in the High Court, the Court set aside his acquittal under Section 302 and thereafter convicted him for murder. The appellant was then sentenced to life imprisonment. Special leave to appeal to the Supreme Court was granted on February 28, 1974. The appellant’s application for bail pending the hearing of the appeal was dismissed on January 10, 1975. Consequently, the appellant preferred another bail application.
Issues raised
Whether a person who has been sentenced to life imprisonment can be released on bail during the pendency of the disposal of his appeal by special leave?
Arguments of the parties
Arguments of the appellant
The main contention of the appellant was that he should be released on bail as the application of his appeal has been pending for a very long time and that the hearing of the same will not take place in the near future. Therefore, the appellant prayed before the Court to grant him bail.
Arguments of the respondent
In the instant case, the main contention raised by the respondent was that the accused should not be granted bail as it would be against the practice followed by the High Courts and the Supreme Court. As already mentioned previously in this article, it was a common practice of most of the High Courts and the Supreme Court to not grant bail to a person who was convicted of life imprisonment. Even in the present case, since the accused was convicted under Section 302 of the IPC and was sentenced to imprisonment for life, the respondent claimed that the Supreme Court should follow the same practice even in the present case and should not release the accused on bail.
Provisions involved in Kashmira Singh vs. State of Punjab (1977)
The Indian Penal Code, 1860
Section 302 of IPC
This Section provides information as to the punishment which can be given to a person who has been convicted and is found guilty of committing murder under Section 300 of the IPC. It states that if any person is found guilty of committing murder, he could either be punished with death penalty or with imprisonment for life and with a fine of certain amount, which will be decided by the Court.
Section 323 of IPC
This Section provides information about a situation in which a person commits the offence of causing voluntary hurt to another person. It states that if a person voluntarily causes hurt to another person, he can be punished with imprisonment for a maximum term of 1 year or he can be asked to pay a fine of a maximum of 1000 rupees, or both, depending on the decision of the Court.
The Code of Criminal Procedure, 1973
Section 389 of CrPC
This Section provides information on whether a person can be released on bail when he has already been convicted but the hearing of his appeal is pending in the appellate court. Section 389(1) provides that the person can be released on bail during the pendency of his appeal, provided that the appellate court records the reasons for the release of the convict. It further states that, if the person is convicted for an offence for which the punishment is death, imprisonment for life or imprisonment for a term not less than 10 years, the Court should give an opportunity to the public prosecutor to file an application and provide reasons for cancellation of the bail.
Further, Section 389(2) provides that, if the person convicted has filed an appeal in any appellate court other than the High Court and his appeal is pending in such an appellate court, even in such a situation, the High Court can exercise the powers that are conferred on it under this Section. This means that the High Court can order the appellate court, which is subordinate to it and in which the appeal of the convict is pending, to suspend the sentence and grant bail to the convict.
Also, it is provided under Section 389(3) that the convicted person can be released on bail only up to the duration in which the appeal is heard by the appellate court. It is also provided that, once the person convicted has been released on bail, the sentence that was initially imposed on him is considered to be suspended for the duration in which he is on bail. The Section also states that, when the convict is finally sentenced by the appellate court for imprisonment of a certain term or imprisonment for life, the time during which the convict is released on bail is excluded while calculating the term of imprisonment of the convict.
Judgement in Kashmira Singh vs. State of Punjab (1977)
It was held by the Supreme Court in this case that, if the appellate court is not in a position to hear the case of a convict within a reasonable period of time, then he must be released on bail. It was also observed by the Court that the practice of the High Court and the Supreme Court of not granting bail to a person who has been sentenced to life imprisonment even when the Court will not be able to hear the case of the person within a reasonable period amounts to an injustice to the convict.
Analysis of the judgement
In the instant case, the appellant was at first convicted under Section 323 of the IPC and sentenced to rigorous imprisonment for 6 months by the Sessions Court. However, he filed for an appeal in the High Court and was thereby granted bail throughout the period during which the appeal was pending before the Court. Later, when the matter was heard by the High Court, the appellant was convicted under Section 302 of the IPC and was thereby held to serve the sentence of imprisonment for life. However, the appellant surrendered before presenting his petition for special leave to the Supreme Court and has ever since remained in jail for about 4 and a half years.
The Court also observed that the appeal was filed in 1974 and was not likely to be heard anytime soon for at least 2 years. Therefore, the Supreme Court considered the petition filed by the appellant and granted him special leave to appeal against his conviction. This in itself shows that the Court believed that the appellant had a prima facie case to be considered and that it would be highly unjust to detain him any longer in jail during the pendency of the hearing of his appeal.
Therefore, the Court held that the Supreme Court must release a convict on bail if the Court is not in a position to hear the appeal within a reasonable period of time, unless there are any reasonable grounds to deny bail to the person.
Rationale for the judgement
With regards to the practice followed by the High Courts and the Supreme Court, the Court observed that “No practice, however sanctified by usage and hallowed by time, can be allowed to prevail if it operates to cause injustice.” The Court further stated that every practice of the Courts must conform to the interests of justice.
The practice that was followed by the Courts to not release a person who had been convicted to imprisonment for life evolved for the reason that the judges were of the view that once a person has been convicted, he should not be let loose unless his conviction was overturned. However, this understanding was based on the premise that the appeal of the person convicted would be heard within a reasonable time and if he was found to be innocent, he would not have to remain in jail for a long period of time. However, the Court also observed that the rationale of the above practice does not hold good when the appellate Court is not in a position to dispose of the appeal for five or six years, as the Court observed that it would be a travesty of justice to keep the convict in jail for a period of five or six years for an offence that is ultimately found to not have been committed by him.
Similar case laws
Urman vs. State of Uttar Pradesh (2022)
Facts of the case
In this case, the appellant was convicted for committing offences under Sections 147, 148, 149, 302, 307 and 504 of the IPC on 14th November 2011. After spending almost more than 15 years in actual custody without any remission, he filed an application for bail before the High Court for the first time on 29th May, 2015, which was rejected by the Court. Aggrieved by the decision of the Court, the appellant filed another application for bail on 8th September, 2021, but the High Court denied this application as well. Therefore, the appellant filed an appeal with the Supreme Court so that he could be released on bail by the High Court.
Issue of the case
Whether the appellant can be granted bail by the Court?
Judgement of the case
In this case, the Supreme Court held that the appellant was entitled to bail. This is because the Court observed that the appeal filed by the appellant was pending before the High Court and the hearing of the same would not take place anytime soon. Therefore, the Supreme Court granted bail to the appellant.
Sanjay Bhat vs. State of Uttar Pradesh (2022)
Facts of the case
In this case, the Sessions Court convicted the accused for committing offences under Section 147, Section 148, Section 149, Section 201 and Section 302 of the IPC on 15th August, 2014. The Court also declared that the accused would be punished for committing murder and sentenced him to imprisonment for life. Aggrieved by this, the convict filed an appeal before the Allahabad High Court on 30th August, 2016. The convict subsequently filed an application for bail before the High Court, but the High Court rejected the application on 1st October, 2019. Therefore, the convict filed for an appeal before the Supreme Court.
Issue of the case
Whether the appellant can be granted bail by the Court?
Judgement of the case
It was held by the Supreme Court in the instant case that the accused must be granted bail. This is because the Court observed that the person had already served a sentence of 11 years and 8 months without any remission and also that there is no immediate possibility that the appeal of the person would be hard by the Court.
Conclusion
Therefore, it can be concluded that the judgement delivered by the Supreme Court in the case of Kashmira Singh vs. State of Punjab can be considered a landmark judgement by all the other courts in the country. This is because, by delivering the judgement in favour of the convict and by invalidating the practice that was followed by the High Courts and also the Supreme Court for many years, the Court made sure that it upheld the right to life and personal liberty under Article 21 of the Constitution. Thus, the Court observed that even though a person convicted for imprisonment of life cannot claim for bail as a matter of his right, the Court must consider the circumstances of the case and grant him bail if the circumstances permit the Court to do so. The Court also stated that if the appeal filed by the convict is pending before the appellate court for a long period of time and there is no possibility that the hearing of the appeal of the convict will take place within a reasonable period of time, the Court should release the person on bail in the interest of justice.
Frequently Asked Questions (FAQs)
What is the meaning of life imprisonment?
Life imprisonment is a kind of punishment that is provided under the IPC, according to which the person who is imposed with such a punishment is supposed to remain in jail until the end of his life. However, the sentence can be remitted as per Section 342 of the Cr.P.C. However, the total sentence cannot be reduced to less than 14 years, as per Section. It is up to the state to decide whether the accused is to stay in jail throughout his entire life or for 14 years.
What are the various kinds of bail available to an individual?
There are 4 kinds of bail that are provided in the Cr.P.C. They are as follows:
Regular bail: This is a kind of bail that is most commonly used by an arrested person. One of the prerequisites for filing an application for this bail is that the person filing such application must be arrested and if the person has not been arrested, he cannot claim regular bail. Information about this kind of bail is provided under Section 437 and Section 439 of the Cr.P.C.
Interim Bail: The literal meaning of the term ‘interim’ is ‘temporary’. Therefore, whenever a person is said to have been released on interim bail, it means that he is on bail for a short period of time. It is granted to an accused before the hearing of regular or anticipatory bail.
Anticipatory Bail: This is a bail that is provided to a person when he has a reasonable apprehension of getting arrested. If a person suspects that he might get arrested for non bailable offence, he may file a petition for anticipatory bail. The provision for anticipatory bail is provided under Section 438 of the Cr.P.C. One of the important features of anticipatory bail is that it can only be invoked by a person before he is arrested by the police.
Statutory Bail: This kind of bail is also known as ‘default bail’. There is a difference between statutory bail and the bail that is granted under Sections 437, 438 and 439 of the Cr.P.C. The main difference between statutory bail and the bail provided under Sections 437, 438 and 439 of the Cr.P.C. is that statutory bail can only be granted when a person files a complaint and the police officer or any other investigating agency refuses recording the complaint within a specific time limit.
Can a person who is convicted of an offence be granted bail?
Yes, a person can be released on bail even after he is convicted of committing an offence. This usually takes place when the person has filed an appeal in an appellate court and the hearing of the appeal is pending in the said court. This is provided under Section 389 of the Cr.P.C. However, unlike regular bail, this kind of bail cannot be claimed by the convict as a matter of right; rather, it is granted by the court at its discretion. The court considers various factors before granting bail, such as the nature of the offence for which the person has been convicted, the character of the person, etc.
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This article is written by Shilpi. This article contains a detailed analysis of the findings and decision of the Supreme Court in the case of Harishankar Bagla vs. State of Madhya Pradesh (1954). It sheds light on the concept of essential legislative functions and their delegation by the Legislature to the Executive.
Table of Contents
Introduction
When we look into the descriptive meaning of the term ‘excessive delegation’, we can deduce its meaning from the name itself because of its self-explanatory nature – an authority delegates its functions or part of its authority to another authority in surplus of what is legally permitted.
Understanding it from this perspective of political angle, we can see that the legislative body of the Government is responsible for framing laws while the Executive body of the Government is responsible for implementing the laws and policies adopted by the Legislature. Under the excessive delegation in this scenario, the Legislature delegates its function, that is powers of law making, to the Executive that later delegates the same to the lower authority under it.
It is critical to note that, unlike other countries, India does not represent a single language, culture, people, or faith. While any other country would have considered these differences as bones of contention and fraught with worries, India stood out as the world’s largest democracy finding unity in its diversity. The struggle for independence and the arrival of 15th August 1947 has been a culmination of India’s odyssey from the predominance of the Executive pre-independence to the predominance of the Executive closer to independence and thereafter.
While the Constitution framers designed the Indian constitution with a federal structure in mind, it consists of unitary elements. This dual polity was possible because the Centre granted reasonable autonomy to States and in return they did not consolidate to form a Union like the United States of America. In simpler terms, this form of India existed prior to independence. The Kingdoms, Presidencies, and States merged into one another, and a few renamed themselves. Today, India has 28 States and 8 union territories.
India’s democracy relies on four pillars to stay true to its name – the Legislature, the Executive, the Judiciary and the Press. While the functions of these four pillars are distinctive, they play an imperative role in keeping checks on each other to ensure the true spirit of democracy exists in the country. They all work in tandem to protect India from incidents and occurrences of violence, bureaucracy, corruption, chaos, etc.
Considering the quasi-federal structure of Indian democracy, this article aims to discuss one such landmark case where the Court defined the contours of essential legislative functions and the doctrine of separation of powers to ensure that nobody in the Government can participate in the excessive delegation of essential legislative functions.
Details of the case
The following are the fundamental details of the case:
Court: The Supreme Court of India
Appellants: Harishankar Bagla and Another
Respondent: State of Madhya Pradesh
Case Number: Criminal Appeal No.7 of 1953
Neutral Citation: (1954) 1 SCC 978; AIR 1954 SC 465
Relevant Section(s) of the Act: Sections 3, 4, 6 & 7 of theEssential Supplies (Temporary Powers) Act, 1946; Clauses 2, 3, 4, 8 of the Cotton Textiles (Control of Movement) Order, 1948.
Background of the case
The case of Harishankar Bagla and Anr vs. State of Madhya Pradesh(1954)was decided by the Constitutional bench of the Supreme Court on 14.05.1954. This case primarily deals with the concept of essential legislative functions and the extent of its delegation. The case involved the question regarding the validity of the Cotton Textiles (Control of Movement) Order, 1948 (hereinafter referred to as the “impugned Order”) which provided for a permit from the Textile Commissioner for transportation of cloth by any person. It was argued by the party that the impugned Order provides for an unregulated and arbitrary power in order to grant or refuse a permit. However, the Supreme Court upheld the validity of the impugned Order.
It was decided by the Supreme Court that delegated legislation which is intra vires the parent Act can be held as ultra vires if it contravenes the provisions of any other legislation. However, a statute may contain such a provision which can protect the rules made under that statute from being invalid on the grounds of inconsistency with any different statute. This principle was upheld by the Supreme Court in the present case.
Facts of Harishankar Bagla vs. State of Madhya Pradesh (1954)
The appellant and his wife were arrested at Itarsi Railway Station by the Railway Police Force on 29.11.1948 for contravening the provisions of Section 7 of the Essential Supplies (Temporary Powers) Act, 1946 (hereinafter referred to as “the Act”) read with Clause (3) of the impugned Order. The appellant was found in possession of “new cotton cloth” weighing over 6 maunds. It was alleged that the party took the “new cotton cloth” from Bombay to Kanpur without any required permit. The Chalan passed was withdrawn by the High Court as it involved a decision on Constitutional issues.
The High Court vide order dated 15.09.1952 upheld the provisions of Sections 3 & 4 of the Act. Section 6 of the Act was held to be inconsistent with the provisions of the Railway Act, 1989. However, the Court decided that the unconstitutionality of Section 6 would not affect the prosecution in the present case. Directions were given by the High Court to proceed with the prosecution and revert the records to the trial Court to try the matter as per the provisions of the law.
The High Court gave the leave to appeal to both the parties and the required certificates under Articles 132 and 134 of the Indian Constitution. Subsequent to the receiving of certificates, the present appeal was filed.
Relevant provisions and doctrines of the case
Section 3 of the Essential Supplies (Temporary Powers) Act, 1946
Section 3 of the Act deals with the powers to control the production, supply, distribution, etc. of essential commodities.
When the Central Government feels it is necessary or advantageous to maintain or expand supplies of the essential commodities, or to ensure that the supplies are distributed equally to all Sections instead of a selected few and available for sale at fair prices, then the Central Government may release a notification for regulation and prohibition for the manufacture, supply or distribution of the essential commodities, and its trade and commerce as well.
While the Central Government has general powers as per Sub-Section (1) of this provision, the Government can issue an order with respect to –
To regulate the production or manufacture of any essential commodity via permits, licences or any other means.
(d) To regulate the storage, transportation, distribution, disposal, acquisition, usage or consumption of any essential commodity via permits, licences or any other means.
Section 4 of the Essential Supplies (Temporary Powers) Act, 1946
Section 4 of the Act deals with the delegation of powers by the Central Government. The Central Government has the power to notify and direct that the powers enjoyed by it under Section 3 in relation to such matters and pertaining to such conditions may be exercised also by –
An officer or any authority that is subordinate to the Central Government, or
Such State Government or any officer or authority that is subordinate to the State Government, as is described or mentioned in the direction.
Section 6 of the Essential Supplies (Temporary Powers) Act, 1946
Section 6 of the Act talks about the circumstances under which the Orders issued by the Central Government in accordance with Section 3 are inconsistent with other enactments in existence.
Section 6 declares that if there is any inconsistency between an Order made in accordance with Section 3 and the provisions of any other enactment, then despite that inconsistency, the provisions of the Order will prevail over the provisions of the other enactment.
Clause 2 of the Cotton Textiles (Control of Movement) Order, 1948
Clause 2 of the impugned Order defines the following terms:
Apparel – Any garment or other article that is made entirely or mainly from a cloth that is not knitted cloth and used for domestic or personal purposes. It excludes the usage of old or used garments.
Carrier – When railway administration or another person is in the business of moving property from one place to another or place to place by means of air, sea, land, or inland navigation.
Hosiery – It means stockings, vests, drawers or any other item of personal use that has been made from knitted cloth or directly knitted from the yarn.
It states that the meaning of cloth and yarn is the same as the one given in the Cotton Textiles (Control) Order, 1948.
Textile Commissioner – When the Central Government appoints someone to the post of Textile Commissioner, the said person will be deemed a textile commissioner as per the rules of this Order. It also includes any Additional Textile Commissioner, Deputy Textile Commissioner and others appointed by the Central Government.
Clause 3 of the Cotton Textiles (Control of Movement) Order, 1948
Clause 3 of the impugned Order states that no person can transport or play a role in the transportation of any cloth, yarn, or apparel by air, rail, road, sea or inland navigation from one place to another place in India without meeting the following conditions:
(i) Textile Commissioner has to notify about the general permit in the Official Gazette for transporting the aforementioned items from one place in a particular State apart from the Greater Bombay and the City of Ahmedabad areas, by that State’s Government.
(ii) The Textile Commissioner has to issue a special transport permit.
Clause 8 of the Cotton Textiles (Control of Movement) Order, 1948
Clause 8 of the impugned Order states that the Textile Commissioner has the flexibility to release a notification in the Gazette of India to describe the manner in which a person applying for a special permit under this impugned Order can do so. The different forms for application needed to acquire a permit and the circumstances in which the permit can be acquired have been notified by the Central Government.
Essential legislative function
Law-making power is essentially bestowed upon the Legislature, however, in certain circumstances delegation of these legislative functions is allowed subject to certain conditions. Nevertheless, the Legislature cannot delegate its essential legislative functions. In the absence of any absolute definition of essential legislative function, to fill the void, the judiciary has interpreted various acts which will come within the ambit of essential legislative function.
The Supreme Court in the case of In re the Delhi Laws Act, 1932, the Ajmer-Merwara (Extension) vs. The Part C States (Laws) Act, 1950 (1951) held that the essential legislative function involves the determination or choosing of the legislative policy. It also includes formal enactment of policy into a binding rule of conduct. The discretion as to formulating the ambit of the details of the policy vests with the Legislature and, the remaining legislative work can be delegated to the subordinate authority to work out the details while keeping itself within the scope of the policy.
In the case of Hamdard Dawakhana (Wakf) Lal Kuan, Delhi & Anr. vs. Union of India & Ors. (1959), where the Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954 was enacted to ban advertisements claiming to provide a cure for incurable diseases, and, Section 3 of the Act provided the authority to the Government to modify the list containing the names of the diseases. The Supreme Court held the provision to be unconstitutional as the Section failed to provide sufficient guidelines for the same.
In the case of Devi Das Gopal Krishnan & Ors. vs. State of Punjab & Ors. (1967), the Supreme Court observed that in view of the multifarious activities of a welfare State, the State cannot work out all the complexities as per the varying aspects of the disputes. Hence, it is necessary to delegate the act of working out the details to the Executive or any other authority.
In the case of Municipal Corporation of Delhi vs. Birla Cotton, Spinning and Weaving Mills Delhi (1968), the Supreme Court held that the Legislature is not empowered to delegate essential legislative functions. There can be no abdication of legislative function or authority, either completely or partially in respect of a subject matter specifically entrusted to the Legislature by the Indian Constitution.
In the case of Gammon India Ltd. vs. Union of India & Ors. (1974), Section 34 of the Contract Labour (Regulation and Abolition) Act, 1970 empowered the Central Government with rule-making power in order to give effect to the provisions of the Act in case of any difficulty. The Supreme Court held that Section 34 does not provide for excessive delegation because it does not alter the provisions of the Act, rather it provides for ways to properly implement the Act.
It is the responsibility of the Court to decide what is the essential legislative function of the Legislature. It is the obligation of the Court to examine whether or not the impugned delegated legislation is within the purview of the parent legislation. The delegate is not entitled to make Amendments of such nature which has the ability to change the underlying policy of the parent legislation. It is mandatory for the delegate to keep into consideration the essence and substance of the parent legislation while making the modifications.
Doctrine of delegation
The doctrine of delegation refers to the act where through an Act of Parliament, the Legislature can allow another person or body to make legislation on its behalf. The doctrine of delegated legislation is also known as ‘secondary legislation’.
The Parliament creates a framework of any law and determines the contours of the law for the purpose of the Act. Then, the Parliament delegates the authority for law-making to another person or a body to define the laws of the Act in a comprehensive manner. Hence, the mode of primary delegation which is an Act of Parliament, allows another person or body to make rules or laws via delegated legislation. The laws created by the authority to whom the powers of legislation have been delegated must be in accordance with the defined purposes of the Act.
Since the contours of delegation have not been strictly defined, the Judiciary has stepped in time and again to trace the boundaries within which this power of legislation-making can be delegated by the Parliament to ensure that delegation does not amount to excessive delegation in contravention of the powers granted by the Indian Constitution. Let us have a look at them:
In Re: Delhi Laws Act case (1951), then Chief Justice Kania stated that even though the Legislature enjoys the power to delegate rule and regulation-making for the seamless operation of the enactment and to give it effect, it should determine the policy and principles that create the rule of conduct while carrying out this function. Only during the cases of emergency such as war should the legislative body of our country delegate the rule-making power with broad discretion to any non-legislative authority.
In Ajoy Kumar Banerjee vs. Union of India (1984), the Supreme Court observed that the role of declaring the legislative policy and defining the standards of the policy in utmost precision falls in the ambit of essential legislative function and as such cannot be delegated by the legislative body.
In the case Agricultural Market Committee vs. Shalimar Chemical Works Ltd. (1997), the Supreme Court stated that delegation can be exercised by the legislative body strictly for implementation purposes only. This means that the role of subordinate legislation is limited to making the policy functional instead of deliberating about policy choices or creating them from scratch as this would be in contravention to the purposes for which the powers were delegated in the first place by the legislative body to a non-legislative body.
In Gwalior Rayon Silk Mfg. (Wvg.) Co. vs. The Asstt. Commissioner of Sales (1973), the Supreme Court observed that formulating legislative policy is an indispensable part of essential legislative functions. According to the binding rule of conduct, the Legislature does not hold the power to delegate its formulation. Moreover, the Legislature does not have any unfettered right to delegate authority or its powers as per its whims and fancies. It is imperative for the Legislature to reserve the essential legislative functions for sole usage and delegate only those tasks of subordinate legislations that are needed for executing the objects and purposes of any Act. Up to what extent the guidance has been provided and whether it has been provided at all in any given case depends on taking a close look by the Court on the concerned Act, its object, its provisions and its preamble.
In Vasantlal Maganbhai Sanjanwala vs. The State of Bombay And Others (1960), the Apex Court stated that legislative power as a whole is not dissociated with the power of delegation. In other words, the power of delegation by the legislature by the executive is part and parcel of legislative powers bestowed on the legislature. The existing times are such that the Legislature has to work tirelessly to resolve the complications posed by intricate socio-economic problems. In such scenarios, the Legislature finds it easier and critical to delegate ancillary powers of their choice to execute the legislative policy brought about by their Acts. At no cost, the Legislature has the right or liberty to delegate its essential legislative functions. While it can determine the legislative policy and principle, it is the duty of the Legislature to provide support or guidance to the authority or any such person or body to which it is delegating its subsidiary powers for following through the said policy.
The Parliament does not enjoy the inherent power to legislate on any matter. The Constitution of India has delegated this power to the Parliament to make laws, rules, etc on its behalf. Hence, the Parliament cannot exercise the power to delegate capriciously. Instead, the responsibility has been entrusted by the Constitution to the Parliament to exercise this power itself. Any delegation of essential legislative functions is strictly prohibited as per the existing laws and the Constitution and these functions have to be carried out by the Legislature itself instead of delegating these responsibilities to the Executive. However, once the Legislature has fulfilled its primary task of exercising essential legislative powers, it can delegate any or every ancillary function to the Executive.
Issues raised
For adjudication of the dispute between the parties, the following issues came to be decided by the Court:
Whether the provisions of Sections 3 and 4 of the Act and the impugned Order are in contravention of Articles 19(1)(f) and (g) of the Indian Constitution?
Are Sections 3 and 4 of the Act ultra vires the Constitution on the grounds of excessive delegation of legislative powers by the Legislature?
As Section 6 of the Act has been found to be ultra vires, and Section 3 is inextricably connected with Section 6, whether Section 3 should also be declared ultra vires?
Whether the impugned Order is in contravention with Sections 27, 28 and 41 of the Indian Railways Act, 1989 and hence, the impugned Order is void in its entirety?
Arguments made by the parties
Appellant
The appellant made the following contentions before the Apex Court of India:
The provisions of the Act and the impugned Order provide for a requirement of a permit in order to transport by rail cotton textiles. Article 19(1)(f) and (g) of the Indian Constitution provides for the right to practise any profession or carry on any trade. The appellant argued that the requirement of a permit contravenes these fundamental rights of a person who is engaged in the business of purchase and sale of cotton textiles is in contravention to these fundamental rights.
The appellant argued that under Section 3 of the Act, unregulated and arbitrary power has been given to the Textile Commissioner to refuse or to grant a permit. Therefore, Section 3 of the Act is ultra vires of the Legislation owing to the excessive delegation of powers by the latter. Section 4 of the Act was further attacked on the ground that the Central Government is empowered to delegate its own power to make orders under Section 3 to any other authority, hence, amounting to further delegation of the powers by the delegate.
Section 6 of the Act provides an overriding effect to the Orders framed under the Act with respect to other enactments. This Section was held to be invalid by the High Court. The appellant contended that since Section 6 of the Act has found ultra vires, Section 3 of the Act should be declared ultra vires too since both Section 6 and Section 3 of the Act are inextricably connected.
Sections 27, 28, and 41 of the Indian Railways Act, 1989 provide for the use of rolling stock by the railway administration; delegation of powers by the Central Government; and the burden of proof for charging lower rates for one trader is on the railway administration, respectively. The appellant argued that Clause (3) and (4) of the impugned Order empowers the Textile Commissioner to direct a carrier to close the booking or transport is in direct contravention with Sections 27, 28 and 41 of the Indian Railways Act, 1989. The provisions of Sections 27, 28, and 41 of the Indian Railways Act, 1989 were contravened by the impugned Order and, thus it must be declared void in all respects.
Respondent
The respondent made the following contention before the Apex Court of India:
The respondent appealed against the judgement pronounced by the High Court stating that Section 6 of the Act was unconstitutional.
Judgement in Harishankar Bagla vs. State of Madhya Pradesh (1954)
While deciding whether the requirements of the provisions of Sections 3 and 4 of the Act and the impugned Order are in contravention of Article 19(1)(f) and (g) of the Indian Constitution, the Supreme Court observed that during the period of emergency, it was imperative to control the production, supply and distribution of the essential commodities. Section 2 of the Act mentioned the list of essential commodities. Hence, the requirement for a permit to transport such essential commodities cannot be said to be an unreasonable restriction on the fundamental rights of the citizens as mentioned under Article 19(1)(f) & (g) of the Indian Constitution as Article 19(5) provides for imposing restrictions which are in the public interest.
Section 3 of the Act conferred power upon the Central Government to make rules in order to regulate the “maintaining or increasing supplies of any essential commodity, or for securing the equitable distribution and availability at fair prices”. Section 6 of the Act provided that the rules framed under Section 3 of the Act will have an overriding effect on the existing statutes. The Supreme Court after considering the prevalent principles of law upheld the validity of Sections 3 & 6. The Court decided that the policy underlying the Act was adequately formulated under Section 3 of the Act providing a comprehensible and sufficient measure for exercising the provided powers.
It was contended that as per the provisions of Section 4 of the Act, the delegate has been authorised to further delegate its powers as provided under Section 3 of the Act. The Court decided that Section 4 provides for classes of persons to whom the Central Government can delegate or sub-delegate the powers. Hence, it is not a correct claim to say that instrumentalities have not been selected by the Legislature itself.
The Court held that Section 6 does not provide for delegation of amending power. Section 6 provides the power to bypass the conflicting laws. It was decided that it was not the rules that had overridden the existing statute, rather it was the Parliament itself that had given the parent legislation the authority to override the other existing statutes. Hence, even if it is considered that Section 6 provides for the Amendment of the statutes, it is attributable to the Legislature rather than to the Executive. The Court held that there is no delegation in the provisions of Section 6 and, therefore, Section 6 is constitutional.
While deciding the next contention that the provisions of the impugned Order operate as an implied repeal of Sections 27, 28 and 41 of the Railways Act, the Court decided that there are no such provisions in the impugned Order that imply that it overrides or supersedes the provisions of the Railways Act. The Clauses of the impugned Order merely supplement the relevant Sections of the Railways Act and do not supersede them.
Ultimately, the Supreme Court held that Sections 3, 4 & 6 of the Act are Constitutional and the impugned Order is also constitutional and valid.
Relevant judgements referred to in Harishankar Bagla vs. State of Madhya Pradesh (1954)
Judgements referred to in the case are discussed as follows:
In Messrs. Dwarka Prasad Laxmi Narain vs. The State of Uttar Pradesh and two others (1954), the Supreme Court observed that while the State Legislature of Uttar Pradesh has the efficiency to make an Order, the same Order has to pass the test enshrined in Part III of the Indian Constitution. If the said Order fails to stand the test, the Court has the power to strike it down. If any legislative Order vests an Executive Authority with the right to monitor any trade or business, the right must not be unfettered or arbitrary in nature as that would infringe upon the rights of the citizens guaranteed under Article 19(1)(g) of the Indian Constitution.
Furthermore, the Court stated that the Legislature cannot grant and issue licences since its hands are full. While the Legislature has to delegate this power to any Executive authority, the discretion given to the latter must be tested against some procedure provided by the concerned Order to ensure that discretion is not abused. If no such test or procedure is laid down and the Executive authority is left unchecked to exercise its discretion in this matter, its actions may include elements of personal biases or animosity that would impinge upon Article 14 which will later affect their freedom to carry out any trade of business as an Indian citizen.
Ultimately, the Court ruled that Clause 3(1) of the impugned Order granted unfettered power to the State Controller that was violative of both Article 14 and Article 19(1)(g) of the Indian Constitution.
Moreover, Clause 4(3) of the impugned Order gave unbridled and uncontrolled power to the Executive authority to grant or revoke the licence for selling coal. This too was declared to be violative of both Article 14 and Article 19(1)(g) of the Indian Constitution. Since these two Clauses could not be severed to make the rest of the Order functional, the entire Order was deemed void.
In Panama Refining Co. vs. Ryan (1935), the Supreme Court held that while enacting the Order, the President had constituted the power of the Legislature that Congress has no right to delegate in the first place. It explicitly stated that Congress cannot ever delegate powers of a legislative nature to any other branch of the Government for the sustenance of the democratic system of the Government.
In George Walkem Shannon & Ors. vs. Lower Mainland Dairy Products Board and Anr. (1938), the case revolved around the validity of the relevant act which allowed even sub-delegation of legislative power. The objection was raised against the delegation of such power by the legislative body to the Lieutenant Governor in Council who further delegated it to the Marketing Boards. While delivering the judgement for the Privy Council, Lord Atkins noted that such an objection towards the delegation of the sub-delegation by the Provincial Legislature was subversive meaning disruptive of the rights enjoyed by the latter. Hence, the Privy Council upheld the enactment.
In Re: Delhi Laws Act case (1951), the majority judgement stated that the Legislature does not have the right to delegate its essential powers. The Executive authority cannot be responsible for declaring the policy of the law as it is the responsibility of the legislative body. Furthermore, it is also the Legislature’s responsibility to prescribe the standards that help the Executive authority, to which the powers have been delegated, in the seamless implementation of the law.
Analysis of the case
The Court can adjudge the validity of any delegated legislation on the ground of it being ultra vires or intra vires the parent legislation. The doctrine of ultra vires is one of the fundamental principles of Administrative Law. This doctrine provides that any authority is empowered to exercise its functions only to the extent it has been conferred upon him by any law. When the authority exercises its functions within the confinement of its conferred power, it is called that the action of the authority is intra vires and completely valid. However, when an authority exceeds the limit of its conferred powers, the action of the authority is called ultra vires. Once a delegated legislation has been adjudged as ultra vires, it becomes void and, hence, unenforceable.
The Supreme Court in the case of The Edward Mills Co. Ltd., Beawar & Ors. vs. The State of Ajmer & Anr. (1954) discussed that in cases where the Legislature has been empowered to frame laws in order to regulate a particular subject, there must be an implied power to frame rules incidental to such powers. It is one of the elementary principles of Constitutional law that the granting of power includes everything imperative to exercise such power. A Legislature is not empowered to disinvest itself from its essential legislative function and bestow the same upon an extraneous authority. The legislature is bestowed upon the primary obligation of law-making, however, the delegation may be transferred to as a subsidiary or an ancillary measure.
In the case of Vasantlal Maganbhai Sanjanwala (1960), the Apex Court held that the extent to which delegated legislation is permissible is now well-settled. The Legislature is not empowered to delegate its essential legislative function in any circumstance. Prior to delegating its subsidiary powers, the Legislature must ensure that it has provided the legislative policies and principles. The Legislature is under an obligation to provide guidance for discharging the said policies and principles.
Even when the Legislature is empowered to delegate, sufficient safeguards should be provided by it. In light of the same, the Supreme Court in the case of Harakchand Ratanchand Banthia & Ors. vs. Union of India & Ors. (1969) decided that Section 5(2)(b) of the Gold Control Act, 1968, which empowered the Government to frame rules to regulate the manufacture, distribution, use, disposal, consumption, etc. of gold, was unconstitutional as it failed to provide any sufficient safeguards.
The Supreme Court in the case of the Registrar of Cooperative Societies, Trivandrum & Anr. vs. K. Kunjabmu & Ors. (1979) while discussing the power to delegate held that the Parliament and the State Legislatures are bestowed with the power to frame laws upon the subjects entrusted to them by the Constitution. This power to legislate also includes the power to delegate. However, excessive delegation can amount to abdication. The Court held that unlimited delegation may prompt the delegates to act in an unchecked manner or go overboard with the powers conferred on them.
The Supreme Court in the case of General Officer Commanding-In-Chief & Anr. vs. Subhash Chandra Yadav & Anr. (1988) held that when a statute provides for rulemaking power and subsequent to that power, rules have been made, then such rules form part of the statute. Therefore, these rules have statutory force. However, in order to have these rules in statutory force, two conditions must be satisfied, that is (1) the rules must be in conformity with the parent legislation under which it has been framed; (2) the rule-making authority has the power and authority to frame the rules. Consequently, if any rule has failed to conform with any of these two conditions, it becomes void.
The Supreme Court in the case ofThe Consumer Action Group & Anr. vs. State of Tamil Nadu & Ors. (2000) discussed that when a statute confers any power to delegate on any other statutory authority, however, wide the discretion may be, the delegatee must exercise those powers within the ambit of reasonableness and such exercise of power must stand the test of judicial scrutiny. The greater the delegated power, the greater the amount of caution should be exercised.
In a dynamic society, the Legislature cannot foresee all the multifaceted issues. Hence, in order to handle the complex and detailed facets of governance, delegation of rule-making power is quintessential. This delegation empowers the Executive to frame rules, by-laws or regulations within the ambit of the parent legislation. However, every power comes with a great sense of responsibility. Hence, while delegating the rule-making power, the Legislature must provide for certain stringent control in order to ward off misuse of power. Judicial review, parliamentary control, procedural safeguards, committee oversight, etc. are certain safeguards that collectively ensure that the delegated legislation is transparent and intra vires the parent legislation.
Conclusion
The judicial history post-independence is peppered with examples of delegated legislation where Courts have assumed different positions depending upon the facts and circumstances of the case. While in some cases the Courts have supported the Legislature’s act of delegating its powers, in other cases they have taken a critical approach towards such a move and struck it down as a whole.
Just as a sword is a double-edged weapon, so is delegated legislation. It can be a boon for the Legislature in these trying times where it is working tirelessly to address the dynamic challenges posed by socio-economic problems, it can be a bane too in places where the Legislature oversteps its boundaries and ends up delegating essential legislative functions instead of the ancillary functions necessary for carrying out the policy of the Act. Such delegation when not scrutinised may entrust the Executive with unfettered powers to act arbitrarily and imbalance the powers assigned to every pillar of the democracy.
It must be noted that even when the Legislature delegates certain functions to the Executive that must be carried out on behalf of the former, the Executive cannot ever supersede the authority of the Legislature or act supreme in such matters. The Legislature has absolute authority to revoke such delegate legislation as and when it deems fit.
Frequently Asked Questions (FAQs)
What amounts to essential legislative functions?
Primarily, essential legislative functions are the core responsibilities of the Legislature that cannot be delegated to any other authority. Enacting laws, declaring policy and establishing the framework of the enacted laws are some of the key elements of essential legislative functions.
Can the essential legislative functions be delegated by the Legislature?
No, the Legislature cannot delegate its essential legislative functions to any other authority. However, for efficient implementation, certain regulatory or administrative functions can be delegated to the Executive by the Legislature. While delegating, the Legislature is bound to provide certain guidelines and limits on the delegated powers.
What is the meaning attached to the doctrine of delegation?
The doctrine of delegation simply implies the delegation of legislative powers from the Legislature to the Executive. This allows the Legislature to delegate legislative powers (except essential legislative functions) to the Executive to authorise them to frame delegated legislation. These delegated legislations can be in the form of orders, regulations, or bylaws. For proper delegation, the Legislature provides for clear standards and limitations within the parent legislation itself.
What is the importance attached to delegation of legislative power?
It is unfeasible for the Legislature to foresee all the complexities that might arise in the future due to changes in circumstances. In order to fill this void, the Legislature can delegate certain legislative powers to effectively implement the laws and respond to the changing circumstances.
What is the role of the judiciary in ensuring that the delegation of legislative power is intra vires the permissible limits?
Judicial review is one of the potent mechanisms through which the judiciary keeps a check and balance to ensure that the delegation of legislative power falls within the ambit of the permissible limits. Whenever a case comes before the Court challenging the validity of any such delegation, the Courts decide the same while keeping in mind the laws.
Is challenging the validity of delegated legislation permissible?
Yes, delegated legislation can be challenged on the ground of it being ultra vires the parent legislation. Other grounds for challenge are the delegated legislation being unreasonable or arbitrary, procedural impropriety, and absence of safeguarding measures.
What is the relation between the doctrine of separation of powers and delegated legislation?
The doctrine of separation of powers ensures that there are appropriate checks and balances between the acts of the Legislature and the Executive. It prevents the abdication of essential legislative functions. It empowers the judiciary to take any safeguarding measures to review the scope of the delegated legislation.
What are the measures that can be taken by the Legislature to ensure appropriate delegation of legislative power?
In order to ensure the appropriate delegation of legislative powers, the Legislature can provide specific guidelines defining the scope, procedural guidelines and policy objectives. The Legislature can periodically review the rules and can also reserve the power to revoke or modify the delegated legislation in case of abuse of power.
Is the Executive empowered to frame a new law under delegated power?
Framing laws fall within the exclusive jurisdiction of the legislation. Therefore, the Executive cannot frame a new law under the delegated power. The Executive can only frame rules and regulations for effective implementation of the parent legislation.
What happens when a Court declares a delegated legislation as unconstitutional?
Once a Court finds that a delegated legislation is unconstitutional, it can strike down the delegated legislation. The Court is empowered to decide whether the invalidation of the delegated legislation will have a retrospective operation. The Court can also provide for certain remedies in favour of those who have been affected by the impugned delegated legislation.
What are the examples of delegated legislation?
Section 92 of the Food Safety and Standards Act, 2006 empowers the Food Safety and Standards Authority of India to make regulations within the scope of the Act to give effect to its proper implementation.
What are the basic differences between the delegation of legislative power and the abdication of legislative power?
The basic distinction between delegation of legislative power and abdication of legislative power is the amount of control retained by the Legislature over the law-making procedure. Delegation of legislative power, except the essential legislative function, is allowed. However, when the Legislature transfers its essential legislative function to the Executive, it amounts to an abdication of legislative power, which is unconstitutional.
What are the landmark judgments of the doctrine of delegation of legislative powers in India?
Following are the landmark judgments related to the doctrine of delegation in India:
In re the Delhi Laws Act, 1932, the Ajmer-Merwara (Extension) vs. The Part C States (Laws) Act, 1950 (1951)
Hamdard Dawakhana (Wakf) Lal Kuan, Delhi & Anr. vs. Union of India & Ors. (1959)
Harishankar Bagla & Anr. vs. The State of Madhya Pradesh (1954)
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The Ministry of Corporate Affairs (MCA) is a government website or portal. It has all the details of companies incorporated in India. It contains every detail of every company and Limited Liability Partnership (LLP) incorporated. One can easily check information on the website, like the company registration number, incorporation date, directors of the company, balance sheet, annual returns, or any other document of the company. The website also accepts the payment of appropriate fees.
Background
As provided in the information on the MCA website, the Company Law, 1956, replaced the Company Law, 1913, providing a new basis for the corporation’s operation in independent India with the objective of consolidating the existing corporate laws. There was a need for streamlining this Act of 1956 as the corporate sector grew in pace with the economy of India. Since 1956, 24 amendments have taken place. Then a committee named the J.J. Irani Committee was appointed. The J.J. Committee made the recommendations for the enactment of the Companies Act 2013, which is the existing law in India for corporate governance. This is a rule-based act. The Ministry of Corporate Affairs has retained certain powers and makes rules related to provisions.
Meaning of the company
A company is a legal person/ or entity. It is a voluntary association of people for a common purpose, with the ultimate objective of carrying out business. Also, they share the earnings between them. A company is capable of surviving beyond the lives of its members.
Section 2(20) of the Company Act 2013 defines the meaning of a company as a company incorporated under this Act or any previous company law.
The Company Act 2013 applies to the following companies and bodies:
Companies incorporated under this Act or any previous Company Act.
Companies in the supply and generation of electricity, except when provisions are inconsistent with the Electricity Act, 2003.
Any other company governed by any special act, except when provisions are inconsistent with such a special act.
Such other bodies as the central government may notify, incorporated by any act for the time being in force.
Classification of company
On the basis of size
Companies can be classified into different categories based on their size, which is typically determined by factors such as annual revenue, number of employees, and assets. Here’s an expanded explanation of the classification of companies based on size:
Micro-enterprises: Micro-enterprises are the smallest category of companies. They typically have a limited number of employees, usually fewer than 10, and generate relatively low annual revenue. Micro-enterprises often operate in local markets and may be sole proprietorships or partnerships.
Small businesses: Small businesses are larger than micro-enterprises but still relatively small in terms of size. They typically have fewer than 50 employees and generate moderate annual revenue. Small businesses often have a more formal structure than micro-enterprises, with a board of directors and management team.
Medium-sized businesses: Medium-sized businesses are larger than small businesses and have a more significant impact on the economy. They typically have between 50 and 250 employees and generate substantial annual revenue. Medium-sized businesses often operate in regional or national markets and may have multiple locations or subsidiaries.
Large businesses: Large businesses are the largest category of companies and have significant market share and influence. They typically have more than 250 employees and generate high annual revenue. Large businesses often operate internationally and may have subsidiaries or branches in multiple countries.
Global enterprises: Global enterprises are the largest and most multinational of all companies. They have operations in multiple countries and may have significant influence on global markets. Global enterprises typically have tens of thousands of employees and generate billions of dollars in annual revenue.
Public and private companies: Companies can also be classified based on their ownership structure. Public companies are listed on stock exchanges, and their shares are traded by investors. Private companies are not listed on stock exchanges and are owned by individuals, families, or private equity firms.
Size classification of companies is important for several reasons. It helps policymakers and regulators develop appropriate policies and regulations for different types of businesses. It also allows investors to assess the risk and potential rewards of investing in different companies. Additionally, size classification can be used to track the performance of different sectors of the economy and identify trends and patterns.
On the basis of the number of members
Private company
As defined under Section 2(68) of the Act, a private company has a minimum of 2 members, a maximum of 200 members, a minimum of 2 directors, and a minimum amount of paid-up capital. The shareholders are only liable to the extent of their share capital.
Public company
As defined under Section 2(71) of the Act, a public company is not a private company. It has a minimum of 7 members, no limit on the maximum number of members, and 3 minimum directors. A public company can raise capital from the public through the sale of shares. Its shares are traded on the stock exchange.
One- person company
As defined under Section 3(1)(c) of the Act, a one-person company is managed or owned by one person by providing the name of a nominee.
On the basis of control
Holding company
A holding company holds more than 50% of the shares of another company.
Subsidiary company
The company that is being controlled by the holding company is a subsidiary company.
Associate company
An associate company has significant influence, but not control, over its management or financial policies.
On the basis of liability
Company limited by shares
A company limited by shares is formed to conduct business and earn profits. It is owned by shareholders who hold a certain number of shares in the company.
Company limited by guarantee
In a company limited by guarantee, the liability of the members is limited. The limit of liability is up to the amount they have agreed to contribute in case the company is wound up.
Unlimited liability company
In an unlimited liability company, there is no limit on the liability of its members. The liability of its members may even extend to the entire amount of liability and debt of the company.
On the basis of the manner of access to capital
Listed company
A company whose shares of stock are traded on a public stock exchange is a listed company
Unlisted company
An unlisted company is a private company It is not listed on a public stock exchange.
Procedure for registration and incorporation of a company
Choose a business structure
The first step is to choose the appropriate business structure, like a private company, a public company, a one-person company, a limited liability partnership (LLP), a sole proprietorship, etc.
Select the business name
The next step is to select a name for the company. The name should not be identical to any other existing company and is not trademarked. After fulfilling the requirements, the Registrar of Companies of the State (a regulatory body) registers the name of the company.
Obtain the Director Identification Number (DIN) and Digital Signature Certificate (DSC)
Director Identification Number (DIN):
The Director Identification Number (DIN) is a unique identification number allotted to every individual who intends to become a director of a company or is already a director.
It is mandatory for all directors to obtain a DIN.
To obtain a DIN, an individual needs to file an application with the Ministry of Corporate Affairs (MCA) in the prescribed format.
The application must be accompanied by supporting documents such as proof of identity, proof of address, and a passport-size photograph.
Once the application is processed and approved, the MCA will issue a DIN to the applicant.
Digital Signature Certificate (DSC):
A Digital Signature Certificate (DSC) is an electronic document that helps verify the identity of an individual or organisation engaged in online transactions.
It is used to authenticate the signer and ensure that the document has not been tampered with.
To obtain a DSC, an individual or organisation needs to apply to a Certifying Authority (CA) recognised by the Government of India.
The application must be accompanied by supporting documents such as proof of identity, proof of address, and a passport-size photograph.
Once the application is processed and approved, the CA will issue a DSC to the applicant.
Benefits of obtaining DIN and DSC:
Legal Compliance: DIN and DSC are mandatory requirements for individuals who serve as directors of companies.
Secure Transactions: DSC ensures the authenticity and integrity of electronic documents, making transactions more secure.
Simplified Processes: DIN and DSC facilitate various online filings and approvals with the MCA and other government agencies.
Reduced Paperwork: DIN and DSC eliminate the need for physical documents in many cases, saving time and resources.
Enhanced Transparency: DSC helps prevent fraudulent activities and promotes transparency in business dealings.
To initiate the registration process of a company through the Ministry of Corporate Affairs (MCA) portal, the submission of the SPICe+ form is crucial. This form, abbreviated as Simplified Proforma for Incorporating Company electronically Plus, serves as a comprehensive web form that streamlines various services under a single window. It encompasses a total of 10 services, offering convenience and efficiency to aspiring entrepreneurs.
SPICe+ acts as a central hub for multiple corporate processes, including incorporation, allotment of Director Identification Number (DIN), Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and generation of Employee Provident Fund Organization (EPFO) and Employee State Insurance Corporation (ESIC) registration numbers. This integrated approach minimises the need for submitting separate forms for each service, saving valuable time and resources.
Upon accessing the MCA portal, users are guided through a step-by-step process to fill out the SPICe+ form. Key information such as company name, registered office address, directors’ details, share capital structure, and proposed business activities must be accurately provided. Additionally, essential documents like the Memorandum of Association (MoA) and Articles of Association (AoA) must be attached to the form. The MoA defines the company’s purpose, objectives, and rules, while the AoA outlines the internal governance structure and regulations.
Once the SPICe+ form is successfully submitted along with the requisite documents, the MCA portal validates the information and initiates the verification process. This may include scrutiny by officials from the Registrar of Companies (ROC) to ensure compliance with legal and regulatory requirements. If any discrepancies or missing information are identified during the verification stage, the applicant will be notified and given an opportunity to rectify them.
Upon successful verification, the MCA portal generates incorporation documents such as the Certificate of Incorporation and the Certificate of Commencement of Business. These documents serve as legal proof of the company’s existence and authorise it to commence operations.
The SPICe+ form and its associated services have revolutionised the process of starting a business in India by simplifying procedures and reducing the time required for registration. It aligns with the government’s efforts to promote ease of doing business and has significantly contributed to the growth of entrepreneurship in the country.
Certificate of incorporation
Lastly, once the documents are submitted, they undergo a thorough examination by the registrar of companies. This process is crucial to ensuring that all the necessary requirements and regulations have been met. The registrar meticulously scrutinises each document, verifying its authenticity and accuracy. During this examination, the registrar pays particular attention to essential aspects such as the company’s name, its registered address, the names of its directors and shareholders, and their respective shareholdings. Additionally, the registrar reviews the company’s Memorandum and Articles of Association, which outline the company’s objectives, governance structure, and operational rules. This examination process helps safeguard the integrity and legality of the company’s incorporation.
After successfully authenticating the company documents and confirming that they comply with all applicable laws and regulations, the registrar proceeds to issue a Certificate of Incorporation for the company. This certificate serves as official documentation that the company has been duly registered and recognised as a legal entity. The Certificate of Incorporation typically includes essential information such as the company’s name, registration number, date of incorporation, and the names of its directors. It acts as a foundational document, providing legal recognition to the company and allowing it to commence its operations.
Incorporation of the company
As per information on the MCA website, the following needs to be remembered while incorporating a company:
The process of incorporation should be based on the correct information.
The contents of the Memorandum of Association should be part of the substantive law and not in the Rules.
Filings should be identifiable through digital signatures and kept securely.
The process of registration should be compatible with the e-government initiative taken up by the government and speedy.
At the time of incorporation, companies should be required to make and authenticate detailed disclosures about promoters and directors of the company.
The promoters and directors should disclose information that authenticates their proof of residence and identity through supporting documents like photographs, PAN numbers, passports, affidavits, etc.
Every company should be obliged to have a correctly registered office along with proof of address in a manner that enables access both physically and by postal service
If agents or professionals are empowered, it should be on the basis of suitable power of attorney and should not relieve the principals of their liability.
Directorships by the promoters/directors of other companies should be declared at the time of incorporation.
If it is found that incorporation has been done under false or misleading information, stringent consequences should follow.
The information provided at the time of registration should determine the address of the company. It should be the duty of the company to inform customers of any change of address within a fixed time period.
To bring the persons behind such companies to book and disgorge their ill-gotten gains by lifting the corporate veil, the law should be amended.
Certificate of commencement of business
Before a public company can commence any business operations, it must obtain a certificate of commencement of business from the relevant regulatory authority. This certificate serves as legal documentation that the company has met all the necessary requirements and is authorised to conduct business.
Process of obtaining the certificate: To obtain the certificate of commencement of business, the public company must typically submit various documents and information to the regulatory authority. This may include the company’s Memorandum of Association (MOA), Articles of Association (AOA), and details of its directors and shareholders.
Legal implications: Without a certificate of commencement of business, a public company may face legal penalties and restrictions. It may not be able to enter into binding contracts, open bank accounts, or engage in other essential business activities.
Certificate of incorporation: Unlike a public company, a private company does not require a certificate of commencement of business. Once it has received its certificate of incorporation from the relevant regulatory authority, it can legally commence business operations.
Process of obtaining the certificate of incorporation: To obtain the certificate of incorporation, a private company must typically submit its MOA and AOA to the regulatory authority. It may also need to provide information about its directors and shareholders. The certificate of incorporation serves as legal proof that the private company exists as a separate legal entity. It enables the company to enter into contracts, own property, and conduct business activities.
Business activities and memorandum of association
Regardless of whether a company is public or private, it must conduct its business activities in accordance with the rules laid down in its Memorandum of Association (MOA). The MOA outlines the company’s objectives, scope of operations, share capital, and other essential information.
Compliance with MOA: All business activities undertaken by the company must align with the provisions of its MOA. This ensures that the company operates within its legal boundaries and protects the rights of its shareholders.
Amendments to MOA: If a company wishes to change or expand its business activities, it may need to amend its MOA. Such amendments typically require the approval of shareholders and compliance with the relevant legal procedures.
Conclusion
The forms of corporate organisations keep changing with the growth of the economy and the increase in complexity of business operations. Unnecessary controls, rigid structures and regulations inhibit the risk-taking initiatives of entrepreneurs. Small companies and private companies, who do not generally go for public issues or deposits for their financial requirements but utilise their personal or in-house resources, need to be given flexibility, compliance at a low cost and freedom of operation. Equally, public companies that access capital from the public need to be subjected to a more stringent regime of corporate governance.