MAR 2015 The Compliance Calendar for March 2015 includes remittances for PF, ESI, Professional Tax and Labour Welfare Fund. In important judgments, the Honourable Karnataka High Court has ruled that an employee, after acceptance of resignation and his payment, can't challenge it. It has also held that a school, employing 20 or more employees, is covered under the PF Act. The Honourable Delhi High Court has pronounced that non-reporting for duty at the place of transfer would be treated as abandonment of service. The Honourable Bombay High Court has held that the major records to establish relationship of employer- employee are appointment letter, identity card issued, pay slips, etc. The Honourable Delhi High Court has ruled that for coverage of an establishment under the Provident Fund Act, regular, temporary and casual employees are counted. The Honourable Supreme Court of India has pronounced that the amount may be small or large; it is the act of misappropriation that is relevant. The Honourable Kerala High Court has held that regulations framed by the employer cannot supersede the payment of Gratuity Act, 1972. The Honourable Punjab & Haryana High Court has ruled that on infringement of standing orders or Industrial Disputes Act, the jurisdiction of civil court is barred. In news to note, a revision in ESIC wages ceiling is planned. An amendment to the increase in working hours is to be revisited. Under the Apprentice Protsahan Yojna launched in October last year, 20 lakh apprentices are to be engaged. Employment exchanges will no more be mere registration centers but will be transformed into national career council centers. The Employees' Provident Funds (Fifth Amendment) Scheme 2014 shall come into force from 1st April 2011. The Labour Laws (exemption from furnishing returns and maintaining registers by certain establishments) Amendment Act, 2014 shall come into force by notification in the official gazette. By a circular dated 25.2.2015, all employers should submit return in Form 5A of the Employees' Provident Fund Scheme. We hope you find the contents of this newsletter relevant and useful. We welcome your suggestions and inputs for enriching the content of this newsletter. Please write to [email protected]Hello Readers, Important Judgments Compliance Calendar for Mar 2015 02 PAGES News to note An employee, after acceptance of resignation and his payment, can't challenge it 03 Major ingredients to establish relationship of employer-employee are appointment letter, etc. 04 A school, employing 20 or more employees, is covered under PF Act 03 Non-reporting for duty at the place of transfer would be treated as abandonment of service 04 For Coverage of an establishment under Provident Fund Act, the regular, temporary and casual employees are accounted 05 All Employers to submit return in Form 5A of the Employees' Provident Fund Scheme 08 The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendment Act, 2014 08 The Employees' Provident Funds (Fifth Amendment) Scheme 2014 08 Employment exchanges will no more be mere registration centers 07 20 lakh apprentices to be engaged 07 Working hours to be revisited 07 ESIC wages ceiling revision planned 07 The amount may be small or large; it is the act of misappropriation that is relevant 05 Regulations framed by the employer cannot supersede the Payment of Gratuity Act, 1972 06 On infringement of standing orders or Industrial Disputes Act the jurisdiction of civil court is barred 06
Transcript
MAR2015
The Compliance Calendar for March 2015 includes remittances for PF, ESI, Professional Tax and Labour Welfare Fund.
In important judgments, the Honourable Karnataka High Court has ruled that an employee, after acceptance of resignation and his payment, can't challenge it.
It has also held that a school, employing 20 or more employees, is covered under the PF Act. The Honourable Delhi High Court has pronounced that non-reporting for duty at the place of transfer would be treated as abandonment of service. The Honourable Bombay High Court has held that the major records to establish relationship of employer-employee are appointment letter, identity card issued, pay slips, etc. The Honourable Delhi High Court has ruled that for coverage of an establishment under the Provident Fund Act, regular, temporary and casual employees are counted. The Honourable Supreme Court of India has pronounced that the amount may be small or large; it is the act of misappropriation that is relevant. The Honourable Kerala High Court has held that regulations framed by the employer cannot supersede the payment of Gratuity Act, 1972. The Honourable Punjab & Haryana High Court has ruled that on infringement of standing orders or Industrial Disputes Act, the jurisdiction of civil court is barred.
In news to note, a revision in ESIC wages ceiling is planned. An amendment to the increase in working hours is to be revisited. Under the Apprentice Protsahan Yojna launched in October last year, 20 lakh apprentices are to be engaged. Employment exchanges will no more be mere registration centers but will be transformed into national career council centers. The Employees' Provident Funds (Fifth Amendment) Scheme 2014 shall come into force from 1st April 2011. The Labour Laws (exemption from furnishing returns and maintaining registers by certain establishments) Amendment Act, 2014 shall come into force by notification in the official gazette. By a circular dated 25.2.2015, all employers should submit return in Form 5A of the Employees' Provident Fund Scheme.
We hope you find the contents of this newsletter relevant and useful. We welcome your suggestions and inputs for enriching the content of this newsletter. Please write to [email protected]
Hello Readers,
Important Judgments
Compliance Calendar for Mar 2015 02
PAGES
News to note
An employee, after acceptance ofresignation and his payment,can't challenge it
03
Major ingredients to establish relationshipof employer-employee are appointmentletter, etc.
04
A school, employing 20 or more employees,is covered under PF Act 03Non-reporting for duty at the place oftransfer would be treated as abandonmentof service
04
For Coverage of an establishment underProvident Fund Act, the regular, temporaryand casual employees are accounted
05
All Employers to submit return in Form 5A of the Employees' Provident Fund Scheme 08
The Labour Laws (Exemption fromFurnishing Returns and MaintainingRegisters by Certain Establishments)Amendment Act, 2014
08
The Employees' Provident Funds(Fifth Amendment) Scheme 2014 08
Employment exchanges will no more bemere registration centers 07
20 lakh apprentices to be engaged 07
Working hours to be revisited 07
ESIC wages ceiling revision planned 07
The amount may be small or large; it is theact of misappropriation that is relevant 05Regulations framed by the employer cannotsupersede the Payment of Gratuity Act, 1972 06On infringement of standing orders orIndustrial Disputes Act the jurisdiction ofcivil court is barred
06
PAGE 02
15th Mar 15 Remittance of Contribution EPF & MP Act 1952 By Challan
15th Mar 15International worker with wages and Nationality EPF & MP Act 1952 Statement in IW 1
PF Central
20th Mar 15 Kerala By Challan
Labour Welfare Fund Remittances
State Labour Welfare Fund Kerala
Compliance Calendar for the month of Mar 2015
21st Mar 15Remittance of Contribution(Main code and Sub Codes) ESIC Act 1948 By Challan
ESI Central
Due Date Activity Due Under Mode
Professional Tax - States - Remittances
10 Mar 15th
15th 15 Mar
20th Mar 15
21st Mar 15
Andhra Pradesh & Madhya Pradesh
Gujarat
By Challan
By Challan
By Challan
By Challan
Karnataka
West Bengal
State wise regulations
Gujarat PT regulations
28th Mar 15 By Challan
West BengalPT regulations
Assam & Orissa State wise regulations
Karnataka PT regulations
28th Mar 15 Online MaharashtraMaharashtraPT Regulation
In a case of M.Babu s/o Muniswamy vs. Management of Press Com Products, rep. by its Proprietor, the Hon'ble Karnataka High Court through Hon'ble Justice Mr.Ram Mohan Reddy pronounced that
A plea of the workman that his services have been
terminated illegally, by raising an industrial dispute after
about 8 months is not maintainable when he was issued
letter of acceptance of his resignation at the relevant time,
he was paid Rs.100000 towards his full and final dues
through account payee cheques which he had encashed
without protest.
When letter of acceptance of resignation issued by the
employer is received by the workman without any protest
and full and final payment received by the workman
through account-payee cheques is also encashed, his
plea of the workman that is resignation was obtained by
force by his employer is not maintainable.
Writ court under Article 227 of the Constitution of India is
having only supervisory jurisdiction, not requiring hearing
of lengthy arguments or re-appreciation of evidence if
finding are not shown to be perverse or illegal.
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AN EMPLOYEE, AFTER ACCEPTANCE OF RESIGNATION ANDHIS PAYMENT, CAN'T CHALLENGE IT
In an extraordinary case of Sri Guru Teg Bahadur Public
School vs. Employees' Provident Fund Organisation
and Ors, the Hon'ble Delhi High Court through Hon'ble
Justice Mr.Suresh Kait pronounced that
When an establishment/school has 20 or more employees,
the provisions of the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952 would be applicable.
If the employer fails to produce documentary evidence to
prove his case that his establishment/school has less than
20 employees before the Commissioner and/or Appellate
Authority under the Employees' Provident Fund and
Miscellaneous Provisions Act, 1952, the provisions of the
Employees' Provident Fund and Miscellaneous Provisions
Act, 1952 would be applicable.
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A SCHOOL, EMPLOYING 20 OR MORE EMPLOYEES,IS COVERED UNDER PF ACT
PAGE 04
In a case of Competent Security Service vs. Government of NCT of Delhi & Ors, Delhi High Court
through Hon'ble Justice Mr.Suresh Kait, pronounced that
When post is transferable but the workman does not report for duty at the place of his transfer, awarding
reinstatement by the labour court to such a workman on raising an industrial dispute later on by him, is not
justified.
Not reporting for duty at the place of transfer, as per terms and conditions of appointment letter, without any
justified explanation, thereby remaining unauthorisedly absent would be treated as abandonment of service
on the part of the employee.
Transfer of an employee is justified when his post is transferable on the basis of terms and conditions of his
appointment letter.
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NON-REPORTING FOR DUTY AT THE PLACE OF TRANSFERWOULD BE TREATED AS ABANDONMENT OF SERVICE
MAJOR INGREDIENTS TO ESTABLISH RELATIONSHIP OFEMPLOYER-EMPLOYEE ARE APPOINTMENT LETTER, ETC.
In a case of M/s. Plaggio Vehicles Pvt Ltd vs. Mr.Jagannath Vithal Jagtap & Anr, the Hon'ble Bombay High Court through Hon'ble Justice Smt. R.P Sondur Baldota pronounced that
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When employer-employee relationship is not proved on record of the court file, awarding reinstatement by the
labour court to the workman is not justified.
Major ingredients to establish relationship of employer-employee are appointment letter, attendance and
payment of wage records, leave records, identity card issued by the employer, pay/wages slips issued by the
employer and any other letter/communication of the employer in respect of the employee.
Documents like gate pass by itself cannot be an incident of service sufficient to establish employer-employee
relationship.
Medical treatment given to the workman by the doctor of the company can hardly be said to be an incident of
service since it may be given on humanitarian ground.
PAGE 05
In a case of M/s Polythene Bag Factory vs. Assistant Provident Fund Commissioner, the Hon'ble
Delhi High Court through the verdict by Hon'ble Justice Mr.Suresh Kait pronounced that
When the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 is made applicable it would
continue to be effective notwithstanding the fall of number of employees below 20 as per section 1(5) of the Act.
The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 becomes applicable to an
establishment, when the strength of its employees touches 20 or more.
There is no distinction as to whether an employee is regular, temporary, casual, getting wages directly or
indirectly from the employer, or employees engaged through contractor(s) for the purpose of making the
Employees' Provident Fund and Miscellaneous Provisions Act, 1952, applicable to an establishment.
Levy of interest upon the EPF dues not deposition by the employer within the stipulated time, due to any
reason, is mandatory and justified irrespective of the fact as to whether the establishment is in private sector
or public sector or industrial or non-industrial or non-profit making or profit-making.
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FOR COVERAGE OF AN ESTABLISHMENT UNDER PROVIDENT FUND ACT,THE REGULAR, TEMPORARY AND CASUAL EMPLOYEES ARE ACCOUNTED
THE AMOUNT MAY BE SMALL OR LARGE; IT IS THE ACT OFMISAPPROPRIATION THAT IS RELEVANTIn a case of The Life Insurance Corporation of India & Others vs. S. Vasanthi, the Hon'ble Supreme Court of India through its bench comprising Hon'ble Justices Mr.J. Cheameswar and Mr.A.K.Sikri pronounced that
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Tampering of documents, thereby causing financial loss
to the employer by an employee, is a serious
misconduct.
If an employee is held guilty of the charges of tampering
the insurance policies causing financial loss to the
insurance company, the punishment of recovery of
amount of loss suffered by the employer in addition to
reduction in basic pay of the employee is not shockingly
disproportionate.
Court has no power to interfere in the quantum of
punishment, imposed by the employer upon the
employee, under power of judicial review without giving
convincing reasons.
High court while exercising its judicial review power,
cannot sit as departmental Appellate Authority since the
same is not permissible in law.
Quantum of punishment and nature of penalty to be
awarded is exclusively within the jurisdiction of the
competent authority/employer.
Judicial review on the administrative action is limited
only to the cases where there is any illegality,
irrationality and procedural impropriety in the order
passed by the administration authorities.
PAGE 06
In a case of Union Bank of India vs. Ram Mohan, the Hon'ble Kerala High Court through the verdict
by Hon'ble Justice Mr.A.K. Jayasankaran Nambiar pronounced that
Gratuity of an employee cannot be withheld except as per statutory provisions under section 4(6) of the
Payment of Gratuity Act, 1972 cannot be subject to the provisions of rules and regulations framed by the
employer regulating service conditions of the employees.
Payment of Gratuity and Payment of Pension are of right in the nature of property in the hands of
employees having protection under Art.300A of the Constitution of India and not bounties from
employer to employees.
Regulations do not have overriding effect over the statutory provisions of the Payment of Gratuity Act,
1972.
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REGULATIONS FRAMED BY THE EMPLOYER CANNOT SUPERSEDETHE PAYMENT OF GRATUITY ACT, 1972
In a case of Pale Ram vs. The Presiding Officer, Industrial Tribunal-cum-Labour Court, Rohtak
and Another, the Hon'ble Punjab & Haryana High Court through the verdict by Hon'ble Justice
Mr.Gurmeet Singh Sandhawalia pronounced that
Once the workman had chosen to avail remedy under common/civil law, he could not resort to the other
regulations since the judgment of the civil court would operate as resjudicata Disputes Act or any other
Special Law/Act.
If an employee intends to enforce his constitutional or statutory right, civil court will have the necessary
jurisdiction to try the suit.
Only because an employee is a workman under Industrial Disputes Act, 1974 or his conditions of
service are governed by standing order, certified under the Industrial Employment (Standing Order)
Act, 1946, it would not be correct to contend that ipso facto civil court will have no jurisdiction.
When the infringement of provisions of standing order or Industrial Disputes Act is alleged, the civil
court jurisdiction may be barred.
If no right is claimed under special statute in terms whereof the civil court will have jurisdiction.
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ON INFRINGEMENT OF STANDING ORDERS OR INDUSTRIALDISPUTES ACT THE JURISDICTION OF CIVIL COURT IS BARRED
ESIC WAGES CEILING REVISION PLANNED
PAGE 07
WORKING HOURS TO BE REVISITED
20 LAKH APPRENTICES TO BE ENGAGED
EMPLOYMENT EXCHANGES WILL NO MORE BE MEREREGISTRATION CENTERS
¡The Government proposes to increase wage ceiling for
Employees' State Insurance Corporation (ESIC) benefits
under the ESI Act after improving medical service. The
Lok Sabha was informed on 22nd December 2014.
Labour Minister Mr.Bandaru Dattatreya said during
question hour that the ESIC has taken a number of
decisions to improve the medical services to be provided
and to increase wage ceiling for eligibility to use ESIC
benefits. He said as on March 31, 2015 there would be
1.74 crore employees enrolled under the ESI act.
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As regards the amendment to increase the spread of working hours from the existing 10.5 hours to 12 hours,
the parliament standing committee urged the Labour Ministry to revisit the matter, as it feared that it may lead
to the harassment of the workers on being compelled to stay in the workplace for a longer period without
adequate compensation.
The Bill, one of key labour reforms being pushed by the Narendra Modi Government, was introduced in Lok
Sabha on August 7 last year. It was referred to the Parliament Standing Committee by the Speaker for
examination and report within three months after several MPs sought clarifications. The Parliament
Standing Committee later got time extension to present the report to the house by December 23, 2014.
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Under the Apprentice Protsahan Yojana launched in October last year the Ministry of Labour and Employment
would support one lakh apprentices in the next two-and-a half years and share 50 per cent of the stipend.
“We have a vision to have more than 20 lakh apprentices in the next few years against the present number of
2.8 lakh. In fact, enhanced rates of stipend have also been noticed for trade payable indexed to minimum
wages of semi-skilled workers,” Labour Minister Bandaru Dattatreya said.
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Union Minister of State for Labour and Employment Mr.Bandaru Dattatreya said that the national employment
exchanges have turned into mere registration centers for the unemployed and the center is working to changes
it to national career council centers. The center would provide Rs.292 crore for that purpose.
The portal would be launched in March 2015 and would also host 100 model career centres and vocational
rehabilitation centers, said Dattatreya.
THE EMPLOYEES' PROVIDENT FUNDS (FIFTH AMENDMENT) SCHEME 2014
PAGE 08
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In exercise of the powers conferred by section 5, read with sub-section (1) of section 7 of the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) and in supersession of Ministry of
Labour and Employment's notification dated the 6th May, 2014 except as respect things done or omitted to
be done before such supersession, the Central Government hereby makes the following Scheme, further to
amend the Employees' Provident Fund Scheme, 1952, namely:-
This Scheme may be called the Employees' Provident Funds (Fifth Amendment) Scheme, 2014 and it shall
come into force from 1st April 2011.
In the Employees' Provident Fund Scheme, 1952 in sub-paragraph (6) of paragraph 60 the following proviso
shall be inserted, namely:-
“Provided that if the settlement of claim in respect of an operation account is delayed for more than thirty
days from the date of receipt of the application for settlement of claim, interest shall be credited to the
account in accordance with sub-paragraph (2) for delay period excluding the period of thirty days”.
THE LABOUR LAWS (EXEMPTION FROM FURNISHING RETURNS ANDMAINTAINING REGISTERS BY CERTAIN ESTABLISHMENTS)AMENDMENT ACT, 20141. Short title and commencement:-
Returns and Maintaining Registers by Certain Establishments) Amendment Act, 2014.
It shall come into force on such date as the Central Government may, by notification in the OfficialGazette appoint.
2. Amendment of Long Title:- In Labour Law (Exemption from Furnishing Returns and MaintainingRegisters by Certain Establishments) Act, 1988 (51 of 1988) (hereinafter referred to as the PrincipalAct). For the long title, the following long title shall be substituted, namely:-
An Act to provide for the simplification of procedure for furnishing returns and maintaining registers inrelation to establishments employing a small number of persons under certain labour laws.
3. Amendment of section 1:- In section 1 of the Principal Act, in sub-section (1) for the words “Exemptionfrom,” the words “Simplification of Procedure for” shall be substituted.
4. Amendment of section 2:- In section 2 of the Principal Act, in clause (e), for the word “nineteen” thework “forty” shall be substituted.
5. Substitution of new section for section 4:- for section 4 of the Principal Act, the following sectionsshall be substituted.
This Act may be called the Labour Laws (Exemption from Furnishing
ALL EMPLOYERS TO SUBMIT RETURN IN FORM 5A OFTHE EMPLOYEES' PROVIDENT FUND SCHEME By a circular dated 25.2.2015 the Employees' Provident Fund Organisation has instructed all the employers to file a return online stating ownership in Form 5A showing the particulars of all the branches and departments owners, occupiers, directors, partners, manager or any other person or persons who have the ultimate control over the affairs of such factory or establishment. Failure to make compliance would attract 'penalty' as stipulated by section 14 of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
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