DEC 2014 The Compliance Calendar for Dec 2014 include filings under the Factories Act, Maternity Benefits Act and Minimum Wages Act. In Important judgements, The Honourable Delhi High Court has held that mere submission of an application for leave does not mean that it is sanctioned. In another judgement, the ruling was that the representation by a lawyer in domestic enquiry is not permissible. The Honourable Punjab and Haryana High court has held that supervision and control by an employer is a decisive factor for determination of relationship of employer and employee. The Honourable Uttarakhand High Court has ruled that while recovering EPF arrears at first instance the attached assets be sold. The Honourable Bombay High Court has pronounced that principal employer is liable to pay compensation to employees of contractor. The Honourable Punjab and Haryana High Court has pronounced that the onus of proof shifts upon employer when workman pleads unemployment and a plea, when not taken before labour court, can’t be taken in the High Court. In news to note, building workers are entitled to provident fund, EPFO to launch online transfer for PF trusts, Employees Provident Fund Organization (EPFO) has issued a circular for the process of receipt of challans acknowledgements. An EPF Appellate Tribunal will function in South India from Bengaluru and EPFO may allow multiple bankers to handle PF deposits. 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, Compliance Calendar for Dec 2014 02 PAGES 04 05 06 06 05 News to note 06 Important Judgments Mere submission of for leave does not mean that it is sanctioned 04 Representation by a lawyer in domestic enquiry is not permissible Supervision and control by an employer is a decisive factor for Determination of relationship of employer and employee. 04 While recovering EPF arrears at first instance the attached assets be sold Principal employer is liable yo pay compensation to employees of contractor Building workers entitled to provident fund EPFO to Launch Online Transfer for PF Trusts The Apprenticeship (Second Amendment) Rules, 2014 05 Onus of proof shifts upon employer when workman pleads unemployment and a plea, When not taken before Labour Court, Can’t be taken in the High Court Employees Provident Fund Organization (SPFO), Receipt of Challans Acknowledgements EPF Appellate Tribunal in South EPFO May Allow Multiple Bankers Handle PF Deposits 07 07 08
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DEC2014
The Compliance Calendar for Dec 2014 include filings under the Factories Act, Maternity Benefits Act and Minimum Wages Act.
In Important judgements, The Honourable Delhi High Court has held that mere submission of an application for leave does not mean that it is sanctioned. In another judgement, the ruling was that the representation by a lawyer in domestic enquiry is not permissible. The Honourable Punjab and Haryana High court has held that supervision and control by an employer is a decisive factor for determination of relationship of employer and employee. The Honourable Uttarakhand High Court has ruled that while recovering EPF arrears at first instance the attached assets be sold. The Honourable Bombay High Court has pronounced that principal employer is liable to pay compensation to employees of contractor. The Honourable Punjab and Haryana High Court has pronounced that the onus of proof shifts upon employer when workman pleads unemployment and a plea, when not taken before labour court, can’t be taken in the High Court.
In news to note, building workers are entitled to provident fund, EPFO to launch online transfer for PF trusts, Employees Provident Fund Organization (EPFO) has issued a circular for the process of receipt of challans acknowledgements. An EPF Appellate Tribunal will function in South India from Bengaluru and EPFO may allow multiple bankers to handle PF deposits.
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,
Compliance Calendar for Dec 2014 02
PAGES
04
05
06
06
05
News to note
06
Important Judgments
Mere submission of for leave does not mean that it is sanctioned
04Representation by a lawyer in domestic enquiry is not permissible
Supervision and control by an employer is a decisive factor for Determination of relationship of employer and employee.
04
While recovering EPF arrears at firstinstance the attached assets be sold
Principal employer is liableyo pay compensation to employeesof contractor
Building workers entitled to provident fund
EPFO to Launch Online Transferfor PF Trusts
The Apprenticeship (SecondAmendment) Rules, 2014
05Onus of proof shifts upon employerwhen workman pleads unemployment and a plea, When not taken beforeLabour Court, Can’t be taken inthe High Court
Employees Provident Fund Organization(SPFO), Receipt of ChallansAcknowledgements
EPF Appellate Tribunal in South
EPFO May Allow Multiple BankersHandle PF Deposits
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PAGE 02
Compliance Calendar for the month of Dec 2014
10 Dec 14th
15th Dec 14
20th Dec 14
21st Dec 14
Andhra Pradesh & Madhya Pradesh
Gujarat
By Challan
By Challan
By Challan
By Challan
Karnataka
West Bengal
State wise regulations
Gujarat PT regulations
30th Dec 14
20th Dec 14 Kerala By Challan
Labour Welfare Fund Remittances
15th Dec 14 Remittance of Contribution EPF & MP Act 1952 By Challan
15th Dec 14International worker with wages and Nationality EPF & MP Act 1952 Statement in IW 1
21st Dec 14Remittance of Contribution(Main code and Sub Codes) ESIC Act 1948 By Challan
ESI Central
Due Date Activity Due Under Mode
Professional Tax Status Remittances
PF Central
By Challan
West BengalPT regulations
Maharashtra, Assam & Orissa State wise regulations
20th Dec 14 Karnataka PT regulations Karnataka Online
State Labour Welfare Fund Kerala
Karnataka PT regulations
PAGE 03
Compliance Calendar for the month of Dec 2014
Due Date Activity Due Under Mode
31 st Dec 14 Return by Principal Employer By Form XXVCLRA, 1970
CLRA Central
15 th Dec 14 Strength & Occupation Return By FormER-1 & ER-2
Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
Tamil Nadu Indl Est (Conferment of permanent Status) Act, 1981
31st Dec 14 Particulars of contribution By Form A
Tamil Nadu Labour Welfare Fund Act, 1972
31st Dec 14 Return By Form 2
Payment of Subsistance Allowance Act
In a case of Bir Singh Vs Delhi Transpost Corporation, the honourable Delhi High Court through honourable justices Mr.Sursh Kait pronounced that
Mere submission of an application for leave is not sanction of leave as held by the Supreme Court in the case of DTC V.Sardar Singh, AIR 2004 SC 4161
When the leave was sanctioned though without pay, there was no justification to remove the workman from service
Since past service record was neither supplied to the workman nor produced before the Tribunal, reinstatement of the workman with 50% back-wages is justified
Merely because in the record of service, the absence is recorded as leave without pay, it does not prevent DTC from establishing that, the absence amounts to a misconduct since as per provisions in the standing orders of the DTC the absence for 10 days or more without leave renders the employee liable to be treated as an absconder resulting in termination of his service
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MERE SUBMISSION OF FOR LEAVE DOES NOT MEAN THAT IT IS SANCTIONED
In an extraordinary case of Regional P.F. Commissioner Vs. Siel food and fertilizer industries, the honourable Delhi High Court through honourable justice Mr.V.Kameswar Rao pronounced that
The delinquent employee has no legal right to engage a legal practitioner in the domestic enquiry
The delinquent employee can engage a legal practitioner for defending his cause if there is no bar put up by Service Rules or Standing Orders with the permission of the disciplinary authority/enquiry officer
When domestic enquiry is to solve any complicated question of law, the engagement of a legal practitioner by the delinquent employee is
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REPRESENTATION BY A LAWYER IN DOMESTIC ENQUIRY IS NOT PERMISSIBLE
In a case of M/s Rattan Brothers vs. Appellate authority and others, the honourable Punjab & Haryana High Court through the verdict by the honourable Justice Mr.G.S. Sandhawalia pronounced that
The prima facie test to determine whether there was relationship of employer-employee is the existence of right in the master to supervise and control the work done by the servant not only in the matter of directing what work the employee is to do but also the manner in which he had to do the work
Once the employer has admitted that there was interse relationship since long with an exception that the employee was not their regular employee, it was for the employer to produce the record maintained by them to prove their case
If an employer does not produce the relevant records including attendance /wages register, cash book, ledger, voucher etc. to prove that the employee was not their regular employee, adverse inference to be drawn against the employer is justified
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SUPERVISION AND CONTROL BY AN EMPLOYER IS A DECISIVE FACTOR FORDETERMINATION OF RELATIONSHIP OF EMPLOYER AND EMPLOYEE.
PAGE 05
PRINCIPAL EMPLOYER IS LIABLE TO PAY COMPENSATIONTO EMPLOYEES OF CONTRACTORIn a case of Rauf vs. Manager, Midas care pharmaceuticals Pvt ltd, the honourable Bombay High Court through the verdict by honourable Justices Mr.M.T. Joshl pronounced that
The principal employer is liable to pay compensation under the employees’ compensation act, 1923 to
the employee of contractor who receives injuries of permanent nature, while working in the premises of
the principal employer, irrespectively of wilful disregard of safety devices, provided to him
If the principal employer admits in his defence the employment of the injured through contractor for
carrying out work at the premises of the principal employer, there is no need to prove employer-
employee relationship by the injured in between the principal employer and the injured
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In a case of Jugal Koshore Jhunjhunwala vs. Assistant provident fund commissioner and other,
the honourable Uttarakhand High Court through the verdict by honourable Justices Mr.Alok
Singh.J pronounced that
For recovery of EPF dues, the EPF authority, in view of provisions of sections 8B and 11 of the
employees’ provident funds and miscellaneous provisions act, 1952, first of all, shall take steps to
recover the same by sale of assets of the establishment and would not recover the same from the
employer/Director
The balance amount, if any, after effecting recovery from the sale of assets of the establishment the
EPF authority can recover the same against the employer of the establishment
Without exhausting remedy of attachment and sale of assets of the establishment, no proceedings can
be initiated against the employer under the employees’ provident funds and miscellaneous provisions
act, 1952 by the EPF authority
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WHILE RECOVERING EPF ARREARS AT FIRST INSTANCETHE ATTACHED ASSETS BE SOLD
ONUS OF PROOF SHIFTS UPON EMPLOYER WHEN WORKMAN PLEADSUNEMPLOYMENT AND A PLEA, WHEN NOT TAKEN BEFORE LABOUR COURT,CAN’T BE TAKEN IN THE HIGH COURT
In a case of District Red Cross society, Ambala city vs. Presiding officer, labour court, Ambala and Anr, the honourable Punjab & Haryana High Court through the verdict by ikts bench comprising honourable Mr. Satish Kumar Mittal and Mr. Arun Palli pronounced that
Termination of service of a workman, who has worked for more than 240 days without making compliance
of section 25F of the industrial disputes act, 1947, is illegal attracting reinstatement with back-wages
A plea of fact not taken before the industrial tribunal/labour court, cannot be taken before the court or the
appellate court
Onus to prove gainful employment of the workman, after his termination till the continuation of litigation, is
upon the management when initially the workman has pleased to be unemployed despites his best efforts
Employers should be considerate and problems of handicapped persons be attended with utmost human touch
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BUILDING WORKERS ENTITLED TO PROVIDENT FUND
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The Delhi High Court has dismissed the writ petition
of the builders association seeking to restrain the
central government from enforcing the provident fund
act on casual construction workers. They also wanted
the court to prevent the authorities from levying
payment for site worker engaged by sub-contractors
of the member of the association, consisting of top
builders in the country
The high court allowed the authorities to initiate steps
against the builders under the provisions of the law. It
was alleged by the builders that Rs.26000 crore is
lying with the fund authorities without being
distributed and the system was not working
The High Court said that was not good reason not to
contribute to the fund. It also asked the authorities to
devise a scheme to ensure workers get their dues
EPFO TO LAUNCH ONLINE TRANSFER FOR PF TRUSTS¡The employees provident fund organization was to launch an online facility in October, 2014 for
transfer of PF accounts for the organized sector workers covered under private PF Trusts, which
manage their employees’ retirement fund themselves, the labour minister official said.
THE APPRENTICESHIP (SECOND AMENDMENT) RULES, 2014¡
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Provided that in the case where the minimum rate of
wages for a trade is not noticed by the state
government of union territory, then maximum of
minimum wages of the scheduled employment
noticed by such state government or union territory
for semi-skilled workers shall be taken into account
for paying the stipend in respect of that trade
Provided further that in the case of trade apprentices
referred to in clause (a) of section 6 of the act, the
period of training already undergone by them in a
school or other institution recognized by the national
council, shall be taken into account for the purpose of
determining the rate of stipend payable
EMPLOYEES PROVIDENT FUND ORGANIZATION (EPFO), ISSUES CIRCULAR FOR THE PROCESS OF RECEIPT OF CHALLANS ACKNOWLEDGMENTS
PAGE 07
With reference to EPFO e-circular NBG/SMEBU-EPFO/ 46-2013-14 dated 25-09-2013 regarding
complaints received by EPFO that SBI branches do not give any acknowledgement of the challans received
at the counters and ask the depositors to drop the cheques in drop box without any receipt.
The compliant was reiterated by the central provident commissioner of EPFO in the meeting held with CGM
(SME) on 30/07/2014 and some cases of such practices at our branches were cited in support of the claim.
In this connection, EPFO advises that the following process laid down for the receipt of EPFO challans should
be followed meticulously.
On acceptance of the deposits by cheques/demand draft the branches are required to affix the date stamp,
on all copies of challans and a paper token issued as receipt of challans & cheques
On realization of the cheques/draft and authorization of entry in EPFO application a number is generated
which should be noted by the branch on the challans
Original of the challans should be retained by the branch and the duplicate/triplicate copies returned to the
depositor
As the challans are valid for a period of 15 days, it is imperative that the challans be verified before receipt
otherwise it may lead to reconciliation issues in case the validity period of the challans expires before the
proceeds of the accompanying instruments are realized
In view of the above, EPFO challans should invariably be receipted and not dropped in drop boxes. Necessary
notice may be displayed at the concerned branches. This instruction may also be displayed in the circle
website for information.
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EPF APPELLATE TRIBUNAL IN SOUTH¡
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The Ministry of Labour and Employment by exercising
its powers under sub section (1) of section 7D of the