PFA Employee's Compensation (Amendment) Bill 2016 introduced in Lok Sabha on 5/8/2016. It is proposed to make following amendments in the Act:

a) making it obligatory on the employer to inform the employee of his rights to compensation under the Act, in writing as well as through electronic means;

b) to enhance the penalty amount for various violations under the Act from the existing amount of Rs.5,000 to Rs.50,000 which may be extended to Rs.1 lac;

c) to make the employer liable to penalty for failure to inform the employee of his rights to compensate under the Act;

d) to revise the minimum amount involved in the dispute for which appeal can be filed to the High Court, from existing Rs.300 to Rs.10,000 or such higher amount as the Central Govt may by notification specify;

e) to omit Section 30A of the Act which empowers the Commissioner to withhold payment to an employee of any sum in deposit with him where an appeal is filed in the High Court by an employer. This omission will provide relief to the employees as the amount can now be withheld only when there is a stay or order to that effect by the High Court in cases where the appeal has been filed by the employer.


From India, Malappuram

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