proposed amendments to the apprentices act, 1961

Compliance Calendar for July 2014

Accident compensation for a driver suffering with chest pain...

Declaration of lock out justified when the workers…

Transfer of an Employee cannot be stalled…

Inspection scheme of Employees Provident Fund Organization

Inspection scheme for Employee State Insurance Corporation

Proposed amendments to the apprentices Act

Employee survey high among indians

TABLE OF CONTENTSEDITOR’S NOTE

Hello Readers,

The Compliance Calendar Highlights for July include Professional Taxes and Labour Welfare remittances in several states.

In important judgements, The Honourable Delhi High Court has held that accident compensation for a driver suffering with chest pain after long drive is justified. The Honourable Kerala High Court, in a landmark judgement has opined that the owner of a hotel and a principle employer can also be treated as employee under the ESI Act. The Honourable Delhi High Court has held that mere negligence of an employee will not debar him from accident compensation. The Honourable Guwahati High Court has ruled that the declaration of lock out is justified when the workers have damaged property and assaulted the Manager. The Honourable Madhya Pradesh High Court has held that the transfer of an employee cannot be stalled merely because the employee will not be able to avail of medical facilities.

In news to note, EPFO has announced the criteria for the upcoming Inspection Scheme to simplify business regulations and bring in transparency and accountability in labour inspections. Towards the same objectives, an Inspection scheme for Employee State Insurance Corporation has also been announced. There are important amendments proposed to

Apprentices Act, 1961. And across the APAC region, the most engaged employees are from India and Indonesia

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]

STRICTLY STATUTESA Newsletter from ADP India

JULY2014

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STRICTLY STATUTES A Newsletter from ADP India

Due Date Scope Due Under Mode

Compliance Calendar for July 2014

Professional Tax Remittances

10th July 14

30th Aug 13

Andhra Pradesh & Madhya Pradesh

Maharashtra, Assam & Orissa

State-wise regulations

State Wise regulations

By Challan

By Challan

Labour Welfare Fund Remittances

PF

15th July 14 Central - Remittance of Contribution EPF & MP Act 1952 By Challan

15th July 14 Central - International worker with wagesand nationality Statement in IW 1EPF & MP Act 1952

ESI

21st July 14 Main Code & Sub Codes - Remittance ofContribution ESIC Act 1948 By Challan

15th July 14 Gujarat Gujarat PT regulations By Challan

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20th July 14

21st July 14

Karnataka

West Bengal

Karnataka PT regulations

WB PT regulations

By Challan

By Challan

31st July 14 Maharashtra, Assam & Orissa State-wise regulations By Challan

15th July 14 Delhi Delhi LabourWelfare Fund By Challan

20th July 14 Kerala Kerala Labour Welfare Fund By Challan


In a case of Oriental Insurance Corporation Limited Vs Pushpa Devi & others , the honourable Delhi high court through its bench comprising honourable justices Mr. Valmiki and Mr. Mehta pronounced that the high court would not interfere on the compensation awarded by the Compensation Commissioner, when death of the driver has occurred due to chest pain because of driving for a long distance and reaching the consignment on time at the required destination.

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Accident compensation for a driver suffering with chest pain after long drive is justified

Important Judgements

In an extraordinary case of F. Fasheer, Sapna, Thiruvananthapuram Vs The Regional Director, ESI Corporation and another, the honourable Kerala High Court under the honourable justice S.S. Satheesachandran pronounced that when the name of owner/employer of the hotel is included in the list of employees of the hotel, duly submitted by the cashier of the employer, treating the owner/employer as an employee for the coverage of the hotel under the ESI Act, 1948, is justified.

Principle employer can have dual capacity as an employee also as per settled position of law by the apex court in the case of ESIC V. Apepx Engineering Pvt Ltd (1998) 1 scc 86 considering that ESI scheme is intended for welfare of the working class AND there is no bar under the act prohibiting the principle employer to be considered as an employee for the purpose of the Act

Owner of a hotel and a principle employer can also be treated asemployee under ESI Act

In a case of New India Assurance Corporation Limited Vs Virender Singh & Another, the honourable Delhi high court through its bench comprising honourable justices Mr. Valmiki and Mr. Mehta pronounced that the liability of insurer arises under the Employees’ Compensation Act, 1923, if the accident arises out of and in the course of employment.

Liability to pay compensation can be denied by the employer as well as the insurer only when it is proved that the employee, while preforming duty, was under the influence of liquor or drugs or had willfully disobeyed the express order of the employer. When due to accident an employee is not capable of doing the work which he was doing before the accident, there would be total disablement of the employee entitling him compensation by applying 100% factor irrespective of his medical disability of lesser percentage.

Mere negligence of employee, will not debar him from accident compensation


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In a peculiar case of Management of Cossipore Tea Estate Vs Bagan Panchayat of Cossipore Tea Estate the honourable Guwahati under honourable justice Mr. Hrishkesh Roy pronounced that the lockout notified by the management is justified and legal when it is proved on record that the workman had damaged the properties of the management, caused assault to the manager and other staff by gherohing them and not allowing the willing workers to resume duties, resulting in stoppage of production activities.

Declaration of lock out justified when the workers Damaged the propertiesand assaulted the Manager

In case of Sunil Kumar Johari Vs M.P. Housing Board and others the honourable Madhya Pradesh High Court under honourable Justice Ms. Sheel Nagu pronounced that the transfer of an employee form Guna to Bhopal would not be interfered by the high court in a writ petition since the transfer has been made just because of administrative

reason and the petitioner having worked for one month at Guna, there have been no frequent transfers, it could not be construed as mala fide.

The plea of the petitioner in stalling the transfer that he is suffering from ailment would not be believed as he will have better treatment at Bhopal than Guna and, as such, the transfer would not be stayed by the high court.

Transfer of an Employee cannot bestalled merely that the employee willNot be able to get Medical Facilities


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News to note

With an objective to simplify business regulations and bring in transparency and accountability in labour

inspections, the Employees Provident Fund Organization announced for Inspection Schemes. It envisages

objective criteria for selection of units for inspection.

Inspection scheme of Employees Provident Fund Organization

Criteria For InspectionMandatory inspections for:-

All new coverages

All establishments registered on ECR portal, not marked as closed and not complying.

Establishments reported for closure

Optional inspections for:-

Remittance drop in excess of Rs.10000/- and 15% (weightage of 1:1)[40%]

Membership drop in excess of 50 members and 15% (weightage of 1:1)[40%]

All other Units [20%]

Normally not to be repeated in the same year as far as possible.

With an objective to simplify business regulations and bring in transparency and accountability in labour

inspections, the Employees Provident Fund Organization announced for Inspection Schemes. It envisages

objective criteria for selection of units for inspection.

Inspection scheme for Employee State Insurance Corporation

Criteria For InspectionMandatory inspections for:-

All new covered/registered units

Units which have been defaulters for six months

Units for which closure request has been received

Units where no inspection was carried out in last 3 years (as ESIC has timebar of 5 years for claiming dues)

Optional inspections for:-

Drop in contribution by 30% and above compared to previous contribution period (over a period of six months)[30%]

Drop in number of covered employees by 30% and above compared to previous contribution period (over a period of six months)[30%]

Security/manpower agencies employing more than 250 employees[30%]

Any other not falling in above categories [10%]


PROPOSED AMENDMENTS TO THE APPRENTICES ACT, 1961The Apprentices Act, 1961 was enacted with the objective of regulating the program of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training. The Act makes it obligatory for employers to engage apprentices in designated trades to impart apprenticeship training on the job in industry to school leavers and ITI pass outs, Graduates engineer, Diploma holder and Certificate in 10+2 vocational stream to develop skilled manpower.

There are four categories of apprentices namely; Trade Apprentices (ITI pass outs, 8thth th , 10& 12pass outs), Graduates engineer apprentices, Technician apprentices (Diploma level) and Technician (Vocational) apprentices (Certificate in 10+2 vocational courses).

Comparing the size and rate of growth of economy of India, the performance of Apprenticeship Training Scheme (ATS) is not satisfactory and a large number of training facilities available in the industry going unutilized depriving unemployed youth to avail the benefits of the ATS. To improve the participation of industry and youth in ATS in a large number, Office of the Prime Minister’s National Council on Skill Development (PM’s NCSD), Central Apprenticeship Council (CAC), National Commission on Labour (NCL), Indian Labour Conference (ILC), Confederation of Indian Industry (CII) and National Skill Development Agency (NSDA) have given a slew of recommendations to make changes in the Apprentices Act, 1961 to make it more responsive to industry and youth. Apart from above, a Working Group constituted by DGE&T, Ministry of Labour & Employment in November, 2013 for revamping all the Schemes run by DGE&T has also given its recommendations in respect of Apprentices Act. 1961.

An Inter-Ministerial Group (IMG) was constituted comprising representatives from Ministry of Railways, Ministry of Micro Small Medium Enterprises, Ministry of Power, Ministry of Defense, Planning Commission, NSDA & DGE&T for discussion on the suggestions received from PM’s NCSD, CAC , NCL, ILC, CII, NSDA and WG. Three meetings of the IMG were held under the Chairmanship of DG/JS and IMG has submitted recommendations. Based on the recommendations of IMG, proposals to amend the Act are being uploaded for public consultations along with the summary of the suggestions received from various sources and the Minutes of the meetings of the IMG.

EMPLOYEE SURVEY HIGH AMONG INDIANSAbout half Indian Workers in a survey have said that they felt fully committed or engaged with their current employer.

A total of 41% of the respondents in the country said they were totally committed to their current employer, according to the latest results from Kelly Global Workforce Index titled “Engaging Active and passive job seekers”

Across APAC, the most engaged employees are in India and Indonesia, with lowest being in Thailand and Singapore, it said.

The survey also highlighted that among the many reasons for an organisation to be an attractive employer in India are salary, financial compensations, compensation and benefits at 26%, followed by work life balance at 74%

ADP Global

With more than $11 billion in revenues and more than 60 years of experience, ADP® (NASDAQ: ADP) serves approximately 620,000 clients in more than 125 countries. As one of the world's largest providers of business outsourcing and human capital management solutions, ADP offers a wide range of human resource, payroll, talent management, tax and benefits administration solutions from a single source, and helps clients comply with regulatory and legislative changes, such as the Affordable Care Act (ACA). ADP's easy-to-use solutions for employers provide superior value to companies of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughout the world.

ADP India

ADP India offers a wide range of payroll, statutory and HR solutions, both as managed services and on cloud. ADP partners with organisations to assist with their complex, yet critical functions of payroll, statutory compliance and HR administration tasks effectively.

ADP’s proven Managed and On Cloud Payroll, Statutory Compliance, Leave Management and Time & Attendance solutions are designed to address the scalable and dynamic needs of an organisation. ADP partners with small, mid-sized and large enterprises to streamline their Payroll, Compliance and HR administration processes.

ADP India is an ISO 9001:2008 and ISO 27001:2005 certified and SSAE 16 Type II compliant company and serves clients from all industries across the country.

For more information about ADP India or to contact a local ADP sales office, reach us at 1-800-4190-237 or visit the company's Web site at www.adp.in

ADP IndiaThamarai Tech Park,S.P. Plot No. 16 to 20 & 20AThiru Vi Ka Industrial Est ate,Inner Ring Road, Guindy,Chennai - 600032.

Phone1-800-4190-237

[email protected]

Get the ADP expertise working for you.A 60 year track record that speaks for itself.

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proposed amendments to the apprentices act, 1961

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