Labour Law News
- Supreme Court to examine all domicile quota laws: Haryana Reservation
- Subscribers of EPF and VPF will now have two separate PF accounts
- EPFO to take call on interest rates in March
- More new exits than additions in EPF scheme
Old/New Cases of Importance
- Personal employee of the MD paid by the company would cover the establishment with 20 employees (Delhi HC))
- Notice pay can’t be deducted from gratuity of an employee. (Kerala HC)
- A doctor is not a ‘workman’ under the Industrial Disputes Act (SC)
- Death by sunstroke will be ‘accident’ under the Compensation Act.(Jhar. HC)
- Employees on contract basis are also entitled to maternity leave (Kerala HC)
Good Reads
- When to Cooperate with Colleagues and When to Compete
- Robots Need Us More Than We Need Them
- When Subtraction Adds Value
- How 2022 will redefine how you look at employee wellness
Videos This Week
Planning to invest in US stocks? ⚠️Watch this first
How to Pick Bonds and Who Shouldn’t Invest
Ukraine Crisis & the Stock Market
February 24th marked the beginning of the Russia-Ukraine crisis and sent shock waves through the markets. It has definitely dented the markets around the world and is now becoming of the RBI, SBI and other Indian Banks too. The cause of concern are the recent sanctions imposed on Russia by the west and its effect on the market.
Impact of the Crisis
- Since the crisis has hit the global economy, stock markets have plunged
- The Russian currency Rouble fell to record lows and the Moscow stock exchange remained closed for a week now.
- US futures slipped and oil soared to its highest level since 2008
- The Indian and London stock market suffered their biggest weekly losses since the start of the global pandemic in March 2020
- The Nifty 50 and BSE-Sensex closed with a 2% decline while the Nifty Bank Index fell more than 6%
Investors doomed forever?
It is obvious that the markets will definitely dip as soon as a war or disaster strikes. What is important is the long term effect of such events. Let’s have a look at how markets reacted to wars in the past.
World War I
DOW fell 30%, markets were closed for 6 months. When they reopened, the Dow rose more than 88% and the next four years DOW rose over 43%.
World War II
Stocks fell 2.9% when the attack on Pearl Harbour occurred but regained those losses in one month. From 1939 until the end of the war in late 1945, the Dow saw increases of 50%
Cuban Missile Crisis
During the 13-day confrontation, the Dow lost just 1.2%—and bounced back 10% during the remainder of the year.
Iraq War
Stocks jumped 2.3% when the U.S. invaded Iraq in 2003. The markets were up 30% by the end of the year.
In view of the above points, it wouldn’t be wrong to conclude investors need not worry a lot. The stock market has seen it all in the past — recessions, pandemics, wars and political upheavals. It has also bounced back and given returns to those who had remained invested. However, markets are unpredictable and one needs to practise caution while making decisions.
Tips for Investors
- Do not Panic
Avoid rushing to book losses to make a hurried liquidation of investments. It is best to stay put in times of turbulence. Do not allow this to impact your long-term financial planning and your investment goals.
- Diversify
Keep your investments diversified into various asset classes. The right mix of investments will always keep you safe in any economic weather.
- Don’t be in a Hurry
The fall in Nifty Bank can tempt you to break your other investments and shift your funds to it. But think twice before making any rash decisions. Always consider long term goals and implications before entering or exiting an investment.
Data Digest
How did the market react to various wars from 1941-2003?
Source: YahooFinance
Important News For Employers
Post-covid the government launched the Atmanirbhar Bharat Rojgar Yojana (EPF Subsidy Scheme) to incentivise the employers of establishments, registered under EPF & MP Act, 1952 and to encourage them to hire more workers.
It enables employers to start EPF Compliance at effective zero cost!
Under the scheme the government would bear the expenses of both employee and employer’s contribution for 2 years.
The EPF Subsidy Scheme is about to end on 31-03-2022.
You can register yourself and / or add new eligible employees before the deadline to avail the subsidised benefits of full 24% EPF Contribution!
Click here for detailed scheme guidelines.