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MAR
2015
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Hello Readers,
Compliance Calendar for Mar 2015
02
The Compliance Calendar for March 2015 includes
remittances for PF, ESI, Professional Tax and Labour
Welfare Fund.
Important Judgments
In important judgments, the Honourable Karnataka High
Court has ruled that an employee, after acceptance of
resignation and his payment, can't challenge it.
An employee, after acceptance of
resignation and his payment,
can't challenge it
03
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 employeremployee 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.
A school, employing 20 or more employees,
is covered under PF Act
03
04
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.
Regulations framed by the employer cannot
supersede the Payment of Gratuity Act, 1972
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20 lakh apprentices to be engaged
Non-reporting for duty at the place of
transfer would be treated as abandonment
of service
Major ingredients to establish relationship
of employer-employee are appointment
letter, etc.
04
For Coverage of an establishment under
Provident Fund Act, the regular, temporary
and casual employees are accounted
05
The amount may be small or large; it is the
act of misappropriation that is relevant
05
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On infringement of standing orders or
Industrial Disputes Act the jurisdiction of
civil court is barred
News to note
ESIC wages ceiling revision planned
Working hours to be revisited
Employment exchanges will no more be
mere registration centers
The Employees' Provident Funds
(Fifth Amendment) Scheme 2014
The Labour Laws (Exemption from
Furnishing Returns and Maintaining
Registers by Certain Establishments)
Amendment Act, 2014
All Employers to submit return in Form 5A
of the Employees' Provident Fund Scheme
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PAGE 02
Compliance Calendar for the month of Mar 2015
Activity
Due Date
Due Under
Mode
Professional Tax - States - Remittances
10th Mar 15
Andhra Pradesh & Madhya Pradesh
State wise regulations
By Challan
15th Mar 15
Gujarat
Gujarat PT regulations
By Challan
20th Mar 15
Karnataka
Karnataka PT regulations
By Challan
21st Mar 15
West Bengal
West Bengal
PT regulations
By Challan
28th Mar 15
Assam & Orissa
State wise regulations
By Challan
28th Mar 15
Maharashtra
Maharashtra
PT Regulation
Online
Labour Welfare Fund Remittances
20th Mar 15
Kerala
Kerala
State Labour Welfare Fund
By Challan
PF Central
15th Mar 15
Remittance of Contribution
EPF & MP Act 1952
By Challan
15th Mar 15
International worker with
wages and Nationality
EPF & MP Act 1952
Statement in IW 1
ESI Central
21st Mar 15
Remittance of Contribution
(Main code and Sub Codes)
ESIC Act 1948
By Challan
PAGE 03
AN EMPLOYEE, AFTER ACCEPTANCE OF RESIGNATION AND
HIS PAYMENT, CAN'T CHALLENGE IT
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.
A SCHOOL, EMPLOYING 20 OR MORE EMPLOYEES,
IS COVERED UNDER PF ACT
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.
PAGE 04
NON-REPORTING FOR DUTY AT THE PLACE OF TRANSFER
WOULD BE TREATED AS ABANDONMENT OF SERVICE
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.
MAJOR INGREDIENTS TO ESTABLISH RELATIONSHIP OF
EMPLOYER-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
¡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
FOR COVERAGE OF AN ESTABLISHMENT UNDER PROVIDENT FUND ACT,
THE REGULAR, TEMPORARY AND CASUAL EMPLOYEES ARE ACCOUNTED
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.
THE AMOUNT MAY BE SMALL OR LARGE; IT IS THE ACT OF
MISAPPROPRIATION THAT IS RELEVANT
In 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
¡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
REGULATIONS FRAMED BY THE EMPLOYER CANNOT SUPERSEDE
THE PAYMENT OF GRATUITY ACT, 1972
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.
ON INFRINGEMENT OF STANDING ORDERS OR INDUSTRIAL
DISPUTES ACT THE JURISDICTION OF CIVIL COURT IS BARRED
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.
PAGE 07
ESIC WAGES CEILING REVISION PLANNED
¡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.
WORKING HOURS TO BE REVISITED
¡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.
20 LAKH APPRENTICES TO BE ENGAGED
¡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.
EMPLOYMENT EXCHANGES WILL NO MORE BE MERE
REGISTRATION CENTERS
¡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.
PAGE 08
THE EMPLOYEES' PROVIDENT FUNDS (FIFTH AMENDMENT) SCHEME 2014
¡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 AND
MAINTAINING REGISTERS BY CERTAIN ESTABLISHMENTS)
AMENDMENT ACT, 2014
1. Short title and commencement:- This Act may be called the Labour Laws (Exemption from Furnishing
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 Official
Gazette appoint.
2. Amendment of Long Title:- In Labour Law (Exemption from Furnishing Returns and Maintaining
Registers by Certain Establishments) Act, 1988 (51 of 1988) (hereinafter referred to as the Principal
Act). 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 in
relation 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 “Exemption
from,” 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” the
work “forty” shall be substituted.
5. Substitution of new section for section 4:- for section 4 of the Principal Act, the following sections
shall be substituted.
ALL EMPLOYERS TO SUBMIT RETURN IN FORM 5A OF
THE 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.
PAGE 09
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