The Ministry of Corporate Affairs (MCA) has clarified that its recently announced decision of asking corporates and limited liability partners (LLPs) to submit a form which is web-based to confirm their readiness to deal with the Covid-19 threat is “purely voluntary”.
There will be no fee applicable for the CAR aka Company Affirmation of Readiness towards Covid-19 form, and it is completely voluntary. According to MCA, the CAR form is introduced purely as a confidence-building measure determine readiness of companies to deal with the pandemic (COVID-19), also, no penalty would be levied, or enforcement action taken, they added.
The latest MCA stance is a change from the earlier one, which had required mandatory compliance by corporates and LLPs.
Earlier, the MCA had earlier stipulated that CAR would have to be filed by March 23. This had made some agony among corporate executives, with some expressing their incompetence to fulfil the requirement in short notice, especially amid the Janata Curfew and lockdown.
Now, the MCA has advised companies and LLPs to submit the CAR form from March 23 onwards at the “earliest convenience”.
Work from Home Policy
The form seeks to gauge whether the company or LLP is following Covid-19 guidelines including a WFH policy. Since companies and LLPs are major employers, especially in urban areas, their cooperation and participation are essential to fully implement social distancing as a means to contain the spread, morbidity and mortality due to the disease, the MCA had said a few days back.
All companies are strongly advised to implement a work from home policy as a temporary measure till March 31, after which the position will be reviewed by the appropriate authorities per the evolving situation.
Which entities must fill form CAR-2020?
- All Indian companies and foreign companies
- All LLPs & foreign LLPs
What is the due date for filing CAR-2020?
No clear due date has been mentioned to file the form, because the current work from advisory is till 31st March 2020, so, it is presumed that the said form should be filed before that.
What are the steps being advised through the Advisory?
Companies and LLPs are being advised to put in place an immediate plan to implement a ‘work from home’ policy as a temporary measure.
What is the object of having such a plan?
The object of having such a plan is to ensure social distancing as advised by WHO and other public health authorities in the recent outbreak of COVID-19 which is required for preventing the rapid spread and transmission of the disease at community level.
Is there any fee for filing the form?
There is no fee and no SRN will be generated. After filing the form Company receive an email acknowledgement
Do company mandatorily need to offer work from home to all employees?
It is expected & strongly advised to Corporates to offer work from home to all employees. In case an essential staff is required on duty, staggered timings may be followed, to lessen physical interaction. So, to that extent is it not essential to offer work from home to all employee, although it is highly recommended. However, everyone (including all corporates) will have to follow the state / city lock-down orders, travel advisories etc. issued by the pertinent authorities from time to time.